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?
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?
In what process group does source selection happen?
Which of the following may be used as a risk mitigation tool?
Henry has sent the ABN Contracting Company a letter of intent. This means which one of the following?
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?
You have an emergency on your project. You have hired a vendor that is to start work immediately. What contract is needed now?
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?
Which one of the following is true about procurement documents?
The United States backs all contracts through which of the following
In the following contract types, which one requires the seller to assume the risk of cost overruns?
The purpose of the contract is to distribute between the buyer and seller a reasonable amount of which of the following:
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?
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?
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?
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?
You are the project manager for the 89A Project. You have created a contract for your customer. The contract must have what two things?
A single source seller means what?
Which one of the following is not a valid evaluation criterion for source selection?
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?
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?
A contract cannot have provisions for which one of the following?
The product description of a project can help a project manager create procurement details. Which one of the following best describes this process?
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?