Tutorial (11)

Procurement Management

1. Which of the following is not an example of a procurement document?

A. Tender Notice
B. Risk Register
C. Request for Proposal (RFP)
D. Invitation for Negotiation

2. You are about to contract out a project to a service provider. However, at the
time of awarding the contract, you are not sure of the total effort involved.
Since the scope of work cannot be accurately estimated, you want to agree
the per unit rates for difference services. Which of the following would best suit
your purpose?

A. Cost-Plus-Fixed-Fee (CPFF)
B. Time & Material (T&M)
C. Fixed Price (FP)
D. Cost-Plus-Incentive-Fee (CPIF)

3. You are leading a project to replace the storage devices in a data center. In
the following week, you and your team of experts will be meeting with a storage
device vendor to discuss the status of their deliverables that are due at week's
end. What management process do these activities reflect?

A. Plan Procurement Management

B. Control Procurements
C. Conduct Procurements
D. Close Procurements

4. A project is contracted as a Time & Material (T&M) type of contract. The service
provider initially estimates that the total effort involved would be about 1000
hours of effort. The project is contracted at a rate of US$ 75 per hour of effort. If
the project ended up with 1200 hours of effort, what would the contract payout
be?

A. US$ 75,000
B. US$ 90,000
C. US$ 82,500
D. US$ 120,000

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 5. With a clear contract statement of work, a seller completes work as specified,
but the buyer is not pleased with the results. The contract is considered to be:

E. Null and void.

F. Incomplete.
G. Complete.
H. Waived.

6. A seller is working on a cost reimbursable (CR) contract when the buyer decides
he would like to expand the scope of services and change to a fixed price (FP)
contract. All of the following are the seller's options EXCEPT:

A. Completing the original work on a cost reimbursable basis and then

negotiating a fixed price for the additional work.
B. Completing the original work and rejecting the additional work.
C. Negotiating a fixed price contract that includes all the work.
D. Starting over with a new contract.

7. Bidder conferences are part of:

A. Plan Procurements.
B. Administer Procurements.
C. Conduct Procurements.
D. Communications Management.

8. Which of the following activities occurs during the Plan Procurements process?

A. Make-or-buy decisions
B. Answering sellers' questions about the bid documents
C. Advertising
D. Proposal evaluation

9. In a fixed price (FP) contract, the fee or profit is:

A. Unknown.
B. Part of the negotiation involved in paying every invoice.
C. Applied as a line item to every invoice.
D. Determined with the other party at the end of the project.

10. What type of contract do you NOT want to use if you do not have enough labor
to audit invoices?

A. Cost plus fixed fee (CPFF)

B. Time & material (T&M)
C. Fixed price (FP)
D. Fixed price incentive fee (FPIF)

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 11. You’re trying to decide whether or not to contract out a construction job. To do
it within your company, you will have to hire an engineer for the total project
duration with $35,000 and pay a construction team $15,000 per week. A
contractor quotes you a price of $19,000 per week, and your expert agrees that
you won’t find a lower price than that. The job will take 16 weeks. What’s the
BEST way to proceed?

A. Pay the contractor to do the job.

B. Select a T&M contract.
C. Don’t contract out the work; hire the engineer and pay the construction
team to do the work.
D. Make sure the contract has a force majeure clause.

12. You are managing a project that might have to contract out work, and you’re
comparing the relative advantages and disadvantages of finding a seller versus
having your company do the work itself. Which process are you in?

A. Plan Procurement Management

B. Plan Contracting
C. Conduct Procurements
D. Request Seller Responses

13. Which of the following contracts has the MOST risk for the buyer?

A. Fixed Price
B. Fixed Price plus Award Fee
C. Fixed Price plus Inventive Fee
D. T&M

14. You’re creating source selection criteria for your contract. What process are you
in?

A. Conduct Procurements
B. Control Procurements
C. Close Procurements
D. Plan Procurement Management

15. You’re managing a project when you and the seller both agree that you need
to have the seller add more resources to the project in order to finish on time.
The number of resources is written into the contract. What’s the BEST way to
proceed?

A. Your project will be late because you can’t change the contract once
it’s signed.
B. You need to convince the buyer to sign a new contract.
C. You need to use the contract change control system to make the
change to the contract.
D. You need to use claims administration to resolve the issue

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