NIGP CPPO Certification Flashcards Questions with Correct Answers

NIGP CPPO Certification Flashcards Questions with Correct Answers Surety - Answer-a pledge or guarantee by an insurance company, bank, individual or corporation on behalf of a bidder or offeror which protects against default or failure of the principal to satisfy the contractual obligations. accountability - Answer-The principle that employees who accept an assignment and the authority to carry it out are answerable to a superior or a higher authority for the outcome. acceptance - Answer-1. Indication that an offeree is bound by the terms of the offer. 2. An indication by one party of a willingness to act in accordance with the contract or offer. 3. The assumption of a legal obligation by a party to contract to the terms and conditions of that contract. 4. The act of receiving by an authorized representative with the intention or retaining. competitive sealed bidding - Answer-Preferred method for acquiring goods, services and construction for public use in which award is made to the lowest responsive and responsible bidder, based solely on the response to the criteria set forth in the invitation for bud; does not include discussions or negotiations with bidders. force majeure - Answer-Unexpected or uncontrollable events including those caused by nature that can impact the contract price, terms and conditions. these events are not due to contractor negligence and may excuse contractor performance during the events and under certain conditions caused by them. Acts of God or disruptive conditions for which a contractor or carrier will not be held responsible. specification - Answer-A precise description of he physical or functional characteristics of a product, good or construction item. A description of goods and/or services. A description of what the purchaser seeks to buy and what a bidder must be responsive to in order to be considered for award of a contract. Specifications generally fall under the following categories: design, performance, combination (design and performance), brand name or approved equal, qualified products list and samples. May also be known as a purchasing description. bid bond - Answer-An insurance agreement, accompanied by a monetary commitment, by which a third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid. warranty - Answer-A promise made by a seller to a buyer that is legally enforceable. The promise may be expressed or implied and is legally binding. best practice - Answer-A business process, activity or operation that is considered outstanding, innovative or exceptionally creative by a recognized peer group. It may be considered as a leading-edge activity that has been successfully adopted or implemented and has brought efficiency and effectiveness to an organization. It may result in improved productivity, quality, reduced costs and increased customer service. return on investment or ROI - Answer-A calculation used in business to determine whether a proposed investment is a wise business decision and how well it will repay the investor. It is calculated as the ratio of the amount gained or loss relative to the basis. The analysis takes the form of a dynamic model or statistical model