Certified Professional Public Buyer (CPPB) Practice Test

What characterizes a requirements delivery contract?

1. A single purchase made from multiple suppliers

2. An agreement to purchase all requirements for a certain period from the contractor

3. A contract that excludes any need for inspections

4. An agreement based solely on price submissions

The correct answer is: An agreement to purchase all requirements for a certain period from the contractor

A requirements delivery contract is characterized primarily by the agreement to purchase all of an organization’s needs for a specific product or service over a defined period from a single contractor. This type of contract ensures that the buying agency can rely on the contractor to provide the necessary supplies as they are required, which helps in maintaining continuity and managing inventory effectively. This arrangement benefits both the buyer and the contractor, as it allows the contractor to plan for production and delivery based on the anticipated demand, while the buyer is assured of a steady supply without the need for continuous procurement processes. In contrast, arrangements such as making a single purchase from multiple suppliers would not qualify as a requirements delivery contract, as this does not establish a commitment for ongoing supply from one contractor. Similarly, excluding the need for inspections or basing an agreement solely on price submissions does not capture the essence of a requirements delivery contract, which focuses on the comprehensive procurement of all product needs from a designated source within a specified timeframe.