Certified Public Procurement Officer (CPPO) Practice Test 2025 - Free CPPO Practice Questions and Study Guide

Question: 1 / 400

When considering whether to contract out services, which factor is not typically considered?

Initial start-up costs in providing the service.

Staff expertise in providing the service.

Cost, control, legal restrictions, and employee displacement.

Organization of the procurement office.

In the context of evaluating whether to contract out services, the organization of the procurement office is generally not a primary factor in the decision-making process. This factor focuses on the internal structure, workflows, and administrative capabilities within the procurement office, which may influence procurement operations but does not directly impact the decision regarding outsourcing specific services.

Key considerations when contemplating contracting out services typically include initial start-up costs, which pertain to the financial investment required to begin providing the service, and staff expertise, referring to the necessary skills and experience needed to deliver the service effectively. Other major elements include overarching concerns such as cost efficiency, the level of control retained over the service delivery, any applicable legal restrictions, and the risk of employee displacement, which addresses the potential impact on current staff if services are outsourced.

Thus, while the organization of the procurement office is essential for efficient operations, it does not directly inform the critical factors influencing the decision to contract out services.

Get further explanation with Examzify DeepDiveBeta
Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy