Procurement Flashcards
1
Q
Risk is with the buyer as the buyer pays for cost overruns.
A
Cost reimbursable contracts
2
Q
Buyer pays for the time and materials of the vendor. Must have a not-to-exceed (NTE) clause.
A
Time and materials contract
3
Q
Generally short-term purchase used as a stopgap or emergency response.
A
Letter contract
4
Q
An offer and consideration. Backed by the court system
A
Contracts
5
Q
The buyer tells the vendor they intend to do business with them; not a binding agreement.
A
Letter of intent
6
Q
Vendors all meet with the buyer to discuss the details of the statement of work so they may prepare a bid, quote, or proposal.
A
Bidder conference
7
Q
A unilateral form of a contract.
A
Purchase order
8
Q
Risk is with the seller as seller pays for cost overruns
A
Fixed-price (lump-sum contracts)
