Procurement Management Flashcards Preview

Project Management Professional v5 > Procurement Management > Flashcards

Flashcards in Procurement Management Deck (25)
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0
Q

What Knowledge Area of procurement Management identifies those project needs which can best be, or must be, met by acquiring products, services, or results outside of the project organization?

A

Plan Procurement Management

1
Q

______ _______ ________ is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

A

Plan Procurement Management

2
Q

What does a Make-or-buy Analysis really focus on?

A

Whether to Outsource or Not

3
Q

Name the 3 Common Contract Types?

A

Fixed-Price Contracts
Cost Reimbursable Contracts
Time and Material Contracts (Hybrid)

4
Q

What are the 3 most common contracts for Fixed-Price Contracts?

A

Firm Fixed Price (FFP)
Fixed Price Incentive Fee (FPIF)
Fixed Price with Economic Price Adjustment (FP-EPA)

5
Q

What contract is the most commonly used contract type.

A

Firm Fixed Price (FFP)

6
Q

Name the Fixed Price Contract: If a contract meets certain quality requirements or is completed ahead of schedule, etc. then some added bonus may be added to the fixed price.

A

Fixed Price Incentive Fee (FPIF) - Aligns the seller with the buyer.

7
Q

What is the best Fixed-Price contract to use for Raw Goods and/or Commodities?

A

Fixed Price with Economic Price Adjustment (FP-EPA)

8
Q

Name the 4 Cost Reimbursable Contracts.

A

Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Cost plus Award Fee (CPPAF)
Cost Plus Percentage of Costs (CPPC)

9
Q

What Cost Reimbursable Contract is the type of contract, the buyer pays the cost plus a stable fee that is usually calculated as a percentage of the initial estimated project cost.

A

Cost Plus Fixed Fee (CPFF)

10
Q

What Cost Reimbursable Contract is used to Align Goals, or if the actual cost (AC) is less, or more than the original target cost (TC), both the buyer and seller share in the saving or overruns.

A

Cost Plus Incentive Fee (CPIF)

11
Q

What Cost Reimbursable Contract has the seller reimbursed for all legitimate costs, but the majority of the fee is only earned based on the satisfaction of certain broad subjective performance criteria defined and incorporated into the contract?

A

Cost Plus Award Fee (CPAF)

12
Q

What Cost Reimbursable Contract is illegal in some industries and countries because it encourages the seller to increase costs for the buyer in order to maximize profits.

A

Cost Plus Percentage of Costs (CPPC)

13
Q

There are no subsection to the Time & Material Contract (T&M) why?

A

This is a hybrid contract that includes features of both fixed-price and cost-reimbursable contracts. These contracts can be used for staff augmentation and acquisition of outside support when a precise statement of work is not available.

14
Q

Name the 4 Common Contract Clauses.

A

Force Majeure Clause
Liquidated Damages Clause
Changes Clause
Escalator Clause

15
Q

_________ _______ criteria are used to rate or score bids, responses, or proposals.

A

Source Selection

16
Q

Which contract clause would cover a breach of late performance?

A

Liquidated Damages Clause

17
Q

_________ _________ is the process of obtaining seller responses, selecting a seller, and awarding a contract.

A

Conduct Procurements

18
Q

__________ ________ clarify the structure and requirements of the contract so that mutual agreement can be reached prior to signing the contract.

A

Procurement Negotiations

19
Q

If there are any disputes or claims between the buyer and seller, they should follow the _____ _______ process (defined in the contract) to address such claims.

A

Claims Administration

20
Q

Unresolved claims may have to go through a/an ______ _______ ______.

A

Alt Dispute Resolution (ADR)

21
Q

_________ is the last option to resort to settling claims. It is always preferable over __________.

A

Negotiation; Litigation

22
Q

If there are any disputes or claims between the buyer and seller, then _________ _________ ________ should be used.

A

Claims Administration process

23
Q

_______Audit is a tool for Close Procurements.

A

Procurement

24
Q

What is used to identify successes and failures throughout the procurement processes in order to generate lessons learned?

A

Procurement Audit