Procurement Flashcards
Firm Fixed Price FFP Contract
The FFP is the most commonly used contract type and is favored by most organizations because the price is set and is not subject to change unless the scope of work changes.
Cost Reimbursable Contract
A cost-reimbursable contract reimburses the seller’s cost, and since the profit is factored separately, this contract is sometimes known as a cost-plus contract.
This contract is used when the scope of work is uncertain; therefore, costs cannot be estimated accurately.
Time and Materials Contract
With a time and materials contract, instead of quoting a fixed price for the entire project, a contract will describe the rough scope of the job along with a quote for a fixed hourly wage plus the cost of materials.
What is Force Majeure
Force majeure is a clause that is included in contracts to remove liability for unforeseeable and unavoidable catastrophes that interrupt the expected course of events and prevent participants from fulfilling obligations
What is Fait Accompli
A fait accompli refers to an action which would be difficult to undo and which therefore becomes the basis for future negotiations and discussions.
What is Privity
Privity is a legal term for the relationship between the parties involved in a contract. For example, in a project involving sub-contracts, there is privity between the prime buyer and the prime seller but not between the prime buyer and the sub-contractors.
What is term of Reference
lists the details associated with contracting with a seller to provide a service.
What is Decentralized contracting?
In decentralized contracting there is one contracting resource that is dedicated to the project
What is Centralized contracting
In Centralized contracting the contracting resources are pooled so there is no one dedicated to your project, but you have potential access to increased expertise.
What contract would be best for a short contract that provides additional resources?
Time and Materials
If requirements and scope are unclear, which contract should you use?
Cost Reimbursable
When is Source Selection criteria developed?
Plan Procurement Management
When is Source Selection applied?
Conduct Procurement
What is CPFF?
Cost Plus Fixed Fee
What is the best way to make sure an estimate is sound and accurate?
Use an independent cost estimate
