NIGP CPP UPDATED EVALUATION EXAMS QUESTIONS AND
ANSWERS MARKED A+
✔✔Best Value - ✔✔Procurement method that emphasizes value over price. Not the
lowest price. Generally achieved in the RFP method.
any selection process in which proposals contain both price and qualitative components
and the award is based upon a combination of price and qualitative considerations
✔✔value analysis - ✔✔A method directed at all of the functions of a product or service
to satisfy the requirements at the lowest possible cost to the entity
✔✔Make-or-Buy Analysis - ✔✔The process of gathering and organizing data about
product requirements and analyzing them against available alternatives including the
purchase or internal manufacture of the product.
✔✔Price Analysis - ✔✔the process of comparing supplier prices against one another or
against external benchmarks
✔✔Cost Analysis - ✔✔An examination of the actual or estimated cost including labor,
materials, overhead administrative expenses that exclude the supplier's profit
✔✔Lease or Buy Deicision - ✔✔A decision based on the results of a cost/benefit
analysis of the cost to own, cost to lease and the advantages and disadvantages of any
relevant qualitative factors
✔✔Spend Analysis - ✔✔The process of collecting, cleansing and classifying and
analyzing expenditure data from all sources within the organization, p-cards, e
Procurement
✔✔True cost of ownership - ✔✔Determine the operating cycle for the equipment,
Identify and quantify the factors that affect costs, Calculate all costs at current rates and
prices. Estimate future costs that will be incurred.
✔✔Spend analysis - ✔✔The process analyzes the current, past, and forecasted
expenditures to allow visibility of data by supplier, by good or service, and by
department, within the entity.
✔✔There are five principles of the process of standardization - ✔✔These principles are:
Consensus;
Due Process;
Openness;
Right to Appeal; and
Balance.
, ✔✔Every procurement action should be evaluated for six types of risks: - ✔✔Proposal
Risk: describing the item of service purchased through specifications and legal
document
Surety/Liability Risk: protecting the financial and legal interests of the agency
Schedule Risk: ensuring timely delivery
Contractual Risk: establishing change/amendment procedures, dispute resolution, and
breach procedures
Performance Risk: defining acceptance
Price Risk: defining payment terms
✔✔An agency has decided to outsource their entire printing operation, and the
purchasing director is on the sourcing team that includes the agency's risk manager.
The agency director has asked that a formal risk management plan be developed. What
would be the most likely contribution by the agency's purchasing director? - ✔✔Explain
how the proposal and performance risk identified during the source selection process
plays a role in risk management.
✔✔An agency has decided to outsource their entire printing operation, and the
purchasing director is on the sourcing team that includes the agency's risk manager.
The agency director has asked that a formal risk management plan be developed. What
would be the most likely contribution by the agency's purchasing director? - ✔✔A
performance bond requirement is a tool to protect the public agency's interests by
measuring and controlling the possibility of an unacceptable project outcome.
✔✔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
ANSWERS MARKED A+
✔✔Best Value - ✔✔Procurement method that emphasizes value over price. Not the
lowest price. Generally achieved in the RFP method.
any selection process in which proposals contain both price and qualitative components
and the award is based upon a combination of price and qualitative considerations
✔✔value analysis - ✔✔A method directed at all of the functions of a product or service
to satisfy the requirements at the lowest possible cost to the entity
✔✔Make-or-Buy Analysis - ✔✔The process of gathering and organizing data about
product requirements and analyzing them against available alternatives including the
purchase or internal manufacture of the product.
✔✔Price Analysis - ✔✔the process of comparing supplier prices against one another or
against external benchmarks
✔✔Cost Analysis - ✔✔An examination of the actual or estimated cost including labor,
materials, overhead administrative expenses that exclude the supplier's profit
✔✔Lease or Buy Deicision - ✔✔A decision based on the results of a cost/benefit
analysis of the cost to own, cost to lease and the advantages and disadvantages of any
relevant qualitative factors
✔✔Spend Analysis - ✔✔The process of collecting, cleansing and classifying and
analyzing expenditure data from all sources within the organization, p-cards, e
Procurement
✔✔True cost of ownership - ✔✔Determine the operating cycle for the equipment,
Identify and quantify the factors that affect costs, Calculate all costs at current rates and
prices. Estimate future costs that will be incurred.
✔✔Spend analysis - ✔✔The process analyzes the current, past, and forecasted
expenditures to allow visibility of data by supplier, by good or service, and by
department, within the entity.
✔✔There are five principles of the process of standardization - ✔✔These principles are:
Consensus;
Due Process;
Openness;
Right to Appeal; and
Balance.
, ✔✔Every procurement action should be evaluated for six types of risks: - ✔✔Proposal
Risk: describing the item of service purchased through specifications and legal
document
Surety/Liability Risk: protecting the financial and legal interests of the agency
Schedule Risk: ensuring timely delivery
Contractual Risk: establishing change/amendment procedures, dispute resolution, and
breach procedures
Performance Risk: defining acceptance
Price Risk: defining payment terms
✔✔An agency has decided to outsource their entire printing operation, and the
purchasing director is on the sourcing team that includes the agency's risk manager.
The agency director has asked that a formal risk management plan be developed. What
would be the most likely contribution by the agency's purchasing director? - ✔✔Explain
how the proposal and performance risk identified during the source selection process
plays a role in risk management.
✔✔An agency has decided to outsource their entire printing operation, and the
purchasing director is on the sourcing team that includes the agency's risk manager.
The agency director has asked that a formal risk management plan be developed. What
would be the most likely contribution by the agency's purchasing director? - ✔✔A
performance bond requirement is a tool to protect the public agency's interests by
measuring and controlling the possibility of an unacceptable project outcome.
✔✔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
