CPCM Certified Professional Contract Manager: Procurement Strategies and Vendor Relations 2

Question 1

A contract manager discovers that a sole-source vendor is consistently delivering late. What is the BEST first step?

Accepted Answer

Issue a cure notice requesting corrective action within a defined timeframe

Answer

A cure notice formally notifies the vendor of deficiencies and provides an opportunity to correct performance before escalation.

Question 2

Which procurement strategy is MOST appropriate when the government needs a vendor to invest heavily in specialized infrastructure?

Accepted Answer

Cost-plus-incentive-fee contract

Answer

Cost-plus-incentive-fee contracts share risk and reward between buyer and seller, encouraging vendor investment in specialized capabilities.

Question 3

What does 'vendor segmentation' primarily help a contract manager accomplish?

Accepted Answer

Prioritize resources and relationship strategies based on vendor criticality

Answer

Vendor segmentation classifies suppliers by strategic importance, allowing tailored relationship management and resource allocation.

Question 4

In a competitive procurement, a vendor submits a bid that is significantly below all other offers. The contract manager should FIRST:

Accepted Answer

Request a price/cost analysis to verify the bid is realistic

Answer

An unusually low bid may indicate unrealistic pricing, so a price/cost analysis helps determine if the offer is responsible before award.

Question 5

Which clause protects the buyer if a contractor fails to complete work by the agreed delivery date?

Accepted Answer

Liquidated damages clause

Answer

A liquidated damages clause pre-establishes the amount the contractor owes the buyer for each day of delay.

CPCM Exam Practice Test