Chapter Procurement Flashcards
A project team is meeting to determine what the selection
criteria will be for the project procurement. What
procurement process are they in?
A Plan Procurements
B Administer Procurements
C Conduct Bidder Conference
D Conduct Procurements
The correct answer is A.
Time and cost are important considerations, and the buyer wants to be
in full control. What is the BEST contract to use?
A. FP (Fixed Price)
B. T&M (Time and Material)
C. PO (Purchase Order)
D. CR (Cost Reimbursable)
The correct answer is B.
Bidder conferences can have a negative effect on the project if the project manager does NOT remember to make sure:
A. All questions and answers are put in writing and went to all sellers
B. All sellers get answers to their questions only.
C. To hold separate meetings with each bidder to ensure you receive
proprietary data
D. There is room in the meeting for all sellers
The correct answer is C.
Which of the following should the procurement audit include?
A. A complete list of the contract as built drawings
B. Customer’s evaluation of the work
C. Team’s evaluation of the contract type selected
D. Evaluations of what went right and wrong
The correct answer is D.
Who creates the RFP and who creates the RFI?
A. The RFP is created by the buyer while the RFI is created by the seller.
B. The RFP is created by the seller while the RFI is created by the buyer.
C. Both the RFP and the RFI are created by the buyer.
D. Both the RFP and the RFI are created by the seller.
The correct answer is C.
Bidder conferences are used during which process? A. Conduct procurements B. Control procurements C. Plan procurement management D. Plan procurements
The correct answer is A.
You are assigned as the project manager in the middle of the project.
The project is within the baselines, but the customer is not happy with
the performance of the project. What is the FIRST thing you should do?
A. Discuss it with the project team
B. Recalculates baselines
C. Renegotiate the contract
D. Meet with the customer
The correct answer is D.
The seller has filed a delay claim against the buyer, asking for a change
order, saying that the buyer took longer than allowed in the contract to
review and approve a deliverable. Who has the authority to sign the
change?
A. Project manager
B. Procurement manager
C. Senior manager
D. Team and the project manager
The correct answer is B.
What is the result of bidder conferences held during the Conduct
Procurement process?
A. Procurement statement of work
B. Proposal
C. A clear and common understanding of the work required
D. Contract
The correct answer is C.
All of the following are inputs to the procurement process except:
A. The product description
B. Market conditions
C. The procurement statement of work
D. The project scope statement
The correct answer is C.
A customer has requested a change that requires you to obtain new equipment. You need to decide whether to lease or buy the equipment.
The daily lease cost is US $150. The cost of purchasing the item is US
$2,000 investment cost and US $50 daily cost. You will need to use the
item for about 12 days. What should you do ?
A. Lease it
B .Buy it
C. Ask the customer for a $2,000 change order
D. lease it for only seven days to try to save cost
The correct answer is A.
A new project manager is about to begin creating the procurement statement of work. One stakeholder
wants to add many items to the procurement statement of work. Another stakeholder only wants to
describe the functional requirements. The project is important for the project manager’s company, but a
seller will do the work. How would you advise the project manager?
A. The procurement statement of work should be general to allow for clarification later.
B. The procurement statement of work should be as detailed as necessary for the type of project.
C. The procurement statement of work should be detailed to allow for clarification later.
D. The procurement statement of work should be general to allow the seller to make their own
decisions.
The correct answer is B.
Which of the following statements represents a fixed price incentive fee (FPIF) contract?
A. Pay $1,000,000
B. Pay all the costs plus $10,000 fee
C. Pay the costs plus $10,000 for every month the project is finished earlier than June 14
D. Pay $1,000,000 plus $10,000 for every designated incremental quality level reached
The correct answer is D.
Management tells a project manager to subcontract part of the project
to a company that management has worked with many times. Under
these circumstances, the project manager should be MOST concerned
about:
A. Making sure the company has the qualification to complete the
project
B. Meeting management expectations of time
C. The cost of the subcontracted work
D. The contract terms and conditions
The correct answer is A.
A project manager working for a construction company works closely with a design firm. One of his responsibilities is to negotiate
and approve bid documents with the design firm. The design firm offers the project manager a job with the firm, which he accepts.
When the project manager gives his two weeks’ notice to the construction company, he does not mention that the design firm will be
employing him. For the next two weeks, the project manager continues to negotiate and approve bids and designs submitted by the
design firm. ln this situation:
A. There is a conflict of interest.
B. The construction company did not ask and the project manager is not obligated to inform the
company of his new job position.
C. The departure of the project manager provides both companies with benefits by allowing the
companies to strengthen their relationship and enhance communication.
D. The project manager is required to inform the construction company in his departure interview.
The correct answer is A.
