Certified Professional Public Buyer (CPPB) Practice Test

What is the primary purpose of establishing a schedule contract?

1. To consolidate agency requirements

2. To evaluate supplier performance

3. To determine contract pricing

4. To finalize supplier selection

The correct answer is: To consolidate agency requirements

The primary purpose of establishing a schedule contract is to consolidate agency requirements. This approach allows multiple agencies or departments to identify and streamline their needs into a single contract that can be utilized across various entities. By pooling their requirements, organizations can achieve economies of scale, ensuring better pricing and efficient procurement processes. Consolidation of requirements often leads to a simplified purchasing process, reducing administrative burdens and improving compliance as all users can reference the same contract terms and conditions. This ultimately enhances the effectiveness of procurement strategies and enables better inventory management while meeting the diverse needs of all stakeholders involved. In contrast, the other options—evaluating supplier performance, determining contract pricing, and finalizing supplier selection—while essential components of the procurement lifecycle, do not capture the overarching goal of a schedule contract, which is primarily about consolidating needs to optimize procurement efficiency.