CPSM Essentials in Supplier Diversity 2

Question 1

Which federal regulation requires federal contractors with contracts over $750,000 to submit a Subcontracting Plan for supplier diversity?

Accepted Answer

FAR 52.219-9

Answer

FAR 52.219-9 mandates subcontracting plans that set goals for small and disadvantaged business utilization in federal contracts exceeding $750,000.

Question 2

A company is classified as a Disadvantaged Business Enterprise (DBE) under the DOT program. What is the primary eligibility requirement beyond being socially and economically disadvantaged?

Accepted Answer

Personal net worth of the owner must not exceed $1.32 million

Answer

The DOT DBE program caps the personal net worth of the disadvantaged owner at $1.32 million (excluding business equity and primary residence) to ensure economic disadvantage.

Question 3

When evaluating a supplier diversity program's effectiveness, which metric best measures SECOND-TIER impact?

Accepted Answer

Spend by prime contractors with diverse subcontractors

Answer

Second-tier spend measures how much prime (first-tier) contractors spend with diverse businesses in their own supply chains, extending diversity beyond direct purchasing.

Question 4

A Veteran-Owned Small Business (VOSB) seeking federal set-aside contracts must be verified by which agency?

Accepted Answer

DVA (Department of Veterans Affairs)

Answer

The VA's Center for Verification and Evaluation (CVE) verifies Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses for participation in VA set-aside programs.

Question 5

Which concept describes the practice of tracking and reporting how much of your direct suppliers' spend goes to diverse businesses?

Accepted Answer

Tier 2 reporting

Answer

Tier 2 reporting captures the diverse spend of your direct (Tier 1) suppliers, providing visibility into the broader supply chain's diversity performance.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Essentials in Supplier Diversity 2