Procurement Management Flashcards
What process is a seller authorized payment?
Control Procurements
How are changes to the contract handled?
Via organization’s contract change control system (an EEF)
What is privity?
Contractual relationship
What is indemnification?
liability
Who pays for cost of a Force Majeure?
Usually seller
Hopefully insurance
Declared in contracts “Risk of Loss” section
What is Force Majeure?
Act of Nature (fire, earthquake)
Allowable excuse for either party to not meet contract requirements
What is IFB?
Invitation for Bid
Similar to RFP, but procurement SOW is detailed enough to supply total price
What are Constructive Changes?
Actions or Inactions of buyer that limit seller’s ability to perform according to contract
Contract Type to use for Research & Development?
Cost Reimbursable
When do you use a Cost Reimbursable Contract?
Exact SOW is uncertain
Cost cannot be estimated
When do you use a Time and Material Contract?
Level of effort cannot be determined
Short Duration
Small Cost
Where are approved Change Requests implemented (in procurement)?
Control Procurements Process
Buyer and Seller’s focus in Control Procurements?
Buyer = measuring performance of seller and comparing to contract
Seller = completing work
What is retainage?
Percent of payment withheld until final work is complete to ensure completion
How is Force Majeure resolved?
Allow seller time to complete work
