CFE – Financial Transactions and Fraud Schemes — Question 13

Which of the following is the MOST ACCURATE statement about the phases of procurements involving open and free competition?

Answer options

• A. In the post-award and administration phase, the procuring entity identifies its needs and develops the criteria used to award the contract.
• B. In the solicitation phase, prospective contractors prepare and submit their bids.
• C. In the bid evaluation and award phase, the procuring entity fulfills its duties through the performance of its contractual obligations.
• D. In the presolicitation phase, the procuring entity issues the solicitation document.

Correct answer: D

Explanation

The correct answer is D because the presolicitation phase is specifically when the procuring entity issues the solicitation document to invite bids. Option A incorrectly defines the post-award phase, while option B mischaracterizes the solicitation phase as one where bids are prepared rather than issued. Option C inaccurately describes the bid evaluation phase by focusing on contractual obligations instead of the evaluation process itself.