Procurement

Question 0

FPIF

Answer 0

Fixed Price Incentive Fee Contracts - PMBOK
Or
Fixed Price incentive Firm Target - PowerPoint

Question 1

FFP

Answer 1

Firm Fixed Price Contracts or

Lump Sum

Question 2

FP-EPA

Answer 2

Fixed Price with Economic Price Adjustment Contracts

Question 3

Fixed Price Contracts

Answer 3

Set a fixed total price for a defined product, service, or result to be provided.

Question 4

Cost-reimbursable contracts

Answer 4

Involves payments (costs reimbursements) to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit.

Question 5

CPFF

Answer 5

Cost Plus Fixed Fee Contracts or

Cost + Fixed Fee

Question 6

CPIF

Answer 6

Cost Plus Incentive Fee Contracts or

Cost + Incentive Fee

Question 7

CPAF

Answer 7

Cost Plus Award Fee Contracts or

Cost + Award Fee

Question 8

CPPC

Answer 8

Cost + % of Cost

Illegal in most states, including Alaska

Question 9

Time and Materials Contracts (T&M)

Answer 9

Hybrid of fixed price & cost-reimbursable
Fixed Unit Prices (e.g. $/hr, &/cy)
Guaranteed max with split savings

Question 10

How can you prevent unlimited cost growth with T&M contracts?

Answer 10

Not-to-exceed values and time limits

Question 11

What is Make-or-Buy Analysis?

Answer 11

General management technique to determine whether particular work can best be accomplished by the project team or should be purchased from outside sources.

Question 12

What 2 factors should exist if you intend to use Fixed Price?

Answer 12

1. Firm scope of project deliverables

2. Firm scope of work to create deliverables

Question 13

SOW

Answer 13

Statement of Work

Question 14

What does the Procurement SOW describe?

Answer 14

It describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results.

Question 15

What information can be included in a Procurement SOW?

Answer 15

Specifications, quantity desired, quality levels, performance data, period of performance, work location, and other requirements.

Question 16

Which procurement items require a SOW?

Answer 16

Each individual procurement item requires a SOW; however, multiple products or services can be grouped as one procurement item within a single SOW.

Question 17

What should a Make-or-Buy Analysis consider?

Answer 17

All related costs - direct & indirect.
Both the actual out-of-pocket costs to purchase the product, as well as the indirect costs of supporting the purchasing process and purchased item.

Question 18

What should you consider when making a “Buy” decision?

Answer 18

Cost (less $)?
Supplier skills
Smaller volume
Limited capacity
Augment labor force
Maintain multiple sources
Indirect control

Question 19

What should you consider when making a “Make” decision?

Answer 19

Cost (less $)?
Integrations of operations
Design secrecy
Idle existing capacity 
Stabilize work force
Unreliable suppliers
Direct control

Question 20

How is risk divided between the customer & seller between FP and CP contracts?

Answer 20

Will have to look this up

Question 21

What are the Plan Procurement Management Tools and Techniques?

Answer 21

Make-or-Buy Analysis
Expert Judgement
Market Research
Meetings

Question 22

What might a Procurement SOW include?

Answer 22

Specifications, Quantity desired, Quality levels, Performance data, Period of performance, work location and other requirements.

Question 23

What is the goal of Procurement Negotiations?

Answer 23

Clarify the structure, requirements, and other terms of the purchases so that mutual agreement can be reached prior to signing the contract.

“Negotiate a price to share the risk”

Question 24

What should Procurement Negotiations cover or include?

Answer 24

Responsibilities, authority to make changes, applicable terms & governing law, technical & business management approaches, proprietary rights, contract financing, technical solutions, overall schedule, payments & price.

Question 25

What is a contract?

Answer 25

…a mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to compensate the seller.

Question 26

ADR

Answer 26

Alternative dispute resolution

Method can be decided as part of the procurement award.

Question 27

What is “Control Procurements?”

Answer 27

The process of managing procurement relationships, monitoring performance, and making changes & corrections to contracts as needed.

Question 28

What process management processes are applied within Control Procurement?

Answer 28

Direct and Manage Project Work - authorize work at appropriate time
Control Quality - inspect & verify adequacy of the product
Perform Integrity Change Control - assure that changes are properly approved and that all those with a need to know are aware of such changes.
Control Risk - ensure that risks are mitigated.

Question 29

What is Source Selection Criteria?

Answer 29

Developed and used to rate or score seller proposals. Can be subjective or objective.

Question 30

Name some possible source selection criteria.

Answer 30

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

Question 31

What else might the seller be called?

Answer 31

Contractor, subcontractor, vendor, service provider, or supplier.

Question 32

What else might a buyer be called?

Answer 32

Client, customer, prime contractor, contractor, acquiring organization, service requestor, or purchaser.

It changes based on the buyers position in the project acquisition cycle.