Chapter 12: Project Procurement Management

Question 0

What is involved in the Manage Stakeholder Engagement process?

Answer 0

Communicating and working with stakeholders to meet their needs and to address issues they bring up as they occur

Question 1

Selected sellers, agreements, resource calendars, change requests, project management plan updates, and project documents updates are outputs for which Project Procurement Management process?

Answer 1

Conduct Procurements

Question 2

What are the interpersonal skills that the project manager might apply when managing stakeholder engagement?

Answer 2

Building trust
Resolving conflict
Actively listening
Overcoming resistance to change

You can find more on interpersonal skills in appendix X3 of the PMBOK® Guide

Question 3

What are the 4 inputs to the Plan Stakeholder Management process?

Answer 3

Project management plan
Stakeholder register
Enterprise environmental factors
Organizational process assets

Question 4

What are the 3 tools and techniques used in the Control Stakeholder Engagement process?

Answer 4

Information management system
Expert judgment
Meeting

Question 5

What is PTA (point of total assumption)?

Answer 5

PTA is the not-to-exceed cost, set by the buyer, in a cost-plus contract. When the actual cost differ from the estimated costs, the buyer and the seller split the difference along an agree-upon split. Any costs above the PTA must be paid solely by the seller. The formula for PTA is:

PTA = [ceiling price - Total price\buyer share] + total cost

Question 6

What are some characteristics of a contract?

Answer 6

It is a formal, mutually binding agreement between parties
Terms are enforceable by the legal system
Changes must be formally controlled and in writing
All requirements should be stated in the contract
All contractual requirements must be met
All requirements including reporting requirements, payments terms, ownership and copyright terms, etc., must be documented in the contract

Question 7

What are the characteristics of a time and material contact?

Answer 7

The buyer and the seller both share the risk of cost
It is a cross between fixed-price and cost plus contracts
The unit price is established but not the quantity
The scope of work does not have to be known
The total price of the contracts is initially unknown

Question 8

What is the purpose of the contract SOW?

Answer 8

To describe the work the contractor will provide in enough detail that sellers can determine whether they can provide the needed services

Question 9

What are some other terms for “contract”?

Answer 9

Agreement
Understanding
Subcontract
Purchase order

Question 10

What is “procurement”?

Answer 10

Purchasing goods, services, or results typically from outside the organization.

Question 11

What are the 4 Project Procurement Management Processes?

Answer 11

Plan Procurement Management
Conduct Procurements
Control Procurements
Close Procurements

Question 12

What are the 3 main types of contracts?

Answer 12

Fixed-price contracts
Cost-reimbursable contracts
Time and material contracts

Question 13

What are some of the components of procurement management plan?

Answer 13

Contract types
Procurement documents to be used
Procedure for managing multiple vendors
Processes for handling make-or-buy decisions
Outline of requirements for contracts WBS
List of prequalified sellers
Metrics to be used to evaluate and manage sellers

Question 14

Which factors are considered in a make-or-buy analysis?

Answer 14

Cost
Technical ability of the organization to do the work
Capacity of the organization’s facilities
Available personnel
Time required to complete the project

Question 15

What are some examples of source selection criteria (a tool and technique for Plan Procurement Management)?

Answer 15

Understanding of need
Overall or life-cycle cost
Technical capability
Risk
Management approach
Warranty
Financial capacity
Production capacity and interest
Business size and type
Past performance of sellers
References 
Intellectual property rights 
Proprietary rights

Question 16

What are some other terms for “buyer”?

Answer 16

Client
Customer
Prime contractor
Contractor
Acquiring organization
Government agency
Service requestor
Purchaser

Question 17

What is a “proposal”?

Answer 17

Also called a bid, tender, or quote, a proposal is a document prepared by the seller to explain the costs, services, terms, etc., by which the seller will meet the terms of the contract with the buyer.