CPPB Practice Test Review

A series of vocabulary flashcards summarizing key procurement concepts and definitions from the CPPB practice test material.

Firm Fixed Price

A contract type where the price is fixed and does not change regardless of the contractor's costs.

Fixed Price with Redetermination

Allows for an initial price to be adjusted based on realistic pricing after some operational experience.

Fixed Price with Escalation/De-escalation

A contract allowing price adjustments based on market indicators like the Producer Price Index.

Purchasing Card (P-Card)

A card program allowing convenient procurement of small dollar items without traditional purchase order processes.

Cure Notice

A formal notice outlining a contractor's failures and required corrective actions to meet contract standards.

Line Item Budget

A budgeting approach focusing on specific expenditures categorized into detailed line items.

Total Cost of Ownership (TCO)

The comprehensive cost of acquiring and operating an asset over its useful life.

Performance-based Contract

A contract that specifies outcomes and allows for flexibility in how to achieve those outcomes.

Cooperative Procurement

A procurement strategy that combines requirements from multiple jurisdictions to leverage purchasing power.

Just in Time (JIT)

An inventory strategy that aligns raw material orders with production schedules to minimize inventory costs.

Change Order

An amendment to a contract to modify the original terms, typically related to scope, cost, or schedule.

Statistical Process Control (SPC)

A quality assurance technique used to monitor and control a process through statistical analysis.

Blanket Contract

A contract that allows for unspecified items or services to be ordered on an as-needed basis.

Negotiation

The process of reaching an agreement between parties to settle differences or secure outcomes.

Best Alternative to a Negotiated Agreement (BATNA)

A strategy defining the best option available if negotiations fail, ensuring preparedness and leverage.

Value Analysis

A method to assess a product's function and cost-effectiveness to ensure optimal resource allocation.

Fiduciary Duty

The obligation of one party to act in the best interest of another, often arising in contractual relationships.

Implied Warranty

An unwritten guarantee that a product will meet certain standards of quality and performance.

Proprietary Software

Software that is owned by a company and cannot be legally used without permission.

Supplier Performance

The assessment of a supplier's ability to meet contract specifications and delivery schedules.

Quality Assurance

Systems and processes that ensure products meet defined quality standards throughout production.

Economic Trends

Patterns or changes in economic activity that inform decisions about purchasing and budgeting.