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INFO5096 - Managing and Budgeting Tech Projects > Review - Chapter 12 > Flashcards

Review - Chapter 12 Flashcards

1
Q

Procurement

A

Acquiring goods / services from an outside source

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2
Q

Why outsource?

A
  • To access skills and technologies
  • To reduce both fixed and recurrent costs
  • To allow the client organization to focus on its core business
  • To provide flexibility
  • To increase accountability
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3
Q

Contract

A

A mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them

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4
Q

Project Procurement Management

A

Acquiring goods and services for a project from outside the performing organization

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5
Q

Planning Procurement Management

A

Determining what to procure and when and how to do it

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6
Q

Conducting Procurements

A

Obtaining seller responses, selecting sellers, and awarding contracts

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7
Q

Controlling Procurements

A

Managing relationships with sellers, monitoring contract performance, and making changes as needed

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8
Q

Closing Procurements

A

Completing and settling each contract or agreement, including resolving of any open items

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9
Q

Fixed Price/Lump Sum Contracts

A

Involve a fixed total price for a well-defined product or service

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10
Q

Cost Reimbursable Contracts

A

Involve payment to the seller for direct and indirect costs

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11
Q

Time and Material Contracts

A

Hybrid of both fixed price and cost reimbursable contracts, often used by consultants

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12
Q

Unit Price Contracts

A

Require the buyer to pay the seller a predetermined amount per unit of service

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13
Q

Point of Total Assumption (PTA)

A

The cost at which the contractor assumes total responsibility for each additional dollar of contract cost

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14
Q

PTA Calculation

A

PTA = (ceiling price - target price) / government share + target cost

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15
Q

Cost Plus Incentive Fee (CPIF)

A

Buyer pays supplier for allowable performance costs plus a predetermined fee and incentive bonus

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16
Q

Cost Plus Fixed Fee (CPFF)

A

Buyer pays supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs

17
Q

Cost Plus Percentage of Costs (CPPC)

A

Buyer pays supplier for allowable performance costs plus a predetermined percentage based on total costs

18
Q

Termination Clause

A

A contract clause that allows the buyer/supplier to end the contract

19
Q

Make-or-Buy Analysis

A

Management technique used to determine whether an organization should make/perform a particular product/service inside the organization or buy from someone else

20
Q

Procurement Management Plan

A

Describes how the procurement processes will be managed (developing documentation for making outside purchases/acquisitions to contract closure)

21
Q

Statement of Work

A
  • A description of the work required for the procurement

- A type of scope statement

22
Q

Contract Statement of Work

A

If a SOW is used as a part of a contract to describe only the work required for that particular contract

23
Q

Procurement Documents

A
  • Request for Proposals

- Request for Quotes

24
Q

Request for Proposals

A

Used to solicit proposals from prospective sellers

25
Q

Proposal

A

A document prepared by a seller when there are different approached for meeting buyer needs

26
Q

Requests for Quotes

A

Used to solicit quotes or bids from prospective suppliers

27
Q

Bid

A
  • AKA a tender/quote

- A document prepared by sellers providing pricing for standard items that have been clearly defined by the buyer

28
Q

Approaches for Procurement

A
  • Approach the preferred vendor
  • Approaching several potential vendors
  • Advertising to anyone interested
29
Q

Seller Selection

A

Organizations do an initial evaluation of all proposals/bids and then develop a short list of sellers for further evaluation

30
Q

BAFO

A

Best And Final Offer: often prepared by sellers on a short list

31
Q

Controlling Procurements

A

Ensures that the seller’s performance meets contractual requirements

32
Q

Constructive Change Orders

A

Oral/written acts or omissions by someone with actual/apparent authority that can be construed to have the same effect as a written change order

33
Q

Closing Procurements

A

Involves completing and settling contracts and resolving any open items

34
Q

Tools to Assist in Contract Closure

A

Procurement audits, negotiated settlements, record management system

INFO5096 - Managing and Budgeting Tech Projects (8 decks)

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