Planning: Procurement and Stakeholder Management

Question 1

Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

Answer 1

Project Procurement Management

Question 2

The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers

Answer 2

Plan Procurement Management

Question 3

The documented explanation defining the processes for creating, maximizing, and sustaining the benefits provided by a project or program.

Answer 3

Benefits Management Plan

Question 4

A component of the PMP that describes how the scope will be defined, developed, monitored, controlled, and validated.

Answer 4

Scope Management Plan

Question 5

A component of the PMP that describes how applicable policies, procedures, and guidelines will be implemented to achieve the quality objectives.

Answer 5

Quality Management Plan

Question 6

The process of gathering and organizing data about product requirements and analyzing them against available alternatives including the purchase or internal manufacture of the product

Answer 6

Make-or-Buy Analysis

Question 7

Decisions made regarding the external purchase or internal manufacture of a product.

Answer 7

Make-or-Buy Decisions

Question 8

A set of attributes desired by the buyer which a seller is required to meet or exceed to be selected for a contract.

Answer 8

Source Selection Criteria

Question 9

Buyer asks a specific seller for a proposal with no competition from other vendors

Answer 9

Sole Source

Question 10

Often used interchangeably with bid

Answer 10

Tender

Question 11

Signifies a contractual relationship between two parties

Answer 11

Privity

Question 12

A contract clause allowing for non-performance when unforeseeable and uncontrollable events occur (natural disasters, riots, etc.)

Answer 12

Force Majeure

Question 13

Organization has a purchasing and/or legal department to handle contracts

Answer 13

Centralized Purchasing

Question 14

The PM may be doing most of the work to negotiate, sign and manage contracts

Answer 14

Decentralized Purchasing

Question 15

Contract type where the risk is on the seller.

Buyers need to precisely specify the products or services being procured.

Answer 15

Fixed price contracts

Question 16

Contract type where the risk tends to be on the buyer.

The seller recovers all legitimate costs incurred, plus a fee which represents the seller’s profit.

Answer 16

Cost-reimbursable contracts

Question 17

Contract type where the risk is on the buyer as they can be left open ended and may be subject to a cost increase.

They are often used for staff augmentation and when a precise SOW cannot be quickly prescribed.

Answer 17

Time and materials contracts

Question 18

The point where the seller assumes responsibility for all cost overruns.

Answer 18

Point of Total Assumption

(reminds me of medical insurance’s deductible)

Question 19

Maximum price the buyer agrees to pay

(Point of Total Assumption terminology)

Answer 19

Ceiling Price

Question 20

Initially-negotiated figure for estimated contract costs

(Point of Total Assumption terminology)

Answer 20

Target Cost

Question 21

The initially-negotiated profit

(Point of Total Assumption terminology)

Answer 21

Target Profit or Fee

Question 22

Target cost plus the target profit

(Point of Total Assumption terminology)

Answer 22

Target Price

Question 23

The ratio used to determine how under-runs or overruns increase or decrease profit (buyer/seller)

(Point of Total Assumption terminology)

Answer 23

Share Ratio

Question 24

Calculation for Point of Total Assumption

Answer 24

PTA = ( (Ceiling Price - Target Price) / Buyer’s share ratio) + Target Cost

Question 25

Analyzing how the winning seller will be chosen; determine if the lowest price, quals, technical approach or if a sole source will be used this information should be included in the bid documents

Answer 25

Source Selection Analysis

Question 26

A formal request for preliminary information for the purpose of evaluating potential bids for services

Answer 26

Request for Information (RFI)

Question 27

An invitation to contractors to submit a proposal on a specific project (generally the same thing as RFQ); The IFB or RFQ is generally focused on pricing alone, and not on ideas or concepts

Answer 27

Invitation for Bid (IFB)

Question 28

Informs vendors of customer needs and expectations Organized typically into three areas: Technical, Administrative, and Financial Requirements Typically used for more complex technical solutions

Answer 28

Request for Proposal (RFP)

Question 29

Describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results Developed from the project scope baseline

Answer 29

Procurement SOW

Question 30

The risk is highest for the ___ in a firm fixed contract.

Answer 30

Seller

Question 31

Purpose being to document project procurement decisions, specify the approach, and identify potential sellers

Answer 31

Plan Procurement Management

Question 32

Purpose being to monitor the status of the project, to update the project costs and manage changes in the cost baseline.

Answer 32

Control Costs

Question 33

Purpose being to manage procurement relationships, monitor contract performance, and make changes and corrections to contracts as appropriate

Answer 33

Control Procurement

Question 34

Purpose being to obtain seller responses, select a seller, and award a contract

Answer 34

Conduct Procurement

Question 35

Contract type that is riskier for the seller since unexpected cost overruns will not be compensated

Answer 35

Fixed Price Contract

Question 36

Contract type that is riskier for the buyer as the contract can be left open ended and may be subject to a cost increase

Answer 36

Time and Materials Contract

Question 37

Contract type that is riskier for the buyer as the seller recovers all cost incurred, plus a fee for the work performed

Answer 37

Cost-Reimbursable Contract

Question 38

Contract type that is riskier for the buyer as the seller recovers all costs incurred, plus a fee for the work performed

Answer 38

Cost Plus type of contract

Question 39

The process of developing approaches to involve stakeholders based on the analysis of their needs, interests, and potential impact on the project

Answer 39

Plan Stakeholder Engagement

Question 40

A comprehensive list of changes submitted during the project and their current status

Answer 40

Change Log

Question 41

A data representation that analyzes current engagement levels of various stakeholders relative to what those levels need to be.

Answer 41

Stakeholder Engagement Assessment Matrix

Question 42

Name the five engagement levels in the Stakeholder Engagement Assessment Matrix.

Answer 42

Unaware, Resistant, Neutral, Supportive, and Leading

Question 43

Purpose being to develop appropriate management strategies to effectively engage stakeholders throughout the project life cycle.

Answer 43

Plan Stakeholder Engagement

Question 44

Purpose being to address stakeholder needs, address issues as they occur and ensure stakeholders are appropriately engaged in the project activities

Answer 44

Manage Stakeholder Engagement

Question 45

Purpose being to monitor overall project stakeholder relationships and adjust strategies and plans for engaging stakeholders

Answer 45

Monitor Stakeholder Engagement

Question 46

Purpose being to monitor the status of the project and product scope and managing changes to the scope baseline

Answer 46

Control Scope