Public Procurement and PAMS Quiz

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Public Procurement Management (सार्वजनिक खरिद) and PAMS: Objectives, Importance, Methods and Process

This Lok Sewa practice set has 50 multiple-choice questions (Subject: Office Management · For: Kharidar · Level: Medium). Take the quiz above first; after that, use the study list below to revise every question with its correct answer and a short explanation.

Study list: all 50 questions with answers and explanations
  1. Public procurement in Nepal is governed by the Public Procurement Act of:

    • A) 2052
    • B) 2063 ✔
    • C) 2075
    • D) 2076

    Why: Government buying of goods, works and services is governed by the Public Procurement Act, 2063 (सार्वजनिक खरिद ऐन, २०६३), with detailed rules in the Public Procurement Regulations, 2064.

  2. The Public Procurement Regulations are from:

    • A) 2064 ✔
    • B) 2053
    • C) 2077
    • D) 2050

    Why: The Public Procurement Regulations, 2064 give the detailed procedures and money limits for using the Act of 2063. They have been amended many times since.

  3. A key objective of procurement law is:

    • A) Value for money ✔
    • B) Secret buying
    • C) Favouring relatives
    • D) Avoiding competition

    Why: The law aims at value for money, with transparency, fair competition and accountability, so public money buys good quality at a reasonable cost without favouritism.

  4. Buying through a user committee is called procurement through:

    • A) उपभोक्ता समिति ✔
    • B) Direct negotiation
    • C) Catalogue
    • D) Force account

    Why: Under this method, a user committee (उपभोक्ता समिति) of local beneficiaries carries out small community works, such as a village road or water tap, under an agreement with the office.

  5. Work done directly by the office's own staff is:

    • A) Force account (अमानत) ✔
    • B) Sealed quotation
    • C) Open bidding
    • D) Buy-back

    Why: Force account (अमानत) means the office does the work itself with its own staff and resources, instead of giving a contract. It is used for small or special works.

  6. Consulting services are usually procured through:

    • A) Competitive proposals ✔
    • B) Sealed quotation
    • C) Direct purchase only
    • D) Force account

    Why: Consulting services, such as studies, designs or supervision, are usually procured through competitive proposals, where firms are judged on technical quality as well as cost.

  7. PPMO works under the:

    • A) OPMCM ✔
    • B) MoFAGA
    • C) NRB
    • D) Auditor General

    Why: The Public Procurement Monitoring Office (PPMO) is under the Office of the Prime Minister and Council of Ministers (OPMCM). It monitors procurement and issues standard documents.

  8. The e-GP portal in Nepal is called:

    • A) bolpatra ✔
    • B) Nagarik
    • C) SuTRA
    • D) LMBIS

    Why: Nepal's electronic government procurement (e-GP) system is 'bolpatra' (bolpatra.gov.np), run by PPMO. Notices, bid submission and opening are done online there.

  9. A list of firms banned from bidding is the:

    • A) Blacklist ✔
    • B) Whitelist
    • C) Beruju list
    • D) Darta list

    Why: Firms found guilty of fraud, corruption or serious breach of contract are put on a blacklist by PPMO and cannot bid for government contracts for a set period.

  10. PAMS stands for:

    • A) Public Assets Management System ✔
    • B) Public Accounts Monitoring Software
    • C) Procurement Approval Management System
    • D) Personal Account Management System

    Why: PAMS stands for Public Assets Management System. It is the government's software for recording and tracking public assets such as land, buildings, vehicles and equipment.

  11. PAMS is used to record:

    • A) Government assets ✔
    • B) Court cases
    • C) Election results
    • D) Population

    Why: PAMS records government assets: land, buildings, vehicles, equipment, stores and software. Keeping these records helps prevent loss and misuse of public property.

  12. Which is NOT a procurement method?

    • A) Open bidding
    • B) Sealed quotation
    • C) Direct purchase
    • D) Hidden bargain ✔

    Why: Legal methods include open bidding, sealed quotation, direct purchase, user committee, force account and competitive proposals. A 'hidden bargain' breaks the law's rules on transparency.

  13. Bids should be opened:

    • A) In public ✔
    • B) Secretly at night
    • C) By the bidder
    • D) Never

    Why: Bids are opened in public, in front of bidders or their representatives, at the stated time. Anyone can see the prices read out, which reduces the chance of manipulation.

  14. Standard bidding documents are issued by:

    • A) PPMO ✔
    • B) Supreme Court
    • C) NTA
    • D) Election Commission

    Why: PPMO issues standard bidding documents for goods, works and consulting services, so every office uses the same fair format and conditions.

  15. The contract is usually given to the:

    • A) Lowest evaluated responsive bid ✔
    • B) Highest bid
    • C) Relative of an officer
    • D) First bid received

    Why: The contract goes to the lowest evaluated substantially responsive bid: the lowest price among bids that meet all the eligibility and technical requirements, not simply the cheapest bid.

  16. In Nepali, public procurement is:

    • A) सार्वजनिक खरिद ✔
    • B) सार्वजनिक सुनुवाइ
    • C) सार्वजनिक सम्पत्ति
    • D) सार्वजनिक बिदा

    Why: Public procurement is सार्वजनिक खरिद. सार्वजनिक सुनुवाइ is public hearing, सार्वजनिक सम्पत्ति is public property, and सार्वजनिक बिदा is a public holiday.

  17. Public procurement means purchase of:

    • A) Goods, works and services by public bodies using public money ✔
    • B) Private shopping
    • C) Personal property
    • D) Foreign aid only

    Why: Public procurement is the purchase of goods, works and services by public bodies using public money. Private shopping or personal property is not covered by the Act.

  18. The Public Procurement Act was authenticated on:

    • A) 2063 Poush 30 ✔
    • B) 2076 Asoj 24
    • C) 2059 Asar 3
    • D) 2064 Shrawan 1

    Why: The Public Procurement Act, 2063 was authenticated on 2063 Poush 30, and its regulations followed in 2064. Exams sometimes ask this exact date.

  19. Value for money means:

    • A) Best quality at a reasonable price ✔
    • B) Always the cheapest regardless of quality
    • C) Always the most expensive
    • D) No quality check

    Why: Value for money means the best combination of quality and price over the life of the item or work. The cheapest bid is not value for money if quality is poor.

  20. Equal opportunity to all qualified bidders means:

    • A) No discrimination ✔
    • B) Favouring friends
    • C) Only local firms
    • D) Only big firms

    Why: Equal opportunity means every qualified bidder can compete under the same rules, without discrimination. This fair competition is one of the main aims of the Act.

  21. Why is procurement important for the budget?

    • A) A large share of the budget is spent through procurement ✔
    • B) It is a tiny part
    • C) It has no money
    • D) It is only for salaries

    Why: A large share of the government budget, especially capital spending on roads and buildings, is spent through procurement. So good procurement directly affects development.

  22. Good procurement prevents:

    • A) Corruption and waste ✔
    • B) Development
    • C) Quality
    • D) Trust

    Why: Clear rules, public notices, open bid opening and audit trails make it hard to misuse money. This reduces corruption and waste in public spending.

  23. In Nepali, sealed quotation is:

    • A) सिलबन्दी दरभाउपत्र ✔
    • B) सोझै खरिद
    • C) अमानत
    • D) बोलपत्र रद्द

    Why: Sealed quotation is सिलबन्दी दरभाउपत्र: suppliers send prices in sealed envelopes, which are opened together. It is used for mid-value purchases below the open-bidding limit.

  24. In Nepali, direct purchase is:

    • A) सोझै खरिद ✔
    • B) सिलबन्दी दरभाउपत्र
    • C) खुला बोलपत्र
    • D) अमानत

    Why: Direct purchase is सोझै खरिद: buying directly from a supplier without a bidding process. It is allowed only for small amounts within the limit set in the Regulations.

  25. Direct purchase is allowed for:

    • A) Small amounts ✔
    • B) Any amount
    • C) Large projects only
    • D) Consulting only

    Why: Direct purchase is allowed only for small amounts within the limit in the Regulations. Larger purchases need sealed quotation or bidding to keep competition and transparency.

  26. In Nepali, user committee is:

    • A) उपभोक्ता समिति ✔
    • B) खरिद समिति
    • C) सुरक्षा समिति
    • D) बढुवा समिति

    Why: A user committee is उपभोक्ता समिति, formed by the local beneficiaries of a project. खरिद समिति is a procurement committee, and बढुवा समिति is a promotion committee.

  27. In Nepali, force account is:

    • A) अमानत ✔
    • B) धरौटी
    • C) पेश्की
    • D) बेरुजु

    Why: Force account is अमानत: the office does the work itself using its own staff and materials. धरौटी means deposit, पेश्की means advance, and बेरुजु means audit irregularity.

  28. Which method is used for consulting services?

    • A) Competitive proposals ✔
    • B) Sealed quotation
    • C) Force account
    • D) Catalogue shopping

    Why: Consulting services are procured through competitive proposals, where technical quality is scored as well as price. Sealed quotation and catalogue shopping are for goods.

  29. Direct negotiation for consulting is allowed:

    • A) In specific cases ✔
    • B) Always
    • C) Never
    • D) Only for roads

    Why: Direct negotiation with a consultant is an exception, allowed only in specific cases set by the law, such as when only one firm has the required expertise.

  30. Which method was added later?

    • A) Catalogue shopping ✔
    • B) Open bidding
    • C) Sealed quotation
    • D) Direct purchase

    Why: Catalogue shopping, buying listed goods at set prices from an online catalogue, was added later through amendments. Open bidding, sealed quotation and direct purchase were in the original law.

  31. Money limits for each method are fixed in:

    • A) The Regulations, changed from time to time ✔
    • B) The Constitution
    • C) The Civil Service Act
    • D) Court decisions

    Why: The money limits for direct purchase, sealed quotation and bidding are set in the Regulations and are revised from time to time, so always check the latest PPMO limits.

  32. The first step in procurement is:

    • A) Procurement plan and cost estimate ✔
    • B) Signing the contract
    • C) Payment
    • D) Opening bids

    Why: Procurement starts with a procurement plan and cost estimate. Planning first makes sure the office knows what it needs, how much it will cost and which method to use.

  33. Standard bidding documents come from:

    • A) PPMO ✔
    • B) Banks
    • C) Courts
    • D) Bidders

    Why: PPMO prepares and issues standard bidding documents, so bidders see the same terms everywhere and offices do not write unfair conditions.

  34. Procurement notices are now mainly published on:

    • A) The e-GP portal (bolpatra) ✔
    • B) Only newspapers
    • C) Only notice boards
    • D) Social media gossip

    Why: Procurement notices are now mainly published on the e-GP portal (bolpatra.gov.np), so any bidder in Nepal can see and respond to them online.

  35. After evaluation, the office first issues a:

    • A) Letter of intent ✔
    • B) Final payment
    • C) Blacklist
    • D) Audit report

    Why: After evaluation, the office sends a letter of intent to the selected bidder and informs the others. Bidders then have time to complain before the contract is signed.

  36. The contract is signed:

    • A) After the complaint period ✔
    • B) Before bids are opened
    • C) Without evaluation
    • D) Before the notice

    Why: The contract is signed only after the complaint period ends, so any bidder who feels the evaluation was unfair can complain first. This protects fairness.

  37. After delivery, the office must:

    • A) Inspect, accept, pay and record assets ✔
    • B) Pay without checking
    • C) Ignore the goods
    • D) Return everything

    Why: After delivery, the office inspects the goods or works, accepts them if they meet the specifications, makes payment and records them as assets in PAMS and the store records.

  38. The lowest evaluated responsive bid means:

    • A) The lowest price among bids that meet all requirements ✔
    • B) The cheapest bid even if incomplete
    • C) The most expensive bid
    • D) The first bid received

    Why: A responsive bid meets all requirements of the bidding document. Among these, the one with the lowest evaluated price wins. An incomplete bid is rejected even if it is cheapest.

  39. PPMO stands for:

    • A) Public Procurement Monitoring Office ✔
    • B) Public Property Management Office
    • C) Provincial Planning Ministry Office
    • D) Public Payment Monitoring Organisation

    Why: PPMO stands for Public Procurement Monitoring Office (सार्वजनिक खरिद अनुगमन कार्यालय). It monitors procurement, issues standard documents and keeps the blacklist.

  40. Who keeps the blacklist of firms?

    • A) PPMO ✔
    • B) Supreme Court
    • C) Election Commission
    • D) Ward office

    Why: PPMO keeps the blacklist of firms barred from public procurement, so every office across Nepal can check it before awarding a contract.

  41. The e-GP website is:

    • A) bolpatra.gov.np ✔
    • B) psc.gov.np
    • C) nrb.org.np
    • D) mof.gov.np

    Why: The e-GP website is bolpatra.gov.np. psc.gov.np is the Public Service Commission, nrb.org.np is Nepal Rastra Bank and mof.gov.np is the Ministry of Finance.

  42. PAMS is software of:

    • A) FCGO ✔
    • B) PPMO
    • C) PSC
    • D) Election Commission

    Why: PAMS is run by the Financial Comptroller General Office (FCGO), which keeps government accounts. PPMO deals with procurement rules, not asset records.

  43. Which assets are recorded in PAMS?

    • A) Land, buildings, vehicles, equipment, stores and software ✔
    • B) Only cash
    • C) Only bank loans
    • D) Only staff names

    Why: PAMS records all kinds of public assets, both fixed and current: land, buildings, vehicles, equipment, store items and even software and other intangible assets.

  44. PAMS helps to:

    • A) Prevent loss and misuse of government property ✔
    • B) Increase misuse
    • C) Hide assets
    • D) Avoid audit

    Why: An accurate, up-to-date list of assets makes it easy to check what an office owns, so loss, theft or misuse of government property can be found and prevented.

  45. PAMS is used by:

    • A) Federal, provincial and local offices ✔
    • B) Only banks
    • C) Only private firms
    • D) Only courts

    Why: PAMS is meant for government offices at all three levels (federal, provincial and local), so public assets everywhere are recorded in one standard way.

  46. Store management after purchase is called:

    • A) जिन्सी व्यवस्थापन ✔
    • B) राजस्व
    • C) बजेट
    • D) लेखापरीक्षण

    Why: Managing stores after purchase is called जिन्सी व्यवस्थापन: recording goods in the store register, issuing them, and checking and writing off items as rules allow.

  47. Intangible assets like software are recorded in:

    • A) PAMS ✔
    • B) Darta book
    • C) Visitor book
    • D) Leave register

    Why: PAMS also covers intangible assets such as software and licences, not only physical items. The darta book, visitor book and leave register are for other office records.

  48. Opening bids in public promotes:

    • A) Transparency ✔
    • B) Secrecy
    • C) Corruption
    • D) Delay

    Why: When bids are opened in front of everyone, all bidders see the same information at the same time. This transparency makes manipulation harder and builds trust.

  49. Procurement through user committees is common for:

    • A) Small community works ✔
    • B) International airports
    • C) Consulting studies only
    • D) Defence purchases

    Why: User committees are used for small community works, such as local roads, drinking water and school buildings, where local people both build and use the project.

  50. The Public Procurement Regulations are of:

    • A) 2064 ✔
    • B) 2063
    • C) 2077
    • D) 2050

    Why: The Regulations are of 2064, one year after the Public Procurement Act of 2063. Remember the pair: Act 2063, Regulations 2064.

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