QPA State Exam Flashcards
The formal organization of purchasing in NJ municipalities was created by the laws of what year?
1917
What is the bid threshold?
With QPA - $36,000
Without QPA - $17,500
What type of contract is most common the preferred form of purchase for government?
Firm Fixed Pricing
When is an emergency purchase acceptable?
When an issue arises impacting the public’s health, safety and welfare.
What is a requisition?
The start of the purchasing process; a form from a department requesting materials/supplies with the name of the Vendor, quantity and cost.
What is the bid threshold with a QPA
Max of $36,000
15% or $5,400 quote threshold
What is the purpose of having a purchasing manual?
To have the rules, regulations, and scenarios of the Purchasing Laws in effect as well as an entity’s own procedures to follow. Must include chain of command.
What is the bid threshold without a QPA
Max of $17,500
15% or $2,625 quote threshold
What is the time period to make an award after opening a Sealed Competitive Bid?
60 days
FOB Destination is?
The most advantageous shipping arrangement wherein the purchaser takes possession of the good at the final deliver point. The opposite of FOB origin.
Local Public Contracts Law Statutory Citation?
NJSA 40A:11-1 et seq
Fully P.L. 1999 C. 440 NJSA 40A:11-1 et seq
Professional Service contracts are for a period of…?
One year (12 months)
If collusion is suspected whom do you notify?
GB, County Prosecutor and/or Attorney General
When or if no bids are received, following an IFB, when can you negotiate with vendors?
Provided the bid is reissued, in the exact same composition, after no bids are received for a second time.
Who can award a contract over the bid threshold?
Governing Body (GB)
For total aggregate, can contracts be broken down?
No
How can a governing body enact local law in furtherance of the LCPL?
By resolution or more commonly ordinance.
What is a specification?
A concise statement of a set of requirements to be satisfied by a product, material or process.
What does MSDS stand for?
Material Safety Data Sheet
What requires Material Safety Data Sheets (MSDS)?
Workers’ Right to Know (RTK) Act
Advertisement must happen how many days before a bid?
10 calendar days or 60 calendar days for SW bid
A Bid Bond is what percentage of a contract not to exceed what dollar amount?
10% of contract price, not to exceed $20,000
A Bid Bond is your guarantee of what?
That the contractor with sign the contract if awarded
Consent of surety ensures that a contractor will be able to obtain what?
A Performance Bond from the insurance company.
What is a Labor & Material Payment Bond or simply a Payment Bond?
It is a bond the contractor secures and posts that ensures that the contractor will pay his employees, sub-contractors, and for all products used on the job.
What is a Maintenance Bond?
A bond that guarantees the product or job during a specific time period that is requested.
What is the maximum amount change orders can increase a contract without notification of DLGS?
20%
Define Aggregation
The total amount spent within a 12 month period starting with the date of first purchase for like items.
What is the Certification of Funds?
Acknowledgement that the money is available within the budget by the CFO for requisitions received or that said funds are available in anticipation of a contract award by GB.
What is an encumbrance and when should it occur?
An encumbrance of funds is the setting aside of monies within the budget for a specific purpose. This is accomplished through a PO and is required through Technical Accounting Directive - 1. An encumbrance should occur prior to an order taking place.
What types of transactions are governed by the Uniform Commercial Code (UCC)?
Commercial transactions.
Why was the Uniform Commercial Code (UCC) formulated?
To provide uniform statutes within all 50 states. All 50 have adopted the UCC but not uniformly.
Is there such a thing as an honest mistake?
Yes, and it may be a reason to legally withdraw a bid.
What is replevin?
The act of retrieving something wrongfully taken.
What are the two types of law practiced?
Common and Statutory
What is Common Rule?
The policies and procedures that comply with State and Federal Law.
When there is a dispute between terms of two agreements, is arbitration your only option?
No, other forms of alternate dispute resolution include fact finding or mediation.
Is a Purchase Order a contract?
Yes.
Can an Expressed Contract be written, oral or both?
Both up to $500, written thereafter.
The fundamental philosophy of our competitive bidding statute is…?
That economy be secured and extravagance, fraud and favoritism be prevented.
When a discrepancy in the bid occurs and the amount in words is different from the equivalent in numbers, which shall be binding?
The amount in words.
When a discrepancy in the bid occurs and there is a difference between the unit prices and the extended totals, which shall prevail?
The unit prices.
Under the NJ Prevailing Wage Act, how many days does a contractor have to submit his certified payroll records?
10 days
The Statement of Stockholder Disclosure lists the names and addresses of all stockholders in the corporation or partnership which own what percentage or more of its stock?
10%
What is necessary to make a change to the specifications being bid upon, which also must be issued to all prospective bidders?
An addendum (min 7 calendar days prior to opening)
Can you charge for bid specifications?
Yes.
When using FOB Origin/FOB shipping point, the transfer of ownership of the goods occurs when?
When the material leaves the seller’s dock.
What type of organization does not need the competitive process for a concession award?
A non-profit organization.
Within a non-fair and open contract arrangement, what is the maximum amount that is able to be donated by a vendor/contractor?
$300
How many times and within what time period must the lead agent in a Co-Op advertise?
Once per year.
Can a Governing Body award a contract over the bid threshold?
Yes.
What must all Committee members sign in order to participate in the review of proposals submitted via a competitive contracting RFP process?
A NO conflict of interest certification
What are the Branches of Law (or Government)?
Judicial, Legislative, Executive
A municipality may alter a budget appropriation or add an appropriation through what process?
A resolution authorizing a chapter 159
The statutes are designed to…?
Safeguard the public good and should be rigidly enforced by the court.
Contracts shall be signed within how many days of award or the local unit may move to the next bidder?
21 business days
How, when and by whom is the bid threshold increased?
Every 5 years (years ending in 0 and 5), no later than March 1, the Governor in consultation with the Department of the Treasury will adjust the threshold amount (rounded to the nearest $1,000) to become effective on July 1 of the same year
What does S.O.W. stand for?
Scope of Work
What is a Window Contract?
Contracts between $17,500 and your bid threshold. Awarded by resolution of the GB.
What is Competitive Contracting?
A method where contracting for specialized goods and services through formal Sealed Competitive Proposals (RFP) are solicited from vendors.
What is the Estoppel Period?
A period following the notice of a funding authorization wherein the public can object. 20 days when authorizing debt, 10 days when fully funded.
What is a Warranty?
A promise that goods are of a certain quality and conform to certain standards. A warranty is intended to protect that purchaser from poor workmanship and defect.
The statutory citation for the Local Public Contracts Law is?
NJSA 40A:11-1 et seq.
The statutory citation for the Local Fiscal Affairs Law is?
NJSA 40A:5
The statutory citation for the Local Budget Law is?
NJSA 40A:4
The statutory citation for the Local Bond Law is?
NJSA 40A:2
The statutory citation for the Local Public Land & Buildings Law is?
NJSA 40A:12
The three Technical Accounting Directives are
TAD 85-1 An Encumbrance System
TAD 85-2 Maintaining a fixed asset recording system
TAD 85-3 Use of a General Ledger
The statutory citation for the Pay-to-Play Law is?
NJSA 19:44A-1
Title 40A:9-22a is
The Local Government Ethics Law
A _____________________ ensures only that the contract, if awarded, will be signed by the perspective contractor or vendor.
Bid Bond/Guarantee
A ______________________ ensures that a perspective contractor will be able to obtain a Performance Bond from an insurance carrier.
Consent of Surety
A ______________________ ensures that a contractor will pay his employees, subcontractors and for all products he uses on the project.
Labor & Material Bond
A _______________________ provides protection of the products from breakdown during the term required.
Maintenance Bond
Advertisement must appear ___________ days prior to a bid, except for solid waste which is __________ days.
10/60
There are three types of Authority of an agent, what are they?
Express, Implied and Apparent
Express Authority
Authority given in writing to the agent setting limits on products, quantity and dollar amounts.
Implied Authority
Authority that is unstated but apparent, e.g. a uniform
Apparent Authority
Authority that the supplies assumes or believes someone has to make purchases, e.g. Administrator’s secretary who replenishes the postage machine
The most common types of specifications are…?
Performance and Design Specifications
P.L. _________, C ________ serves as the basis for our present LCPL.
P.L. 1999, C. 189. The key in this fill in the blank/multiple choice question is to know the year of the LPCL.
FOB term that is most advantageous t an entity is FOB point of…?
Destination
How can a local body enact law in furtherance of the LCPL?
Ordinance or Resolution
When a contracting unit determines that a bid was not arrived at independently, they must notify…?
The GB, Prosecutor and the AG
The statutory citation for the Local Government Ethics Law is?
40A:9-22.1 et seq
The two most common types of laws we are governed by are?
Statutory and Common (Case Law)
Forms of Bid Rigging include…
Rotating Bids, Bid Suppression and Complementary Bids