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

The primary purpose of 'source selection' is to choose the best supplier or contractor. This process is critical in procurement as it involves evaluating different vendors based on various criteria, such as their capability to meet project requirements, quality of previous work, reliability, financial stability, and overall value they can provide.

The source selection process is designed to ensure that the organization is not only getting the most competitive price but also opting for a supplier that can deliver the best outcome for the project in terms of service, quality, and compliance with specifications and regulations. This careful assessment helps mitigate risks associated with procurement by ensuring that the selected contractor is well-suited to deliver on the contract terms.

In contrast, while evaluating price is an important factor, it is just one part of a more comprehensive decision-making process focused on overall supplier effectiveness. Budget creation and gathering stakeholder feedback, although relevant in the procurement cycle, do not specifically address the goal of using source selection to determine the most appropriate supplier or contractor for a given need.