NIGP CPP UPDATED EXAM STUDY GUIDE QUESTIONS AND
ANSWERS MARKED A+
✔✔Examples of procurement legislative initiatives include: - ✔✔Require reduction or
elimination of the use of disposable goods, whenever possible.
Authorize or require the procurement of recycled, refurbished, or re-manufactured
goods and equipment.
Authorize and encourage the use of energy consumption and other life-cycle factors as
evaluation criteria.
Encourage the procurement of alternate-fuel fleet vehicles.
Require the procurement of energy-efficient lighting fixtures and bulbs.
Restrict procurement of goods containing mercury, if non-mercury alternatives are
available.
Enable the use of cooperative procurement.
Increase procurement thresholds to enable more efficient processes.
Establish programs geared toward increasing opportunities for small and disadvantaged
businesses.
✔✔Statutory Law - ✔✔The written law established by enactments of government,
expressing the will of the legislature.
✔✔Administrative Law - ✔✔Rules, regulations and executive orders, promulgated by
governmental administrative or regulatory entities. Generally enacted to make statutes
and ordinances more specific. Has the force and effect of law.
✔✔Statutes - ✔✔The written laws approved by legislatures, parliaments, or house of
assembly. Also known as legislation.
✔✔Ordinance - ✔✔A law passed by a local government.
✔✔Corporate Charter - ✔✔A written document by the founders of a business detailing
the business' major components, e.g. structure, objectives, planned operations. In the
U.S. it is filed with the Secretary of State, and in Canada it is filed with the registrar.
✔✔Price Fixing - ✔✔Explicit agreements among producers regarding the prices at
which goods are to be sold.
, ✔✔Tying Arrangement - ✔✔A supplier imposed restraint in which the purchaser is
forced to buy an unwanted item to acquire the desired one.
✔✔Bid Rigging - ✔✔The agreement among potential competitors to manipulate the
competitive bidding process, for example, by agreeing not to bid, to bid a specific price,
to rotate bidding, or to give kickbacks to purchasers.
✔✔Dumping - ✔✔Occurs when a business or country exports a large quantity of goods
at a lower price in a foreign market than the price in the home market.
✔✔three primary sources of procurement laws in any governmental jurisdiction. - ✔✔1.
Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
✔✔Statutory Laws - ✔✔Statutory laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-directed legislative
law. Ordinances and charters provide for local and municipal governments.
✔✔Administrative laws - ✔✔Are written rules, regulations, and entity policy, developed
and promulgated by administrative and regulatory governmental entities. Administrative
Law, provided by the applicable regulatory entity, has equal force and effect as
legislative law, as long as it does not supersede the context of legislative law.
✔✔Common law - ✔✔is based on customs and traditions and codified through the legal
system by court decision; i.e., a collection of court decisions.
✔✔Federal Legislation - ✔✔At the highest level, the federal government passes
regulations that affect all procurement departments either directly or indirectly
✔✔State Regulations - ✔✔Procurement professionals are responsible for ensuring the
entity practices and individual purchases are compliant with their particular and
applicable state statutes. States have varying procurement thresholds, procurement
practices, and procurement programs.
✔✔Local Regulations - ✔✔Finally, each locality has the ability to pass local regulations
through the governing political body (such as local city councils and local county
boards).
✔✔List 6 types of risk every procurement action should be evaluated for: - ✔✔Proposal
Risk
Surety/Liability Risk
Schedule Risk
ANSWERS MARKED A+
✔✔Examples of procurement legislative initiatives include: - ✔✔Require reduction or
elimination of the use of disposable goods, whenever possible.
Authorize or require the procurement of recycled, refurbished, or re-manufactured
goods and equipment.
Authorize and encourage the use of energy consumption and other life-cycle factors as
evaluation criteria.
Encourage the procurement of alternate-fuel fleet vehicles.
Require the procurement of energy-efficient lighting fixtures and bulbs.
Restrict procurement of goods containing mercury, if non-mercury alternatives are
available.
Enable the use of cooperative procurement.
Increase procurement thresholds to enable more efficient processes.
Establish programs geared toward increasing opportunities for small and disadvantaged
businesses.
✔✔Statutory Law - ✔✔The written law established by enactments of government,
expressing the will of the legislature.
✔✔Administrative Law - ✔✔Rules, regulations and executive orders, promulgated by
governmental administrative or regulatory entities. Generally enacted to make statutes
and ordinances more specific. Has the force and effect of law.
✔✔Statutes - ✔✔The written laws approved by legislatures, parliaments, or house of
assembly. Also known as legislation.
✔✔Ordinance - ✔✔A law passed by a local government.
✔✔Corporate Charter - ✔✔A written document by the founders of a business detailing
the business' major components, e.g. structure, objectives, planned operations. In the
U.S. it is filed with the Secretary of State, and in Canada it is filed with the registrar.
✔✔Price Fixing - ✔✔Explicit agreements among producers regarding the prices at
which goods are to be sold.
, ✔✔Tying Arrangement - ✔✔A supplier imposed restraint in which the purchaser is
forced to buy an unwanted item to acquire the desired one.
✔✔Bid Rigging - ✔✔The agreement among potential competitors to manipulate the
competitive bidding process, for example, by agreeing not to bid, to bid a specific price,
to rotate bidding, or to give kickbacks to purchasers.
✔✔Dumping - ✔✔Occurs when a business or country exports a large quantity of goods
at a lower price in a foreign market than the price in the home market.
✔✔three primary sources of procurement laws in any governmental jurisdiction. - ✔✔1.
Statutory laws, ordinances, and charters.
2. Administrative laws
3. Common law
✔✔Statutory Laws - ✔✔Statutory laws are based on statutes or laws passed by
governments. State or provincial statutes provide state/provincial-directed legislative
law. Ordinances and charters provide for local and municipal governments.
✔✔Administrative laws - ✔✔Are written rules, regulations, and entity policy, developed
and promulgated by administrative and regulatory governmental entities. Administrative
Law, provided by the applicable regulatory entity, has equal force and effect as
legislative law, as long as it does not supersede the context of legislative law.
✔✔Common law - ✔✔is based on customs and traditions and codified through the legal
system by court decision; i.e., a collection of court decisions.
✔✔Federal Legislation - ✔✔At the highest level, the federal government passes
regulations that affect all procurement departments either directly or indirectly
✔✔State Regulations - ✔✔Procurement professionals are responsible for ensuring the
entity practices and individual purchases are compliant with their particular and
applicable state statutes. States have varying procurement thresholds, procurement
practices, and procurement programs.
✔✔Local Regulations - ✔✔Finally, each locality has the ability to pass local regulations
through the governing political body (such as local city councils and local county
boards).
✔✔List 6 types of risk every procurement action should be evaluated for: - ✔✔Proposal
Risk
Surety/Liability Risk
Schedule Risk
