Procurement Management Knowledge Area

Question 1

Define Procurement Statement of Work

Answer 1

provides seller with clearly worded goals, requirements and outcomes

Question 2

Define Independent Cost Estimates

Answer 2

From uninterested party used as a sanity check to compare against actual bids from interested parties

Question 3

Define Source Selection Criteria

Answer 3

applies weights or evaluation criteria in order to evaluate the different proposals

Question 4

FFP

Answer 4

Firm Fixed Price; seller covers any cost increases

Question 5

FPIF

Answer 5

Fixed Price Plus Incentive Fee; includes an extra performance bonus

Question 6

FP-EPA

Answer 6

Fixed Price with Economic Price Adjustment; used on long term projects; buyer covers inflation costs

Question 7

Fixed Price

Answer 7

risk is high for the seller (aka Vendor and/or contractor)

Question 8

Cost-Plus

Answer 8

Buyer assumes some risk (risk is high for the organization too)

Question 9

CPPC

Answer 9

Cost Plus Percentage of Cost; seller reimbursed for costs, plus a % commission

Question 10

CPFF

Answer 10

Cost Plus Fixed Fee; seller reimbursed for costs, plus a fixed $ commission

Question 11

CPIF

Answer 11

Cost Plus Incentive Fee; seller reimbursed to costs, plus an objective bonus

Question 12

CPAF

Answer 12

Cost Plus Award Fee; seller reimbursed for costs, plus a subjective bonus

Question 13

Time and Materials

Answer 13

risk is closer between the buyer and seller, but the buyer has slightly more

Question 14

Inputs, T&Ts and Outputs of Plan Procurement Management

Answer 14

Inputs: Project charter, business documents, project management plan, project documents, EEF/OPAs

T&Ts: Expert judgment, data gathering, data analysis, source selection analysis, meetings

Outputs: Procurement management plan, procurement strategy, bid documents, procurement statement of work, source selection criteria, make-or-buy decisions, independent cost estimates, change requests, project documents updates, OPA updates

Question 15

Inputs, T&Ts and Outputs of Conduct Procurements

Answer 15

Inputs: Project Management Plan, Project Documents, Procurement Documentation, Seller Proposals, EEF/OPAs

T&Ts: Expert judgment, Advertising, Bidder Conferences, Data Analysis, Interpersonal and team skills

Outputs: Selected sellers, Agreements, Change Requests, Project Management Plan Updates, Project Documents Updates, OPA Updates

Question 16

Inputs, T&Ts and Outputs of Control Procurements

Answer 16

Inputs: Project Management Plan, Project Documents, Agreements, Procurement Documentation, Approved Change Requests, Work Performance Data, EEF/OPAs

T&Ts: Expert judgment, claims administration, data analysis, inspection, audits

Outputs: Closed procurements, work performance information, procurement documentation updates, change requests, project management plan updates, project documents updates, OPA updates