Certified Public Procurement Officer (CPPO) Practice Exam Questions And Correct Answers (Verified Answers) Plus Rationales 2026 Q&A | Instant Download Pdf
- Which of the following best describes the primary purpose of public
procurement?
a) To maximize profits for suppliers
b) To obtain goods and services at the best value for the public
c) To reduce government spending regardless of quality
d) To encourage competition among private companies
Rationale: Public procurement aims to ensure that the government obtains
goods and services efficiently, effectively, and ethically, maximizing public value rather than profit. 1 / 4
- What is the main principle behind competitive bidding in public
procurement?
a) To select the supplier with the fastest delivery
b) To award contracts to political allies
c) To promote fairness, transparency, and value for money
d) To allow negotiation with a single supplier
Rationale: Competitive bidding ensures fairness, transparency, and cost-
effectiveness in the procurement process.
- Which procurement method is most suitable when there is only one
supplier capable of delivering a specific product?
a) Open tender
b) Sole-source procurement
c) Request for quotation
d) Reverse auction
Rationale: Sole-source procurement is used when only one supplier can
meet the requirements, ensuring continuity and uniqueness.
4. In procurement, the term “best value” refers to:
a) The lowest price offered
b) The supplier with the fastest delivery
c) A combination of price, quality, and overall benefit
d) The supplier with the longest experience 2 / 4
Rationale: Best value considers not only cost but also quality, timeliness,
and other factors that provide the greatest overall benefit.
- Which document typically initiates the procurement process in public
sector organizations?
a) Purchase order
b) Delivery receipt
c) Requisition
d) Contract
Rationale: A requisition formally requests goods or services and triggers
the procurement process.
- Which of the following is a key ethical principle in public
procurement?
a) Profit maximization
b) Integrity and transparency
c) Favoritism
d) Speed over accuracy
Rationale: Integrity and transparency prevent corruption and ensure public
trust in procurement processes.
- When evaluating bids, what is the most important consideration?
a) Supplier’s nationality
b) Compliance with specifications and overall value 3 / 4
c) Personal connections
d) First bid received
Rationale: Bids must meet specifications and provide the best overall value
to the organization.
- What is a “bid bond” used for in procurement?
a) To guarantee payment to suppliers
b) To ensure the bidder will honor their bid if awarded
c) To insure delivered goods
d) To provide credit to the buyer
Rationale: Bid bonds protect the procuring entity from non-performance by
bidders who might back out after winning a contract.
- Which type of contract sets a fixed price for the total work regardless
of actual costs incurred?
a) Cost-plus contract
b) Time and materials contract
c) Lump-sum contract
d) Unit price contract
Rationale: Lump-sum contracts specify a fixed total price, providing cost
certainty to the procuring entity.
- What is the main purpose of a “purchase order” in
procurement?
a) To request quotes from suppliers
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