Exam 12: Project Procurement Management

 A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____.

 A single contract can include all three categories of contracts.

 If an SOW is used as part of a contract to describe only the work required for that particular contract, it is called a(n) _____.

 What are some of the advantages that outsourcing offers which is encouraging many companies to adopt it?

 In an FPI contract, all of the risk is borne by the buyer.

 A(n) _____ contract includes a special provision for predefined final adjustments to the contract price due to changes in conditions such as inflation.

 The _____ is a description of the work required for a procurement.

 What are the four main capabilities of procure-to-pay suites for indirect procurements?  What type(s) of organizations are they suitable for?

 With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

 Procurement statements of work are an output of the _____ process.

 Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

 _____ management includes the processes required to acquire goods and services for a project from outside the performing organization.

 Contents of the procurement management plan vary with project needs.

 How are RFPs different from RFQs? What are some of the requirements of writing an RFP?

 In which contract does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs?

 In project procurement management, which process involves completion and settlement of each contract, including resolution of any open items?

 A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project. Which benefit does this characteristic of outsourcing provide an organization?

 In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

 Which of the following is an output of the contract closure process?

 A company is considering whether to purchase or lease a piece of equipment for an upcoming project.  The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease (including operating costs). If the company anticipates using the equipment for a total of 20 days, they will be indifferent as to whether or lease or purchase it.