Project Procurement Management Quiz

Welcome to your Project Procurement Management

Sammy is the project manager of the DSA Project. He is considering proposals and contracts presented by vendors for a portion of the project work. Of the following, which contract is least dangerous to the DSA Project?

Fixed price

Cost plus fixed fee

Cost plus incentive fee

Cost plus a percentage of costs

A contract cannot have provisions for which one of the following?

A deadline for the completion of the work

Illegal activities

Su contracting the work

Penalties and fines for disclosure of intellectual rights

Privity is what?

Relationship between the project manager and an unknown vendor

Contractual, confidential information between customer and vendor

Professional information regarding the sale between customer and vendor

Relationship between the project manager and a known vendor

Which one of the following is true about procurement documents?

The project manager creates and selects the bid

They inform the performing organization why the bid is being created

They offer no room for bidders to suggest changes

They ensure receipt of complete proposals

Yolanda has outsourced a portion of the project to a vendor. The vendor has discovered some issues that will influence the cost and schedule of its portion of the project. How must the vendor update the agreement?

As a new contract signed by Yolanda and the vendor

Project Management contracts have clauses that allow vendors to adjust their work according to unknown unknowns

As a contract addendum signed by Yolanda and the vendor

As a memo and SOW signed by Yolanda and the vendor

You are completing the closeout of a project to design a warehouse in Columbus, Ohio. The contract is a cost-plus incentive fee contract. The target costs are $300,000, with a 10 percent target profit. However, the project came in at $275,000. The incentive split is 80/20. How much is the total contract cost?

$310,000

$275,000

$330,000

$300,000

In the following contract types, which one requires the seller to assume the risk of cost overruns?

Cost plus fixed fee

Cost plus incentive fee

Time-and-materials

Lump sum

Which of the following may be used as a risk mitigation tool?

Contract

Project requirements

Quotation

Vendor proposal

Which one of the following is not a valid evaluation criterion for source selection?

Contract requirements

Technical ability of the seller

Age of the contract person at the seller

Price

Mary is the project manager for the JHG Project. She has created a Statement of Work (SOW) for a vendor. For Mary’s SOW to be a legal contract, what must be included?

Affidavit of agreement

Signature of vendor

Signatures of both parties agreeing to SOW

Signature of Mary

You have an emergency on your project. You have hired a vendor that is to start work immediately. What contract is needed now?

T&M

Incentive contract

Letter contract

Fixed fee

The United States backs all contracts through which of the following

Federal law

State law

Court system

Lawyers

A contract between an organization and a vendor may include a clause that penalizes the vendor if the project is late. The lateness of a project has a monetary penalty; the penalty should be enforced or waived based on which one of the following?

Whether the delay was because of an unseen risk

If the project manager could have anticipated the delay

Who caused the delay and the reason why

If the project manager knew the delay was likely

In what process group does source selection happen?

Initiating

Closing

Planning

Execution

Martha is the project manager of the MNB Project. She wants a vendor to offer her one price to do all of the detailed work. Martha is looking for which type of document?

RFP

IFB

RFI

Proposal

Henry has sent the ABN Contracting Company a letter of intent. This means which one of the following?

Henry intends to buy from the ABM Contracting Company

Henry intends to fire the ABM Contracting Company

Henry intends to bid on a job from the ABM Contracting Company

Henry intends to sue the ABM Contracting Company

You are the project manager for the 89A Project. You have created a contract for your customer. The contract must have what two things?

Offer and consideration

Start date and acceptance of start date

Signatures and the stamp of a notary public

Value and worth of the procured items

Benji is the project manager of the PLP Project. He has hired an independent contractor for a portion of the project work. The contractor is billing the project $120 per hour, plus materials. This is an example of which one of the following?

Lump sum

Cost plus fixed fee

Time-and-materials

Unit-price

The product description of a project can help a project manager create procurement details. Which one of the following best describes this process?

The product description defines the requirements for the contract work

The product description defines the contracted work

Both parties must have and retain their own copy of the project description

The product description defines the contracted work, which must support the requirements of the project customer

Terry is the project manager of the MVB Project. She needs to purchase a piece of equipment for her project. The Accounting department has informed Terry she needs a unilateral form of contract. Accounting is referring to which of the following?

Legal binding contract

Invoice form the vendor

Purchase Order

SOW

You are the project manager for a seller. You are managing another company’s project. Things have gone well on the project, and the work is nearly complete. There is still a significant amount of funds in the project budget. The buyer’s representative approaches you and asks that you complete some optional requirements to use up the remaining budget. Which one of the following should you do?

Negotiate a change in the contract to take on the additional work

Complete a contract change for the additional work

Deny the change because it was not in the original contract

Gain the approval of the project stakeholder for the requested work

Bonnie is the project manager for the HGH Construction Project. She has contracted a portion of the project to the ABC Construction Company. Bonnie has offered a bonus to ABC if they complete their portion of the work by August 30. This is an example of which one of the following?

Fixed price contract

Project goal

Project requirement

Project incentive

The purpose of the contract is to distribute between the buyer and seller a reasonable amount of which of the following:

Reward

Risk

Responsibility

Accountability

A single source seller means what?

There is only one seller the company wants to do business with

There is only one seller in the market

There is a seller that can provide all aspects of the project procurement needs

There is only one qualified seller.

You are the project manager for a software development project for an accounting system that will operate over the Internet. Based on your research, you have discovered it will cost you $25,000 to write your own code. Once the code is written, you estimate you’ll spend $3,000 per month updating the software with client information, government regulations, and maintenance. A vendor has proposed writing the code for your company and charging a fee based on the number of clients using the program every month. The vendor will charge you $5 per month per user of the web-based accounting system. You will have roughly 1200 clients using the system per month. However, you will need an in-house accountant to manage the time and billing of the system, so this will cost you an extra $1200 per month. How many months will you have to use the system before it is better to write your own code than to hire the vendor?

4 months

3 months

6 months

15 months