CPPB Supplier Relationship Management 2 — Questions and Answers
Question 1: Which of the following is a key benefit of maintaining a preferred supplier list in public procurement?
- It eliminates the need for competitive bidding on all purchases
- It streamlines ordering by pre-qualifying vendors who meet quality and compliance standards (Correct answer)
- It allows buyers to bypass ethics requirements for small purchases
- It automatically renews contracts without additional authorization
Correct answer: It streamlines ordering by pre-qualifying vendors who meet quality and compliance standards
Preferred supplier lists pre-qualify vendors against defined criteria, reducing repetitive vetting while still promoting competition within the list.
Question 2: A public agency wants to reduce supply chain risk for a critical commodity. Which SRM strategy is most appropriate?
- Single-source the commodity to the lowest bidder
- Dual-source or multi-source the commodity across two or more qualified suppliers (Correct answer)
- Eliminate the commodity from the procurement plan
- Move procurement responsibility to the end-user department
Correct answer: Dual-source or multi-source the commodity across two or more qualified suppliers
Dual or multi-sourcing distributes risk so that no single supplier failure can disrupt the entire supply of a critical item.
Question 3: What is a vendor scorecard primarily used for in public procurement?
- Determining the winning bidder in a competitive solicitation
- Objectively tracking and communicating supplier performance over time (Correct answer)
- Setting internal budget targets for procurement staff
- Documenting supplier diversity certifications
Correct answer: Objectively tracking and communicating supplier performance over time
Vendor scorecards capture quantitative and qualitative KPIs—such as quality, delivery, and responsiveness—to provide an objective basis for performance discussions.
Question 4: Under U.S. public procurement best practices, how should a buyer handle a conflict of interest discovered after a contract award?
- Ignore it if the contract is already executed
- Document and disclose it to the appropriate authority immediately, and follow agency conflict-of-interest procedures (Correct answer)
- Ask the supplier to keep the matter confidential
- Terminate the contract without notice
Correct answer: Document and disclose it to the appropriate authority immediately, and follow agency conflict-of-interest procedures
Prompt disclosure and compliance with agency conflict-of-interest policies protect the integrity of the procurement and may require remediation or contract rescission.
Question 5: Which type of supplier relationship generally requires the MOST senior-level engagement from the public agency?
- Transactional/commodity suppliers
- Strategic partners providing mission-critical goods or services (Correct answer)
- Spot-purchase suppliers used once per year
- Small-dollar purchase card vendors
Correct answer: Strategic partners providing mission-critical goods or services
Strategic partnerships involve high spend, high risk, or unique capabilities that directly affect agency mission, warranting executive-level attention and governance.
Question 6: What is the purpose of an escalation path in a supplier relationship management plan?
- To increase contract value without re-solicitation
- To define a clear hierarchy for resolving issues when routine channels fail (Correct answer)
- To transfer supplier onboarding responsibilities to legal counsel
- To extend contract terms automatically upon reaching performance thresholds
Correct answer: To define a clear hierarchy for resolving issues when routine channels fail
An escalation path outlines the steps and personnel involved when day-to-day issue resolution is insufficient, ensuring problems are addressed at the right authority level.
CPPB Supplier Relationship Management 2
Which of the following is a key benefit of maintaining a preferred supplier list in public procurement?