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IS351 > CH9 > Flashcards

CH9 Flashcards

1
Q

______________ involves managing procurement relationships and monitoring contract performance.

A

Control Procurements

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2
Q

The ______________ method involves selecting the highest technical proposal within a disclosed budget.

A

Fixed Budget

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3
Q

______________ contracts include financial incentives tied to achieving performance metrics.

A

Fixed Price Incentive Fee

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4
Q

______________ analysis helps decide whether work should be done in-house or outsourced.

A

Make-or-Buy

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5
Q

______________ documents are used to solicit proposals from prospective sellers.

A

Bid

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6
Q

The ______________ register provides details on project participants and their interests.

A

Stakeholder

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7
Q

The ______________ contains the scope statement, WBS, and WBS dictionary.

A

Scope Baseline

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8
Q

A ______________ is a binding legal agreement between the buyer and seller.

A

Contract

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9
Q

______________ is a meeting where buyers and prospective sellers ensure a clear understanding of procurement.

A

Bidder Conference

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10
Q

The ______________ process determines what to acquire, how to acquire it, and when.

A

Plan Procurement Management

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11
Q

______________ are contested changes between buyer and seller that may require resolution.

A

Claims

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12
Q

______________ contracts are often used for staff augmentation or when a precise SOW cannot be defined.

A

Time and Material

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13
Q

______________ reviews measure and compare quality, cost, and schedule performance

A

Performance

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14
Q

______________ are structured reviews of work performed by contractors

A

Inspections

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15
Q

______________ is used to evaluate seller proposals against selection criteria.

A

Proposal Evaluation

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16
Q

T/F: Procurement Management involves determining what needs to be acquired for project success.

A

True

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17
Q

T/F: A project manager must be an expert in procurement laws and regulations.

A

False. A project manager does not need to be an expert in procurement laws but should be familiar enough to make informed decisions about contracts and contractual relationships.

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18
Q

T/F: Fixed-price contracts shift risk primarily to the buyer.

A

False. Fixed-price contracts shift risk primarily to the seller, as the price is set and the seller must manage costs within that limit.

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19
Q

T/F: The milestone list helps track seller performance against delivery timelines.

A

True

20
Q

T/F: A firm-fixed-price contract is favored by sellers due to its flexibility.

A

False. A firm-fixed-price contract is favored by buyers because the price is fixed, reducing financial risk to the buyer.

21
Q

T/F: A stakeholder register includes the interests of legal and regulatory agencies.

A

True.

22
Q

T/F: Advertising is used during Conduct Procurements to expand the list of potential sellers.

A

True

23
Q

T/F: Bidder conferences aim to give preference to certain bidders.

A

False. Bidder conferences aim to ensure all prospective bidders have a clear and equal understanding of the procurement requirements.

24
Q

T/F: Earned Value Analysis helps in forecasting the estimated cost at completion.

A

True

25
Q

T/F: Performance reviews are a tool used during Plan Procurement Management.

A

False. Performance reviews are a tool used during the Control Procurements process to measure contract performance.

26
Q

T/F: Sole source selection is the preferred method for high-risk procurements.

A

False. Sole source selection is used when a specific seller is uniquely qualified and is considered an exception rather than the preferred method.

27
Q

T/F: Independent cost estimates serve as benchmarks for evaluating seller proposals.

A

True

28
Q

T/F: Claims administration involves resolving contested changes in procurement.

A

True

29
Q

T/F: Resource requirements document non-technical aspects like safety and permits.

A

True

30
Q

T/F: A fixed budget method allows unlimited changes to the SOW.

A

False. A fixed budget method does not allow changes to the SOW; it requires a precisely defined scope with no anticipated changes.

31
Q

A construction company is building a new office complex. The project manager has decided to use a contract type where the seller is reimbursed for all allowable costs and receives a fixed fee, regardless of performance.
What type of contract is being used?
A) Fixed Price Incentive Fee
B) Cost Plus Fixed Fee
C) Cost Plus Incentive Fee
D) Time and Material

A

B) Cost Plus Fixed Fee

32
Q

During procurement planning, a project manager is tasked with determining whether it’s more cost-effective to outsource a key deliverable or use internal resources. The analysis considers current team capacity and required expertise.
Which tool or technique is the project manager using?
A) Market Research
B) Source Selection Criteria
C) Make-or-Buy Analysis
D) Bid Evaluation

A

C) Make-or-Buy Analysis

33
Q

A seller has completed all deliverables under the contract, and there are no remaining claims or invoices. The buyer formally issues a written notice stating the contract has been successfully completed.
Which process is being performed?
A) Conduct Procurements
B) Plan Procurement Management
C) Control Procurements (Correct Answer)
D) Vendor Closure

A

C) Control Procurements

34
Q

buyer issues an RFP for a software development project. The procurement team evaluates the proposals based on the technical approach, cost, and experience of the sellers. After scoring, they select the seller with the highest combined score.
What source selection method was used?
A) Fixed Budget
B) Least Cost
C) Quality and Cost-Based Selection
D) Sole Source

A

C) Quality and Cost-Based Selection

35
Q

A project manager discovers that a vendor has delivered a shipment of components that do not meet the agreed quality standards. The contract specifies a penalty clause for such incidents.
What type of clause is being enforced in this situation?
A) Performance Clause
B) Incentive Clause
C) Penalty Clause
D) Warranty Clause

A

C) Penalty Clause

36
Q

A public sector project needs to procure IT equipment. As per the regulations, the procurement must be publicly advertised to ensure transparency and encourage competition.
Which procurement activity is being described?
A) Bidder Conferences
B) Advertising
C) Proposal Evaluation
D) Market Research

A

B) Advertising

37
Q

A project manager is managing a high-stakes contract where cost overruns are likely. To manage risk, the buyer absorbs 85% of any overruns, while the seller absorbs 15%.
What contract type does this describe?
A) Fixed Price Incentive Fee
B) Cost Plus Fixed Fee
C) Cost Plus Incentive Fee
D) Time and Material

A

C) Cost Plus Incentive Fee

38
Q

A seller is working on a multi-year project. Due to significant inflation, the seller requests an adjustment to the agreed payment terms.
What type of contract adjustment is most appropriate?
A) Cost Reimbursement
B) Fixed Price Incentive Fee
C) Fixed Price with Economic Price Adjustments
D) Time and Material

A

C) Fixed Price with Economic Price Adjustments

39
Q

A buyer and seller are negotiating a software license agreement. The buyer has selected this seller without considering other vendors due to their unique expertise.
What source selection method is being used?
A) Sole Source
B) Quality-Based Selection
C) Qualifications Only
D) Fixed Budget

A

A) Sole Source

40
Q

A project manager reviews a procurement document that specifies the technical requirements, performance criteria, and delivery schedule for a product. This document will be shared with potential sellers.
What document is the project manager reviewing?
A) Bid Document
B) Request for Proposal
C) Procurement Statement of Work
D) Scope Baseline

A

C) Procurement Statement of Work

41
Q

During contract performance, a disagreement arises about the interpretation of specific terms in the agreement. Both parties attempt to resolve the dispute through negotiation instead of pursuing legal action.
What process is being applied?
A) Claims Administration
B) Control Procurements
C) Alternative Dispute Resolution
D) Proposal Evaluation

A

A) Claims Administration

42
Q

A procurement team decides to choose a seller based solely on their qualifications, as the value of the procurement is relatively small, and a full selection process is not justified.
What source selection method is being used?
A) Sole Source
B) Qualifications Only
C) Least Cost
D) Quality and Cost-Based Selection

A

B) Qualifications Only

43
Q

A startup company lacks a formal procurement department. The project manager negotiates contracts directly with vendors and is responsible for signing agreements.
What type of purchasing approach does this describe?
A) Centralized Purchasing
B) Decentralized Purchasing
C) Sole Source Purchasing
D) Fixed Budget Purchasing

A

B) Decentralized Purchasing

44
Q

During an inspection, the buyer discovers that the seller’s work is behind schedule. The buyer uses this information to assess the overall impact on project milestones and budgets.
What technique is the buyer using?
A) Earned Value Analysis
B) Performance Reviews
C) Trend Analysis
D) Negotiation

A

B) Performance Reviews

45
Q

A project manager identifies several risks that could be transferred to an external seller through a contract. These risks are documented during procurement planning.
In which document are these risks most likely recorded?
A) Risk Register
B) Procurement Statement of Work
C) Resource Management Plan
D) Independent Cost Estimate

A

A) Risk Register

IS351 (12 decks)

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