NIGP CPPO Certification Flashcards
Surety - answer 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 - answer 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 - answer1. 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 - answerReferred 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 - answerUnexpected 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 - answerA 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 - answerAn 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 - answerA 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 - answerA 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 - answerA 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 - answerA 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 - answerA 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.
fiduciary duty - answerAn individual's obligation to serve the best interests of selected
stakeholders, especially those of their employer.
sampling - answerA technique used to avoid examination of each item in a population,
yet will still be able to determine whether the entire population shall be accepted as
complying with the acceptable quality level or stated requirements.
value analysis - answerAn organized effort directed at analyzing the functions of a
product or service including specifications, standards, practices, and procedures with
intent to satisfy the required function at the lowest possible cost without impacting
functional need and suitability.
drayage - answerA charge for hauling something between various locations by a
transportation company.
income statement - answerA financial report that shows an organization's profitability
over a period of time - months, quarter, or year.
legacy system - answerAn outdated computer system that remains in use despite the
availability or more current technology. It usually is an archaic data management
platform that may contain proprietary custom designed software such as an old
database management system running on mainframes. May run financial's, payroll,
Surety - answer 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 - answer 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 - answer1. 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 - answerReferred 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 - answerUnexpected 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 - answerA 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 - answerAn 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 - answerA 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 - answerA 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 - answerA 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 - answerA 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 - answerA 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.
fiduciary duty - answerAn individual's obligation to serve the best interests of selected
stakeholders, especially those of their employer.
sampling - answerA technique used to avoid examination of each item in a population,
yet will still be able to determine whether the entire population shall be accepted as
complying with the acceptable quality level or stated requirements.
value analysis - answerAn organized effort directed at analyzing the functions of a
product or service including specifications, standards, practices, and procedures with
intent to satisfy the required function at the lowest possible cost without impacting
functional need and suitability.
drayage - answerA charge for hauling something between various locations by a
transportation company.
income statement - answerA financial report that shows an organization's profitability
over a period of time - months, quarter, or year.
legacy system - answerAn outdated computer system that remains in use despite the
availability or more current technology. It usually is an archaic data management
platform that may contain proprietary custom designed software such as an old
database management system running on mainframes. May run financial's, payroll,
