13B - Select Project Vendors

Question 1

Responses submitted by potential vendors that are prepared in accordance with the requirements stated in the procurement documents.

Answer 1

vendor proposals

Question 2

A technique used to reduce the number of proposals that have been received to a more concise number for further analysis. In this process, the buyer might use an abbreviated scoring system or internal discussions to remove some proposals from further consideration.

Answer 2

short-listing

Question 3

A set of methods to evaluate, short-list, and select the vendor.

Answer 3

proposal evaluation techniques

Question 4

A method for quantifying qualitative data to minimize the influence of personal bias on source selection.

Answer 4

weighting system

Question 5

One type of weighting system that groups evaluation criteria into general categories and assigns a numerical weight to each category. A vendor is rated on a scale of zero to five for each of the technical criteria. These numbers are totaled and then multiplies by the weighting factor to determine the weighted score for that category.

Answer 5

weighted scorecard

Question 6

The process of bargaining to come to a mutual agreement regarding the terms and conditions of a contract.

Answer 6

procurement negotiation

Question 7

An agreement between two or more parties to form a business partnership. It is not legally binding, but is more formal than a “gentlemen’s agreement.”

Answer 7

memorandum of understanding

Question 8

A contract between an organization that provides a service, and the user of the service. The contract specifies what the customer will receive and the performance standards the provider is obligated to meet.

Answer 8

SLA

Question 9

What does SLA stand for?

Answer 9

Service Level Agreement

Question 10

A mutually binding agreement that details the obligations of the buyer and vendor.

Answer 10

contract

Question 11

Establishes a total price for a product or service. The vendor agrees to perform the work at the negotiated contract value.

Answer 11

fixed-price contract (lump sum contract)

Question 12

A commonly used contract type favored by most buying organizations because the price for products or services is set at the outset and not subject to change unless the scope of work changes.

Answer 12

FFP contract

Question 13

What does FFP contract stand for?

Answer 13

Firm Fixed Price contract

Question 14

A fixed-price contract that is flexible in that it allows for deviation from performance.

Answer 14

FPIF contract

Question 15

What does FPIF contract stand for?

Answer 15

Fixed Price Incentive Fee contract

Question 16

Fixed-price contract type with special provisions to allow predefined final adjustments to the contract price due to changed conditions.

Answer 16

FP-EPA contract

Question 17

What does FP-EPA contract stand for?

Answer 17

Fixed Price with Economic Price Adjustment

Question 18

This can be a type of fixed-price contract, or a separate document that is appended to a contract. It is sent from a buyer to a vendor with a request for an order. When the vendor accepts the ___, a legally binding contract is formed.

Answer 18

PO

Question 19

What does PO stand for?

Answer 19

Purchase Order

Question 20

A contract type that provides vendors a refund of the expenses incurred while providing a service, plus a fee representing vendor profit.

Answer 20

cost-reimbursable contract

Question 21

A cost-reimbursable contract which ensures that the vendor is reimbursed for all allowable costs for performing the contract work. The vendor receives a fixed fee payment based on the initial estimated project costs.

Answer 21

CPFF contract

Question 22

What does CPFF contract stand for?

Answer 22

Cost Plus Fixed Fee contract

Question 23

A cost-reimbursable contract which ensures that the vendor is reimbursed for all allowable costs for performing the contract work. The vendor also receives a predetermined target fee with provision of an incentive fee.

Answer 23

CPIF contract

Question 24

What does CPIF contract stand for?

Answer 24

Cost Plus Incentive Fee contract

Question 25

A cost-reimbursable contract which ensures that the vendor is reimbursed for all legitimate costs. The majority of the fee is earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract.

Answer 25

CPAF contract

Question 26

What does CPAF contract stand for?

Answer 26

Cost Plus Award Fee contract

Question 27

A type of contract that includes aspects of both fixed-price and cost-reimbursable contracts. The buyer pays the vendor a negotiated hourly rate and full reimbursement for materials used to complete the project.

Answer 27

T&M contract

Question 28

What does T&M contract stand for?

Answer 28

Time and Material contract

Question 29

A mutually binding agreement that details the obligations of the buyer and vendor. This agreement can be a simple purchase order or a complex contract.

Answer 29

procurement contract

Question 30

A type of contract that engages the vendor to deliver a set amount of service (measured in staff-hours or a similar unit) over a set period of time.

Answer 30

term contract

Question 31

A type of contract that is completed when the vendor delivers the product to the buyer and the buyer accepts the product.

Answer 31

completion contract