CPSM Essentials in Supplier Diversity 5

Question 1

Which organization certifies Asian-Pacific American-owned businesses for corporate supplier diversity programs?

Accepted Answer

USPAACC

Answer

The US Pan Asian American Chamber of Commerce (USPAACC) certifies Asian-Pacific American-owned businesses, providing them access to corporate and government contracting opportunities.

Question 2

A procurement team is designing a supplier diversity scorecard. Which KPI BEST measures program depth versus breadth?

Accepted Answer

Ratio of diverse spend concentrated in top 10 diverse suppliers vs. total diverse supplier count

Answer

Comparing spend concentration among top diverse suppliers against the total number of diverse suppliers reveals whether the program has meaningful breadth or relies on a few tokenized relationships.

Question 3

Under the SBA's 8(a) Business Development Program, what is the maximum total contract value allowed for a SOLE SOURCE award to an 8(a) firm?

Accepted Answer

$4.5 million for non-manufacturing; $7.5 million for manufacturing

Answer

SBA regulations allow 8(a) sole source awards up to $4.5 million for services/supplies and $7.5 million for manufacturing contracts without requiring full competition.

Question 4

A buying company's supplier diversity policy states it will 'actively consider' diverse suppliers. According to best practice, why is this language considered WEAK?

Accepted Answer

It lacks measurable targets, accountability, and specific consequences for non-compliance

Answer

Vague aspirational language without quantitative goals, clear ownership, and enforcement mechanisms typically results in inconsistent application and poor program outcomes.

Question 5

What is the main benefit of a 'mentor-protégé program' in supplier diversity?

Accepted Answer

Pairing experienced large businesses with small diverse businesses to accelerate capability development

Answer

Mentor-protégé programs create structured relationships where larger firms share technical, managerial, and business development expertise with smaller diverse firms, building long-term supply chain capacity.

(CPSM) Certified Professional in Supply Management Practice Test

(CPSM) Certified Professional in Supply Management Practice Test

CPSM Essentials in Supplier Diversity 5