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PMPSelfStudy > Procurement Mgmt > Flashcards

Procurement Mgmt Flashcards

1
Q

What is the process of procurement mgmt?

A
  • Plan procurement
  • Conduct procurements
  • Adminster procurements
  • Close procurements
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2
Q

Name the inputs to procurement mgmt process

A
  • Enterprise environmental assets
  • Organizational process assets
  • Scope baseline
  • Risk register
  • Project schedule
  • Initial cost estimates for contracted work
  • Cost baseline for the project
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3
Q

What are key outputs of the Plan Procurements Process

A
  • Procurement Mgmt Plan
  • Procurement Statement of Work
  • Make-Or-Buy decisions
  • Procurement documents
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4
Q

What are key outputs of the Conduct Procurements process?

A
  • Selected sellers
  • Procurement contract
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5
Q

What are key outputs of the Administer Procurements process?

A
  • Procurement documentation
  • Change requests
  • Project mgmt plan updates
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6
Q

What are key outputs of the Close procurements process?

A

Closed procurements

Formal Acceptance

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7
Q

What is a procurement mgmt plan?

A

A plan for how each procurement will be adminstered

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8
Q

What is the difference btwn centralized & de-centralized contracting?

A

Centralized Contracting: Ther is 1 procurement, and the procurement mgr handles procurements on many projects

Decentralized contracting: A procurement mgt is assigned to one project full-time and reports direclty to the project mgr

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9
Q

What is required for a legal contract?

A

Offer

Acceptance

Consideration

Legal capacity

Legal purpose

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10
Q

What is a contract?

A

It may include all of the following:

  • Legal terms
  • Business terms
  • procurement statement of work
  • Marketing literature
  • Drawings
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11
Q

Describe the project manager’s role in procurement

A
  • Understand the procurement process
  • Make sure the work described in the contract is complete
  • Be involved in the whole procurement process
  • Help tailor the contract to the project
  • Incorporate mitigation and allocation of risks into the contract
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12
Q

Name the advantages of centralized contracting

A

Increased expertis in contracting

Standardized practices

Clear career paths

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13
Q

Name the disadvantages of centralized ocntracting

A

One person works on may projects

It may be difficult to obtain contracting help when needed

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14
Q

Name advantages of decentralized contracting

A

Esier acces to contracting expertise

More loyalty to the project

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15
Q

Name the disadvantages of decentralized contracting

A

No home for contracts person after the project

Less focus on improving contracting expertise

Inefficient use of resources

Little standardization of contracting processes from one project to the next

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16
Q

What is a make or buy decision?

A

Analysis of whether the performing organzation should do the work or buy th services/supplies from outside the organization

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17
Q

What are the main types of contracts?

A

Cost reimburseable

Fixed price

Time and material

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18
Q

What is a cost re-imbursable contract?

A

All costs are reimbursed

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19
Q

What is a cost plus fixed-fee contract?

A

All costs are reimbursed

The fee is fixed at a certain monetary amount

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20
Q

What is a cost plus percentage of cost contract?

A

All costs are reimbursed plus a specific percentage of costs as fee or profit

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21
Q

What is a cost plus incentive fee contract?

A

Costs are reimbursed plus an incentive, usually an additional fee, for exceeding performance criteria tha thave been determined in advance

22
Q

What is a time and material contract?

A

Usually a fixed hourly rate of a fixed cost per item, plus a reimbrsable component for expenses or material

23
Q

What is a fixed price contract?

A

There is only one fee fora ccomplsihing all the work

24
Q

What is a fixed price incentive fee contract?

A

Total price is fixed, but an additional amount may be paid for exceeding performance criteria determined in advance

25
Q

What is a fixed price economic price adjustment contract?

A

A fixed price contract iwht an allowable adjustment for price increase, due to cost increase in later time periods

26
Q

Describe how contract adminstration effots will be different with each contract form

A

The critical concept cannot be sumarized here:

Se PMP Exam Prep for more info

27
Q

What is a purchase order?

A

A unilateral contract

28
Q

What do incentives accomplish? What might they be used for?

A

Help bring the seller’s objectives in line with the buyer’s

Incentives for:

  • Time
  • Cost
  • Quality
  • Scope
29
Q

Who has the cost risk in a cost reimburseable contract? In a fixed price contract?

A

The buyer

The seller

30
Q

Name types of procurement statements of work

A

Performance

Functional

Design

31
Q

Wnat are procurement documents

A

Request for proposal (RFP)

Invitation for bid (IFB)

Request for quotation (RFQ)

32
Q

What are contract terms and conditions?

What are special provisions?

A

Standard conract terms and provisions: Terms and conditions that are used for all contracts w/in the company

Special provisions: Terms and conditions created for the unique needs of the project

Created with the input of the PM

33
Q

Name common terms and conditions in a contract

A

Review long list of terms and conditiosn in Procurement Mgmt chapter of PMP Exam Prep

34
Q

What is a letter of intent?

A

A ltter from the buyer , without legal binding, saying the buyer intends to hire the seller

35
Q

What does privity refer to?

A

Contractual relationships between two or more companies

36
Q

What does non-competative procurement mean?

A

Work awarded to a single source or sole source without competition

37
Q

When are source selection criteria created and used?

What do they refer to?

A

Rationale that the buyer will use to weight or score sellers’s proposals

Created during the Plan Procurements process

Used during the Conduct Procurements process to pick a seller

38
Q

What is a bidder conference?

What should be watched out for?

A

A meetin with prospective sellers to make sure all understand the procuement and have a chance to ask questions.

Watch for:

  • Collusion
  • Sellers not asking questions

All questions and answers are distributed to all

39
Q

What is a qualified seller list?

A

A list of sellers who have been preapproved

40
Q

What are objectives of negotiaion?

A

Obtain a fair and rasonable price

Develop a good relationship with the other side

41
Q

Name some negotiation tactics

A

Attacks

Good guy/bad guy

Deadline

Lying

Missing man

Delay

WIthdrawal

Fait Accompli (somethine already occurred)

42
Q

Name some of the PM activities during the Adminster Procurements process

A

Review invoices

Integrated change control

Interpret the contract

Montitor performance against the contract

Risk mgmt

Please see long list in PMP Exam Prep

43
Q

Why might there be a conflcit between the contract administrator and the project manager?

A

The contract administrator is the only one with the power to change the contract ( including project scope)

44
Q

What is a contract change control system?

A

A system created to modify the contract and to control changes to the contract

45
Q

What must be done for all contract changes?

A

They must be formally discussed

46
Q

What is the purpose of a procurement performance review?

A

To identify seller’s successes or failures, and allow the buyer to rate the seller’s ability to perform

47
Q

Define claims administration

A

Managing contested changes and constructive changes (claims) reuested by the seller

48
Q

What is the key function of a records mgmt system?

A

Maintain and index of contract documentation and records to assist in retrieval

Part of the project management information sysytem

49
Q

Name guidelines for interpreting what is or is not included in the contract

A

Pleas see contract interprestion discussion and excercise in the book

50
Q

What occurs during the Close Procurements process?

A

Product verification

Procurement audit

Financial closure

51
Q

What is a procurement audit?

A

A structured review of the procurement process and determination of lessons learned to help other procurements

PMPSelfStudy (13 decks)

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