Manual for Procurement of Goods & Services – MCQs

1.Which of the following is a primary responsibility of procuring entities under procurement rules?

A) Ensuring quality assurance
B) Maintaining budget records
C) Ensuring timely delivery of goods and services
D) Enforcing ethical standards in procurement

[show_answer]The correct answer is: Ensuring timely delivery of goods and services [/show_answer]

2.What is the primary objective of procurement in government entities?

A) To promote competitive practices
B) To ensure financial accountability
C) To balance quality, cost, and delivery time
D) To minimize overhead costs

[show_answer]The correct answer is: To balance quality, cost, and delivery time [/show_answer]

3.What does “Value for Money” (VfM) in procurement mean?

A) Lowest price
B) The best combination of cost, quality, and efficiency
C) Highest quality
D) Fastest delivery time

[show_answer]The correct answer is: The best combination of cost, quality, and efficiency[/show_answer]

4.Which document is required to be submitted by a supplier when responding to a tender?

A) Proposal document
B) Bid security
C) Pre-qualification certificate
D) All of the above ✅

[show_answer]The correct answer is: All of the above [/show_answer]

5.What is the role of a “Bid Security” (Earnest Money Deposit)?

A) To guarantee a supplier’s performance
B) To secure the financial commitment of the bidder ✅
C) To provide a refundable deposit
D) To ensure compliance with tender deadlines

[show_answer]The correct answer is: To secure the financial commitment of the bidder
[/show_answer]

6.When is an “Open Tender” procedure used?

A) For high-value contracts with global suppliers
B) When the procurement item is exclusive to one supplier
C) For contracts with no time constraints
D) For highly technical products only

[show_answer]The correct answer is: For high-value contracts with global suppliers
[/show_answer]

7.What is the maximum duration for bid validity in an open tender?

A) 30 days
B) 60 days
C) 90 days
D) 180 days

[show_answer]The correct answer is: 90 days
[/show_answer]

8.What is the objective of a “Limited Tender” procedure?

A) To invite bids from a small set of suppliers ✅
B) To ensure public advertisement
C) To evaluate only the lowest-priced bids
D) To select suppliers based on pre-existing relationships

[show_answer]The correct answer is: To invite bids from a small set of suppliers
[/show_answer]

9.In which scenario is a “Proprietary Article Certificate” (PAC) used?

A) When the item has no competition ✅
B) For items readily available from various suppliers
C) When the procurement item is highly standardized
D) For low-value contracts only

[show_answer]The correct answer is: When the item has no competition
[/show_answer]

10.What does “Force Majeure” refer to in procurement contracts?

A) A clause for performance guarantees
B) Unforeseen events like natural disasters that impact delivery
C) A discount clause for prompt payment
D) A financial penalty for delayed delivery

[show_answer]The correct answer is: Unforeseen events like natural disasters that impact delivery [/show_answer]

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