NIGP CPPO Certification questions with\| \| \| \| \|
answers
Surety - CORRECT ANSWERS ✔✔a pledge or guarantee by an insurance
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company, bank, individual or corporation on behalf of a bidder or offeror
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which protects against default or failure of the principal to satisfy the
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contractual obligations. \|
accountability - CORRECT ANSWERS ✔✔The principle that employees who
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accept an assignment and the authority to carry it out are answerable to a
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superior or a higher authority for the outcome.
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acceptance - CORRECT ANSWERS ✔✔1. Indication that an offeree is bound
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by the terms of the offer.
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2. An indication by one party of a willingness to act in accordance with the
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contract or offer. \| \| \|
3. The assumption of a legal obligation by a party to contract to the terms and
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conditions of that contract. \| \| \| \|
4. The act of receiving by an authorized representative with the intention or
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retaining.
competitive sealed bidding - CORRECT ANSWERS ✔✔Preferred method for
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acquiring goods, services and construction for public use in which award is
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made to the lowest responsive and responsible bidder, based solely on the
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,response to the criteria set forth in the invitation for bud; does not include
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discussions or negotiations with bidders. \| \| \| \|
force majeure - CORRECT ANSWERS ✔✔Unexpected or uncontrollable
\| \| \| \| \| \| \| \|
events including those caused by nature that can impact the contract price,
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terms and conditions. these events are not due to contractor negligence and
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may excuse contractor performance during the events and under certain
\| \| \| \| \| \| \| \| \| \|
conditions caused by them. Acts of God or disruptive conditions for which a
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contractor or carrier will not be held responsible. \| \| \| \| \| \| \|
specification - CORRECT ANSWERS ✔✔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.
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bid bond - CORRECT ANSWERS ✔✔An insurance agreement, accompanied
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by a monetary commitment, by which a third party (the surety) accepts
\| \| \| \| \| \| \| \| \| \| \| \|
liability and guarantees that the bidder will not withdraw the bid.
\| \| \| \| \| \| \| \| \| \|
warranty - CORRECT ANSWERS ✔✔A promise made by a seller to a buyer
\| \| \| \| \| \| \| \| \| \| \| \| \|
that is legally enforceable. The promise may be expressed or implied and is
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legally binding. \|
, best practice - CORRECT ANSWERS ✔✔A business process, activity or
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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 - CORRECT ANSWERS ✔✔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.
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estoppel - CORRECT ANSWERS ✔✔A legal principal that prevents a person
\| \| \| \| \| \| \| \| \| \| \|
from asserting a position that is inconsistent with his or her prior conduct, if
\| \| \| \| \| \| \| \| \| \| \| \| \| \|
injustice would thereby result to a person who has changed position in
\| \| \| \| \| \| \| \| \| \| \| \|
justifiable reliance upon that conduct. For example, a landlord informs a
\| \| \| \| \| \| \| \| \| \| \|
tenant that there was construction or a lapse in utility services. If the tenant
\| \| \| \| \| \| \| \| \| \| \| \| \| \|
relies on this statement in choosing to remain on the premises, the landlord
\| \| \| \| \| \| \| \| \| \| \| \| \|
could be barred under the principle from collecting full rent.
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performance based contract - CORRECT ANSWERS ✔✔A results-oriented \| \| \| \| \| \| \| \|
contracting method that focuses on the outputs, quality or outcomes that may
\| \| \| \| \| \| \| \| \| \| \| \|
tie at least a portion of a contractor's payment, contractor extensions, or
\| \| \| \| \| \| \| \| \| \| \| \|
contract renewals to the achievement of specific, measurable performance
\| \| \| \| \| \| \| \| \|
standards and requirements. These contract may include monetary and non-
\| \| \| \| \| \| \| \| \|
monetary incentives as well as specific remedies. \| \| \| \| \| \|
answers
Surety - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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 - CORRECT ANSWERS ✔✔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.
\| \| \| \| \|
estoppel - CORRECT ANSWERS ✔✔A legal principal that prevents a person
\| \| \| \| \| \| \| \| \| \| \|
from asserting a position that is inconsistent with his or her prior conduct, if
\| \| \| \| \| \| \| \| \| \| \| \| \| \|
injustice would thereby result to a person who has changed position in
\| \| \| \| \| \| \| \| \| \| \| \|
justifiable reliance upon that conduct. For example, a landlord informs a
\| \| \| \| \| \| \| \| \| \| \|
tenant that there was construction or a lapse in utility services. If the tenant
\| \| \| \| \| \| \| \| \| \| \| \| \| \|
relies on this statement in choosing to remain on the premises, the landlord
\| \| \| \| \| \| \| \| \| \| \| \| \|
could be barred under the principle from collecting full rent.
\| \| \| \| \| \| \| \| \|
performance based contract - CORRECT ANSWERS ✔✔A results-oriented \| \| \| \| \| \| \| \|
contracting method that focuses on the outputs, quality or outcomes that may
\| \| \| \| \| \| \| \| \| \| \| \|
tie at least a portion of a contractor's payment, contractor extensions, or
\| \| \| \| \| \| \| \| \| \| \| \|
contract renewals to the achievement of specific, measurable performance
\| \| \| \| \| \| \| \| \|
standards and requirements. These contract may include monetary and non-
\| \| \| \| \| \| \| \| \|
monetary incentives as well as specific remedies. \| \| \| \| \| \|
