Procurement

Question 1

Statement of Work

Answer 1

provided seller with clearly worded goals, requirements, and outcomes

Question 2

Independent Cost Estimates

Answer 2

from an independent source to compare against actual bids

Question 3

Source Selection Criteria

Answer 3

applies weights or evaluation criteria in order to evaluate different proposals

Question 4

Fixed Price vs Cost Plus vs Time & Materials

Answer 4

Fixed Price - risk is high for seller

Cost Plus - buyer assumes some risk

Time & Materials - buyer is slightly more at risk

Question 5

FFP vs FPIF vs FP-EPA (Fixed Price contracts)

Answer 5

FFP - Firm Fixed Price - most common; seller covers any cost increases
FPIF - Fixed Price Plus Incentive Fee - includes extra performance bonus
FP-EPA - Fixed Price with Economic Price Adjustment - long-term project; buyer covers inflation

Question 6

CPPC vs CPFF vs CPIF vs CPAF (Cost-Plus contracts)

Answer 6

CPPC - Cost Plus Percentage of Costs - seller reimbursed for costs, plus % commission
CPFF - Cost Plus Fixed Fee - seller reimbursed for costs, plus $ commission
CPIF - Cost Plus Incentive Fee - seller reimbursed for costs, plus objective bonus
CPAF - Cost Plus Award Fee - seller reimbursed for costs, plus subjective bonus

Question 7

Time & Materials Contract

Answer 7

more risk to buyer; often used for staff augmentation and consultants

Question 8

12.2 Conduct Procurements Description, Inputs, and Outputs

Answer 8

obtain responses, select a seller and award a contract

PM plan, proj docs, Procurement docs, seller proposals

Selected sellers, agreements

Question 9

12.3 Control Procurements Description, Inputs, and Outputs

Answer 9

monitor contract performance, making any changes and closing out contracts

PM plan, proj docs, agreements, procurement docs, approved change requests, work perf data

closed procurements, work perf information, procurement doc updates

Question 10

12.1 Plan Procurement Management Description, Inputs, and Outputs

Answer 10

documenting procurement decisions, approach, and identifying potential sellers

charter, business case, benefits mgmt plan, scope mgmt plan, quality mgmt plan, resource mgmt plan, scope baseline, project docs

Procurement mgmt plan, Procurement Strategy, Bid documents, Procurement SOW, Source selection criteria, make-or-buy decisions, independent cost estimates