Procurement Management

Question 0

What Knowledge Area of procurement Management identifies those project needs which can best be, or must be, met by acquiring products, services, or results outside of the project organization?

Answer 0

Plan Procurement Management

Question 1

______ _______ ________ is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

Answer 1

Plan Procurement Management

Question 2

What does a Make-or-buy Analysis really focus on?

Answer 2

Whether to Outsource or Not

Question 3

Name the 3 Common Contract Types?

Answer 3

Fixed-Price Contracts
Cost Reimbursable Contracts
Time and Material Contracts (Hybrid)

Question 4

What are the 3 most common contracts for Fixed-Price Contracts?

Answer 4

Firm Fixed Price (FFP)
Fixed Price Incentive Fee (FPIF)
Fixed Price with Economic Price Adjustment (FP-EPA)

Question 5

What contract is the most commonly used contract type.

Answer 5

Firm Fixed Price (FFP)

Question 6

Name the Fixed Price Contract: If a contract meets certain quality requirements or is completed ahead of schedule, etc. then some added bonus may be added to the fixed price.

Answer 6

Fixed Price Incentive Fee (FPIF) - Aligns the seller with the buyer.

Question 7

What is the best Fixed-Price contract to use for Raw Goods and/or Commodities?

Answer 7

Fixed Price with Economic Price Adjustment (FP-EPA)

Question 8

Name the 4 Cost Reimbursable Contracts.

Answer 8

Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Cost plus Award Fee (CPPAF)
Cost Plus Percentage of Costs (CPPC)

Question 9

What Cost Reimbursable Contract is the type of contract, the buyer pays the cost plus a stable fee that is usually calculated as a percentage of the initial estimated project cost.

Answer 9

Cost Plus Fixed Fee (CPFF)

Question 10

What Cost Reimbursable Contract is used to Align Goals, or if the actual cost (AC) is less, or more than the original target cost (TC), both the buyer and seller share in the saving or overruns.

Answer 10

Cost Plus Incentive Fee (CPIF)

Question 11

What Cost Reimbursable Contract has the seller reimbursed for all legitimate costs, but the majority of the fee is only earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract?

Answer 11

Cost Plus Award Fee (CPAF)

Question 12

What Cost Reimbursable Contract is illegal in some industries and countries because it encourages the seller to increase costs for the buyer in order to maximize profits.

Answer 12

Cost Plus Percentage of Costs (CPPC)

Question 13

There are no subsection to the Time & Material Contract (T&M) why?

Answer 13

This is a hybrid contract that includes features of both fixed-price and cost-reimbursable contracts. These contracts can be used for staff augmentation and acquisition of outside support when a precise statement of work is not available.

Question 14

Name the 4 Common Contract Clauses.

Answer 14

Force Majeure Clause
Liquidated Damages Clause
Changes Clause
Escalator Clause

Question 15

_________ _______ criteria are used to rate or score bids, responses, or proposals.

Answer 15

Source Selection

Question 16

Which contract clause would cover a breach of late performance?

Answer 16

Liquidated Damages Clause

Question 17

_________ _________ is the process of obtaining seller responses, selecting a seller, and awarding a contract.

Answer 17

Conduct Procurements

Question 18

__________ ________ clarify the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract.

Answer 18

Procurement Negotiations

Question 19

If there are any disputes or claims between the buyer and seller, they should follow the _____ _______ process (defined in the contract) to address such claims.

Answer 19

Claims Administration

Question 20

Unresolved claims may have to go through a/an ______ _______ ______.

Answer 20

Alt Dispute Resolution (ADR)

Question 21

_________ is the last option to resort to settling claims. It is always preferable over __________.

Answer 21

Negotiation; Litigation

Question 22

If there are any disputes or claims between the buyer and seller, then _________ _________ ________ should be used.

Answer 22

Claims Administration process

Question 23

_______Audit is a tool for Close Procurements.

Answer 23

Procurement

Question 24

What is used to identify successes and failures throughout the procurement processes in order to generate lessons learned?

Answer 24

Procurement Audit