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NIGP |\CPP |\Module |\A |\questions |\with |\
answers
A |\strategic |\plan |\is |\a |\course |\of |\action |\to |\achieve |\long-range |\goals, |\generally |\up |\to |\five |\years. |\Strategic |\plans |\reflect |\the |\company's |
direction |\and |\its |\purpose |\as |\stated |\in |\its |\mission |\statement. |\To |
develop |\strategic |\plans, |\top |\management |\must |\develop |\and |\use |
summary |\reports |\on |\finances, |\operations, |\and |\the |\external |
environment. |- |\CORRECT |\ANSWERS |\✔✔Strategic |\Plan A |\tactical |\plan |\is |\a |\course |\of |\action |\to |\achieve |\short-term |\goals, |
generally |\within |\a |\year |\or |\less. |\Tactical |\plans |\are |\concerned |\with |
what |\the |\units |\beneath |\top |\management |\must |\do, |\how |\they |
must |\do |\it, |\and |\who |\has |\the |\responsibility. |\These |\plans |\have |
shorter |\time |\frames |\and |\narrower |\scopes |\than |\strategic |\plans. |- |
CORRECT |\ANSWERS |\✔✔Tactical |\Plan Obtain |\the |\Entity |\and |\Departmental |(if |\available) |\Mission, |\Goals, |
and |\Objectives. Establish |\and |\train |\a |\Strategic |\Procurement |\Planning |\Team. Review |\Strengths, |\Weaknesses, |\Opportunities, |\and |\Threats |
(SWOT) |\of |\the |\procurement |\function. Update |\the |\Procurement |\Department's |\mission, |\goals, |\and |
objectives, |\if |\necessary, |\based |\on |\the |\above |\SWOT |\review.
Review |\the |\projected |\budget |\for |\the |\entity |\to |\determine |\likely |
procurements |\for |\the |\coming |\year. |- |\CORRECT |\ANSWERS |
✔✔Steps |\to |\take |\to |\create |\a |\Procurement |\Strategic |\Plan Is |\the |\objective |\logically |\related |\to |\an |\identified |\goal? Does |\each |\objective |\describe |\an |\output |\or |\outcome |\in |\terms |\of |
identified |\targets, |\and |\are |\they |\time |\based? Is |\each |\objective |\realistic |\and |\attainable? Is |\the |\objective |\related |\to |\a |\specific |\foreseeable |\result |\or |
outcome |\instead |\of |\some |\internal |\process |\or |\output? |- |\CORRECT |
ANSWERS |\✔✔The |\creation |\of |\Strategic |\Procurement |\Objectives |
should |\include: SMART |\is |\an |\acronym |\that |\spells |\out |\the |\requirements |\for |
establishing |\effective |\goals |\and |\objectives. |\Creating |\objectives |
that |\meet |\these |\criteria |\will |\enable |\the |\entity |\to |\move |\forward |
more |\efficiently, |\with |\clear |\direction |\and |\within |\stated |\timelines. Specific: |\Objectives |\that |\are |\detailed |\and |\clear |\so |\that |\they |\are |
easy |\to |\understand. Measurable: |\Quantifiable |\objectives |\that |\include |\definite |\numbers |\and |\well-defined |\action |\plans.
ANSWERS |\✔✔In |\order |\for |\procurement |\managers |\to |\know |"what" |
they |\are |\measuring, |\accurate |\planning |\must |\be |\completed |\before |\the |\process |\of |\developing |\the |\performance |\metrics. Is |\descriptive |\and |\conceptual. |\Qualitative |\data |\can |\be |
categorized |\based |\on |\traits |\and |\characteristics. |\Example: |\Provide |\response |\options |\for |\feedback |\on |\the |\pCard |\program |\survey |
such |\as: |\Highly |\effective, |\effective, |\ineffective, |\highly |\ineffective. |- |\CORRECT |\ANSWERS |\✔✔Qualitative |\Feedback Can |\be |\counted, |\measured, |\and |\expressed |\using |\numbers. |
Example: |\Provide |\response |\options |\for |\feedback |\such |\as |\the |
number |\of |\solicitations |\awarded |\or |\time |\it |\took |\to |\process |\an |
award. |- |\CORRECT |\ANSWERS |\✔✔Quantitative |\Feedback Is |\a |\more |\organized |\and |\documented |\communication. |- |\CORRECT |\ANSWERS |\✔✔Formal |\Feedback Is |\the |\everyday |\casual |\conversation |\regarding |\the |\work |\being |
done. |- |\CORRECT |\ANSWERS |\✔✔Informal |\Feedback Qualitative |\Feedback: |\Focus |\groups |\center |\their |\attention |\on |
processes |\related |\to |\an |\issue |\and |\how |\to |\improve |\them. Quantitative |\Feedback: |\Surveys |\focused |\on |\measuring |
satisfaction |\with |\Procurement |\Department.
Formal |\Feedback: |\A |\formal |\annual |\review |\of |\procurement |
performance |\each |\year. Informal |\Feedback: |\Staff |\check-in |\with |\internal |\clients |\to |\receive |
informal |\feedback |\on |\new |\processes |\implemented. |- |\CORRECT |
ANSWERS |\✔✔What |\would |\a |\feedback |\plan |\look |\like |\that |\includes |
qualitative/quantitative |\as |\well |\as |\formal/informal |\feedback |\from |
internal |\stakeholders? workload |\levels |\and |\workload |\balance |\among |\staff |\and |\across |\the |\year timeliness |\of |\commodity |\delivery operating |\cost |\levels benchmark |\targets performance |\indicators performance |\targets quality |\management |\tools |(i.e., |\checklists, |\progress |\charts, |
graphs) sharing |\performance |\measures |\and |\progress |\during |\regular |\staff |
meetings
Value |\of |\negotiated |\additional |\benefits. Cost |\reduction |\resulting |\from |\using |\alternative |\commodities. Value |\of |\improved |\warranties. Reduced |\inventory |\stock |\and |\improved |\payment |\terms. Savings |\realized |\through |\improved |\waste |\management. Reduction |\in |\demand |\for |\a |\commodity. Length |\of |\transaction |\cycle |\times. Changes |\in |\transaction |\costs |\and |\error |\rates. Timeliness |\of |\commodity |\delivery. |- |\CORRECT |\ANSWERS |\✔✔Some |\common |\procurement |\performance |\indicators |\are |\listed |\below. regulation |- |\CORRECT |\ANSWERS |\✔✔A |\statement |\by |\a |
governmental |\body |\to |\implement, |\interpret, |\or |\prescribe |\law |\or |
policy, |\or |\to |\describe |\organization, |\procedure, |\or |\practice, |\often |
promulgated |\in |\accordance |\with |\an |\administrative |\procedure |\act.
policy |- |\CORRECT |\ANSWERS |\✔✔A |\governing |\principle |\or |\plan |\that |\establishes |\the |\general |\parameters |\for |\the |\entity |\to |\follow |\in |
carrying |\out |\its |\responsibilities. procedure |- |\CORRECT |\ANSWERS |\✔✔The |\detailed |\series |\of |\related |\activities |\that |\must |\be |\completed |\and |\the |\order |\in |\which |\they |
must |\be |\done, |\to |\accomplish |\a |\given |\task. What |\are |\some |\possible |\negative |\impacts |\of |\not |\having |\or |
updating |\a |\policy |\or |\procedure |\manual? |- |\CORRECT |\ANSWERS |
✔✔Outdated |\policies |\may |\be |\irrelevant |\and |\reference |\antiquated |
processes. Outdated |\policies |\may |\not |\address |\changes |\made |\in |\codes |\and |
regulations. Outdated |\policies |\may |\impede |\opportunities |\for |\more |\efficient |
workflows. Outdated |\policies |\may |\not |\reflect |\changes |\to |\technology. What |\is |\the |\difference |\between |\a |\policy |\manual |\and |\procedure |
manual? |- |\CORRECT |\ANSWERS |\✔✔Policies |\advise |\what |\to |\do, |\and |\procedures |\advise |\how |\to |\do |\it. What |\should |\a |\procedure |\manual |\include? |- |\CORRECT |\ANSWERS |
✔✔1. |\The |\procurement |\goals, |\objectives, |\and |\responsibilities.
the |\practices |\of |\public |\procurement |\professionals |\are |\regulated |
based |\on |- |\CORRECT |\ANSWERS |\✔✔the |\common, |\statutory, |\and |
administrative |\laws |\that |\bind |\and |\protect |\the |\responsibilities |\of |
public |\entities |\across |\North |\America. One |\of |\the |\main |\challenges |\for |\Procurement |\in |\developing |\and |
initiating |\a |\consistent |\approach |\for |\procurements |- |\CORRECT |
ANSWERS |\✔✔is |\that |\commonly, |\other |\members |\of |\the |\entity, |
including |\senior |\management |\and |\staff, |\may |\resist |\complying |
with |\process |\requirements, |\wanting |\processes |\to |\meet |\their |\own |
needs |\and |\desires. generate |\buy-in |\from |\stakeholders |\while |\ensuring |\integrity |\and |
consistency |\in |\their |\application. |- |\CORRECT |\ANSWERS |\✔✔By |
creating |\policies |\and |\procedures |\with |\approval |\of |\entity |
leadership, |\the |\procurement |\professional |\can |\codify |\the |\entity's |
standardized |\processes. Procurement |\professionals |\involved |\in |\the |\establishment |\of |\policy |\manuals |\must |\ensure |\they: |- |\CORRECT |\ANSWERS |\✔✔are |
compliant |\with |\best |\practices. are |\responsive |\and |\adaptive |\to |\their |\environments. act |\in |\the |\best |\interest |\of |\the |\government. ensure |\transparency.
avoid |\conflicts |\of |\interest. are |\well-informed |\about |\the |\information |\associated |\with |
regulations. provide |\the |\support |\to |\perform |\functions |\within |\established |
procurement |\policies |\and |\procedures. What |\elements |\would |\you |\consider |\to |\be |\essential |\to |\developing |
a |\policy |\that |\will |\provide |\for |\fairness, |\transparency, |\and |\cost- effectiveness |\in |\procurement |\operations? |- |\CORRECT |\ANSWERS |
✔✔Goal |\and |\objectives Authorities Repercussion |\for |\violations Supplemental |\resources Reference |\to |\procedures Records |\retention References |\to |\pertinent |\procurement |\laws Securities/controls |\in |\place Auditing |\programs Checklist |\and |\templates Examples |\of |\procurement |\legislative |\initiatives |\include: |- |
CORRECT |\ANSWERS |\✔✔Require |\reduction |\or |\elimination |\of |\the |
use |\of |\disposable |\goods, |\whenever |\possible.
Administrative |\Law |- |\CORRECT |\ANSWERS |\✔✔Rules, |\regulations |
and |\executive |\orders, |\promulgated |\by |\governmental |
administrative |\or |\regulatory |\entities. |\Generally |\enacted |\to |\make |
statutes |\and |\ordinances |\more |\specific. |\Has |\the |\force |\and |\effect |\of |\law. Statutes |- |\CORRECT |\ANSWERS |\✔✔The |\written |\laws |\approved |\by |
legislatures, |\parliaments, |\or |\house |\of |\assembly. |\Also |\known |\as |
legislation. Ordinance |- |\CORRECT |\ANSWERS |\✔✔A |\law |\passed |\by |\a |\local |
government. Corporate |\Charter |- |\CORRECT |\ANSWERS |\✔✔A |\written |\document |
by |\the |\founders |\of |\a |\business |\detailing |\the |\business' |\major |
components, |\e.g. |\structure, |\objectives, |\planned |\operations. |\In |\the |\U.S. |\it |\is |\filed |\with |\the |\Secretary |\of |\State, |\and |\in |\Canada |\it |\is |
filed |\with |\the |\registrar. Price |\Fixing |- |\CORRECT |\ANSWERS |\✔✔Explicit |\agreements |\among |
producers |\regarding |\the |\prices |\at |\which |\goods |\are |\to |\be |\sold. Tying |\Arrangement |- |\CORRECT |\ANSWERS |\✔✔A |\supplier |\imposed |
restraint |\in |\which |\the |\purchaser |\is |\forced |\to |\buy |\an |\unwanted |
item |\to |\acquire |\the |\desired |\one. Bid |\Rigging |- |\CORRECT |\ANSWERS |\✔✔The |\agreement |\among |
potential |\competitors |\to |\manipulate |\the |\competitive |\bidding |\
process, |\for |\example, |\by |\agreeing |\not |\to |\bid, |\to |\bid |\a |\specific |
price, |\to |\rotate |\bidding, |\or |\to |\give |\kickbacks |\to |\purchasers. Dumping |- |\CORRECT |\ANSWERS |\✔✔Occurs |\when |\a |\business |\or |
country |\exports |\a |\large |\quantity |\of |\goods |\at |\a |\lower |\price |\in |\a |
foreign |\market |\than |\the |\price |\in |\the |\home |\market. three |\primary |\sources |\of |\procurement |\laws |\in |\any |\governmental |
jurisdiction. |- |\CORRECT |\ANSWERS |\✔✔1. |\Statutory |\laws, |
ordinances, |\and |\charters.
- |\Administrative |\laws
- |\Common |\law Statutory |\Laws |- |\CORRECT |\ANSWERS |\✔✔Statutory |\laws |\are |\based |\on |\statutes |\or |\laws |\passed |\by |\governments. |\State |\or |\provincial |
statutes |\provide |\state/provincial-directed |\legislative |\law. |
Ordinances |\and |\charters |\provide |\for |\local |\and |\municipal |
governments. Administrative |\laws |- |\CORRECT |\ANSWERS |\✔✔Are |\written |\rules, |
regulations, |\and |\entity |\policy, |\developed |\and |\promulgated |\by |
administrative |\and |\regulatory |\governmental |\entities. |
Administrative |\Law, |\provided |\by |\the |\applicable |\regulatory |\entity, |
has |\equal |\force |\and |\effect |\as |\legislative |\law, |\as |\long |\as |\it |\does |
not |\supersede |\the |\context |\of |\legislative |\law. Common |\law |- |\CORRECT |\ANSWERS |\✔✔is |\based |\on |\customs |\and |
traditions |\and |\codified |\through |\the |\legal |\system |\by |\court |
decision; |\i.e., |\a |\collection |\of |\court |\decisions.
Price |\Risk Risk |\Analysis |\Stages |\in |\Procurement |\Cycle |- |\CORRECT |\ANSWERS |
✔✔Stage |\1: |\Identify |\a |\need |\for |\Procurement Stage |\2: |\Create |\Procurement |\Strategy Stage |\3: |\Prepare |\the |\Quotation |\or |\Procurement Proposal |\Risk |- |\CORRECT |\ANSWERS |\✔✔(Technical |\Risk) |\Risk |
related |\to |\the |\inadequate |\description |\of |\the |\commodity |\and |\the |
solicitation |\requirements. Schedule |\Risk |- |\CORRECT |\ANSWERS |\✔✔Risk |\related |\to |\timely |
delivery. Contract |\clauses |\used |\to |\mitigate |\Schedule |\Risk: |- |\CORRECT |
ANSWERS |\✔✔Description |\of |\deliverables/expectations Delivery |\terms Penalties Surety/Liability |\Risk |- |\CORRECT |\ANSWERS |\✔✔Risk |\related |\to |\the |
financial |\and |\legal |\interests |\of |\the |\entity. |\Liability |\insurance |\and |
surety |\bonds |\protect |\the |\entity |\in |\the |\event |\of |\non-service |\or |
contractor |\default. Contract |\clause |\used |\to |\mitigate |\Surety/Liability |\Risks: |- |
CORRECT |\ANSWERS |\✔✔Description |\of |\financial |\and |\legal |
interests
Contractual |\Risk |- |\CORRECT |\ANSWERS |\✔✔Risk |\related |\to |\contract |\changes/amendment |\procedures, |\dispute |\resolution, |\and |\breach. Assessing |\and |\Mitigating |\Contractual |\Risk |- |\CORRECT |\ANSWERS |
✔✔Contract |\should |\specify: Who |\has |\the |\authority |\to |\make |\changes, |\how |\changes |\will |\be |
made |\in |\writing, |\and |\what |\changes |\will |\be |\unilateral. How |\disputes |\will |\be |\resolved |\if |\a |\mutual |\agreement |\cannot |\be |
reached. The |\breach |\notification |\process |\and |\detail |\how |\action |\that |\will |\be |
taken |\to |\remedy |\a |\breach. Performance |\Risk |- |\CORRECT |\ANSWERS |\✔✔Risk |\related |\to |\the |
contractor |\meeting |\the |\requirements |\of |\the |\contract. Assessing |\and |\Mitigating |\Performance |\Risk |- |\CORRECT |\ANSWERS |
✔✔In |\assessing |\performance |\risks, |\expectations |\for |\acceptable |
performance |\are |\set. The |\criteria |\for |\acceptable |\performance |\and |\inspections |\should |
be |\clearly |\defined |\in |\the |\contract. Procedures |\for |\rejection |\and |\resubmission |\should |\also |\be |\defined |
clearly |\along |\with |\the |\responsibilities |\of |\each |\party. Contract |\clause |\used |\to |\mitigate |\Performance |\Risk: |- |\CORRECT |
ANSWERS |\✔✔Description |\of |\the |\conditions |\of |\inspection |
acceptance |\of |\contractual |\terms.
Supplier |\failure |\to |\deliver |\on |\contracted |\obligations. |- |\CORRECT |
ANSWERS |\✔✔Performance |\Risk Sole |\sourcing |\arrangements. |- |\CORRECT |\ANSWERS |
✔✔Performance |\or |\Price |\Risk Changes |\in |\environment |\or |\legislation |\that |\affect |\the |\supply |
base. |- |\CORRECT |\ANSWERS |\✔✔Proposal |\or |\Schedule |\Risk Product |\with |\no |\available |\alternatives. |- |\CORRECT |\ANSWERS |
✔✔Price |\Risk Changes |\that |\result |\in |\obsolete |\technology |\or |\products, |\or |\new |
unproven |\technology |\or |\products. |- |\CORRECT |\ANSWERS |
✔✔Performance |\Risk Risk |\analysis |- |\CORRECT |\ANSWERS |\✔✔an |\evaluation |\of |\possible |
risks |\to |\determine |\the |\likelihood |\of |\the |\event |\taking |\place |\and |
the |\consequences |\if |\the |\risk |\does |\take |\place. |\Risks |\are |\rated |\and |
prioritized |\based |\on |\the |\solicitation |\criteria. Risk |\Register |- |\CORRECT |\ANSWERS |\✔✔One |\tool |\that |\can |\be |\used |
to |\track |\risks |\and |\classify |\the |\likelihood |\of |\encountering |\the |\risk The |\risk |\register |\is |\a |\tool |\that |\is |\used |\to |\identify |\risks |\and |
contains |\the |\following |- |\CORRECT |\ANSWERS |\✔✔List |\of |\identified |
risks |\and |\description |\or |\root |\cause |\of |\the |\risk.
Potential |\response |\to |\the |\risk. Probability |\of |\risk |\happening |\before, |\during, |\or |\after |\solicitation |
process. Severity |\to |\the |\solicitation |\if |\the |\risk |\should |\take |\place. Secure |\a |\firm |\to |\provide |\design |\and |\construction |\services |\for |\a |
school |\building. |- |\CORRECT |\ANSWERS |\✔✔A |\stakeholder |\from |\the |
requesting |\department, |\the |\director |\of |\the |\requesting |
department, |\and |\a |\design/construction/engineer |\SME |(possibly |
from |\the |\Facilities |\Dept.) Questions |\include: |\When |\are |\the |\services |\needed? |\What's |\the |
scope |\of |\the |\services? |\What |\is |\the |\estimated |\cost? |\When |\does |
the |\project |\need |\to |\be |\completed |\and |\paid |\for? |\Who |\will |\be |\the |
contract |\administrator? |\Are |\there |\any |\special |\considerations |\for |
this |\procurement? |\Who |\are |\the |\other |\stakeholders? |\What |\are |\the |
potential |\risks? Strategic |\Procurement |\Planning |(SP2) |- |\CORRECT |\ANSWERS |\✔✔is |
the |\transformation |\of |\the |\entity's |\mission, |\goals, |\and |\objectives |
into |\measurable |\activities |\to |\be |\used |\to |\plan, |\budget, |\and |
manage |\the |\procurement |\function. |\The |\ultimate |\goal |\is |\to |\bring |
about |\positive |\change |\in |\the |\entity's |\culture, |\systems, |\and |
operational |\processes. A |\major |\goal |\of |\strategic |\procurement |\planning |\is |\to |\link |\resource |\allocation |\decisions |\with |\the |\entity's |\objectives |\in |\a |\priority- setting |\model. |\Some |\of |\the |\most |\common |\benefits |\associated |
with |\strategic |\procurement |\planning |\are |\that |\it: |- |\CORRECT |\
