CIPS Updated L4M6 Exam Questions and Answers by jorgie

Explanation

Unrestricted is not a type of tender. The 5 types are; open, restricted, competitive with negotiation, competitive dialogue and innovative partnership (though this last one is very rare in the public sector). The five types are explained in detail on p.77

Partnership sourcing is suitable for products that contribute to the buying organization's unique selling point (USP) and for critical products on which key customers depend. This approach ensures strategic alignment and mutual benefits for both parties, focusing on collaboration rather than cost alone.

Explanation

Value for money in the private sector is about achieving shareholder profit and busines benefit (p.66). In the public sector it is about ensuring taxpayers’ money is spent wisely. Value for money is a mixture of price and quality.

Supplier pre-qualification is used to assess the suitability, capacity, and stability of suppliers before awarding contracts. While financial stability is important, CIPS emphasizes that it is not the only factor. Other considerations include technical capability, quality assurance, compliance with legislation, and sustainability of supply. Profitability ratios alone cannot determine suitability.