Certified Contract Management Associate Practice Test

Which of the following are competencies required to form the contract?

1. Performing a risk analysis

2. Issuing the solicitation

3. Selecting the source

4. Planning for contract performance

The correct answer is: Selecting the source

The selection of a source is indeed a crucial competency required to form a contract. When forming a contract, it is essential to identify and choose the right supplier or contractor that can meet the requirements outlined in the solicitation. This decision impacts the success of the contract, as the selected source must demonstrate the capability and reliability to deliver the goods or services as stipulated. Evaluating potential sources involves assessing their qualifications, financial stability, experience, and past performance, which are essential factors that contribute directly to effective contract formation. While the other options—performing a risk analysis, issuing the solicitation, and planning for contract performance—are relevant to the overall contract management process, they are not strictly competencies required at the specific stage of forming the contract. Performing a risk analysis is focused on anticipating and managing potential risks throughout the contract lifecycle, issuing the solicitation pertains to the initial request for proposals or bids, and planning for contract performance is concerned with the execution and oversight aspects once the contract is in place. Therefore, selecting the source is uniquely central to the contract formation phase, making it the most applicable competency among the options listed.