CPSD flashcards
CPSD · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Addressable spend
- Total spend minus documented exclusions such as taxes, regulated utilities, sole-source, intercompany, and payroll-related items. It is the denominator for diverse spend percentage and must be defined consistently across periods.
- Tier 1 diverse spend
- Spend the buying organization pays directly to a certified diverse supplier. It is counted once, at the prime contract level, and is distinct from spend those primes report to their own subcontractors.
- Tier 2 diverse spend
- Diverse spend reported by a prime supplier on its own subcontracts. It is indirect spend, must be validated, and should never be added to Tier 1 totals to avoid double counting.
- Self-registered vs. certified
- Self-registered means a supplier declared diversity status in a portal with no third-party verification. Certified means an issuing body confirmed ownership and control. Only certified spend should count toward goals.
- NMSDC certification
- US certification for minority business enterprises, generally requiring at least 51 percent ownership and operational control by qualifying minority individuals who are US citizens or permanent residents.
- WBENC certification
- US certification for women's business enterprises, generally requiring at least 51 percent ownership and control by women. Certifying bodies typically review governance documents and may conduct a site visit.
- SBA size standard
- Small business thresholds set by NAICS code, based on revenue or employee count. A firm may be small under one code and large under another, so status is checked per opportunity.
- 8(a) program
- A US Small Business Administration business development program for socially and economically disadvantaged firms. Participants receive set-aside eligibility and are subject to program term limits and annual reviews.
- HUBZone certification
- US SBA status for firms located in and employing residents of historically underutilized business zones. Eligibility depends on principal office location, ownership, and workforce residency requirements.
- Certificate verification workflow
- Confirm the issuing body, match the legal entity name on the certificate to the supplier record, check expiration, and record who verified it and when. Repeat before each award and renewal.
- Market scan documentation
- A written record of outreach to identify certified diverse suppliers for a category, including sources used, contacts made, and reasons no qualified supplier was found. It supports waivers and audits.
- Unbundling scopes
- Splitting a large scope into smaller lots to widen the bid pool. It can increase diverse participation but raises transaction cost and interface risk, so the decision is made per category.
- Certification representation clause
- A contract term where the supplier warrants its certification status, commits to notify the buyer of any lapse, and accepts audit rights and remedies for misrepresentation.
- Tier 2 flow-down clause
- A prime contract term requiring the supplier to report diverse subcontracting spend, specifying frequency, template, certification evidence, and consequences such as cure periods or scorecard impact.
- Subcontractable spend
- The portion of a prime contract that can realistically be subcontracted. Tier 2 goals are set as a percentage of this base rather than total contract value, so in-house work is not penalized.
- Tier 2 validation
- Sampling subcontract invoices and certificates to confirm reported diverse spend. It detects self-registered suppliers, expired certificates, and double counting across multiple primes.
- Supplier development targeting
- Selecting development resources by diagnosed gap, such as financial readiness, quality systems, cybersecurity, or capacity, rather than offering a single generic curriculum to all participants.
- Capacity risk assessment
- Reviewing a small supplier's working capital, bonding capacity, and insurance limits before scaling volume, to avoid awarding work the supplier cannot finance or deliver.
- Development outcome metrics
- Before-and-after measures such as revenue won from the buyer, new certifications, jobs added, capital raised, and contract win rate, used to judge whether development spend produced results.
- Graduation criteria
- Explicit thresholds a supplier must meet to exit a development program, so resources shift to new suppliers instead of becoming a permanent subsidy.
- Front company risk
- A firm that appears diverse on paper but is controlled by a non-qualifying party. Due diligence tests operational control, decision authority, and pass-through arrangements, not just ownership documents.
- OFCCP compliance
- US rules for federal contractors requiring affirmative action and documented good-faith outreach. Records of outreach and hiring or subcontracting efforts are the compliance evidence.
- Subcontracting plan reporting
- Federal contractors submit individual and summary subcontracting reports against goals set by small business category. Commercial programs often mirror this structure in their Tier 2 templates.
- Supplier master data fields
- Core fields for diversity reporting: certification type, issuing body, certificate ID, expiration date, legal entity and parent, and verified-by and verified-on. They enable audit and lapse tracking.
- Certification lapse restatement
- Adjusting previously reported diverse spend when a certificate is found to have expired. Monthly expiration reports limit inflation and keep trend comparisons honest.
- Bid participation rate
- The share of sourcing events in which at least one certified diverse supplier submitted a bid. It measures pipeline health earlier than award or spend metrics.
- Program maturity model
- A progression from reactive reporting, to structured goals and certification checks, to sourcing-process integration, to outcome-driven development and Tier 2 advocacy. Used to set improvement priorities.
- Waiver documentation
- The record required when a diversity requirement cannot be met: market scan evidence, outreach performed, business rationale, and the approver. It supports audit and reveals market gaps.
- Business case pillars
- The standard arguments for supplier diversity: customer contract access, innovation and competition, supply chain resilience, ESG commitments, and price benefit from a wider bid pool.
- Audience segmentation
- Tailoring messages by stakeholder: executives get goals and risk, category managers get supplier lists and process, customers get compliance evidence, and suppliers get opportunity access.
- Payment term lever
- Offering net-30 or accelerated payment to small diverse suppliers improves their working capital and survival more than a small price concession, and is a low-cost program benefit.
- Joint venture participation
- A structure where a diverse partner holds a defined ownership share or work scope. Credit depends on documented control or work performed, not on the label alone.