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JS - PMP Flash > Project Procurement Management (15) > Flashcards

Project Procurement Management (15) Flashcards

1
Q

What is the objective of Project Procurement Management?

A

The processes necessary to purchase or acquire products, services, or results needed from outside the project organization

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2
Q

What is included within the objective of Procurement Management?

A

Administer Agreements

Contracts

Purchase Orders

Memorandum of Agreement (MOAs)

Service Level Agreement (SLAs)

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3
Q

What subprocess are included within Project Procurement Management?

A

(Planning) Plan Procurement Management

(Executing) Conduct Procurements

(Monitor & Control) Control Procurements

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4
Q

Explain the steps within Plan Procurement Management?

A

Make-or-buy decisions

Procurement Management Plan

Procurement SOW

Source collection criteria

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5
Q

What are the 3 different contract types?

A

Fixed Price

Cost Reimbursable

Time & Material

Purchase order is also a type of fixed price contract

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6
Q

What does it mean to have a Fixed Price contract?

A

You are going to pay one fixed amount regardless of how much it costs the contractor/seller to do the work

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7
Q

When does a Fixed Price contract make the most sense?

A

ONLY in cases where the scope is very well defined

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8
Q

Where is the risk highest in a Fixed Price contract?

A

The risk is HIGH on the SELLER side

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9
Q

What are the 3 types of contracts within the fixed price contracts?

A

1) Firm Fixed Price Contracts (FFP)
2) Fixed Price Incentive Fee Contracts (FPIF)
3) Fixed Price with Economic Price Adjustments Contracts (FP-EPA)

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10
Q

Define Firm Fixed Price (FFP) contracts?

A

One fixed price

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11
Q

Define Fixed Price Incentive Fee Contracts (FPIF)?

A

Fixed Price + Incentive bonus by achieving certain performance targets

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12
Q

Define Fixed Price with Economic Price Adjustments contracts (FP-EPA)?

A

Fixed Price + Inflation Charges

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13
Q

What does a cost reimbursable contract mean?

A

you pay the seller back for the costs involved in doing the work plus you agree to an amount that you will pay in top of that

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14
Q

Where is the risk highest in a Cost Reimbursable contract?

A

RISK is HIGHER on the BUYER side, because the buyer does not have any control on the seller price

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15
Q

What are the 3 types of contracts within the Cost Reimbursable contracts?

A

1) Cost Plus Fixed Fee Contracts (CPFF)
2) Cost Plus Incentive Fee Contracts (CPIF)
3) Cost Plus Award Fee Contracts (CPAF)

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16
Q

Define Cost Plus Fixed Fee (CPFF) contracts?

A

Costs in doing the work + agree to pay a fixed amount

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17
Q

Define Cost Plus Incentive Fee (CPIF) contracts?

A

Costs in doing the work + pre determined fee as incentive/bonus

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18
Q

Define Cost Plus Award Fee (CPAF) contracts?

A

Costs in doing the work + a contract fee and an award amount

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19
Q

What is a Time & Material contract?

A

Used in Labor Contracts.

It means that you will pay a rate for each of the people working on our project plus their materials costs.

The “time” part means that the buyer pays a fixed rate for the labor, and the “materials” part means that the buyer also pays for the materials, equipment, office space, etc. overhead costs.

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20
Q

What is Plan Procurement Management?

A

Process of documenting project purchasing decision, specifying the approach and identifying potential sellers

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21
Q

What are the Tools and Techniques within Plan Procurement Mana agent?

A

Make or buy analysis

Source Selection Analysis

Expert Judgement

Market Research

Meetings

22
Q

What are the outputs for Plan Procurement Management?

A

Procurement Management Plan

Procurement SOW

Procurement Documents

Make-or-buy decisions

Source Selection Criteria

Change Requests

Project Document Updates.

23
Q

Define Procurement Management Plan?

A

How the procurement processes will be managed from developing procurement documentation through contract closure.

24
Q

Define Procurement SOW?

A

Describes the procurement item is specific detail to allow prospective sellers to determine if they are capable of providing the products, services or results

25
Q

Define Make or Buy decisions?

A

Documents the conclusion reached regarding what project products, services, or results will be acquired from outside the project organization, or will be performed internally by the project team

26
Q

Define Source Selection?

A

This may include seller technical capabilities, management capabilities, undestanding of the need, financial status of the company, business size, etc.

27
Q

What are the 3 Procurement Document types?

A

1) Request for Proposal (RFP)
2) Request for Quote (RFQ)
3) Request for Information (RFI)

28
Q

What is the Request for Proposal (RFP)?

A

a request to get design and other information from the vendor

29
Q

What is Request for Quote (RFQ)?

A

Typically, requests are for a quote, or specific number.

This is suitable for a design scope (i.e. highly detailed)

30
Q

What is Request for Information (RFI)?

A

Asking vendor/sellers to provide more information on the goods and services to be acquired

31
Q

What is Conduct Procurements?

A

Process of obtaining quotations, offers, information, and proposals from sellers, then selecting a seller and awarding a contract

32
Q

What are the Tools and Techniques for Conduct Procurements subprocess?

A

Bidders Conferences

Proposal Evaluation Techniques

Independent Estimates

Procurement Negotiations

Expert Judgement

Advertising

Analytical skills

33
Q

What are the outputs for Conduct Procurement subprocess?

A

Selected Sellers

Agreements

Resource Calendar

Change requests

Project Management Plan

Documents Updates

34
Q

What are the 3 different types of incentives used in Project Procurement Management?

A

1) Cost Based incentive
2) Performance Based Incentive
3) Delivery Based Incentive

35
Q

What is the process of control procurements?

A

Process of managing procurement relationships, monitoring contract performance, making changes and corrections as needed, and closing out contracts.

36
Q

What are the inputs for Control Procurements?

A

Project Management Plan. Project Documents. Approved Change Requests. Work Performance Data. Agreements. Procurement Documents.

37
Q

What are the tools and techniques of control procurements?

A

Expert Judgement

Claims Administration

Data Analysis

Inspection

Audits

38
Q

What are the outputs of control procurements?

A

Closed Procurements

Work Performance Information

Change Requests

Project Management Plan, Project Documents, and organization Process Updates.

39
Q

Acronym: What is FFP?

A

Firm Fixed Price

40
Q

Acronym: What is CPF?

A

Cost Plus Fee

41
Q

Acronym: What is CPFF?

A

Cost Plus Fixed Fee

42
Q

Acronym: What is CPIF

A

Cost Plus Incentive Fee

43
Q

Acronym: What is T&M?

A

Time and Material

44
Q

What is Single Source?

A

From preferred seller

45
Q

What is Sole Source?

A

Only one qualified seller

46
Q

Acronym: What is RFQ?

A

Request for quote

47
Q

What is Fait Accomplished?

A

A party may claim that what is being asked for has already been accomplished and cannot be changed.

48
Q

What is Withdrawal?

A

One party may make an attack upon an issue, then retreat

49
Q

Acronym: What is RFP?

A

Request for Proposal

50
Q

Acronym: What is RFI?

A

Request for Information

51
Q

What is the configuration Management Plan?

A

Identifying, maintaining, controlling, recording and reporting changes to the project artifacts

JS - PMP Flash (10 decks)

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