Project Procurement Management: Chapter 12 Part 3

Chapter 12 - Project Procurement Management 35. In project procurement management, obtaining seller responses, selecting sellers, and awarding contracts is part of the _____ process. a. planning b. conducting procurements c. controllin d. closing g ANSWER: b RATIONALE: Feedback: Conducting procurements is part of the executing process of project procurement management. It involves obtaining seller responses, selecting sellers, and awarding contracts. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.510 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 36. In project procurement management, which is an output of the conducting procurements process? a. make-or-buy decisions b. statements of work d. change requests c. source selection criteria ANSWER: d RATIONALE: Feedback: Outputs of this process include selected sellers, agreements, change requests, project management plan updates, project documents updates. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.510-511 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 Page 21 Chapter 12 - Project Procurement Management BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 37. In project procurement management, which is an output of the planning process? a. change requests b. selected sellers c. resource calendars d. make-or-buy decisions ANSWER: d RATIONALE: Feedback: Outputs of this process include a procurement management plan, procurement strategy, bid documents, procurement statement of work, source selection criteria, make-or-buy decisions, independent cost estimates, change request, project documents, updates, and organizational process assets updates. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.511 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 38. Which is true of lump-sum contracts? a.They incur a high degree of risk for the b.They involve a fixed total price for a buyer. well-defined product or service. c.They consist of a fee based on the d.They are also known as costsatisfaction of subjective performance reimbursable contracts. criteria. ANSWER: b RATIONALE: Feedback: Fixed-price or lump-sum contracts involve a fixed total price for a well-defined product or service. The buyer incurs little risk in this situation Page 22 Chapter 12 - Project Procurement Management because the price is predetermined. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES p.512 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: ComprehensionDATE CREAT 39. _____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees. a. Firm-fixed-price b. Lump sum c. Costd. Fixed-price incentive reimbursable fee ANSWER: c RATIONALE: Feedback: Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs. Such contracts often include fees, such as a profit percentage or incentives for meeting or exceeding selected project objectives. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.513 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge Page 23 Chapter 12 - Project Procurement Management 40. In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. a. FFP b. CPIF c. CPPC d. FPIF ANSWER: b RATIONALE: Feedback: In a cost plus incentive fee (CPIF) contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.513 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 41. 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. FPIF c. CPAF d. CPIF ANSWER: a RATIONALE: Feedback: With a cost plus fixed fee (CPFF) contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment that is usually based on a percentage of estimated costs. This fee does not vary unless the scope of the contract changes. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.513-514 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL ST United States - BUSPROG: - Comprehension Page 24 Chapter 12 - Project Procurement Management ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 42. In which contract 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 ANSWER: c RATIONALE: Feedback: With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.514 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 43. 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 ANSWER: d RATIONALE: Feedback: With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the buyer’s perspective, this is the least desirable type of contract because the supplier has no incentive to decrease costs. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES p.514 Page 25 Chapter 12 - Project Procurement Management : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Comprehension 44. A(n) _____ contract carries the least risk for suppliers. a. CPPC b. FFP c. CPAF d. FP-EPA ANSWER: a RATIONALE: Feedback: With a cost plus percentage of costs (CPPC) contract, the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs. From the supplier’s perspective, a CPPC contract carries the least risk. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.515 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: Analytic ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 45. The _____ is a description of the work required for a procurement. a. RFQ b. RFP c. WBS d. SOW ANSWER: d Page 26 Chapter 12 - Project Procurement Management RATIONALE: Feedback: The statement of work (SOW) is a description of the work required for a procurement. Some organizations use the term statement of work for a document that describes internal work as well. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.518 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.87 - LO: 12-2 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Planning Procurement Management KEYWORDS: Bloom's: Knowledge 46. A(n) _____ is a document used to solicit proposals from prospective suppliers. a. RFQ b. WBS c. RFP d. SOW ANSWER: c RATIONALE: Feedback: A Request for Proposal (RFP) is a document used to solicit proposals from prospective suppliers. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.520 QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJECINFO.SCHW.14.87 - LO: 12-2 TIVES: NATIONAL STANDUnited States - BUSPROG: Analytic ARDS: Planning Procurement Management TOPICS: Bloom's: Knowledge KEYWORDS: 47. A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____. a. RFQ b. RFP c. WBS d. SOW ANSWER: a Page 27 Chapter 12 - Project Procurement Management RATIONALE: Feedback: A Request for Quote (RFQ) is a document used to solicit quotes or bids from prospective suppliers. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.520 QUESTION TYPE: Multiple Choice HAS VARIABLES: False LEARNING OBJE INFO.SCHW.14.87 - LO: 12-2 CTIVES: NATIONAL STANDUnited States - BUSPROG: Analytic ARDS: Planning Procurement Management TOPICS: Bloom's: Knowledge KEYWORDS: 48. After planning for procurement management, the next process involves ____. a.determining the evaluation criteria for b.developing procurement statements of the contract award work c.using expert judgement in planning d.sending appropriate documentation to purchases and acquisitions potential sellers ANSWER: d RATIONALE: Feedback: After planning for procurement management, the next process involves deciding whom to ask to do the work, sending appropriate documentation to potential sellers, obtaining proposals or bids, selecting a seller, and awarding a contract. POINTS: 1 DIFFICULTY: Difficulty: Moderate REFERENCES p.525 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.88 - LO: 12-3 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Conducting Procurements KEYWORDS: Bloom's: Comprehension 49. In project procurement management, which is one of the main outputs of the conducting procurement process? Page 28 Chapter 12 - Project Procurement Management a. selected seller b. procurement management plan d. closed procurement c. procurement statement of work ANSWER: a RATIONALE: Feedback: Two of the main outputs of the conducting procurement process are selected sellers and a procurement contract award. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES: p.525 QUESTION TYP Multiple Choice E: HAS VARIABLE False S: LEARNING OBJ INFO.SCHW.14.88 - LO: 12-3 ECTIVES: NATIONAL STA United States - BUSPROG: - Comprehension NDARDS: TOPICS: Conducting Procurements KEYWORDS: Bloom's: Knowledge The process of choosing suppliers or sellers is known as _____. a. source b. a bid selection c. WBS d. a change order ANSWER: a RATIONALE: Feedback: Selecting suppliers or sellers is called source selection. The process involves evaluating proposals or bids from sellers, choosing the best one, negotiating the contract, and awarding the contract. POINTS: 1 DIFFICULTY: Difficulty: Easy REFERENCES p.526 : QUESTION TYMultiple Choice PE: HAS VARIABLFalse ES: LEARNING O INFO.SCHW.14.88 - LO: 12-3 BJECTIVES: NATIONAL STUnited States - BUSPROG: - Comprehension ANDARDS: TOPICS: Conducting Procurements Page 29