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CAMP 6th Edition > Project Procurement Management > Flashcards

Project Procurement Management Flashcards

1
Q

Risk is with the buyer as the buyer pays for cost overrun

A

Cost Reimbursable Contracts

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2
Q

A unilateral form of a contract.

A

Purchase Order

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3
Q

Contracts are closed according to the terms of the contract. This includes payment and possible contract cancelation

A

Contract Closure

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4
Q

Project procurement process

A

Buyer (SOW, Invitation to bid, Request for quote, Request for proposal>
Sellers>
Bidder Conference>
SOW updates>
Seller Response (Bid, Quote, Proposal)>
Buyer>
Negotiations>
Source Selection>
Contract>
Contract Closure

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5
Q

When there is an issue or claim that must be settled before the contract can be closed, the parties involved in the issue or claim will try to reach a settlement through mediation or arbitration.

A

Alternative dispute resolution

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6
Q

From seller to buyer. Price is the determining factor in the decision-making process.

A

Bid

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7
Q

A meeting of all the project’s potential vendors to clarify the contract statement of work and the details of the contracted work.

A

Bidder conference

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8
Q

These are disagreements between the buyer and the seller, usually centering on a change, who did the change, and even whether a change has occurred. Also called disputes and appeals, and are monitored and controlled through the project in accordance with the contract terms.

A

Claims

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9
Q

A formal agreement between the buyer and the seller. Can be oral or written—though written is preferred.

A

Contract

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10
Q

This defines the procedures for how the contract may be changed. The process for changing the contract includes the forms; documented communications; tracking; conditions within the project, business, or marketplace that justify the needed change; dispute resolution procedures; and the procedures for getting the changes approved within the performing organization.

A

Contract change control system

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11
Q

This document requires that the seller fully describe the work to be completed and/or the product to be supplied. Becomes part of the contract between the buyer and the seller.

No signature required, as this document will become part of the signed contract.

A

Contract statement of work (SOW also CSOW)

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12
Q

A contract that pays the vendor all costs for the project, but also includes a buyer-determined award fee for the project work.

A

Cost plus award fee contract

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13
Q

A contract that requires the buyer to pay for the cost of the goods and services procured plus a fixed fee for the contracted work.
Who assumes risk?

A

Cost plus fixed fee contract

The buyer assumes the risk of a cost overrun.

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14
Q

A contract type that requires the buyer to pay a cost for the procured work, plus an incentive fee, or a bonus, for the work if terms and conditions are met.

A

Cost plus incentive fee

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15
Q

A contract that requires the buyer to pay for the costs of the goods and services procured plus a percentage of the costs.
Who assumes risk?

A

Cost plus percentage of costs

The buyer assumes all of the risks for cost overruns.

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16
Q

These are costs incurred by the project in order for the project to exist. Examples include the equipment needed to complete the project work, salaries of the project team, and other expenses tied directly to the project’s existence.

A

Direct costs

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17
Q

Also known as firm fixed-price and lump-sum contracts, these are agreements that define a total price for the product the seller is to provide.

A

Fixed-price contracts

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18
Q

A fixed-price contract with opportunities for bonuses for meeting goals on costs, schedule, and other objectives. These contracts usually have a price ceiling for costs and associated bonuses.

A

Fixed-price incentive fee

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19
Q

A fixed-price contract with a special allowance for price increases based on economic reasons such as inflation or the cost of raw materials.

A

Fixed-price with economic price adjustments

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20
Q

An “act of God” that may have a negative impact on the project. Examples include fire, hurricanes, tornadoes, and earthquakes.

A

Force majeure

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21
Q

These estimates are often referred to as “should cost” estimates. They are created by the performing organization or outside experts to predict what the cost of the procured product should be.

A

Independent estimates

22
Q

These are costs attributed to the cost of doing business. Examples include utilities, office space, and other overhead costs.

A

Indirect costs

23
Q

From buyer to seller. Requests the seller to provide a price for the procured product or service.

A

Invitation for Bid (IFB)

24
Q

Allows the vendor to begin working on the project immediately. It is often used as a stopgap solution.

A

Letter contract

25
Q

Not a contract, but a letter stating that the buyer is intending to create a contractual relationship with the seller.

A

Letter of intent

26
Q

A process in which the project management team determines the cost-effectiveness, benefits, and feasibility of making a product or buying it from a vendor.

A

Make-or-buy decision

27
Q

The contractual relationship between the buyer and the seller is often considered confidential and secret.

A

Privity

28
Q

A project management subsidiary plan that documents the decisions made in the procurement planning processes.

A

Procurement management plan

29
Q

A process to identify which parts of the project warrant procurement from a vendor by the buyer.

A

Procurement planning

30
Q

document the seller provides to the buyer. Includes more than just a fee for the proposed work. It also includes information on the vendor’s skills, the vendor’s reputation, and ideas on how the vendor can complete the contracted work for the buyer.

A

Proposal

31
Q

A form of unilateral contract that the buyer provides to the vendor showing that the purchase has been approved by the buyer’s organization.

A

Purchase order (PO)

32
Q

From seller to buyer. Price is the determining factor in the decision-making process.

A

Quotation

33
Q

From buyer to seller. Requests the seller to provide a proposal to complete the procured work or to provide the procured product.

A

Request for Proposal (RFP)

34
Q

From buyer to seller. Requests the seller to provide a price for the procured product or service.

A

Request for Quote (RFQ)

35
Q

When the project management team decides to use transference to respond to a risk, created between the buyer and the seller.

A

Risk-related contractual agreements

36
Q

A tool that filters or screens out vendors that don’t qualify for the contract.

A

Screening system

37
Q

These are used by organizations to rate prior experience with each vendor that they have worked with in the past. Can track performance, quality ratings, delivery, and even contract compliance.

A

Seller rating systems

38
Q

Defines the obligations for the seller, what the seller will provide, and all of the particulars of the contracted work. XXX is similar to the statement of work.

A

Terms of Reference

39
Q

This takes out the personal preferences of the decision maker in the organization to ensure that the best seller is awarded the contract. XX are assigned to the values of the proposals, and each proposal is scored.

A

Weighting system

40
Q

A contract must have a ____ and a _______.

A

Offer and Consideration

41
Q

The United States backs all contracts through XXXX.

A

The court system

42
Q

Make vs Buy calculation

A

Subtract difference of total to build vs buy
Subtract difference of month fees to build vs buy
Divide the difference

43
Q

A set of documents prepared by a business or agency to solicit bids from vendors to purchase goods or services. It typically consists of a request for proposal (RFP) and any additional forms required by the purchasing organization. May include terms and conditions, evaluation criteria, instructions to bidders, and a response template. Typically outlines the requirements of the goods or services to be purchased, any relevant timelines, proposed budgets, and selection criteria.

A

Procurement document package

44
Q

Which of the following are Inputs to the process Conduct Procurements?

A. Seller Proposals and Selected Sellers
B. Seller Proposals and Procurement Documentation
C. Selected Sellers and Procurement Documentation
D. Selected Sellers and Agreements

A

B. Seller Proposals and Procurement Documentation

45
Q

During which Project Procurement Management process would a Procurement Audit be performed ?

A. Plan Procurement Management
B. Conduct Procurements
C. Manage Procurements
D. Control Procurements

A

D. Control Procurements

46
Q

Incentives and awards within contracts may be used to:

A. Align the objectives of the buyer and the seller
B. Decrease the risk of non-performance
C. Render a contract null and void
D. Adjust source selection criteria

A

A. Align the objectives of the buyer and the seller

47
Q

Which of the following will determine the risk shared by the buyer and the seller?

A. Statement of Work
B. Contract Type
C. Critical Path
D. Estimate to Complete

A

B. Contract Type

48
Q

According to the Salience Model of Stakeholder Classification, a Dormant Stakeholder:

A. Urgency, without Power or Legitimacy
B. Legitimacy, without Power or Urgency
C. Power, without Urgency or Legitimacy
D. Power and Legitimacy, without Urgency

A

C. Power, without Urgency or Legitimacy

49
Q

A stakeholder’s risk appetite would be considered a/an ____________ when used as an input to Plan Stakeholder Engagement

A. Agreement
B. Enterprise Environmental Factor
C. Organizational Process Asset
D. Baseline

A

B. Enterprise Environmental Factor

50
Q

Of the following contract types, which requires the seller to assume the risk of cost overruns?

A. Fixed Cost
B. Time and Materials
C. Cost Reimbursable
D. Cost Plus Fixed fee

A

A. Fixed Cost

CAMP 6th Edition (14 decks)

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