NIGP CPPO CERTIFICATION EXAM 2023-2024 ACTUAL EXAM 130 QUESTIONS AND CORRECT DETAILED
ANSWERS
Surety - (answer) a pledge or guarantee by an insurance company, bank, individual or corporation on
behalf of a bidder or offeror which protects against default or failure of the principal to satisfy the
contractual obligations.
accountability - (answer) The principle that employees who accept an assignment and the authority to
carry it out are answerable to a superior or a higher authority for the outcome.
acceptance - (answer) 1. Indication that an offeree is bound by the terms of the offer.
2. An indication by one party of a willingness to act in accordance with the contract or offer.
3. The assumption of a legal obligation by a party to contract to the terms and conditions of that
contract.
4. The act of receiving by an authorized representative with the intention or retaining.
competitive sealed bidding - (answer) Preferred method for acquiring goods, services and construction
for public use in which award is made to the lowest responsive and responsible bidder, based solely on
the response to the criteria set forth in the invitation for bud; does not include discussions or
negotiations with bidders.
force majeure - (answer) Unexpected or uncontrollable events including those caused by nature that
can impact the contract price, terms and conditions. these events are not due to contractor negligence
and may excuse contractor performance during the events and under certain conditions caused by them.
Acts of God or disruptive conditions for which a contractor or carrier will not be held responsible.
specification - (answer) A precise description of he physical or functional characteristics of a product,
good or construction item. A description of goods and/or services. A description of what the purchaser
seeks to buy and what a bidder must be responsive to in order to be considered for award of a contract.
Specifications generally fall under the following categories: design, performance, combination (design
and performance), brand name or approved equal, qualified products list and samples. May also be
known as a purchasing description.
bid bond - (answer) An insurance agreement, accompanied by a monetary commitment, by which a
third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid.
, NIGP CPPO CERTIFICATION EXAM 2023-2024 ACTUAL EXAM 130 QUESTIONS AND CORRECT DETAILED
ANSWERS
warranty - (answer) A promise made by a seller to a buyer that is legally enforceable. The promise may
be expressed or implied and is legally binding.
best practice - (answer) A business process, activity or operation that is considered outstanding,
innovative or exceptionally creative by a recognized peer group. It may be considered as a leading-edge
activity that has been successfully adopted or implemented and has brought efficiency and effectiveness
to an organization. It may result in improved productivity, quality, reduced costs and increased customer
service.
return on investment or ROI - (answer) A calculation used in business to determine whether a
proposed investment is a wise business decision and how well it will repay the investor. It is calculated as
the ratio of the amount gained or loss relative to the basis. The analysis takes the form of a dynamic
model or statistical model.
estoppel - (answer) A legal principal that prevents a person from asserting a position that is
inconsistent with his or her prior conduct, if injustice would thereby result to a person who has changed
position in justifiable reliance upon that conduct. For example, a landlord informs a tenant that there
was construction or a lapse in utility services. If the tenant relies on this statement in choosing to remain
on the premises, the landlord could be barred under the principle from collecting full rent.
performance based contract - (answer) A results-oriented contracting method that focuses on the
outputs, quality or outcomes that may tie at least a portion of a contractor's payment, contractor
extensions, or contract renewals to the achievement of specific, measurable performance standards and
requirements. These contract may include monetary and non-monetary incentives as well as specific
remedies.
fiduciary duty - (answer) An individual's obligation to serve the best interests of selected stakeholders,
especially those of their employer.
sampling - (answer) A technique used to avoid examination of each item in a population, yet will still
be able to determine whether the entire population shall be accepted as complying with the acceptable
quality level or stated requirements.
ANSWERS
Surety - (answer) a pledge or guarantee by an insurance company, bank, individual or corporation on
behalf of a bidder or offeror which protects against default or failure of the principal to satisfy the
contractual obligations.
accountability - (answer) The principle that employees who accept an assignment and the authority to
carry it out are answerable to a superior or a higher authority for the outcome.
acceptance - (answer) 1. Indication that an offeree is bound by the terms of the offer.
2. An indication by one party of a willingness to act in accordance with the contract or offer.
3. The assumption of a legal obligation by a party to contract to the terms and conditions of that
contract.
4. The act of receiving by an authorized representative with the intention or retaining.
competitive sealed bidding - (answer) Preferred method for acquiring goods, services and construction
for public use in which award is made to the lowest responsive and responsible bidder, based solely on
the response to the criteria set forth in the invitation for bud; does not include discussions or
negotiations with bidders.
force majeure - (answer) Unexpected or uncontrollable events including those caused by nature that
can impact the contract price, terms and conditions. these events are not due to contractor negligence
and may excuse contractor performance during the events and under certain conditions caused by them.
Acts of God or disruptive conditions for which a contractor or carrier will not be held responsible.
specification - (answer) A precise description of he physical or functional characteristics of a product,
good or construction item. A description of goods and/or services. A description of what the purchaser
seeks to buy and what a bidder must be responsive to in order to be considered for award of a contract.
Specifications generally fall under the following categories: design, performance, combination (design
and performance), brand name or approved equal, qualified products list and samples. May also be
known as a purchasing description.
bid bond - (answer) An insurance agreement, accompanied by a monetary commitment, by which a
third party (the surety) accepts liability and guarantees that the bidder will not withdraw the bid.
, NIGP CPPO CERTIFICATION EXAM 2023-2024 ACTUAL EXAM 130 QUESTIONS AND CORRECT DETAILED
ANSWERS
warranty - (answer) A promise made by a seller to a buyer that is legally enforceable. The promise may
be expressed or implied and is legally binding.
best practice - (answer) A business process, activity or operation that is considered outstanding,
innovative or exceptionally creative by a recognized peer group. It may be considered as a leading-edge
activity that has been successfully adopted or implemented and has brought efficiency and effectiveness
to an organization. It may result in improved productivity, quality, reduced costs and increased customer
service.
return on investment or ROI - (answer) A calculation used in business to determine whether a
proposed investment is a wise business decision and how well it will repay the investor. It is calculated as
the ratio of the amount gained or loss relative to the basis. The analysis takes the form of a dynamic
model or statistical model.
estoppel - (answer) A legal principal that prevents a person from asserting a position that is
inconsistent with his or her prior conduct, if injustice would thereby result to a person who has changed
position in justifiable reliance upon that conduct. For example, a landlord informs a tenant that there
was construction or a lapse in utility services. If the tenant relies on this statement in choosing to remain
on the premises, the landlord could be barred under the principle from collecting full rent.
performance based contract - (answer) A results-oriented contracting method that focuses on the
outputs, quality or outcomes that may tie at least a portion of a contractor's payment, contractor
extensions, or contract renewals to the achievement of specific, measurable performance standards and
requirements. These contract may include monetary and non-monetary incentives as well as specific
remedies.
fiduciary duty - (answer) An individual's obligation to serve the best interests of selected stakeholders,
especially those of their employer.
sampling - (answer) A technique used to avoid examination of each item in a population, yet will still
be able to determine whether the entire population shall be accepted as complying with the acceptable
quality level or stated requirements.
