Certified Professional Public Buyer (CPPB) Practice Test

What type of procurement practice involves obtaining goods and services at a lower cost through collaborative efforts?

1. Cooperative purchasing

2. Competitive bidding

3. Single-source procurement

4. Emergency procurement

The correct answer is: Cooperative purchasing

Cooperative purchasing refers to the practice where multiple public entities join together to procure goods and services. This collaborative approach allows them to leverage their collective buying power to negotiate better pricing and terms from suppliers, achieving lower costs than they might individually. By pooling their resources, participating entities can access bulk purchasing discounts, streamlined processes, and shared contract administration, which can lead to significant savings and efficiency improvements. In contrast, competitive bidding is focused on obtaining goods and services through a structured process that invites multiple suppliers to submit proposals, ensuring a fair selection based on price and quality criteria. Single-source procurement refers to acquiring goods or services from one specific supplier, often for reasons like compatibility, proprietary technology, or a lack of viable alternatives. Emergency procurement is used in urgent situations where there is no time for a standard procurement process, typically at a higher cost due to the urgent nature of the need. Cooperative purchasing stands out as the method that effectively uses collaboration between various organizations to secure lower prices through collective negotiation power.