CFE – Financial Transactions and Fraud Schemes — Question 73

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

Answer options

• A. In the presolicitation phase, prospective contractors prepare and submit their bids.
• B. In the solicitation phase, the procuring entity identifies its needs and develops the criteria used to award the contract
• C. In the bid evaluation and award phase, the procuring entity issues the solicitation document
• D. In the post-award and administration phase, the contracting parties perform their Contractual obligations

Correct answer: B

Explanation

The correct answer is B because the solicitation phase is indeed when the procuring entity identifies its needs and develops criteria for awarding the contract. Option A is incorrect as bids are prepared in the solicitation phase, not presolicitation. Option C misplaces the issuance of the solicitation document to the bid evaluation and award phase, which is inaccurate. Option D correctly describes the post-award phase but does not focus on the most accurate statement regarding the phases.