NIGP – CPP CERTIFICATION| 73 QUESTIONS|
WITH COMPLETE SOLUTIONS
Course
NIGP – CPP
✅ 1. Which of the following best describes a cooperative procurement
agreement?
A. A contract awarded to a vendor based on price only
B. A procurement method used to increase supplier diversity
C. A shared contract between multiple government agencies to leverage volume pricing
D. A single-source contract used in emergencies
Answer: C
Explanation:
Cooperative procurement involves multiple public entities combining their purchasing power
under a shared agreement, aiming for cost savings and administrative efficiency.
✅ 2. What is the primary purpose of a market analysis in the procurement
planning phase?
A. To ensure supplier competition is eliminated
B. To increase the procurement cycle time
C. To gather information on potential suppliers, trends, and pricing
D. To draft the final contract terms
Answer: C
Explanation:
Market analysis helps procurement professionals understand the supply landscape, price ranges,
vendor capabilities, and risks before solicitation development.
✅ 3. Which procurement method is best suited for a project with undefined
requirements and need for innovative solutions?
A. Invitation for Bids (IFB)
B. Request for Proposals (RFP)
C. Request for Quotation (RFQ)
D. Purchase Order (PO)
,Answer: B
Explanation:
RFPs allow evaluation based on both technical and cost criteria and provide room for vendors to
propose innovative solutions to complex needs.
✅ 4. A bid protest is most likely to occur during which phase of the
procurement process?
A. Market analysis
B. Solicitation development
C. Contract award
D. Inventory control
Answer: C
Explanation:
Most protests arise when a vendor is not selected for award, often due to disputes over evaluation
criteria or perceived unfair treatment.
✅ 5. Which of the following best describes “total cost of ownership” (TCO) in
procurement?
A. The unit cost of a product
B. The sum of shipping and handling
C. The initial cost plus all costs over the product lifecycle
D. The procurement officer’s budget
Answer: C
Explanation:
TCO includes the acquisition cost, maintenance, operation, training, and disposal costs – critical
for long-term value assessment.
✅ 6. A purchase order becomes legally binding when:
A. The supplier sends a catalog
B. The buyer signs it
C. The seller accepts the terms and conditions
D. The finance department approves funding
,Answer: C
Explanation:
A contract (including a PO) becomes binding when the offer (PO) is accepted by the supplier,
forming mutual obligation.
✅ 7. Which document outlines the terms and expectations during contract
performance?
A. Letter of Intent
B. Invoice
C. Statement of Work (SOW)
D. Requisition Form
Answer: C
Explanation:
The SOW details the deliverables, timelines, quality requirements, and responsibilities of both
parties, serving as a key contract component.
✅ 8. What is the main purpose of conducting a risk assessment during
procurement planning?
A. To avoid evaluating vendor responses
B. To inflate contingency budgets
C. To identify potential challenges that may affect project success
D. To select the cheapest vendor
Answer: C
Explanation:
Risk assessments help identify and mitigate potential problems (financial, legal, operational) that
may derail procurement outcomes.
✅ 9. A key characteristic of a fixed-price contract is:
A. It is open-ended with unlimited costs
B. Price adjustments are made monthly
C. The vendor bears the cost risk
D. The government must cover all cost overruns
, Answer: C
Explanation:
Fixed-price contracts place performance and cost risk on the contractor, incentivizing cost
control and efficiency.
✅ 10. Which ethical principle is most critical in public procurement?
A. Innovation
B. Transparency
C. Expediency
D. Delegation
Answer: B
Explanation:
Transparency ensures public trust, fairness, and accountability – foundational to ethical
government procurement.
✅ 11. Which of the following best illustrates a conflict of interest in public procurement?
A. Recommending the lowest bidder
B. Attending vendor-hosted product demos
C. Evaluating a bid from a company owned by the procurement officer’s sibling
D. Negotiating contract terms
Answer: C
Explanation:
Personal relationships with vendors create real or perceived conflicts, undermining fairness and
transparency in procurement.
✅ 12. What is the main advantage of using a performance-based contract?
A. It guarantees the lowest cost
B. It specifies exact processes
C. It links payment to outcomes rather than activities
D. It requires minimal oversight
Answer: C
WITH COMPLETE SOLUTIONS
Course
NIGP – CPP
✅ 1. Which of the following best describes a cooperative procurement
agreement?
A. A contract awarded to a vendor based on price only
B. A procurement method used to increase supplier diversity
C. A shared contract between multiple government agencies to leverage volume pricing
D. A single-source contract used in emergencies
Answer: C
Explanation:
Cooperative procurement involves multiple public entities combining their purchasing power
under a shared agreement, aiming for cost savings and administrative efficiency.
✅ 2. What is the primary purpose of a market analysis in the procurement
planning phase?
A. To ensure supplier competition is eliminated
B. To increase the procurement cycle time
C. To gather information on potential suppliers, trends, and pricing
D. To draft the final contract terms
Answer: C
Explanation:
Market analysis helps procurement professionals understand the supply landscape, price ranges,
vendor capabilities, and risks before solicitation development.
✅ 3. Which procurement method is best suited for a project with undefined
requirements and need for innovative solutions?
A. Invitation for Bids (IFB)
B. Request for Proposals (RFP)
C. Request for Quotation (RFQ)
D. Purchase Order (PO)
,Answer: B
Explanation:
RFPs allow evaluation based on both technical and cost criteria and provide room for vendors to
propose innovative solutions to complex needs.
✅ 4. A bid protest is most likely to occur during which phase of the
procurement process?
A. Market analysis
B. Solicitation development
C. Contract award
D. Inventory control
Answer: C
Explanation:
Most protests arise when a vendor is not selected for award, often due to disputes over evaluation
criteria or perceived unfair treatment.
✅ 5. Which of the following best describes “total cost of ownership” (TCO) in
procurement?
A. The unit cost of a product
B. The sum of shipping and handling
C. The initial cost plus all costs over the product lifecycle
D. The procurement officer’s budget
Answer: C
Explanation:
TCO includes the acquisition cost, maintenance, operation, training, and disposal costs – critical
for long-term value assessment.
✅ 6. A purchase order becomes legally binding when:
A. The supplier sends a catalog
B. The buyer signs it
C. The seller accepts the terms and conditions
D. The finance department approves funding
,Answer: C
Explanation:
A contract (including a PO) becomes binding when the offer (PO) is accepted by the supplier,
forming mutual obligation.
✅ 7. Which document outlines the terms and expectations during contract
performance?
A. Letter of Intent
B. Invoice
C. Statement of Work (SOW)
D. Requisition Form
Answer: C
Explanation:
The SOW details the deliverables, timelines, quality requirements, and responsibilities of both
parties, serving as a key contract component.
✅ 8. What is the main purpose of conducting a risk assessment during
procurement planning?
A. To avoid evaluating vendor responses
B. To inflate contingency budgets
C. To identify potential challenges that may affect project success
D. To select the cheapest vendor
Answer: C
Explanation:
Risk assessments help identify and mitigate potential problems (financial, legal, operational) that
may derail procurement outcomes.
✅ 9. A key characteristic of a fixed-price contract is:
A. It is open-ended with unlimited costs
B. Price adjustments are made monthly
C. The vendor bears the cost risk
D. The government must cover all cost overruns
, Answer: C
Explanation:
Fixed-price contracts place performance and cost risk on the contractor, incentivizing cost
control and efficiency.
✅ 10. Which ethical principle is most critical in public procurement?
A. Innovation
B. Transparency
C. Expediency
D. Delegation
Answer: B
Explanation:
Transparency ensures public trust, fairness, and accountability – foundational to ethical
government procurement.
✅ 11. Which of the following best illustrates a conflict of interest in public procurement?
A. Recommending the lowest bidder
B. Attending vendor-hosted product demos
C. Evaluating a bid from a company owned by the procurement officer’s sibling
D. Negotiating contract terms
Answer: C
Explanation:
Personal relationships with vendors create real or perceived conflicts, undermining fairness and
transparency in procurement.
✅ 12. What is the main advantage of using a performance-based contract?
A. It guarantees the lowest cost
B. It specifies exact processes
C. It links payment to outcomes rather than activities
D. It requires minimal oversight
Answer: C
