NIGP CPP UPDATED PRACTICE EXAM QUESTIONS AND
ANSWERS MARKED A+
✔✔Sourcing strategies - ✔✔Alternative procurement that give guidance to assess
evaluate and manage the supply base in ways that are consistent with overall entity
objectives
✔✔Performance specificiations - ✔✔A type of specification that describes the desired
outcome or intended use of the commodity and how the commodity will perform (
number of items, distance to travel, time traveled
✔✔Design specifications - ✔✔A type of specification that establishes the characteristics
an item must posses, including details how it is to be manufactured. May include
engineering plans of drawings, blueprints. It states to the contractor in prescriptive terms
what the contractor must provide to the buyer.
✔✔Combination specifications - ✔✔Includes elements of design and performance
specifications
✔✔IFB - ✔✔A procurement method used to solicit competitive sealed bid responses,
sometimes called a formal bid, price is the basis for the award.
✔✔RFP - ✔✔Price is not the primary evaluation factor
✔✔In calculating shipping costs, shipping companies use five factors: - ✔✔the volume
or weight of the goods, type of transport, distance traveled, destination port, and the
time of year.
✔✔"Ex Works" - ✔✔means that the seller delivers when it places the goods at the
disposal of the buyer at the seller's premises or at another named place (i.e., works,
factory, warehouse, etc.). The seller does not need to load the goods on any collecting
vehicle, nor does it need to clear the goods for export, where such clearance is
applicable.
✔✔"Free Carrier" - ✔✔means that the seller delivers the goods to the carrier or another
person nominated by the buyer at the seller's premises or another named place. The
parties are well advised to specify as clearly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.
✔✔"Free On Board" - ✔✔FOB means that the seller delivers the goods on board the
vessel nominated by the buyer at the named port of shipment or procures the goods
already so delivered. The risk of loss of or damage to the goods passes when the goods
are on board the vessel, and the buyer bears all costs from that moment onwards
, ✔✔A US jurisdiction has adopted the World Trade Organization Agreement on
Government Procurement (WTO-GPA) and procurement of consulting services is
covered by that agreement. The value of consulting services under a specific
procurement is estimated to be no more than $100,000 US. What is the minimum
required advertising time for the solicitation (if no exceptions apply)? - ✔✔The minimum
time required by the local jurisdiction's applicable laws without regard to the GPA.
✔✔Surplus - ✔✔Surplus is defined as materials that are obsolete or no longer needed
by the entity and are designated for disposal. Surplus becomes available for disposal
outside of the entity because of some unforeseen situation that affects the use of the
item. Once an asset has reached the end of its useful life for an entity, decisions must
be made on how to properly dispose of the asset
✔✔Logistic management - ✔✔Routing, distribution transportation coordination
✔✔Mode - ✔✔The number that occurs most frequently, average
✔✔Dermurrage - ✔✔A charge payable to the owner of a chartered ship in respect to
failure to load or discharge the ship within the time agreed.
✔✔Dunage - ✔✔loose wood or matting material to keep cargo in secure position in a
ship's hold
✔✔3PL - ✔✔Third party logistics provider that manages the transportation
✔✔Lean 8 Wastes - ✔✔Transportation - Anytime you ship something, time and money
are involved.
Inventory - Idle inventory ties up space, labor and working capital.
Motion - If you move an item over and over gain, you're wasting time and money.
Waiting - Whenever it is necessary for one thing to occur before another, time and
money are wasted.
Overproduction - Anytime you produce anything before you can sell or use it, time and
money are wasted.
Overprocessing - Anytime you do anything that does not add value and your customer
will not pay for it, time and money are wasted.
Defects - Anytime a product is produced in error or damaged and cannot be used for its
intended purpose, time and money are wasted.
Untapped Talent - Anytime you do not engage-inspire your customers/suppliers in your
continual quest for continuous process improvement, time and money are wasted.
✔✔Assest Available disposition options may include any of the following: - ✔✔Reuse -
Transfer, redeploy within the entity;
Recondition - Refurbish for use within the entity;
Return - Trade-in to a supplier for credit toward a new purchase;
Resell - Sale through auction (live or online) or competitive process (bid/proposal);
ANSWERS MARKED A+
✔✔Sourcing strategies - ✔✔Alternative procurement that give guidance to assess
evaluate and manage the supply base in ways that are consistent with overall entity
objectives
✔✔Performance specificiations - ✔✔A type of specification that describes the desired
outcome or intended use of the commodity and how the commodity will perform (
number of items, distance to travel, time traveled
✔✔Design specifications - ✔✔A type of specification that establishes the characteristics
an item must posses, including details how it is to be manufactured. May include
engineering plans of drawings, blueprints. It states to the contractor in prescriptive terms
what the contractor must provide to the buyer.
✔✔Combination specifications - ✔✔Includes elements of design and performance
specifications
✔✔IFB - ✔✔A procurement method used to solicit competitive sealed bid responses,
sometimes called a formal bid, price is the basis for the award.
✔✔RFP - ✔✔Price is not the primary evaluation factor
✔✔In calculating shipping costs, shipping companies use five factors: - ✔✔the volume
or weight of the goods, type of transport, distance traveled, destination port, and the
time of year.
✔✔"Ex Works" - ✔✔means that the seller delivers when it places the goods at the
disposal of the buyer at the seller's premises or at another named place (i.e., works,
factory, warehouse, etc.). The seller does not need to load the goods on any collecting
vehicle, nor does it need to clear the goods for export, where such clearance is
applicable.
✔✔"Free Carrier" - ✔✔means that the seller delivers the goods to the carrier or another
person nominated by the buyer at the seller's premises or another named place. The
parties are well advised to specify as clearly as possible the point within the named
place of delivery, as the risk passes to the buyer at that point.
✔✔"Free On Board" - ✔✔FOB means that the seller delivers the goods on board the
vessel nominated by the buyer at the named port of shipment or procures the goods
already so delivered. The risk of loss of or damage to the goods passes when the goods
are on board the vessel, and the buyer bears all costs from that moment onwards
, ✔✔A US jurisdiction has adopted the World Trade Organization Agreement on
Government Procurement (WTO-GPA) and procurement of consulting services is
covered by that agreement. The value of consulting services under a specific
procurement is estimated to be no more than $100,000 US. What is the minimum
required advertising time for the solicitation (if no exceptions apply)? - ✔✔The minimum
time required by the local jurisdiction's applicable laws without regard to the GPA.
✔✔Surplus - ✔✔Surplus is defined as materials that are obsolete or no longer needed
by the entity and are designated for disposal. Surplus becomes available for disposal
outside of the entity because of some unforeseen situation that affects the use of the
item. Once an asset has reached the end of its useful life for an entity, decisions must
be made on how to properly dispose of the asset
✔✔Logistic management - ✔✔Routing, distribution transportation coordination
✔✔Mode - ✔✔The number that occurs most frequently, average
✔✔Dermurrage - ✔✔A charge payable to the owner of a chartered ship in respect to
failure to load or discharge the ship within the time agreed.
✔✔Dunage - ✔✔loose wood or matting material to keep cargo in secure position in a
ship's hold
✔✔3PL - ✔✔Third party logistics provider that manages the transportation
✔✔Lean 8 Wastes - ✔✔Transportation - Anytime you ship something, time and money
are involved.
Inventory - Idle inventory ties up space, labor and working capital.
Motion - If you move an item over and over gain, you're wasting time and money.
Waiting - Whenever it is necessary for one thing to occur before another, time and
money are wasted.
Overproduction - Anytime you produce anything before you can sell or use it, time and
money are wasted.
Overprocessing - Anytime you do anything that does not add value and your customer
will not pay for it, time and money are wasted.
Defects - Anytime a product is produced in error or damaged and cannot be used for its
intended purpose, time and money are wasted.
Untapped Talent - Anytime you do not engage-inspire your customers/suppliers in your
continual quest for continuous process improvement, time and money are wasted.
✔✔Assest Available disposition options may include any of the following: - ✔✔Reuse -
Transfer, redeploy within the entity;
Recondition - Refurbish for use within the entity;
Return - Trade-in to a supplier for credit toward a new purchase;
Resell - Sale through auction (live or online) or competitive process (bid/proposal);
