The statement is correct. A long-term purchase agreement (also known as a master agreement, blanket purchase agreement, or framework agreement) is a contractual tool specifically designed for situations where parties anticipate a series of future transactions. Its primary purpose is to establish a governing set of terms, conditions, and often pricing for recurring purchases of goods or services. This approach streamlines the procurement process, reduces administrative burden and transaction costs associated with negotiating individual contracts for each purchase, and fosters a stable, strategic relationship between the buyer and seller.

B. False: This is incorrect. The fundamental rationale for entering into a long-term agreement is to efficiently manage an ongoing, repetitive business relationship, which is precisely what the statement describes.

1. National Contract Management Association. (2019). Contract Management Body of Knowledge (CMBOK) (6th ed.). Section 2.2.3, "Contracting Methods," discusses indefinite-delivery contracts, which are a form of long-term agreement used when the exact timing and quantity of future needs are unknown but anticipated over a period.

2. Garrett, G. A. (2007). World-Class Contracting (4th ed.). CCH. Chapter 5, "Types of Contracts," describes how agreements like blanket purchase orders are used for repetitive needs to reduce administrative costs and lead times.

3. Rendon, R. G. (2015). Contract management process maturity: the acquisition organization’s “secret weapon”. Defense Acquisition Research Journal, 22(3), 258-281. This article discusses the strategic value of establishing long-term relationships and agreements to improve acquisition outcomes, reinforcing the principle that repeated dealings are a key driver for such contracts. https://doi.org/10.22594/dau.15-727.22.03