Certified Professional Public Buyer (CPPB) Practice Test

What is meant by recovery in procurement?

1. The ability to obtain urgently required materials and services from a supplier at premium cost

2. Restoring budget limits after overspending

3. Recovering lost contracts through litigation

4. The process of resolving disputes with suppliers

The correct answer is: The ability to obtain urgently required materials and services from a supplier at premium cost

In the context of procurement, recovery refers to the ability to obtain urgently needed materials and services from suppliers, often at a premium cost. This situation typically arises in cases of unexpected demand or supply chain disruptions, where quick action is necessary to maintain operations. The focus here is on the proactive measures taken to secure essential goods or services, even if it requires paying higher prices than usual. The other options provide insights into different aspects of procurement but do not accurately capture what is meant by recovery. For instance, restoring budget limits after overspending deals with financial management rather than the acquisition of materials. Similarly, recovering lost contracts through litigation pertains to legal issues rather than the procurement process itself, and the process of resolving disputes with suppliers is more about conflict management than obtaining necessary resources quickly. Therefore, the essence of recovery in procurement is fundamentally about the urgent acquisition of needed goods or services despite potential cost implications.