NIGP-CPP EXAM QUESTIONS WITH
CORRECT ANSWERS
Policy - ANSWER-A governing principle or plan that establishes the general
parameters for an organization to follow in carrying out its responsibilities.
Procedure - ANSWER-The detailed series of related activities that must be
completed and the sequence in which they must be done, to accomplish a given
task.
Common Law - ANSWER-Bodies of law not set forth in statues, ordinances, or
regulations, developed through court decisions.
A business entity or individual who has the integrity and reliability as well as the
financial and technical capacity to perform the requirements of the solicitation and
subsequent contract. - ANSWER-Responsible
A bid or proposal that fully conforms in all material respects to the Invitation for
Bids(IFB)/Request for Proposals(RFP) and all of its requirements, including all form
and substance. - ANSWER-Responsive
The specific right to perform acts and make decisions or prescribe rules governing
the conduct of others as given to an agent by a principal. - ANSWER-Actual
Authority
That authority that is explicitly given in direct language, rather than inferred from
conduct. - ANSWER-Express Authority
Authority that is not defined expressly, but is only determined by inferences and
reasonable deductions about actions that are necessary to perform the expressly
authorized acts. Can consider the conduct of the principal regarding the historical
actions of the agent. - ANSWER-Implied Authority
Occurs when a principal allows or permits a person to function in a capacity that
creates the illusion that the person is an authorized agent of the principal. -
ANSWER-Apparent Authority
An organizational statement that clearly and concisely addresses the future nature
and purpose of the entity. A short statement that tells who the organization is and
where they are going. - ANSWER-Mission Statement
(Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic planning
model that helps organizations identify where they're doing well and where they can
improve, both from an internal and external perspective. - ANSWER-SWOT Analysis
Like the SWOT, it identifies internal as well as external forces; however, it focuses
strictly on factors, which are considered to be "positive." Identifies Aspirations and
,Results. Focused on outcomes and attempts to determine where the organization
wants to be. - ANSWER-SOAR Framework
Used to identify factors, which may substantially affect the entity's performance.
Factors to be analyzed:Political, Economic, Social, Technology, Environmental, and
Legal. - ANSWER-PESTEL Analysis
Mission statements - ANSWER-focus on the organization's reasons for being in
existence
Process Mapping - ANSWER-allows users to quickly identify any gaps or holes in
the process, which must be addressed prior to implementation
Policy Manuals - ANSWER-designed to guide behavior toward accomplishing
specific organizational objectives. contain key provisions of enabling legislation or
ordinance and are used to forge a direct relationship between the legal foundation of
an agency's procurement program and the procurement rules and policies that guide
the agency
Vision statements - ANSWER-reflects where the organization is going.
Procedure Manuals - ANSWER-written with a greater level of detail and are intended
not just to provide guidance but to provide information on required forms, process
requirements, and steps for each procurement action
Strategic Procurement Planning - ANSWER-The transformation of the entity's
mission, goals and objectives into measurable activities to be used to plan, budget
and manage the procurement function within the entity.
Strategic Sourcing - ANSWER-a methodology and process that enables
procurement professionals to analyze what and how they acquire products and
services, with the objectives of lowering costs to the entity and improving supply
fulfillment from the producer level to the end-user (supply chain). In addition,
strategic sourcing can help Procurement improve supplier performance, eliminate
non-value-add activities and costs, reduce waste, and minimize risk.
A state professional licensing board is considering new rules regulating the licensed
profession. The rules will impact the scope of practice of that profession and may
affect the income of licensees. A couple of members of the licensing board hold
positions established by law for licensees in this profession. When the board
discusses and votes on the rules, what should the board members who are
licensees do?
o Do nothing other than give the new rules considerations and vote their conscience.
o Declare their conflicts of interests and then proceed with discussion and voting on
the new rules.
o Declare their conflicts of interests, abstain from voting on the new rules and
request that their declaration and abstention be noted in the minutes of the meeting.
o It doesn't matter what they do because the majority of the board stated at the last
meeting that they are voting in favor of the new rules. - ANSWER-Declare their
, conflicts of interests, abstain from voting on the new rules and request that their
declaration and abstention be noted in the minutes of the meeting.
Which of the following is an example of bid rigging?
o A bidder's showing up at the public bid opening, seeing its competitors, and
deciding not to submit a bid.
o A bidder's agreeing with a competitor that it will submit a high bid to provide
adequate competition.
o A bidder's deciding to bid only on solicitations in areas not services by a major
competitor.
o A manufacturer's retail outlets bidding only in their geographical areas of
responsibility. - ANSWER-A bidder's agreeing with a competitor that it will submit a
high bid to provide adequate competition.
An entity would like to invite more participation by local businesses. What strategy
may the Procurement Officer use in order to do so?
o Speaking at local Chamber of Commerce meetings.
o Adding local supplier preferences.
o Requiring that all suppliers have a local presence within the entity's region
o Requiring the use of local subcontractors for every contract. - ANSWER-Speaking
at local Chamber of Commerce meetings.
Involves the transformation of the organizational mission, goals, and objectives into
measurable activities to be used to plan. Examples of strategic procurement
planning include the:
• Development of supplier relationships to enhance the procurement/production of
goods and services consumed by the entity.
• Identification of specific functional demand attributes and/or linking of procurement
spending to specific goals and objectives within the entity. - ANSWER-Strategic
Procurement Planning
Meeting present needs without negatively impacting subsequent generations' ability
to fulfill their needs. (Management of waster; carbon emissions; water conservation)
- ANSWER-Sustainability
The Materials Manager for the Utility department has to keep parts and materials in
stock to maintain all 42 pump stations as well as the entire infrastructure to keep the
town citizens supplied with clean, pure, well water. This service has to be provided
24/7, and all essential maintenance, repair parts, and pumps must be readily
available. These deep well pumps cost tens of thousands of dollars, but if they are
maintained correctly, they can last over 10 years. What should be done with a
decommissioned pump?
A. Sell is as scrap metal
B. Transfer it to another entity
C. Sell it via an electronic auction
D. Cannibalize it for parts - ANSWER-Cannibalize it for parts
Procurement Director to buyer: "The mayor just called and he wants the Hansen
project expedited. Take care of it."
CORRECT ANSWERS
Policy - ANSWER-A governing principle or plan that establishes the general
parameters for an organization to follow in carrying out its responsibilities.
Procedure - ANSWER-The detailed series of related activities that must be
completed and the sequence in which they must be done, to accomplish a given
task.
Common Law - ANSWER-Bodies of law not set forth in statues, ordinances, or
regulations, developed through court decisions.
A business entity or individual who has the integrity and reliability as well as the
financial and technical capacity to perform the requirements of the solicitation and
subsequent contract. - ANSWER-Responsible
A bid or proposal that fully conforms in all material respects to the Invitation for
Bids(IFB)/Request for Proposals(RFP) and all of its requirements, including all form
and substance. - ANSWER-Responsive
The specific right to perform acts and make decisions or prescribe rules governing
the conduct of others as given to an agent by a principal. - ANSWER-Actual
Authority
That authority that is explicitly given in direct language, rather than inferred from
conduct. - ANSWER-Express Authority
Authority that is not defined expressly, but is only determined by inferences and
reasonable deductions about actions that are necessary to perform the expressly
authorized acts. Can consider the conduct of the principal regarding the historical
actions of the agent. - ANSWER-Implied Authority
Occurs when a principal allows or permits a person to function in a capacity that
creates the illusion that the person is an authorized agent of the principal. -
ANSWER-Apparent Authority
An organizational statement that clearly and concisely addresses the future nature
and purpose of the entity. A short statement that tells who the organization is and
where they are going. - ANSWER-Mission Statement
(Strengths, Weaknesses, Opportunities, and Threats) analysis is a strategic planning
model that helps organizations identify where they're doing well and where they can
improve, both from an internal and external perspective. - ANSWER-SWOT Analysis
Like the SWOT, it identifies internal as well as external forces; however, it focuses
strictly on factors, which are considered to be "positive." Identifies Aspirations and
,Results. Focused on outcomes and attempts to determine where the organization
wants to be. - ANSWER-SOAR Framework
Used to identify factors, which may substantially affect the entity's performance.
Factors to be analyzed:Political, Economic, Social, Technology, Environmental, and
Legal. - ANSWER-PESTEL Analysis
Mission statements - ANSWER-focus on the organization's reasons for being in
existence
Process Mapping - ANSWER-allows users to quickly identify any gaps or holes in
the process, which must be addressed prior to implementation
Policy Manuals - ANSWER-designed to guide behavior toward accomplishing
specific organizational objectives. contain key provisions of enabling legislation or
ordinance and are used to forge a direct relationship between the legal foundation of
an agency's procurement program and the procurement rules and policies that guide
the agency
Vision statements - ANSWER-reflects where the organization is going.
Procedure Manuals - ANSWER-written with a greater level of detail and are intended
not just to provide guidance but to provide information on required forms, process
requirements, and steps for each procurement action
Strategic Procurement Planning - ANSWER-The transformation of the entity's
mission, goals and objectives into measurable activities to be used to plan, budget
and manage the procurement function within the entity.
Strategic Sourcing - ANSWER-a methodology and process that enables
procurement professionals to analyze what and how they acquire products and
services, with the objectives of lowering costs to the entity and improving supply
fulfillment from the producer level to the end-user (supply chain). In addition,
strategic sourcing can help Procurement improve supplier performance, eliminate
non-value-add activities and costs, reduce waste, and minimize risk.
A state professional licensing board is considering new rules regulating the licensed
profession. The rules will impact the scope of practice of that profession and may
affect the income of licensees. A couple of members of the licensing board hold
positions established by law for licensees in this profession. When the board
discusses and votes on the rules, what should the board members who are
licensees do?
o Do nothing other than give the new rules considerations and vote their conscience.
o Declare their conflicts of interests and then proceed with discussion and voting on
the new rules.
o Declare their conflicts of interests, abstain from voting on the new rules and
request that their declaration and abstention be noted in the minutes of the meeting.
o It doesn't matter what they do because the majority of the board stated at the last
meeting that they are voting in favor of the new rules. - ANSWER-Declare their
, conflicts of interests, abstain from voting on the new rules and request that their
declaration and abstention be noted in the minutes of the meeting.
Which of the following is an example of bid rigging?
o A bidder's showing up at the public bid opening, seeing its competitors, and
deciding not to submit a bid.
o A bidder's agreeing with a competitor that it will submit a high bid to provide
adequate competition.
o A bidder's deciding to bid only on solicitations in areas not services by a major
competitor.
o A manufacturer's retail outlets bidding only in their geographical areas of
responsibility. - ANSWER-A bidder's agreeing with a competitor that it will submit a
high bid to provide adequate competition.
An entity would like to invite more participation by local businesses. What strategy
may the Procurement Officer use in order to do so?
o Speaking at local Chamber of Commerce meetings.
o Adding local supplier preferences.
o Requiring that all suppliers have a local presence within the entity's region
o Requiring the use of local subcontractors for every contract. - ANSWER-Speaking
at local Chamber of Commerce meetings.
Involves the transformation of the organizational mission, goals, and objectives into
measurable activities to be used to plan. Examples of strategic procurement
planning include the:
• Development of supplier relationships to enhance the procurement/production of
goods and services consumed by the entity.
• Identification of specific functional demand attributes and/or linking of procurement
spending to specific goals and objectives within the entity. - ANSWER-Strategic
Procurement Planning
Meeting present needs without negatively impacting subsequent generations' ability
to fulfill their needs. (Management of waster; carbon emissions; water conservation)
- ANSWER-Sustainability
The Materials Manager for the Utility department has to keep parts and materials in
stock to maintain all 42 pump stations as well as the entire infrastructure to keep the
town citizens supplied with clean, pure, well water. This service has to be provided
24/7, and all essential maintenance, repair parts, and pumps must be readily
available. These deep well pumps cost tens of thousands of dollars, but if they are
maintained correctly, they can last over 10 years. What should be done with a
decommissioned pump?
A. Sell is as scrap metal
B. Transfer it to another entity
C. Sell it via an electronic auction
D. Cannibalize it for parts - ANSWER-Cannibalize it for parts
Procurement Director to buyer: "The mayor just called and he wants the Hansen
project expedited. Take care of it."
