Certified Professional Public Buyer (CPPB) Practice Test

What type of purchases do spot purchases refer to?

1. Recurring contracts

2. Single-event purchases

3. Long-term agreements

4. Bulk purchases

The correct answer is: Single-event purchases

Spot purchases refer specifically to single-event purchases that are made to meet immediate needs without the requirement for an ongoing or long-term commitment. These purchases are typically characterized by their urgency and the need to procure goods or services quickly. They are often used in situations where a buyer needs to acquire an item or service outside of regular purchasing cycles or contracts, such as buying materials for a project that have run out unexpectedly. In contrast, recurring contracts involve regularly scheduled deliveries or services over a period of time, while long-term agreements pertain to contracts established for extended durations to facilitate ongoing transactions. Bulk purchases imply acquiring a large quantity of goods, often at a reduced rate, but this does not necessarily define the immediacy or single instance nature of spot purchases. Thus, the distinction lies in the temporary and uncommitted aspect of spot purchasing, making it a unique category in procurement practices.