Procurement of Works

Q1 of 24

_____________ refer to any activity, sufficient in itself to fulfil an economic or technical function,
involving construction, fabrication, repair, overhaul, renovation, decoration, installation, erection,
excavation, dredging, and so on, which make use of a combination of one or more of engineering
design, architectural design, material and technology, labour, machinery and equipment.
a. Public works
b. Works
c. Original works
d. Civil works

Q2 of 24

______________ means civil/ electrical works including public buildings, public services,
transport infrastructure etc., and any other project, including infrastructure which is for the use of
general public. [GFR-2 xxiv)]
a. Public works
b. Works
c. Original works
d. Civil works

Q3 of 24

_____________ means all new constructions, site preparation, additions and alterations to
existing works, special repairs to newly purchased or previously abandoned buildings or structures,
including remodelling or replacement.
a. Public works
b. Works
c. Original works
d. Civil works

Q4 of 24

_____________ mean works which add capital value to existing assets but do not create new
assets.
a. Original works
b. Repair works
c. Minor works
d. Public works

Q5 of 24

______________ means works undertaken to maintain building and fixtures.

a. Public works
b. Original works
c. Minor works
d. Repair works

Q6 of 24

______________ Works will also include services or goods incidental or consequential to the
original or repair works.
a. Correct
b. Incorrect

Q7 of 24

Which of the following statements are correct in the context of describing ‘Works’?

1) It refers to construction

2) Supply of some materials or certain services may be incidental or consequential to and part of
such works

3) It involves calling for separate tenders for supply of material and procurement of services

Select the correct answer using the code given below:

a. 1), 2) & 3)
b. 1) &2)
c. 1) &3)
d. 2) & 3)

Q8 of 24
There are _____ categories of works.
a. Two
b. Three
c. Four
d. Five

Q9 of 24

Construction of ‘Children ward’ in an existing hospital is an example of:

a. Minor works
b. Repairs works
c. Original works

Q10 of 24

Administrative control of work includes:

1) assumption of full responsibility for construction, maintenance and upkeep;

2) proper utilization of buildings and allied works; and

3) provision of funds for execution of these functions.

Select the correct answer using the code given below:

a. 1) & 3)
b. 1) & 3)
c. 2) & 3)
d. 1), 2) & 3)

Q11 of 24

A Department may, at its discretion. Assign repair works estimated to cost Rs _________ and
original or minor works of Rs _____________to Central Public Works Department or State PWD
or other central government organisations authorized to carry out such works like Military
Engineering Service, Border Road Organisation or construction wings of Ministry of Railways,
Defence, etc. or to a Public Sector Undertaking set up by the centra government to carry out civil
or electrical work after evaluating their financial strength and technical competence.
a. 50 lakh; 100 crore
b. 20 lakh; 1 crore
c. 30 lakh; and any value
d. 50 lakh; and any value

Q12 of 24

Except in urgent cases, which of the following are essential before work is commenced or liability
incurred in connection with it:

1) Administrative approval and expenditure sanction

2) Availability of funds

3) Tenders are invited and processed as per the rules

4) Work order is issued

Select the correct answer using the code given below:

a. 1), 2) & 4)
b. 1), 3) & 4)
c. 1) & 4)
d. 1), 2) 3) & 4)

Q13 of 24

Any anticipated or actual savings from a sanctioned estimate for a definite project:
a. May by transferred to carry out additional work not contemplated in the original project.
b. shall not, without special authority, be applied to carry out additional work not contemplated in
the original project.
c. Shall only be surrendered and in no case be used to carry out additional work not contemplated
in the original project.

Q14 of 24

Some types of the Special repairs may qualify to be categorised as _________ .

a. Annual repairs
b. Minor works
c. Original works
d. Major works
Q15 of 24

The Articles of Agreement with the International Agencies like the World Bank, Asian
Development Bank etc. stipulate specific procurement procedures to be followed by the borrowers.
In such cases:
a. The procurement procedure stipulated by such international agencies may be agreed to by the
administrative Department concerned.
b. The procurement procedures, as finalized and incorporated in the agreements after consideration
and approval of the Ministry of Finance are to be followed accordingly.
c. No deviation from the provisions stipulated in the General Financial Rules, 2017 is permitted
without approval of the Union Cabinet.

Q16 of 24

This type of procurement contract relies on assigning the responsibility for investigations, design
and construction to the contractor for a lump sum price determined through competitive bidding.
The objective is to ensure implementation of the project to specified standards with a fair degree
of certainty relating to costs and time while transferring the construction risks to the contractor.
What is such a contract known as?
a. Engineering, procurement and Construction (EPC)
b. Public Private Partnership
c. Item rate or Unit rate contract
d. Piece work contract

Q17 of 24

Why is advisable to a procurement authority in case of high value contracts or complex technical
requirements,to adopt ‘pre-qualification bidding’ process?
a. To ensure that competition is only among bidders with requisite capabilities matching the
challenges of the task.
b. In case bidders with inadequate capability are allowed to compete, the better qualified bidders
would be eliminated, since their bid price is likely to be higher commensurate with their higher
capability and infrastructure.
c. Both a and b

Q18 of 24

Which of the following statement(s) is/ are true in the context of ‘pre-qualification criteria’ (PQC)?
a. PQC should be unrestrictive enough so as not to leave out even one capable bidder/ contractor.
b. These criteria should be restrictive enough so as not to allow even one incapable bidder/
contractor
c. Both a and b

Q19 of 24

When can ‘pre-qualification criteria’ (PQC) lead to higher prices of procurement of works?
a. If the PQC are unrestrictive enough so as not to leave out even one capable bidder/ contractor.
b. If the PQC are restrictive enough so as to leave out capable bidders or contractors.

Q20 of 24

When can ‘pre-qualification criteria’ (PQC) vitiate fair competition for capable bidders or
contractors to the detriment of the Procuring Entity’s objectives?
a. If the PQC are unrestrictive enough so as not to leave out even one capable bidder/ contractor.
b. If the PQC is unrestrictive enough so as not to allow even one incapable bidder or contractor

Q21 of 24

There are the guidelines on ‘pre-qualification criteria’ (PQC) in respect of ‘particular construction
experience’. The bidder should have successfully completed or substantially completed similar
works during the last 7 years ending the last day of the month previous to the one in which
applications (bids) are invited. These are:

1) Three similar completed works costing not less than the amount equalto 40(forty) percent of
the estimated cost

2) Two similar completed works costing not less than the amount equal to50 (fifty) percent of
the estimated cost

3) One similar completed work costing not less than the amount equal to80 (eighty) percent of
the estimated cost

Select the correct answer using the code given below:

a. 1), 2) & 3)
b. 1) & 2)
c. 1) & 3)
d. 2) & 3)
e. Either 1) or 2) or 3)

Q22 of 24

General Financial Rules, 2017 stipulate that ‘negotiation with bidders after bid opening must
severely be discouraged.’ The ‘Works manual’, however, lists circumstances where negotiation
could be considered. Which of the following are such circumstances?

1) Where the procurement is done on nomination basis;

2) Procurement is from single or limited sources;

3) Procurements where there is suspicion of cartel formation which should be recorded; and

4) Where the requirements are urgent and the delay in re-tendering for the entire requirement
due to the unreasonableness of the quoted rates would jeopardise essential operations, maintenance
and safety

Select the correct answer using the code given below:

a. 1) & 2)
b. 1), 2) & 3)
c. 1), 2) & 4)
d. 1), 2), 3) & 4)

Q23 of 24

Office Memorandum No 1/1/2021-PPD of Ministry of Finance (Department of Expenditure) dated

29.10.2021 stipulates that “It has become a practice among some procurement entities to routinely
assume that open tenders which result in single bids are not acceptable and to go for re-tender as
a ‘safe’ course of action. This is not correct. Re-bidding has costs.” Which of the following are
such re-bidding costs?

1) The actual cost of re-tendering

2) The delay in execution of the work with consequent delay in the attainment of the purpose
for which the procurement is being made

3) The possibility that the re-bid may result in a higher bid

Select the correct answer using the code given below:

a. 1)&2)
b. 1)& 3)
c. 2) & 3)
d. 1), 2) & 3)

Q24 of 24

Only one bid is submitted in response to an open tender enquiry. The process may be considered
valid subject to certain conditions; and decision to procure from the ‘single offer’ may be made.
a. Correct
b. Incorrect

Public Procurement Framework of GOI

Q1 of 25

1. Which of the following is not a function of financial management in government?

a. Raising resources
b. Maximising wealth of the shareholders
c. Making investment and expenditure decisions
d. Maintaining and adding accounts

Q2 of 25

2. Financial functions of the government are performed under the oversight of:
a. The Prime Minister
b. The Finance Minister
c. Council of Ministers
d. The Parliament

Q3 of 25

3. Why is the general system of financial management needed?

a. Uphold the rule of law, provide financial accountability, enable officers to discharge
responsibilities diligently and improve department’s ability to service citizens better
b. Uphold the rule of law, provide financial accountability, enable officers to discharge
responsibilities diligently, divest government stake in loss-making CPSEs and improve
department’s ability to service citizens better
c. Uphold the rule of law, provide financial accountability, divest government stake in loss-
making CPSEs and improve department’s ability to service citizens better
d. Uphold the rule of law, provide financial accountability and improve department’s ability to
service citizens better

Q4 of 25

4. Difference between the financial management of corporate sector and government sector is:
a. Maximisation of social welfare
b. Maximisation of wealth of the shareholders
c. Use of resources in an optimal manner
d. Both (a) & (c)
e. Both (b) and (c)

Q5 of 25

5. Principles and procedure of general system of financial management pertain to:

a. Collection of revenue
b. Expenditure and payment of money
c. Both (a) and (b)

Q6 of 25

6. The Head of Account to which public moneys are credited and the withdrawal of moneys
therefrom are governed by the relevant provisions contained in the:
a. General Financial Rules, 2017
b. Compilation of list of Major Head and Minor Head
c. Government Accounting Rules 1990 and the Central Government Account (Receipts and
Payments) Rules, 1983 or such other general or special orders as may be issued in this behalf
d. Central Government Account (Receipts and Payments) Rules, 1983

Q7 of 25
7. In some government offices, officers are required to receive money on behalf of the
government. They must issue receipts in form GAR – 6, a format of which is available in:
a. Central Government Account (Receipts and Payments) Rules, 1983
b. General Financial Rules, 2017
c. Government Accounting Rules 1990
d. Delegation of Financial Powers Rules, 1978

Q8 of 25

8. Certain amount is due to government. There are difficulties in collecting these dues. Such
dues:
a. may be ignored
b. must be recovered at all cost
c. shall not be left outstanding without sufficient reasons
d. such cases are to be dealt with based on the circumstances of each case

Q9 of 25

9. Progress of collection of revenue and important variation with the Budget Estimates are to
be reported to:
a. Comptroller and Auditor General of India
b. Pay and Accounts Officer
c. Ministry of Finance
d. Controlling Officer

Q10 of 25

10. Who among the following is the Chief Accounting Authority of the Department?
a. Chief Controller of Accounts
b. Financial Adviser
c. Secretary of the department
d. Pay & Accounts Officer

Q11 of 25

11. Who among the following is accountable for the financial management of a department?
a. Department of Expenditure
b. Secretary of the department
c. Financial Adviser
d. Joint Secretary of the Wing concerned (the subject matter division)

Q12 of 25

12. Who provides funds required for a department?

a. Secretary of the department
b. Financial Adviser
c. Controller General of Accounts
d. Ministry of Finance through the process of budget formulation

Q13 of 25

13. Who is responsible for to ensure that the public funds allotted to a department are used for
the purpose for which they were meant to be used?
a. Comptroller & Auditor General of India
b. Controller General of Accounts
c. Chief Controller of Accounts
d. Secretary of the department

Q14 of 25

14. Who is responsible for the effective, efficient, economical and transparent use of the
resources of a department in achieving the objectives of that Department?
a. Auditors
b. Chief Controller of Accounts
c. Secretary of a department
d. Minister-in-charge of a department

Q15 of 25

15. Who among the following appears before the Committee on Public Accounts and any other
Parliamentary Committee for examination?
a. The Minister-in-charge of the department
b. The Secretary of the department
c. The Heads of Departments and the CEO of the Central Public Sector Enterprises and Central
autonomous bodies
d. All the above

Q16 of 25

16. Expenditure is to be incurred from public money. Who among the following is to be guided
by high standards of financial propriety?
a. Officer responsible to approve the item of expenditure
b. Officer responsible to incur such an item of expenditure
c. Officers of Integrated Finance Division who concur with such an item of expenditure
d. All the above

Q17 of 25

17. Standards of financial propriety cover:

a. Vigilance, economy and equality
b. Vigilance, economy and public interest
c. Vigilance, economy, morality and equality
d. Vigilance, economy, morality, public interest and equality

Q18 of 25

18. Integrated Financial Division is headed by:

a. Chief Accounting Authority
b. Controller General of Accounts
c. Financial Adviser
d. Chief Controller of Accounts

Q19 of 25

19. Which of the following statements is the most appropriate one regarding the work handled
in Integrated Finance Division?
a. There are no guidelines on the work to be handled in the Integrated Finance Division
b. Provisions contained in the General Financial Rules, 2017
c. The role of Financial Adviser is given in the ‘scheme of IFA &Redefined Charter for the
Financial Advisers’
d. Both (b) and (c)

Q20 of 25

20. IFD under the Financial Adviser renders financial advice to the Department only on
matters that are beyond the delegated financial powers of the Secretary of a line Department.
a. False
b. True

Q21 of 25

21. Which of the following functions are performed by the Financial Adviser?
a. Finance, budget and accounts
b. Finance and budget
c. Budget and accounts
d. Finance and accounts

Q22 of 25

22. Not more than ___ and ___ of expenditure of Budget Estimates are permissible
respectively in the last quarter and last month of the financial year.
a. There are no such limits as expenditure is to be incurred on needs-basis
b. 67% and 33%
c. 25% and 8.33%
d. 33% and 15%

Q23 of 25

23. Who among the following is / are not to be given any administrative or executive work of
the Department?
a. Financial Adviser
b. Financial Adviser and Deputy Financial Adviser
c. Financial Adviser, Deputy Financial Adviser and officers posted in IFD

Q24 of 25

24. Which of the following options correctly reflects the position regarding comments given
on a file by Integrated Finance Division:
a. Subject matter division must accept the advice given by IFD
b. Subject matter division may retain their views and obtain approval of the Secretary in cases
that are under the delegated financial powers of the Secretary who may, in rare cases, overrule
the comments of IFD by an order in writing
c. Subject matter division may retain their views and obtain approval of the Secretary in cases
that are under the delegated financial powers of the Secretary who may hold meeting with both
the Joint Secretaries (JS of the subject matter division and JS&FA) and arrive at a consensus

Q25 of 25

IFD under the charge of Financial Adviser is associated with:

a. All activities of the line department
b. Policy issues
c. Project formulation, appraisal, implementation and evaluation
d. Finance related work including non-tax receipts, tax expenditure; project formulation,
appraisal, monitoring & evaluation; and due diligence on procurement and cont

Public Procurement of Goods

Q1 of 37

Public procurement of goods means:

a. Use of goods by the government employees to discharge their responsibilities
b. Use of goods for the public delivery of goods or services
c. Both (a) and (b)

Q2 of 37

Which of the following are the principles of public procurement?

1) Responsibility and accountability

2) Transparency

3) Fair & equal opportunity for all probable suppliers

4) Efficiency and economy

5) Notice Inviting Tender with adequate response time

6) Promotion of competition

Use the code given below and answer the question:

a.1), 2), 4), 5) & 6)
b.1), 2), 3), 4) & 5)
c.1), 2), 3), 4) & 6)
d.3), 5) & 6)

Q3 of 37

Which of the following is normally the starting point in public procurement?

a. Issue of Notice Inviting Tender (NIT)
b. Specifications for the items to be procured
c. Terms & conditions of procurement contract
d. Indents from users

Q4 of 37

Procurement of goods upto Rs ___________ may be procured without inviting quotation subject
to certain conditions:
a. Rs 10,000
b. Rs 15,000
c. Rs 25,000
d. Rs 50,000

Q5 of 37

Public procurement of goods in central government means purchase of goods from:

1) Central government public sector vendors

2) State government public sector vendors

3) Private sector vendors

4) International vendors

Use the code given below and answer the question:

a.1), 2), 3) & 4)
b.1), 2) & 3)
c.1), 2) & 4)
d.1), 3) & 4)

Q6 of 37

Procurement of goods beyond Rs 25000 and upto Rs __________ may be procured through
Local Purchase Committee.
a.Rs 15,00,000
b.Rs 25,00,000
c.Rs 1,50,000
d.Rs 2,50,000

Q7 of 37

Why is public procurement an important function with a huge responsibility?

1) Huge public money (about 20% of GDP) is involved

2) Efficient public delivery of goods and services is dependent on efficient public procurement
system

3) Inappropriate public procurement may result in adverse audit comments

4) Vigilance cases could be initiated against civil servants concerned

Use the code given below and answer the question:

a.1), 2), & 3)
b.1), 3) & 4)
c.2), 3) & 4)
d.1), 2), 3) & 4)

Q8 of 37
Which of the following statements is the correct statement?
a.Procurement and purchase are the same
b.Procurement is a sub-set of purchase
c.Purchase is a sub-set of procurement

Q9 of 37

GFR 2017 stipulates preparation of Annual Procurement Plan.

a.True
b.False

Q10 of 37

In a procurement case, open tender enquiry is adopted to procure 10,000 units. L1 happens to be
a non-MSE firm quoting Rs 100 per unit. There is one MSE firm that bid within the permissible
price preference margin, namely Rs 115 per unit. Which of the following depicts the correct
procurement decision in this context?
a.Procure 75% from the L1 @ Rs 100 per unit; and 25% from the MSE @ Rs 120 per unit as he
did not agree to match L1 price
b.Procure 75% from the L1 @ Rs 100 per unit; and 25% from the MSE also @ Rs 100 per unit
as he agreed to match L1 price
c.Procure 100% from the L1 @ Rs 100 per unit if MSE bidder does not agree to match L1 price.
d.Both (a) and (b)
e.Both (b) and (c)
f.Both (a) and (c)

Q11 of 37

Bid security and Performance security refer to the same.

a.True
b.False

Q12 of 37

Under the Make in India policy, a Class -1 Local Supplier is the one who makes domestic value
addition content of ____% or more.
a.20
b.30
c.50
d.75

Q13 of 37

GFRs does not provide for procurement of goods without inviting quotations.
a.True
b.False

Q14 of 37

e-procurement is optional.
a.True
b.False

Q15 of 37

Two-bid system and Two-stage bidding refer to the same bidding system of public procurement.
a.True
b.False

Q16 of 37

Under the Make in India policy, margin of purchase preference for Class I Local Supplier is
___% over the price quoted by the lowest non-Class 1 Local Supplier.
a.10
b.15
c.20
d.25

Q17 of 37

Technical bid and financial bid are obtained in two parts in separate sealed covers super-scribed
appropriately; and both the sealed covers are placed in a single bigger cover and submitted to
procurement authority. This system is known as:
a.two-bid system
b.two-stage bidding system
Q18 of 37

Under the MSE policy, sub-target of __ per cent from within the __% target shall be earmarked
for procurement from MSEs owned by women.
a.3: 25
b.4: 25
c.10: 25

Q19 of 37

The procuring agency initially obtains technical bids for evaluation. Later, it obtains financial
bids from only the technically eligible bidders. This system of public procurement is known as:
a.two-bid system
b.two-stage bidding system

Q20 of 37

Performance security is normally in the range of:

a.3 to 10% of the contract value
b.2 to 5% of the contract value
c.5 to 10% of the estimated value of goods to be procured
d.2 to 5% of the estimated value of goods to be procured

Q21 of 37

‘Tender’, “Bid’, ‘Quote’: these refer to the same in certain context.

a.True
b.False

Q22 of 37

‘Notice Inviting Tender’, ‘Request for Proposal’, ‘Expression of Interest’ – these refer to the
same
a.True
b.False

Q23 of 37
 While providing specifications of a product to be procured, which of the following yardstick(s)
is/ are not to be followed?
a.Specifications must be objective, functional and generic in nature
b.Trademark or brand name is to be given to ensure quality of the product
c.Qualitative and performance characteristics are to be provided
d.should meet the basic functional needs of the procuring organisation

Q24 of 37

Minimum time to be allowed for submission of bids in case of open tender enquiry is:
a.4 weeks
b.3 weeks
c.2 weeks
d.Sufficient time depending on the complexity of the goods to be procured

Q25 of 37

The number of supplier firms in case of limited tender enquiry, should be:
a.There is such limit as decision may be taken even if one bid is received
b.More than three
c.Three
d.Two

Q26 of 37

Bid security is also known as Earnest Money Deposit.

a.True
b.False

Q27 of 37

A sub-target of __% out of __% target of annual procurement is earmarked for procurement from
MSEs owned by SC/ST entrepreneurs.
a.15; 22.5
b.7.5; 22.5
c.4; 20
d.4; 25

Q28 of 37

Ordinarily, GFRs do not allow advance payment to the suppliers.

a.True
b.False

Q29 of 37

In case advance payment is payable to AMC vender or a fabricating vender or turnkey contactor,
such advance may be ___%, ___% or ___% of the contract value for the private firms, Central /
State government agency or to the AMC contractor, respectively.
a.40%; 50% 50%
b.30%; 40%; 50%
c.25%; 50% 75%
d.30%; 75%; 50%

Q30 of 37

Determining specifications of goods to be procured is an activity associated with:

a.Need assessment
b.Bid invitation
c.Bid evaluation
Both (a) and (c)

Q31 of 37

Determining the type of tender to be invited and the bidding system are part of:
a.Need assessment stage
b.Bid invitation stage
c.Bid evaluation stage
d.Contract management stage

Q32 of 37
Lowest bid (L1) is determined from among:
a.All the bids received against an NIT
b.All the responsive and unresponsive bids received against an NIT
c.All responsive bids received against an NIT

Q33 of 37

In a bid received by the procurement agency, there is a discrepancy between the unit price and
the total price. Which of the following is the correct statement in this context?
a.Total price will prevail
b.Unit price will prevail
c.The bid will be rejected as unresponsive
d.Since it is not a material change, the vendor will be asked to correct either the unit or the total
price but not the both; and considered as a responsive bid

Q34 of 37

Every Central Ministry /Department / CPSEs shall set an annual target of __% for procurement
from MSE Sector.
a.4%
b.15%
c.20%
d.25%

Q35 of 37

Make in India policy is applicable:

a.only if goods procured are divisible
b.only if goods procured are indivisible
c.in both cases whether or not the goods are divisible

Q36 of 37

Margin of price preference available to MSE vender under the MSE policy is”
a.10%
b.15%
c.20%
d.25%

Q37 of 37

When procurement authorities implement MSE policy or Make in India policy or both:
a.They incur additional outgo of public money because procurement made from MSE or Make in
India vender is at a higher cost
b.They do not incur any additional outgo of public money as the MSE or the Make in India
vender supplies at the L1 rate.