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CPPB Exam QUESTIONS WITH 100%
CORRECT ANSWERS
Procurement Technology - CORRECT ANSWER -Helps accelerate business
improvements
Results Oriented Budgeting - CORRECT ANSWER -Attempts to link a resource
allocation to performance criteria
Budget Cycle - CORRECT ANSWER -1. Planning 2. Formalization 3.
implementation 4. evaluation
Procurement Cards - CORRECT ANSWER -payment method whereby internal
customers are empowered to deal directly with suppliers using a credit card
Four principles of negotiation - CORRECT ANSWER -1. separate people from
the problem
- create a variety of options before deciding which to pursue
- focus on interests, not positions
- use objective criteria
people elements to negotiation - CORRECT ANSWER -differences of perception,
emotions, communications
differences of perception - CORRECT ANSWER -it is crucial for both sides to
understand the other's viewpoint
emotions - CORRECT ANSWER -negotiation can be a frustrating process
communications - CORRECT ANSWER -negotiators may not be speaking to
each other, but may simply be grandstanding for their respective constituencies
establish a BATNA - CORRECT ANSWER -The Best Alternative To a Negotiated
Agreement
stonewalling - CORRECT ANSWER -this occurs when one side has no intention
of reaching an agreement unless there is an irresistible offer.
good samaritan - CORRECT ANSWER -the other side is using this technique
when it acts as if it is doing you a favor or making a great sacrifice with its offer in order to put you off guard and persuade you to accept it
opposition negotiation tactics - CORRECT ANSWER -stonewalling, good
samaritan, take it or leave it, splitting the difference, nickel and dime, good/bad cop, pity me, piece-by-piece, total package, refusal to negotiate, status, escalating demands, divide and conquer, defense, win/win
take it or leave it - CORRECT ANSWER -when the other side has made its final
offer and says it will no longer negotiate
splitting the difference - CORRECT ANSWER -this involves offering to cut the
dollar difference in half, thus avoiding the discussion of the details of the deal
nickel and dime - CORRECT ANSWER -the other side wants to negotiate each
and every point
good/bad cop - CORRECT ANSWER -this tactic is used to elicit feelings of
sympathy and understanding in order to get concessions
pity me - CORRECT ANSWER -this tactic is designed to rely on the sense of fair
play and make it hard to walk away
piece-by-piece - CORRECT ANSWER -this tactic is used to negotiate each item
of a contract
total package - CORRECT ANSWER -this tactic is used when an offer is
acceptable, but one or two major elements still need to be negotiated.
refusal to negotiate - CORRECT ANSWER -in this tactic the other side wants a
concession even to talk
status - CORRECT ANSWER -sometimes the party you are negotiating with is
perceived to have a higher status, such as when the president of a company personally negotiates with a buyer.
escalating demands - CORRECT ANSWER -extreme demands may be made to
persuade you to lower your expectations for a final agreement.
divide and conquer - CORRECT ANSWER -this is used to persuade various
members of the team to accept the opposition's position
general conflict resolution skills - CORRECT ANSWER -communication,
listening, summarize, clarify, good speaking skills, communication side-trackers, win-win options, brainstorming, find a fair solution
communication - CORRECT ANSWER -conflicts are often caused by problems in
communication
listening - CORRECT ANSWER -it is important to listen carefully
summarize - CORRECT ANSWER -when a person is finished expressing a
thought, summarize the facts and emotions behind what they have said so that they know you have understood what they've said and how they are feeling.
clarify - CORRECT ANSWER -ask questions to clarify or make clearer different
parts of the problem to make sure that you fully understand the other person's perspective
good speaking skills - CORRECT ANSWER -send a clear message, with a
specific purpose and with respect to the listener
communication side-trackers - CORRECT ANSWER -don't interrupt, criticize,
laugh at the other person, offer advice or bring up your own experiences or change the subject
win-win options - CORRECT ANSWER -an idea or suggestion in which both
sides can benefit is called a win-win option
brainstorming - CORRECT ANSWER -the first step in problem solving is to come
up with as many ideas as possible
find a fair solution - CORRECT ANSWER -then go through the ideas using fair
criteria to see which idea might be best
basic steps to conflict resolution - CORRECT ANSWER -1. personal preparation
- obtain agreements
- state your initial positions/issues
- restate each other's initial position
- begin workin on solutions
- summarize points of agreement and produce a solution
- follow-up
personal preparation - CORRECT ANSWER -review your agreements; be aware
of your feelings.
obtain agreements - CORRECT ANSWER -agree on the conflict resolution
process, agree to treat each other with respect
state your initial positions/issues - CORRECT ANSWER -take turns, focus on
specific incidents, describe behavior and feelings, don't interpret the other's behavior
restate each other's initial position - CORRECT ANSWER -take turns, restate
what the other said, make corrections if necessary, reflect on how you feel
begin working on solutions - CORRECT ANSWER -identify underlying issues,
define your success criteria and brainstorm mutual solutions
summarize points of agreement and produce a solution - CORRECT ANSWER -
create a solution that is as specific as possible, write it down, agree to maintain confidentiality, agree to follow-up
follow-up - CORRECT ANSWER -check on whether the solution is being
followed, revise if necessary and discuss what you learned
nominal group technique - CORRECT ANSWER -a group decision-making
technique that focuses on generating alternatives and selecting among them by asking group members to independently write down ideas, present them in turn, clarify them for the group and rank them by voting privately.
stages of negotiation - CORRECT ANSWER -Planning, actual negotiations,
completion
nickel and dime - CORRECT ANSWER -the other side wants to negotiate each
and every point
process improvement - CORRECT ANSWER -increase in value resulting from a
modification in any phase of the procurement and/or supply process
Process alignment to organization goals - CORRECT ANSWER -all processes,
people and resources should be aligned to business goals
Process first - CORRECT ANSWER -improvement focuses on incorporating cost
effective and goal oriented processes
performance audits - CORRECT ANSWER -reviews all governmental operations
and includes all of the other types of audits
standardization - CORRECT ANSWER -adoption of a single product or group of
products to be used by different organizations or all parts of one organization
supplier manuals - CORRECT ANSWER -provide formal and extensive
information for suppliers seeking to do business with the organization
electronic commerce - CORRECT ANSWER -integration of electronic data
interchange, ETF, and similar techniques into a comprehensive electronic based system of procurement functions
audit reports - CORRECT ANSWER -interdepartmental, intradepartmental,
higher level management
post consumer - CORRECT ANSWER -materials made from commodities that
have been used by consumers
interdepartmental reports - CORRECT ANSWER -inform the management
concerning departmental matters
audit - CORRECT ANSWER -detailed review and examination of records
pre-consumer - CORRECT ANSWER -materials left over in manufacturing
processes and reused in a consumer product
three forms of authority - CORRECT ANSWER -express, implied, apparent
interdepartmental reports - CORRECT ANSWER -distribution to other
departments on a need to know basis
electronic sourcing - CORRECT ANSWER -obtaining bids from different
suppliers via a single online portal
procedure manuals - CORRECT ANSWER -written at a finer level that sets out
processes, forms, and steps
procurement technology - CORRECT ANSWER -helps accelerate business
improvements
preference - CORRECT ANSWER -advantage given to bidders/offerors based on
pre-established criteria
four types of audits - CORRECT ANSWER -financial compliance, economy &
efficiency, program or evaluations, performance
standardization committee - CORRECT ANSWER -used to create standards
purposes of public budgeting - CORRECT ANSWER -goal attainment, financial
control, managerial accountability
express authority - CORRECT ANSWER -explicitly given in direct language
rational budget decision model - CORRECT ANSWER -inter sector efficiency,
inter program efficiency, intra program efficiency
inter sector efficiency - CORRECT ANSWER -determines whether or not the cost
of a government activity yields more benefits to society than if it remained in the private sector
financial and compliance audits - CORRECT ANSWER -performed by
accounting firms to determine whether transactions are recorded and verify accuracy
inter program efficiency - CORRECT ANSWER -judges competing programs and
allocates resources to the program that provides the greatest benefits
intra program efficiency - CORRECT ANSWER -determine within each program
if resources should be combined to maximize the net benefits from any given expenditure increment
performance budgets - CORRECT ANSWER -relate expenditures to workloads
line item budgets - CORRECT ANSWER -fixed budgets with monies
appropriated for a particular period, usually one year
other types of budgets - CORRECT ANSWER -performance budgets, program
budgets, zero based budgets, results oriented budgeting
implied authority - CORRECT ANSWER -determined by inferences and
reasonable deductions arising out of the conduct of the principal toward the agent
market based pricing - CORRECT ANSWER -where pricing is contingent on the
customer's current demand and a willingness of the competitors to supply similar products or services
cost based pricing - CORRECT ANSWER -when a margin of profit is added to
reasonable labor, material and overhead costs
price analysis - CORRECT ANSWER -process of examining and evaluating a
prospective price without performing cost analysis
addendum - CORRECT ANSWER -written change, addition, alteration,
correction or revision to a contract document
procurement of the product or service - CORRECT ANSWER -identify potential
suppliers of the product or service
demand analysis - CORRECT ANSWER -used to estimate annual requirements
based on the previous year plus anticipated use for the upcoming year
components of a buying plan - CORRECT ANSWER -demand, market, supplier
and value analysis
market analysis - CORRECT ANSWER -researching product availability market
volatility, supply and demand and price
supplier analysis - CORRECT ANSWER -evaluates potential new sources along
with current providers
value analysis - CORRECT ANSWER -organized effort directed at analyzing the
functions of a product or service
service function - CORRECT ANSWER -one in which a designated unit relieves
the rest of an organization from performing a function that is common to all units in that organization
staff function - CORRECT ANSWER -to advise and assist affected groups within
the organization without the connotation of authority
line functions - CORRECT ANSWER -includes inventory management,
warehouse, shipping and receiving
considerations for keeping inventory - CORRECT ANSWER -lead time, recovery,
stockless purchasing, just-in-time
lead time - CORRECT ANSWER -period from date of ordering to date of delivery
recovery - CORRECT ANSWER -ability of procurement to obtain urgently
required materials and services from a supplier at premium cost
stockless purchasing - CORRECT ANSWER -organization has no responsibility
for inventory of the goods being purchased
just-in-time - CORRECT ANSWER -delivery was developed in order to reduce
inventory and warehouse management problems
statutory laws - CORRECT ANSWER -constitutions, statutes, ordinances, and
charters passed by governments
administrative laws - CORRECT ANSWER -written rules and regulations and
entity policy
common law - CORRECT ANSWER -based on customs and traditions and
codified through the legal system
laws of agency - CORRECT ANSWER -someone who acts on behalf of a
principle
specification - CORRECT ANSWER -precise description of the physical or
functional characteristics of a product or service
requirements analysis - CORRECT ANSWER -value analysis applied to the
writing of specifications to eliminate products or services that are not cost effective
design specification - CORRECT ANSWER -establishes the characteristics an
item must possess including details of how its manufactured
performance specifications - CORRECT ANSWER -description of a product or
service that provides a general functional recital of performance characteristics
confirmation specification - CORRECT ANSWER -incorporates, to the degree
necessary, attributes of both design and performance specifications
proposal risk - CORRECT ANSWER -describes the item of service purchased
through legal documents and scopes
surety and liability risk - CORRECT ANSWER -protects financial and legal
interests of the agency
contractual risk - CORRECT ANSWER -establishes change procedures
schedule risk - CORRECT ANSWER -ensures timely delivery
performance risk - CORRECT ANSWER -defines conditions under which
acceptance will occur and what inspection is required
definite - CORRECT ANSWER -specific requirement quantity and delivery date
have been established
requirements delivery contract - CORRECT ANSWER -when the public agency
agrees to purchase all requirements for a certain period of time from the contractor
bid bond - CORRECT ANSWER -bidder will accept contract as bid or else the
surety will pay a specific amount
fidelity bond - CORRECT ANSWER -insurance against losses due to dishonesty
of an employee
payment bond - CORRECT ANSWER -guarantees subcontracts will be paid for
labor and materials expended on contract
performance or completion bond - CORRECT ANSWER -protects public entity
from loss due to the inability of the bidder to complete contract
competitive negotiation - CORRECT ANSWER -method for obtaining goods,
services and construction for public use in which may be conducted
identification - CORRECT ANSWER -action of the public agency in recognizing
the availability of products or services within marketplace
investigate - CORRECT ANSWER -collecting and analyzing information related
to a specific commodity or service
market surveillance - CORRECT ANSWER -high level review of the industry
examines all of the activities of the market
market research process - CORRECT ANSWER -market surveillance,
investigation, identification, procurement of the producer, or product
market research - CORRECT ANSWER -collecting and analyzing information
about capabilities within the market to satisfy agency needs
lease-purchase decision - CORRECT ANSWER -based on the results of a
cost/benefit analyses of the costs to own costs to lease, and the advantages and disadvantages
disadvantages of leasing - CORRECT ANSWER -cost and control
partial payment leases - CORRECT ANSWER -gives lessee credit for the
residual value of the leased item after the lease period is complete
full payment leases - CORRECT ANSWER -lessee pays the full amount plus
interest charges and other costs
types of financial leases - CORRECT ANSWER -full payout leases, partial
payout leases
financial leases - CORRECT ANSWER -used as a financing tool and may
generate long term benefits
operating leases - CORRECT ANSWER -used to fulfill short-term requirements
when there is danger of rapid obsolescence
lease option types - CORRECT ANSWER -operating leases, financial leases
life cycle cost - CORRECT ANSWER -total cost of ownership over the lifespan of
the asset
supply and demand - CORRECT ANSWER -quantity of goods available for sale
at a given price and the level of consumer need for those goods at a given price
performance based contracting - CORRECT ANSWER -results oriented
contracting method that focuses on the outputs, quality, or outcomes that may tie at least to a portion of a contractor's payment
storming - CORRECT ANSWER -members are comfortable with one another and
have assessed everyone's strengths and weaknesses
forming - CORRECT ANSWER -team comes together and members get
acquainted
phases of a team - CORRECT ANSWER -forming, storming, norming,
performing, adjourning
team roles - CORRECT ANSWER -leader, team facilitator, team recorder, time
keeper
training - CORRECT ANSWER -may also be provided to suppliers about policies
and procedures
websites - CORRECT ANSWER -increasingly used communication channel
trade shows/expos - CORRECT ANSWER -brings clientele and suppliers
together in a non-competitive atmosphere
loyalty - CORRECT ANSWER -demands that the procurement staff first be
faithful and dedicated to the entity and remain free from any conflict of interest
honesty - CORRECT ANSWER -demands that procurement professionals must
tell the truth in all of their dealings, both with contractors and public
impartiality - CORRECT ANSWER -demands that procurement professionals
treat all suppliers and contractors equally without discrimination
codes of ethics - CORRECT ANSWER -impartiality, honesty, loyalty
transparency - CORRECT ANSWER -easily accessible and understandable
policies and processes
service - CORRECT ANSWER -obligation to assist stakeholders
professionalism - CORRECT ANSWER -upholding high standards of job
performance and ethical behavior
impartiality - CORRECT ANSWER -unbiased decision-making and action
ethics - CORRECT ANSWER -acting in a manner true to these values
(professional values)
accountability - CORRECT ANSWER -taking ownership and being responsible to
stakeholders for our actions
professional values - CORRECT ANSWER -accountability, ethics, impartiality,
professionalism, service, transparency
benefits of technology - CORRECT ANSWER -reduction, collaboration, accurate
and instant information, improved management flows, risk reduction, increase competition, diversity and inclusion, transparency, improved audits
Ensuring compliance - CORRECT ANSWER -interviews, checklists, site visits,
samples, demonstrations, tests, inspection
Interviews - CORRECT ANSWER -should be conducted with suppliers when the
agency is purchasing new commodities for the first time.
checklists - CORRECT ANSWER -can help track all required documentation and
certifications
site visits - CORRECT ANSWER -generally required to ensure that the supplier
is aware of the site conditions under which the contract will be performed.
samples - CORRECT ANSWER -provided by suppliers either before or after the
opening of bids, as provided for in the solicitation.
demonstrations - CORRECT ANSWER -can be used during the supplier
evaluation phase of an RFP for evaluating software to determine if the proposed software meets specifications
tests - CORRECT ANSWER -can be performed on samples after the contract
award, but before production begins
inspection - CORRECT ANSWER -another technique used to ensure that the
supplier has provided acceptable goods or services
three types of inspections - CORRECT ANSWER -in-process inspection,
receiving inspection, final inspection
legal purpose - CORRECT ANSWER -the law will not enforce agreements which
are for illegal acts
express contract - CORRECT ANSWER -may be written or oral and is created
when the formal elements for establishing a contract exist
implied-in-fact contract - CORRECT ANSWER -occurs when some of the formal
contractual elements occur through a person's conduct rather than being explicitly stated in words
interpretations of terms and conditions - CORRECT ANSWER -courts use
common law rules of interpretation
protocols - CORRECT ANSWER -there are generally accepted practices
regarding business protocols such as the precedence or ordering sequence of contract language interpretation according to the importance of words, format and emphasis
cardinal rule - CORRECT ANSWER -this focuses on the plain language of the
contract and the meaning that both parties gave to the text at the time of the contract signing
whole instrument rule - CORRECT ANSWER -gives priority to the meaning of the
overall contract as opposed to a section or clause of the contract.
express language rule - CORRECT ANSWER -specifies that when there is a list
of words which is followed by a general description of a category, then the contract applies only to the items in the list
mechanical rules - CORRECT ANSWER -include handwritten notes taking
precedence over printed text, quantities spelled out in words over the use of numerals and anything written in a conspicuous manner such as larger font
six types of risk - CORRECT ANSWER -proposal risk, surety/liability risk,
schedule risk, contractual risk
planning tools - CORRECT ANSWER -contract administration plan (CAP),
performance assessment plan (PAP), surveillance techniques
contract administration plan (CAP) - CORRECT ANSWER -provides the
framework for effective contract administration with an emphasis on process, output and outcome
performance assessment plan (PAP) - CORRECT ANSWER -based on the
technical requirements and terms and conditions of the contract and ensures that the agency is receiving the supplies or services to which it is entitled under the contract
surveillance techniques - CORRECT ANSWER -provide for the monitoring and
evaluating of all contract requirements through a combination of methods such as sampling, checklists, performance requirement summary lists or other information
methods for proper acceptance, remedies or rejection - CORRECT ANSWER -
acceptance, remedies for defects, rejection, post acceptance rights, gross mistakes amounting to fraud, warranties
acceptance - CORRECT ANSWER -the acceptance process is a critical part of
contract administration
remedies for defects - CORRECT ANSWER -the solicitation and contract should
suggest a variety of remedies for defects prior to acceptance
rejection - CORRECT ANSWER -the formal process used by the public agency
to officially notify the contractor that the product or service is defective and that it will not be accepted
post acceptance rights - CORRECT ANSWER -acceptance substantially limits
the public agency's ability to reject goods or services if a defect is found at a later date
types of post acceptance rights - CORRECT ANSWER -latent defects, fraud
latent defects - CORRECT ANSWER -these exist at the time of acceptance, but
could not have been discovered through normal and reasonable inspection procedures
fraud - CORRECT ANSWER -misrepresentation of fact, knowledge of falsity or
reckless or wanton disregard of the facts, intend to mislead the agency into relying on misrepresentations, injury suffered by the public agency
gross mistakes amounting to fraud - CORRECT ANSWER -this is a major
mistake by the contractor that is so serious and uncalled for as not to be reasonably expected or justifiable
warranties - CORRECT ANSWER -warranty clauses provide the public agency a
remedy for latent or patent defects discovered after acceptance
types of warranties - CORRECT ANSWER -implied and express warranties
