Certified Professional Public Buyer (CPPB) Practice Test

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What should an agency do to address a recurring issue with a supplier's performance?

  1. Terminate the contract immediately

  2. Notify the supplier for corrective action

  3. Ignore the issue until the end of the contract

  4. Change suppliers with a quick bid

The correct answer is: Notify the supplier for corrective action

Notifying the supplier for corrective action is important because it allows the agency to directly address and resolve the performance issues in a constructive manner. Effective communication can lead to improvements in performance by clearly identifying the specific areas that need attention. This step also documents the issues and the agency's response, which is vital for maintaining a professional relationship and ensuring accountability. By giving the supplier an opportunity to rectify their performance, the agency demonstrates a commitment to collaboration and problem-solving, which can be beneficial for both parties in the long run. This approach aligns with best practices in supplier management and procurement processes, facilitating a chance for improvement before considering more drastic measures such as termination or switching suppliers.