Chapter 12: Project Procurement Management
allowable performance costs along with a predetermined fee and an incentive bonus.
1
Difficulty: Moderate
p.473
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Comprehension
42. 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.
a.
CPFF
b.
c.
CPAF
d.
1
Difficulty: Moderate
p.474
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
43. In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a
predetermined percentage based on total costs?
a.
FPIF
b.
CPIF
c.
CPPC
d.
CPAF
for allowable performance costs along with a predetermined percentage based on total costs.
1
Difficulty: Moderate
p.474
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Comprehension
44. From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no
incentive to decrease costs.
a.
CPIF
b.
CPFF
c.
CPAF
d.
CPPC
45. A(n) _____ contract carries the least risk for suppliers.
a.
CPPC
b.
FFP
c.
CPAF
d.
FP–EPA
1
Difficulty: Easy
p.475
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Knowledge
46. The _____ is a description of the work required for a procurement.
a.
RFQ
b.
RFP
c.
WBS
d.
SOW
d
1
Difficulty: Easy
p.478
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Technology
Planning Procurement Management
Bloom’s: Knowledge
47. A(n) _____ is a document used to solicit proposals from prospective suppliers.
a.
RFQ
b.
WBS
c.
RFP
d.
SOW
1
Difficulty: Moderate
p.474
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Comprehension
Chapter 12: Project Procurement Management
Feedback: A Request for Proposal (RFP) is a document used to solicit proposals from
prospective suppliers.
1
Difficulty: Easy
p.478
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Knowledge
48. A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____.
a.
RFQ
b.
RFP
c.
WBS
d.
SOW
Feedback: A Request for Quote (RFQ) is a document used to solicit quotes or bids from
prospective suppliers.
Difficulty: Easy
p.479
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Analytic
Planning Procurement Management
Bloom’s: Knowledge
49. After planning for procurement management, which of the following does the next process involve?
a.
Determining the evaluation criteria for the contract award
b.
Developing procurement statements of work
c.
Using expert judgement in planning
purchases and acquisitions
d.
Sending appropriate documentation to potential sellers
whom to ask to do the work, sending appropriate documentation to potential sellers,
obtaining proposals or bids, selecting a seller, and awarding a contract.
1
Difficulty: Moderate
p.481
INFO.SCHW.14.88 – LO: 12-3
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Conducting Procurements
Bloom’s: Comprehension
50. In project procurement management, which of the following is one of the main outputs of the conducting procurement
process?
Chapter 12: Project Procurement Management
a.
A selected seller
b.
A procurement management plan
c.
A procurement statement of work
d.
A closed procurement
sellers and a procurement contract award.
Difficulty: Easy
INFO.SCHW.14.88 – LO: 12-3
United States – BUSPROG: Technology
Conducting Procurements
Bloom’s: Knowledge
51. The process of choosing suppliers or sellers is known as _____.
a.
source selection
b.
a bid
c.
WBS
d.
a change order
1
Difficulty: Easy
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Conducting Procurements
Bloom’s: Knowledge
52. Which of the following is an output of the contract closure process?
a.
Procurement statements of work
b.
Updates to organizational process assets
c.
Resource calendars
d.
Work performance information
b
contract closure process.
Difficulty: Easy
p.485
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Closing Procurements
Bloom’s: Knowledge
53. _____ refers to the process of acquiring goods and/or services from an outside source.
Chapter 12: Project Procurement Management
54. A(n) _____ is a mutually binding agreement that obligates the seller to provide the specified products or services and
obligates the buyer to pay for them.
55. _____ management includes the processes required to acquire goods and services for a project from outside the
performing organization.
56. Procurement statements of work are an output of the _____ process.
57. A(n) _____ decision is one in which an organization decides if it is in its best interests to make certain products or
perform certain services inside the organization, or if it is better to buy them from an outside organization.
58. A(n) _____ contract has the least amount of risk for the buyer.
59. A(n) _____ contract includes a special provision for predefined final adjustments to the contract price due to changes
in conditions such as inflation.
60. The cost at which the contractor assumes total responsibility for each additional dollar of contract cost is known as
a(n) _____.
61. Three types of cost-reimbursable contracts include cost plus incentive fee, cost plus fixed fee, and _____.
62. _____ contracts are a hybrid of fixed-price and cost-reimbursable contracts.
63. A(n) _____ is a contract clause that allows the buyer or supplier to end the contract.
64. 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)
_____.
65. A contract statement of work is a type of _____ statement that describes the work in sufficient detail to allow
prospective suppliers to determine if they can provide the required goods and services and to determine an appropriate
price.
66. A(n) _____ is a document prepared by a seller when there are different approaches for meeting buyer needs.
INFO.SCHW.14.87 – LO: 12-2
Planning Procurement Management
67. A(n) _____ is also known as a tender or quote, short for quotation.
Difficulty: Easy
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Technology
Bloom’s: Knowledge
68. All procurement documents should be in _____ form in order to facilitate accurate and complete responses from
prospective sellers.
Difficulty: Easy
INFO.SCHW.14.87 – LO: 12-2
United States – BUSPROG: Technology
Bloom’s: Knowledge
69. A(n)_____ conference helps ensure that everyone has a clear, common understanding of the buyer’s desired products
or services.
Difficulty: Easy
INFO.SCHW.14.88 – LO: 12-3
United States – BUSPROG: Analytic
Bloom’s: Knowledge
70. The process of source selection involves evaluating proposals from sellers, choosing the best one, negotiating, and
Bloom’s: Knowledge
Chapter 12: Project Procurement Management
awarding the _____.
71. _____ are oral or written acts or omissions by someone with actual or apparent authority that can be construed to have
the same effect as a written change order.
72. In procurement management, evaluation of any change should include a(n) _____ analysis.
73. The final process in project procurement management is _____.
74. Tools used in contract closure include procurement audits, _____, and a records management system.
75. A(n) _____ system provides the ability to easily organize, find, and archive procurement-related documents.
76. A(n) _____ type of e-procurement that sends requests for information and prices to suppliers and receives the response
of suppliers using Internet technology.
77. A(n) _____ type of e-procurement that Identifies new suppliers for a specific category of purchasing requirements
using Internet technology.
78. What are some of the advantages that outsourcing offers which is encouraging many companies to adopt it?
79. List and briefly describe the four main processes of project procurement management.
80. What are the four types of cost-reimbursable contracts? Briefly describe each type.
81. How is a statement of work (SOW) different from a contract statement of work? What are some of the requirements
for creating a contract SOW?
82. How are RFPs different from RFQs? What are some of the requirements of writing an RFP?
83. What are the four main capabilities of procure-to-pay suites for indirect procurements? What type(s) of organizations
are they suitable for?