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%
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.
19

Correct

18

Incorrect

Unanswered

51

Percentage
About
Comments
Public Procurement of Goods
By Department of Expenditure

1h 7m

4 Interactive Contents

Free

Self learning

CC BY 4.0
Summary
Government organizations procure wide variety of goods and services, including execution of
works, involving huge amount of funds. They need to follow the fundamental principles of
Public Procurement, viz., – transparency, fairness, competition, economy, efficiency and
accountability. General Financial Rules provide the framework that helps the officers engaged in
Public Procurement function.
Description
The Online training modules of Public Procurement would help the officers posted in Integrated
Finance Divisions (IFDs) of various Ministries and Departments in examining the proposals in
light of the GFRs and other instructions before its concurrence is given by the Financial
Advisors. The Online Modules of Public Procurement are equally helpful for the officers
engaged in procurement function working in Administration Divisions. The learners shall be put
to test in each module so that they can check themselves and may go back to the particular
portion of the module for re-emphasising the learning.

Competencies
Domain
Public Finance
Public Finance
Integrated Finance Division
Integrated Finance Division
Tags
Links Manuals Books
Solve Simulation
Reflect on these Questions
Public Procurement of Goods
Integrated Finance Division(IFD)
Procurement Services
Sectors
Procurement
No Subsector Available
Authors and curators

SM
Susheel Mamgain
Author

SM
Susheel Mamgain
Curator
Provider

Department of Expenditure

4.5
8.7K ratings
5 star
4 star
3 star
2 star
1 star
Top reviews
Show All
Good information but I had to repeat few modules 2-3 times as the progress got stuck at 40
percent.
4

SK
Shashi Kumar
2 years ago
Indentors and users may be included in target learners in addition to finance people. As they
indentors are initiators of proposal and mistakes and associated delays can be avoided by traing
indentors
4

AK
Ashutosh Kaushik
2 years ago
This interactive course is easy to understand the complexities of Public Procurement. One needs
to study the downloaded content thoroughly to better understand the system.
4
YA
Yatishwar Anand
2 years ago
Useful information related to public procurement. Clarified many doubts i had before starting
this course. Thanks to the author of this course
4

MK
Mohana Kumar Tatakuntla
2 years ago

Public Procurement of Goods

10m

Reflect on these Questions

5m

Solve Simulation

10m

Links Manuals Books

5m

Assessment

37m

FAQ Chatbot