CPPB Study Guide Questions with Correct Answers

CPPB Study Guide Questions with Correct Answers Three stages of negotiation - Answer-planning, actual negotiations, completion Three things to judge a negotiation - Answer-produce a wise agreement, damage relationship, efficient Negotiations are complete - Answer-when a written and executed contract is finished and signed BATNA - Answer-Best Alternative to a Negotiated agreement (bottomline) BAFO - Answer-Best and Final offer demurrage - Answer-compensation for wait time Request for Equitable Adjustment (REA) - Answer-Actions that add/ delete work, change in material or labor, allowable cost Active dispute resolution (ADR ) - Answer-mediation (non binding) arbitration (binding) partnering (both parties have ownership of solution) Liquidated Damages - Answer-reasonable cost of loss, actual damages ( must be proven) Not penalty, each day of delay /lost work Efficiency - Answer-Measures ration of inputs/ outputs effectiveness - Answer-how long it takes to get something done/quality and customer satifaction 7 rights of purchasing - Answer-right material , quantity, time , place, source, service, price CAP - Answer-Contract Administration plan PAP - Answer-Performance Assessment plan 7 elements of a contract - Answer-offer, acceptance, definiteness, legal consideration, mutual obligation, competent parties, legal purpose Retention schedule - Answer-depends on legal or statutory schedule Piggy back /Cooperative purchase - Answer-when another agency is added/ Depends on agency rules Total Cost of Ownership/ Life cycle costing - Answer-true cost of all expenses, residual value over life of product purchase, maintenance, disposal fees and residual values Strategic Procurement Planning (SP2) - Answer-transformation of organizations missions and goals and objectives into measurable activities to plan, budget and manage procurement.