Project Procurement Management Quiz

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

1. Assume you are working on a complex project. In fact, it is the most complex project in your organization, so the CEO is interested in it and asks questions about its progress in staff meetings. On this project, you are outsourcing a lot of this work. This means you should—

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2. You have decided to contract for services as resources are scarce in your company. These services may range from junior-level staff to senior-level staff to people with specialized expertise to those who are generalists. Another term for contracting for service is a—

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3. Contract type selection is dependent on the degree of risk or uncertainty facing the project manager. From the perspective of the buyer, the preferred contract type in a low-risk situation is—

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4. The buyer has negotiated a cost-plus-incentive fee contract with the seller. The contract has a target cost of $300,000, a target fee of $40,000, a share ratio of 80/20, a maximum fee of $60,000, and a minimum fee of $10,000. If the seller has actual costs of $380,000, how much fee will the buyer pay?

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

5. Assume you are managing a project and have decided to outsource about 40% of the work. You expect to award three contracts for certain work packages in the WBS. The benefit of this Conduct Procurements process is that it—

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6. You are monitoring and controlling the three contracts on your project. You find that two of the sellers’ performance is above average, but the third seller is failing to deliver as planned, and when this seller does deliver, the costs are higher than planned. You decide this seller’s performance is not going to improve. Your best course of action is to—

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

7. You issued a RFP, and when the proposals were received, there were expected differences in the price and managerial approach sections. What was surprising was the range of different technical approaches that were offered. You then decided to—

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

8. You are a contractor for a state agency. Your company bid on a high-value project with a firm-fixed price contract for a water resource management project for your state. Before the agency selected a seller, its project manager decided to—

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

9. You are working to prepare your procurement management plan. You are planning to determine the type of contract to issue, but first you want to see possible costs as your University is updating its software used by students and faculty. You decide to—

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10. You are awarding a contract to help develop a new feature in the 12th generation phone. You feel this feature will enable your company to outpace the competition. Since you want to outdistance the competition, you want the contractor to have the best and brightest people on its staff. As you select source selection criteria, you should include—

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question.

11. You are working to determine the type of contact for your data warehousing project and you want to have a number of sellers bid on this opportunity However, the project is not located in a desirable area and is it is in a remote part of your country. You decide to gauge interest and decide to—

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12. A number of administrative activities are important in procurement management. For example, you should retain—

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13. Recent data indicate that more than 10,000 airline passengers are injured each year from baggage that falls from overhead bins. You performed a make-or-buy analysis and decided to outsource an improved bin design and manufacture. The project team needs to develop a list of qualified sources. As a general rule, which method would the project team find especially helpful—

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14. You are working to monitor and control your three contacts on your program. Your company is certified by the Software Engineering Institute’s Capability Maturity Model for Integration, which means your three contactors also hold this certification. Of the following tools and techniques to use, you select—

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15. You are working on a new project in your organization. You need to decide how best to staff the project and handle all its resource requirements. You decide to—

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16. Your company decided to award a contract for project management services on a pharmaceutical research project. Because your company is new to project management and does not understand the full scope of services that may be needed under the contract, it is most appropriate to award a—

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17. Requirements for warranty and future product support are found in the—

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18. You plan to award a contract to provide project management training for your company. You decide it is important that any prospective contractor have an association with a major University that awards master’s certificates in project management. This is an example of—

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19. The project team has the responsibility to ensure a procurement agreement—

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20. During the course of working with a seller that no one had worked with previously and is working on site with your team, in preparing the contract you specified that inspections and audits can be conducted. You decided to hire an outside person, considered to be an expert in project management to conduct an audit. In doing so, it is important to ensure that—

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21. Assume you have completed your make-or-buy analysis and decided to outsource most of the development of safe flying cars to ease traffic congestion in your city. You are determining your procurement strategy. One of its objectives is to—

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22. Specifications, quality levels, desired quality, performance data, performance period, and location are items to—

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23. An often-overlooked output of the Conduct Procurements process is—

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24. Assume you have completed your procurement management plan and your make-or-buy analysis and now are updating project documents as a result of this work. You need to update the—

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25. You have decided to award a contract to a seller that has provided quality services to your company frequently in the past. Your current project, although somewhat different from previous projects, is similar to other work the seller has performed. In this situation, to minimize your risk you should award what type of contract?

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26. As project manager, you need a relatively fast and informal method addressing disagreements with contractors. One such method is to submit the issue in question to an impartial third party for resolution. This process is known as—

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27. Work performance data often are used in Control Procurements to show—

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28. In the Plan Procurement Management process, potential sellers are evaluated especially if the buyer wants to exercise some degree of influence or control over acquisition decisions. This means thought also should be given to—

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29. A buyer has negotiated a fixed-price-incentive-fee contract with the seller. The contract has a target cost of $200,000, a target profit of $30,000, and a target price of $230,000. The buyer also has negotiated a ceiling price of $270,000 and a share ratio of 70/30. If the seller completes the contract with actual costs of $170,000, how much profit will the buyer pay the seller?

INSTRUCTIONS: Note the most suitable answer for each multiple-choice question

30. Requirements for acceptance criteria are defined in the—

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31. Sellers of course want to be paid once they have delivered what they promised in the agreement. This means payment information is—

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32. Assume before you award a contract, you and your team are striving to identify areas that may have more risk. You decide to—

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33. Assume in your project, you need to use a contractor. But you and the seller have a prior agreement in place. This means together you can prepare a procurement statement of work. It is an example of—

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34. You work for an aerospace and defense contractor, and you plan to outsource 75% of the work as you develop the next generation passenger jet. Because so much outsourcing will be used, you decide to use a systems integration contractor who will integrate and oversee the work of the other contractors. In this situation, you plan to use a—

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35. Although you finished your procurement management plan, you and your team decided since the project is so complex that you would be outsourcing about 50% of the work to be done on your new drug to cure macular degeneration. Given the large procurement, you decided it would be helpful to—

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36. You are working on a complex project designed to combat glaucoma without the need to take eye drops. You are going to outsource part of the work to experts in the glaucoma field and have identified four sellers that are capable and respected. These sellers—

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37. Assume you thought you would need to outsource part of your work on your telecom project. You conducted a make-or-buy analysis, and the decision was made not to outsource, This means—

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38. You are the project manager with a team to design the next generation of automobiles for your company. After an extensive make-or-buy analysis, you have determined which items will be outsourced. Now you are working on the statements of work for each item to be procured. It is important as you do so to—

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39. Which of the following types of contracts has the least risk to the seller?

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40. Assume that your company has a cost-plus-fixed-fee contract. The contract value is $110,000, which consists of $100,000 of estimated costs with a 10-percent fixed fee. Assume that your company completes the work but only incurs $80,000 in actual cost. What is the total cost to the project?