Project+ Study Notes 27

Question 1

equipment, staff augmentation (Staff augmentation may range from contracting with a vendor to run the entire project to contracting for specific resources to perform certain tasks), Other goods and Services (goods usually not made or keep on hand - procuring from outside org.).

Answer 1

Areas to procure goods or services :

Question 2

details the goods or services you want to procure. It contains the project description, major deliverables, success criteria, assumptions, and constraints. project managers should be involved in process of creating ???, Vendors use the ??? to determine whether they are capable of producing the deliverables and to determine their interest in bidding on your project work. ??? must be very clear and precise.

Answer 2

SOW

Question 3

is the process of obtaining responses from vendors to complete the project work as documented in the SOW. Typically, a procurement document is prepared to notify prospective sellers of upcoming work.

Answer 3

Solicitation

Question 4

is used when you need to gather more information about the goods or services you need to procure. RFI or RFQ is used when the costs are unknown to you and you need an estimate for the goods or services.

Answer 4

RFI

Question 5

is similar to the RFI. They both serve the same purpose, and most organizations use one or the other of these procurement methods when determining estimates.

Answer 5

RFQ

Question 6

is submitted when you are ready to procure and begin the work. This process includes submitting the SOW, receiving bids from vendors and suppliers, evaluating the responses, and making a selection.

Answer 6

RFP

Question 7

Most procurement processes allow for a meeting with prospective vendors prior to their completing the RFP; this is called a bidder conference. This meeting usually occurs right after the RFP is published, and all prospective vendors are invited to the meeting in order to ask questions and clarify issues they may have identified with the RFP. The bidder conference helps assure that vendors prepare responses that address the project requirements. RFP is a business document that announces a project, describes it, and solicits bids from qualified contractors to complete it.

Answer 7

info

Question 8

contract is a legal, mutually binding document that describes the goods or services that will be provided, the costs of the goods or services, and any penalties for noncompliance.

fixed-price contract states a fixed fee or price for the goods or services provided. This type of contract is the riskiest for the seller. If problems occur seller bears burdens or extra costs, etc …

Answer 8

info

Question 9

reimburses the seller for all the allowable costs associated with producing the goods or services outlined in the contract. This type of contract is riskiest for the buyer because the total costs are unknown until the project is completed. The advantage in this type of contract is that the buyer can easily change scope.

Answer 9

cost-reimbursable contract

Question 10

The buyer and the seller agree on a unit rate, such as the hourly rate for a programmer, but the total cost is unknown and will depend on the amount of time spent to produce the product or service. This type of contract is often used for staff augmentation, where contract workers are brought on to perform specific tasks on the project.

Answer 10

Time and Materials Contract :