Project Procurement Management

Question 1

What is Project Procurement Management?

Answer 1

It involves understanding the procurement process to make informed decisions regarding contracts and contractual relationships.

Question 2

Who typically assumes purchasing authority in smaller organizations?

Answer 2

The project manager may assume the purchasing authority role.

Question 3

List some roles involved in Project Procurement Management.

Answer 3

Seller, Buyer, Contractor, Client, Subcontractor, Customer, Vendor, Acquiring organization, Service provider, Service requestor, Supplier, Purchaser, Prime contractor.

Question 4

What is the objective of the Plan Procurement Management process?

Answer 4

To determine if goods and services should be acquired from outside the project and, if so, what, how, and when to acquire them.

Question 5

What are the inputs to the Plan Procurement Management process?

Answer 5

Project Documents, Organizational Process Assets.

Question 6

What does the Project Charter contain?

Answer 6

Objectives, project description, summary milestones, and preapproved financial resources.

Question 7

What is a Business Case?

Answer 7

It aligns with the procurement strategy.

Question 8

What is the purpose of the Requirements Documentation?

Answer 8

It includes technical requirements and contractual/legal implications.

Question 9

What are the types of Fixed Price contracts?

Answer 9

Firm Fixed Price (FFP), Fixed Price Incentive Fee (FPIF), Fixed price with economic price adjustments (FPEPA).

Question 10

What is a Cost plus fixed fee (CPFF) contract?

Answer 10

The seller is reimbursed for all allowable costs and receives a fixed fee calculated as a percentage of the initial estimated costs.

Question 11

What is a Time and Material contract?

Answer 11

A hybrid type with aspects of both cost-reimbursable and fixed-price contracts.

Question 12

What is Market Research in the context of procurement?

Answer 12

It includes examination of industry and specific seller capabilities.

Question 13

What is the purpose of a Bid Document?

Answer 13

To gather information from sellers regarding goods and services.

Question 14

What is a Request for Proposal (RFP)?

Answer 14

Used when solutions are not readily apparent, requiring a formal procurement process.

Question 15

What does the Procurement Management Plan include?

Answer 15

Prequalified sellers, timetable of key procurement activities, stakeholder roles and responsibilities.

Question 16

What is the objective of Conduct Procurements?

Answer 16

To obtain seller responses, select a seller, and award a contract.

Question 17

What are Seller Proposals?

Answer 17

Prepared in response to procurement document packages and used by an evaluation body to select successful bidders.

Question 18

What is Claims Administration?

Answer 18

Addresses requested changes where buyer and seller cannot agree on compensation or the occurrence of the change.

Question 19

What is the objective of Control Procurements?

Answer 19

To manage procurement relationships, monitor contract performance, make changes as necessary, and close out contracts.

Question 20

What is Earned Value Analysis (EVA)?

Answer 20

Calculates schedule and cost variances along with performance indexes to determine the degree of variance from the target.

Question 21

What does Closed Procurements entail?

Answer 21

Formal written notice that the contract is complete, ensuring all deliverables meet requirements.