MCQs on all Five Procurement Cources
provided in I-Got training Module
Procurement Services (Consultancy / Non-Consultancy)
By Department of Expenditure
1. Are orders issued by the Government of India regarding eligibility to participate and
for purchase preference to ‘Local Suppliers’ to encourage 'Make in India' and promote
manufacturing and production of goods and services in India shall apply to this
procurement?
[Link]
[Link]
2. Which of the following statements is not true in the context of engaging retired
Government servants as a consultant? 1)Retired Government servants cannot be directly
engaged as consultant 2)Retired Government servant can be hired as consultant through
a competitive process 3)Retired Government servants should be engaged against regular
vacant posts as consultant 4)Retired Government servants can be engaged only for the
specific task and for specific duration as consultant 5)Retired Government servant
should be assigned clear output related goals Select the right answer using the code
given below:
B.2) only
C.3) only
A.1) only
D.5) only
3. For procurement of consultancy services above Rs 25 lakh shortlisting is done
through a process called:
B. Expression of Interest (EoI)
C. Empanelment for Limited Tender Enquiry
A. Request for Proposal (RfP)
4. Who prepares the ‘procurement proposal/ concept paper’ to procure consultancy
service?
[Link] entity
[Link] (of the service)
5. Which of the following services involve routine repetitive physical or procedural non-
intellectual outcomes for which quantum and performance standards can be tangibly
identified and consistently applied and are bid and contracted on such basis?
[Link] services
Other services (including the term ‘non-consultancy services’ in certain contexts)
6. Who prepares the ‘procurement proposal/ concept paper’ to procure consultancy
service?
[Link] experience in the required area of assignment
[Link] qualifications
7. Proposals for consultancy services should ordinarily be asked for from consultants
in:
A.‘Single stage one envelope’ system
B.‘Two bid’ system
C.‘Two-stage’ bidding
8. Which procurement of service involves primarily non-physical project-specific,
intellectual and procedural processes where outcomes/ deliverables would vary?
[Link] service
[Link]-consultancy service
[Link] sourcing of service
9. Given below is the various stages or steps in procurement cycle of consultancy
services: 1) Preparation & issue of RfP; receipt and evaluation of proposals 2)
Preparation of Terms of Reference 3) Preparation of concept paper 4) Short listing
consultants: formulation of EoI, publication, receipt of proposal and evaluation 5)
Monitoring assignments Select the right answer using the code given below:
A. 1), 2), 3), 4) & 5)
C. 3), 2), 4), 1) & 5)
B. 3), 1), 2), 4) & 5)
D. 2), 3), 1), 4) & 5)
10. ‘Bid evaluation criteria and selection procedure’ is contained (given) in:
B. Request for Proposal (RfP)
A. Terms of Reference (ToR)
11. Conflict of interest in case of engagement of constants may arise out of which of the
following factors or reasons?1)Activities 2)Association 3)Relationships 4)Association
Select the right answer using the code given below:
B.1) & 3)
C.1), 2) & 3)
D.1), 2), 3) & 4)
A.1) & 2)
12. ‘Consultancy services’ does not include direct engagement of a retired Government
servant.
A. Correct
B. Incorrect
13. A list of what should be included in the Terms of Reference (ToR) is given below.
Which one of these is not to be included in the ToR?
A. Precise statement of objectives.
D. Evaluation parameters
C. Schedule for completion of tasks.
E. The support or inputs to be provided by the Ministry or Department to facilitate the
consultancy.
B. Outline of the tasks to be carried out.
F. The final outputs that will be required of the Consultant.
Procurement of Works
By Department of Expenditure
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 of Goods
By Department of Expenditure
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.
[Link] 15,00,000
[Link] 25,00,000
[Link] 1,50,000
[Link] 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?
[Link] and purchase are the same
[Link] is a sub-set of purchase
[Link] is a sub-set of procurement
Q9 of 37
GFR 2017 stipulates preparation of Annual Procurement Plan.
[Link]
[Link]
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?
[Link] 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
[Link] 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
[Link] 100% from the L1 @ Rs 100 per unit if MSE bidder does not agree to match
L1 price.
[Link] (a) and (b)
[Link] (b) and (c)
[Link] (a) and (c)
Q11 of 37
Bid security and Performance security refer to the same.
[Link]
[Link]
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.
[Link]
[Link]
Q14 of 37
e-procurement is optional.
[Link]
[Link]
Q15 of 37
Two-bid system and Two-stage bidding refer to the same bidding system of public
procurement.
[Link]
[Link]
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:
[Link]-bid system
[Link]-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:
[Link]-bid system
[Link]-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.
[Link]
[Link]
Q22 of 37
‘Notice Inviting Tender’, ‘Request for Proposal’, ‘Expression of Interest’ – these refer
to the same
[Link]
[Link]
Q23 of 37
While providing specifications of a product to be procured, which of the following
yardstick(s) is/ are not to be followed?
[Link] must be objective, functional and generic in nature
[Link] or brand name is to be given to ensure quality of the product
[Link] and performance characteristics are to be provided
[Link] 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
[Link] 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:
[Link] is such limit as decision may be taken even if one bid is received
[Link] than three
[Link]
[Link]
Q26 of 37
Bid security is also known as Earnest Money Deposit.
[Link]
[Link]
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.
[Link]
[Link]
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:
[Link] assessment
[Link] invitation
[Link] evaluation
Both (a) and (c)
Q31 of 37
Determining the type of tender to be invited and the bidding system are part of:
[Link] assessment stage
[Link] invitation stage
[Link] evaluation stage
[Link] management stage
Q32 of 37
Lowest bid (L1) is determined from among:
[Link] the bids received against an NIT
[Link] the responsive and unresponsive bids received against an NIT
[Link] 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?
[Link] price will prevail
[Link] price will prevail
[Link] bid will be rejected as unresponsive
[Link] 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:
[Link] if goods procured are divisible
[Link] if goods procured are indivisible
[Link] 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:
[Link] incur additional outgo of public money because procurement made from MSE
or Make in India vender is at a higher cost
[Link] do not incur any additional outgo of public money as the MSE or the Make in
India vender supplies at the L1 rate.
Public Procurement Framework of GOI
By Department of Expenditure
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
Price Benchmarking and Negotiations in Public Procurement
By Arun Jaitley National Institute of Financial Management- Faridabad
Question 1 of 20
Which of the following is an important source of benchmark data in public
procurement?
Customer feedback and complaints
Employee satisfaction surveys
Market surveys and budgetary quotations
Advertising and marketing campaigns
Question 2 of 20
What is the primary purpose of price benchmarking in public procurement?
To eliminate the need for negotiations
To ensure competitive pricing and prevent overpayment
To buy the cheapest available products
To increase government spending
Question 3 of 20
Which of the following is NOT a recognized negotiation strategy in public
procurement?
Principled Negotiation
Distributive Bargaining
Random Price Bidding
Integrative Bargaining
Question 4 of 20
Why is it important to avoid abnormally low bids in procurement?
They ensure cost savings for the government
They often lead to contract failures and poor service quality
They guarantee vendor compliance
They simplify the negotiation process
Question 5 of 20
Which government initiative was established in 2016 to revolutionize public
procurement in India?
Digital India
Government e-Market Platform (GeM)
Smart Procurement Scheme
e-Procurement India
Question 6 of 20
Which of the following is NOT a method of benchmarking in procurement?
Internal Benchmarking
Predictive Benchmarking
International Benchmarking
Competitive Benchmarking
Question 7 of 20
What is the key principle of Principled Negotiation?
Pressuring vendors to accept unfair terms
Avoiding negotiations to speed up procurement
Focusing on positions rather than interests
Relying on objective criteria to determine agreements
Question 8 of 20
Which rule of the General Financial Rules (GFR)-2017 emphasizes that every officer
should exercise prudence in public expenditure?
Rule 174(xx)
Rule 21(i)
Rule 194
Rule 149
Question 9 of 20
What does BATNA stand for in negotiation strategies?
Benchmarking and Tactical Negotiation Approach
Business Analysis for Technical Negotiation
Best Alternative to a Negotiated Agreement
Best Agreement for Tactical Negotiation Analysis
Question 10 of 20
Which principle of negotiation emphasizes separating people from the problem and
focusing on interests rather than positions?
Distributive Bargaining
Game Theory
Hard Bargaining
Principled Negotiation
Question 11 of 20
In which scenario is negotiation considered essential in public procurement?
When prices are higher than the benchmark
When there are multiple suppliers offering the same price
When there is a strict government budget
When the procurement is of low value
Question 12 of 20
What is the primary role of the Government e-Market Platform (GeM) in public
procurement?
To discourage competition among suppliers
To eliminate the need for negotiations in procurement
To privatize procurement processes
To provide a centralized platform for procurement of goods and services
Question 13 of 20
Which negotiation strategy focuses on achieving win-win solutions and long-term
vendor relationships?
Distributive Bargaining
Integrative Bargaining
Competitive Bargaining
Hard Bargaining
Question 14 of 20
According to the Ministry of Finance Manual for Procurement of Goods, which of the
following is NOT a method of establishing estimated costs?
Market surveys
Budgetary quotations from suppliers
Guesswork and assumptions
Costing analysis based on raw material costs
Question 15 of 20
Which of the following is NOT an objective of price benchmarking in public
procurement?
Supporting corruption in procurement
Ensuring competitive pricing
Reducing procurement costs
Enhancing market transparency
Question 16 of 20
In which situation is negotiation recommended in public procurement?
When the purchase is complex and requires long-term supply
When there is a clear reference point for pricing
When the purchase value is low
When multiple suppliers are available and competition is high
Question 17 of 20
Which of the following is an example of Competitive Benchmarking?
Assessing cost structure of raw materials
Analyzing pricing strategies of peer organizations
Referring to international price indices
Comparing prices within the same organization
Question 18 of 20
What percentage of India’s GDP is accounted for by public procurement?
20-22%
25-30%
10-12%
15-18%
Question 19 of 20
What is the role of BATNA in public procurement negotiations?
To eliminate competition in bidding
To ensure the government accepts any offer
To help officers walk away from unfavorable deals
To set a minimum bid price
Question 20 of 20
According to GFR-2017, which rule emphasizes that every officer should exercise the
same vigilance in public expenditure as they would with their own money?
Rule 112
Rule 149
Rule 21(i)
Rule 178
