NIGP-CPP flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Segregation of duties

A control principle separating authorization, custody, and recordkeeping so no single person can initiate, approve, and pay for a purchase without independent review.

Delegation of authority

A written, specific grant allowing an individual to act for an agency up to a stated dollar threshold or commodity scope, usually time-limited and revocable.

Cooperative purchasing

Awarding or using a contract established by another public entity, valid only when the original solicitation and the user's own rules both permit participation.

Conflict of interest

A situation where personal, financial, or family interest could improperly influence official action; the standard remedy is disclosure plus recusal from the decision.

Procurement governance hierarchy

The precedence order among statute, regulation, policy, procedure, and practice; conflicts are resolved at the highest applicable level, with statute controlling.

Competitive ratio KPI

A governance metric comparing the number of competitive solicitations to total awards, used to detect excessive sole-source or noncompetitive activity.

Sealed bidding selection rule

Use an invitation for bids when requirements are clearly definable, price is the sole award factor, and no discussion or negotiation is expected.

Responsiveness versus responsibility

Responsiveness is whether the offer conforms to solicitation terms; responsibility is whether the offeror has capacity, integrity, and resources to perform.

Best and final offer

A negotiation step in competitive proposals where offerors may revise price and technical content after discussions, then submit a final binding revision.

Addendum

A written modification to a solicitation issued before opening to all known holders, with acknowledgment required and the due date extended if needed.

Adequate competition

The receipt of at least three responsive offers from responsible bidders; fewer requires documented justification before award proceeds.

Reverse auction

An electronic event where prequalified suppliers bid price downward in real time, suited to well-defined commodity purchases with price as the main differentiator.

Order of precedence clause

A contract provision ranking conflicting documents, commonly statute first, then special conditions, general conditions, specifications, and the contractor's proposal.

Constructive change

An informal direction or unreasonable contract administration action that increases the contractor's cost, treated as a compensable change despite no written order.

Liquidated damages

A contractually stated sum per day or event representing a reasonable forecast of harm from delay, enforceable only if not a penalty.

Termination for convenience

The buyer's right to end the contract when it serves the public interest, with equitable adjustment for work performed and reasonable settlement costs.

Bilateral versus unilateral modification

A bilateral modification is signed by both parties; a unilateral modification is a written direction issued by the buyer under a changes clause.

Retainage

A percentage withheld from progress payments until acceptance or a stated milestone, protecting the buyer against incomplete or defective work.

Firm-fixed-price risk

Under a firm-fixed-price contract the contractor bears cost risk and gains from efficiency; the buyer pays the stated price regardless of actual cost.

Supplier segmentation

Classifying suppliers by spend and risk so strategic high-value suppliers get partnership management while low-risk transactional suppliers get automated handling.

Single source versus sole source

Single source means only one known supplier is capable of meeting the need; sole source means only one supplier exists for the requirement at all.

Cure notice

A written notice giving the contractor a specified period to correct a performance failure before the buyer may terminate for default.

Past performance evaluation

A documented, factual assessment of a contractor's quality, schedule, and compliance, shared with the supplier and used in future award decisions.

Supplier scorecard

A periodic rating of supplier performance across quality, delivery, cost, and compliance, communicated to the supplier and linked to future sourcing decisions.

Encumbrance

A reservation of budget authority recorded when a commitment is made, later relieved when the invoice is paid or the order is closed.

Bona fide needs rule

An appropriation may be obligated only for a legitimate need arising in its period of availability, not for requirements of a future fiscal year.

Obligation versus expenditure

An obligation is a binding commitment creating a legal liability; an expenditure is the actual disbursement or recording of the liability afterward.

Anti-deficiency principle

A prohibition on obligating funds before an appropriation exists or beyond the amount available, protecting against overspending public money.

Life-cycle costing

An evaluation method summing acquisition, operation, maintenance, and disposal costs over the useful life rather than comparing purchase price alone.

Appearance of conflict

A situation where a reasonable observer could question impartiality even without proven personal gain; treated as seriously as an actual conflict.

Gift and gratuity rule

The principle that items of value from current or prospective contractors are declined or disclosed per policy, often with a zero-dollar threshold.

Whistleblower protection

Legal safeguards prohibiting retaliation against an employee who reports suspected fraud, waste, or abuse in good faith through proper channels.

Succession planning

Identifying and developing internal candidates for key procurement roles, often through cross-training and mentoring, to reduce single-point-of-failure risk.