Project Procurement Management

Question 1

Project Procurement Management

Answer 1

includes the processes required to develop and administer agreements such as contracts, purchase orders, memorandum of agreements, service level agreements; agreements that describe the relationship between buyer and seller; sellers are first bidders; contract should state results expected

Question 2

Project Procurement Tailoring and Considerations (4)

Answer 2

1. complexity of procurement
2. physical location
3. governance and regulatory environment
4. availability of contractors
   (agile: supplier might become part of development team and share risk model)

Question 3

Project Procurement Trends and Emerging Practices (6)

Answer 3

1. advances in tools - Building Information Model (BIM)
2. more advanced risk management
3. changing contracting processes
4. logistics and supply chain management
5. technology and stakeholder management
6. trial engagements

Question 4

Plan Procurement Management

Answer 4

involved documenting project procurement decisions, specifying the approach, and verifying potential sellers; determine whether to acquire goods/services outside the project and how; PM helps prepare SOW, requests for proposals, business case, measures contract performance

Question 5

statement of work (SOW)

Answer 5

narrative description of products, services, or results to be delivered, developed from project scope baseline, enough detail to determine if capable

Question 6

bids

Answer 6

documents used to solicit proposals from prospective sellers; decision based on price (proposal = determined on capability)

Question 7

fixed price contracts

Answer 7

setting fixed total price for defined result

1. firm fixed price (FFP)
2. fixed price incentive fee (FPIF)
3. fixed price with economic price adjustments (FPEPA)

Question 8

cost reimbursement contracts

Answer 8

payments for all costs incurred plus fee

1. cost plus fixed price (CPFF)
2. cost plus incentive fee (CPIF)
3. cost plus award fee (CPAF)

Question 9

Time and Materials Contract (T&M)

Answer 9

hybrid, often used for the acquisition of experts when precise SOW cannot be quickly presceibed

Question 10

source selection criteria

Answer 10

capability and capacity, cost, delivery dates, technical expertise and approach, specific relevant experience

Question 11

Procurement Management Plan

Answer 11

how procurement will be coordinated with other project aspects; timetable of key procurement actions; procurement metrics; stakeholder roles; constraints and assumptions; legal jurisdiction; independent estimates; pre-qualified sellers

Question 12

Conduct Procurements

Answer 12

involves obtaining responses to bids and proposals, selecting a vendor and awarding the contract; ends in established agreements / formal contracts; legal agreements for delivery of goods/services

Question 13

Control Procurements

Answer 13

process of managing procurement relationships, monitoring contract performance, making changes as appropriate, and closing out contracts; seller and buyer performance meet legal requirements; organizational process; output is a change request to contract

Question 14

contested and constructive changes

Answer 14

requested changes where the buyer and the seller cannot reach an agreement on compensation for a change or agree that a change occurred; can lead to a claim