ISM CPSM CORE New Questions

The best course of action for DEF, Inc. is to issue a revision to the current RFI, listing alternate methods and conditions acceptable in demonstrating financial health. This approach accommodates the concerns of both publicly traded and privately held suppliers, ensuring a fair and inclusive process. It maintains the requirement for financial health demonstration while providing flexibility in how suppliers can meet this requirement.

References:

"Request for Proposal: A Guide for Effective RFP Process" by Bud Porter-Roth.

Guidelines on RFIs and RFPs from the National Institute of Governmental Purchasing (NIGP).

"Procurement Principles and Management" by Peter Baily, David Farmer, Barry Crocker, and David Jessop.

A firm fixed price (FFP) contract is an agreement where the buyer agrees to pay a specified price when the items or services have been delivered and accepted. This type of contract provides certainty in pricing for both the buyer and the supplier, ensuring that the supplier bears the risk of cost overruns. Incentive contracts (Option A) provide additional payments based on performance, fixed price incentive (Option B) includes some flexibility in final costs, and cost contracts (Option D) reimburse the supplier for allowable costs plus a fee.

References:

Types of Contracts in Supply Management

Procurement and Contract Management Literature