CPPB Supplier Relationship Management 3

Question 1

In public procurement, what does 'spend under management' indicate?

Accepted Answer

The proportion of total organizational spend governed by procurement policies and contracts

Answer

The total dollar amount spent on emergency purchases

Answer

The budget allocated to supplier diversity programs

Answer

The amount spent on procurement staff salaries

Question 2

Which of the following best describes a 'strategic supplier' in public procurement?

Accepted Answer

A supplier that provides unique, high-value goods or services critical to the agency's mission with few alternative sources

Answer

Any supplier that has been on the approved vendor list for more than five years

Answer

The supplier that submitted the lowest bid in the last competitive solicitation

Answer

A supplier certified under a small business preference program

Question 3

What is an SLA (Service Level Agreement) in the context of supplier management?

Accepted Answer

A formal document defining the expected level of service, metrics, and remedies for non-performance

Answer

A statutory limit on allowable profit margins in public contracts

Answer

A license required for suppliers to operate in a regulated industry

Answer

An internal agency document approving budget for a new contract

Question 4

A public buyer wants to encourage a long-term supplier to invest in innovation. Which contract structure best supports this goal?

Accepted Answer

An incentive contract or shared-savings clause that rewards the supplier for measurable improvements

Answer

A firm-fixed-price contract with no provisions for sharing cost savings

Answer

A time-and-materials contract with a strict not-to-exceed ceiling

Answer

A purchase order with net-30 payment terms and no renewal option

Question 5

Which document should a public procurement office require during supplier onboarding to verify business legitimacy?

Accepted Answer

Business licenses, tax identification numbers, and applicable certifications

Answer

A notarized letter from the supplier's marketing department

Answer

A copy of the supplier's website analytics

Answer

Letters of recommendation from private-sector customers only

Question 6

What is the risk of relying on a single 'key contact' at a supplier without deeper relationship breadth?

Accepted Answer

Knowledge and relationship continuity may be lost if that contact leaves the supplier organization

Answer

It reduces the number of invoices the agency must process

Answer

It automatically triggers a conflict-of-interest review

Answer

It prevents the supplier from participating in future solicitations