Which description best captures the Make, Lease or Buy Concept?

Which description best captures the Make, Lease or Buy Concept?

• A. A four-step process for procurement decisions.
• B. A continuous vendor relationship management program.
• C. A method to evaluate supplier risk.
• D. A policy for contract termination.

Answer: (A)

The Make, Lease or Buy concept is a decision framework for procurement that centers on choosing how to acquire a needed item or capability—whether to make in-house, lease equipment, or purchase it. It’s about structured evaluation of options rather than ongoing relationships, risk scoring, or contract rules. A four-step approach fits this idea well: first, define the requirement and constraints; second, identify viable acquisition options (make, lease, or buy); third, analyze costs, benefits, and risks for each option; and fourth, select the best option and implement it. This contrasts with descriptions focused on vendor management, risk assessment, or contract termination, which describe different aspects of procurement but not the core decision framework of choosing among making, leasing, or buying.

The Make, Lease or Buy concept is a decision framework for procurement that centers on choosing how to acquire a needed item or capability—whether to make in-house, lease equipment, or purchase it. It’s about structured evaluation of options rather than ongoing relationships, risk scoring, or contract rules. A four-step approach fits this idea well: first, define the requirement and constraints; second, identify viable acquisition options (make, lease, or buy); third, analyze costs, benefits, and risks for each option; and fourth, select the best option and implement it. This contrasts with descriptions focused on vendor management, risk assessment, or contract termination, which describe different aspects of procurement but not the core decision framework of choosing among making, leasing, or buying.