CPPB Exam Prep Questions and
Answers
Cost Plus Percentage of Cost Contracts - Answer- An agreement on a construction
project in which the contractor is provided a specified percentage profit over and above
the actual costs of construction. These contracts are considered poor business practice
because the contractor has little incentive to hold down costs. The type of costing
method is prohibited in Federal purchasing.
Procurement - Answer- Includes purchasing, contract administration, inventory,
receiving and disposal.
Integrity - Answer- The value of one's words and actions.
Competition - Answer- Provides an incentive to reduce cost and increase quality.
Laws - Answer- Define and control what public agencies may do.
ABA - Answer- American Bar Association
ABL - Answer- Approved Brands List, also Approved Products List [APL]
ABA Model Procurement Code for State and Local Government (U S Law) - Answer-
Developed by the ABA and adopted in 1979, it is a collection of statutory principles and
policies that provides guidance to public policy managers who wish to responsibly
manage public procurement. Stat and large local governments have individually codified
it into procurement law and policy to effectively guide their procurement organizations.
The code was updated in 2000 and contained enhancements in the following areas:
Electronic Commerce, Cooperative Purchasing, Flexibility in Purchasing Methods and
Processes for Delivery of Infrastructure Facilities and Services. Also called the Model
Procurement Code.
Anti Trust Laws - Answer- State and federal laws enacted to ensure free, fair and open
competition by prohibiting monopolies or conspiracies in restraint of trade in interstate
and foreign commerce. The Sherman and Clayton Acts are examples of Federal
AntiTrust Laws.
Oligopoly - Answer- A market in which few firms produce all or most of the market
supply of a particular good or service. Also Imperfect Competition.
