NASPO CPPB Exam Actual Exam 2026 | All
Questions and Correct Answers | Verified
Answers | Brand New Version!
Which type of cost reimbursement contract should be used when it is
impossible to estimate costs firmly and there is a high probability that
supplier will receive a substantial commercial benefit?
a) Cost sharing
b) Cost-plus Fixed Fee
c) Cost-plus Award Fee
d) Cost-plus Incentive Fee ---------CORRECT ANSWER-----------------a) Cost
sharing
Which fixed price contract type requires the least amount of contract
administration and monitoring by the entity?
a) Fixed-price incentive
b) Fixed-price with re-determination
c) Firm-fixed price
d) Fixed-price with economic price adjustment ---------CORRECT
ANSWER-----------------c) Firm-fixed price
,The procurement office has been asked to research alternative funding
models involving private capital for the construction of a new lodge at
one of the park authority locations. The agency procuring the service
would like the private entity to outlay costs for the construction of the
building, the contractor to assume all risk for revenue generation, and
allow the vendor to cover ongoing maintenance and operation
expenses. Which alternative funding model is best suited to meet these
goals?
a) Design-bid-build
b) Design-build-finance-operate-maintain
c) Design-build-operate-maintain
d) Design-build ---------CORRECT ANSWER-----------------b) Design-build-
finance-operate-maintain
The procurement officer has been tasked with a large construction
project. His Chief Procurement Officer (CPO) advises him to use a
construction delivery method where the designer is separate from the
construction company and is involved as the state's advocate
throughout the construction project because the construction contract
will be awarded to the lowest responsive bidder, which he sees as the
best fit for this project. Which of the following construction delivery
methods should he use:
a) Design-Build.
b) Job Order Contracting.
c) Construction Manager at Risk.
,d) Design-Bid-Build. ---------CORRECT ANSWER-----------------d) Design-
Bid-Build.
The purchasing officer of Fleet Management Division has expressed
concerns about the number of repetitive requisitions, solicitations and
purchase orders that are being processed to purchase fuel for the state
fleet. Every time a new order is placed, another requisition is created
and the prices paid are not steady; sometimes more and sometimes
less depending on competition and fluctuations. The buyer advises the
solution would be to use what type of contract?
a) Fixed-Price with Escalation/De-escalation
b) Fixed-Price with Redetermination
c) Fixed Price Incentive
d)Firm Fixed-Price ---------CORRECT ANSWER-----------------a) Fixed-Price
with Escalation/De-escalation
What payment type is best suited for a large scale construction project?
a) Progress payments
b) Progress payments with retention
c) Advance payments
d) Full payments ---------CORRECT ANSWER-----------------b) Progress
payments with retention
, Having clearly defined terms and conditions can:
a) Reduce miscommunication between the vendor and the entity about
the requirements of the contract
b) Favor one party over another in a dispute
c) Assure that legal action will not take place
d) Assure that the project will be completed on time ---------CORRECT
ANSWER-----------------a) Reduce miscommunication between the
vendor and the entity about the requirements of the contract
What is the purpose of including the terms and conditions in the
solicitation?
a) To reduce the entity's risk
b) To assist in the development of the resulting contract
c) To inform the vendor what contractual terms will be required.
d) To force vendors to agree to all the state's terms and conditions ------
---CORRECT ANSWER-----------------c) To inform the vendor what
contractual terms will be required.
What is the purpose of the procurement office having a bond for
contract signatories?
Questions and Correct Answers | Verified
Answers | Brand New Version!
Which type of cost reimbursement contract should be used when it is
impossible to estimate costs firmly and there is a high probability that
supplier will receive a substantial commercial benefit?
a) Cost sharing
b) Cost-plus Fixed Fee
c) Cost-plus Award Fee
d) Cost-plus Incentive Fee ---------CORRECT ANSWER-----------------a) Cost
sharing
Which fixed price contract type requires the least amount of contract
administration and monitoring by the entity?
a) Fixed-price incentive
b) Fixed-price with re-determination
c) Firm-fixed price
d) Fixed-price with economic price adjustment ---------CORRECT
ANSWER-----------------c) Firm-fixed price
,The procurement office has been asked to research alternative funding
models involving private capital for the construction of a new lodge at
one of the park authority locations. The agency procuring the service
would like the private entity to outlay costs for the construction of the
building, the contractor to assume all risk for revenue generation, and
allow the vendor to cover ongoing maintenance and operation
expenses. Which alternative funding model is best suited to meet these
goals?
a) Design-bid-build
b) Design-build-finance-operate-maintain
c) Design-build-operate-maintain
d) Design-build ---------CORRECT ANSWER-----------------b) Design-build-
finance-operate-maintain
The procurement officer has been tasked with a large construction
project. His Chief Procurement Officer (CPO) advises him to use a
construction delivery method where the designer is separate from the
construction company and is involved as the state's advocate
throughout the construction project because the construction contract
will be awarded to the lowest responsive bidder, which he sees as the
best fit for this project. Which of the following construction delivery
methods should he use:
a) Design-Build.
b) Job Order Contracting.
c) Construction Manager at Risk.
,d) Design-Bid-Build. ---------CORRECT ANSWER-----------------d) Design-
Bid-Build.
The purchasing officer of Fleet Management Division has expressed
concerns about the number of repetitive requisitions, solicitations and
purchase orders that are being processed to purchase fuel for the state
fleet. Every time a new order is placed, another requisition is created
and the prices paid are not steady; sometimes more and sometimes
less depending on competition and fluctuations. The buyer advises the
solution would be to use what type of contract?
a) Fixed-Price with Escalation/De-escalation
b) Fixed-Price with Redetermination
c) Fixed Price Incentive
d)Firm Fixed-Price ---------CORRECT ANSWER-----------------a) Fixed-Price
with Escalation/De-escalation
What payment type is best suited for a large scale construction project?
a) Progress payments
b) Progress payments with retention
c) Advance payments
d) Full payments ---------CORRECT ANSWER-----------------b) Progress
payments with retention
, Having clearly defined terms and conditions can:
a) Reduce miscommunication between the vendor and the entity about
the requirements of the contract
b) Favor one party over another in a dispute
c) Assure that legal action will not take place
d) Assure that the project will be completed on time ---------CORRECT
ANSWER-----------------a) Reduce miscommunication between the
vendor and the entity about the requirements of the contract
What is the purpose of including the terms and conditions in the
solicitation?
a) To reduce the entity's risk
b) To assist in the development of the resulting contract
c) To inform the vendor what contractual terms will be required.
d) To force vendors to agree to all the state's terms and conditions ------
---CORRECT ANSWER-----------------c) To inform the vendor what
contractual terms will be required.
What is the purpose of the procurement office having a bond for
contract signatories?
