Study (18) Procurement Management

Question 1

True or false

A contract is a type of agreement, but an agreement isn’t necessarily a contract.

Answer 1

True

Question 2

Procurement Management

          Planning  Plan Procurement Management 

          Executing  Conduct Procurements

Answer 2

Monitoring and Controlling
Control procurement

Question 3

Creating a procurement management plan, this process involves putting together the _____ that will be sent to sellers describing the buyers need

Answer 3

Bid documents

Question 4

3 broad categories of contracts are:

Answer 4

Fixed price

Time and materials

Cost- reimbursable

Question 5

Fixed price (FP)

Answer 5

If the cost are more than the agreed upon amount the seller must bear the additional cost

Buyer has the least cost risk

Before creating a FP contract all requirements must be clearly described. Then fixed total price is set for the project and no change to scope.

Question 6

Purchased order

Answer 6

Type of fixed price contract.
Used for simple commodity procurement

Question 7

Time and Material

Answer 7

Buyer pays on a per hour or per item basis.

Buyer has medium amount of cost risk as compared to cost-reimbursable and fixed price contracts

Question 8

Cost reimbursable

Answer 8

Used when the exact scope of work is uncertain
Buyers has the most cost risk bc the total cost are unknown.
Ex: Research and development and information technology

Question 9

Agile procurement and contract

Answer 9

Graduated fixed price

Fixed price work package

Not to exceed time and materials Cost

Early termination

Question 10

Graduate fixed price

Answer 10

Fixed price based on completion by a certain date. If the work is completed before the target date, the seller is paid a higher fee, (fixed price +bonus)

Question 11

Fixed price work package

Answer 11

Can be paid in increments when work packages are delivered, rather than paid as one lump sum at the end of the contract.

Question 12

Not to exceed time and materials

Answer 12

This is a time and materials contract that has ceiling price for the work. It cannot go over this amount.

Question 13

Seller proposal can come in the following forms:

Answer 13

Proposal: response to a buyer’s request for proposal.

Price quote: response to a buyer’s requests for quote

Bid: response to a buyers invitation for bid.

Question 14

Tools and techniques of conduct procurement

Answer 14

Advertising

Bidder conference

Question 15

Tools and techniques of control procurement

Answer 15

Performance review
Inspection
Audits
Earned Value analysis
Trend analysis
Claims administration

Question 16

Close procurement

Answer 16

Consist of tying up all the loose ends, verifying that all work and deliverables are accepted, finalizing open claims and paying withheld retainage for each of the procurement on the project.

Buyer will provide the seller with formal notice that the contract has been completed.

Question 17

See phone pic
Procurement Management

Question 18

You are a PM for your organization. Your project utilize a vendor to complete all of the electrical work within your project . Your stakeholder has requested a change in the scope of the project which will cause additional work for the vendor. Which document will indicate how the change will procede in regard to the vendor?

A-Change control doc
B-The scope doc
C-the procurement Management plan
D-the contract

Answer 18

D
The contractual agreement bt the vendor and the customer override all other doc.

Question 19

You are the PM of a construction project for a new client. The client has asked that you include an outdoor desk as part of the project. You agree to take on this project using a contractor to build the seating deck. For this portion of the project you would like to use a time and materials contract. What must this contract type have ?

Answer 19

Not to exceed clause