CPPB Exam Prep Complete Questions and Answers(Graded A+)

Cost Plus Percentage of Cost Contracts - ANSWER An agreement on a construction project in which the contractor is provided a specified percentage profit over and above the actual costs of construction. These contracts are considered poor business practice because the contractor has little incentive to hold down costs. The type of costing method is prohibited in Federal purchasing. Procurement - ANSWER Includes purchasing, contract administration, inventory, receiving and disposal. Integrity - ANSWER The value of one's words and actions. Competition - ANSWER Provides an incentive to reduce cost and increase quality. Laws - ANSWER Define and control what public agencies may do. ABA - ANSWER American Bar Association ABL - ANSWER Approved Brands List, also Approved Products List [APL] ABA Model Procurement Code for State and Local Government (U S Law) - ANSWER Developed by the ABA and adopted in 1979, it is a collection of statutory principles and policies that provides guidance to public policy managers who wish to responsibly manage public procurement. Stat and large local governments have individually codified it into procurement law and policy to effectively guide their procurement organizations. The code was updated in 2000 and contained enhancements in the following areas: Electronic Commerce, Cooperative Purchasing, Flexibility in Purchasing Methods and Processes for Delivery of Infrastructure Facilities and Services. Also called the Model Procurement Code. Anti Trust Laws - ANSWER State and federal laws enacted to ensure free, fair and open competition by prohibiting monopolies or conspiracies in restraint of trade in interstate and foreign commerce. The Sherman and Clayton Acts are examples of Federal AntiTrust Laws. Oligopoly - ANSWER A market in which few firms produce all or most of the market