PMP Exam Preparation - Ch 12 Project Procurement Management

1. The project manager has met with the team, and they are currently deciding whether they should develop internal software to meet the needs of the project sponsor or purchase external commercial software. What process are they currently engaged in?

• A. Plan Procurement Management
• B. Conduct Procurement
• C. Control Procurement
• D. Make or Buy Analysis

2. The project manager has negotiated a fixed-price contract with a steel supplier. The contract is for 4 years. The seller has requested that the cost be increased by 4% every year due to inflation and fuel costs. What type of contract should the project manager use?

• A. Firm Fixed Price
• B. Fixed Price Incentive
• C. Fixed Price Economic Price Adjustment
• D. Cost Plus Fixed Fee

3. As the project manager is getting ready to send out the request for proposals for the project, he contacts the PMO for a list of properly vetted sellers. What is the name of this list?

• A. Qualified Seller List
• B. Pre-qualified Seller list
• C. Pre-approved selelr list
• D. Approved seller list

4. The project manager and the team have come up with a few different criteria they will use when selecting a seller. The criteria include costs, qualifications, licenses, and financial stability of the seller. What best describes these criteria? <br /><br /><br />

• A. Procurement Documents
• B. Agreement
• C. Request for Proposal
• D. Source Selection Criteria

5. While working on the office renovation project, the project manager has received multiple bids from different vendors. What the project manager thought would be a cost-effective contract turned out to be very expensive. The project manager then hires a professional estimator to determine what the contract should cost. What is the project manager looking for? <br /><br /><br />

• A. Outside estimate
• B. Building Cost estimate
• C. Independent Cost Estimate
• D. PMO

6. The project manager and the team have determined that they will procure the installation and configuration of the telephone systems for the new computer network. They have determined that the type of agreement they will use is a cost-plus-fixed-fee contract. What project document will specify the type of contract that will be used? <br /><br /><br />

• A. Procurement Management Plan
• B. Procurement Strategy
• C. Statement of work
• D. Bid Document

7. The project manager has met with over six different sellers and has negotiated with them. Finally, he has selected one of the sellers and awarded the contract. What process group are these activities part of? <br /><br /><br />

• A. Planning
• B. Executing
• C. Iniating
• D. Monitoring and Controlling

8. The project manager is set to start the process of conduct procurement. What should the project manager have received before starting this process? <br /><br /><br />

• A. Procurement Management Plan
• B. Bid Document
• C. Procurement Statement Of Work
• D. Seller Proposal

9. While working on a large government contract to construct a bridge, the project manager determines that meeting individual sellers will take an extreme amount of time. What can the project manager do to give out information about the project to multiple sellers in a time-effective manner?

• A. Advertising
• B. Bid Reviews
• C. Proposal evaluation technique
• D. Vendor Conferences

10. After being awarded the contract, the seller has begun to do the work listed in the contract. The project manager has also started to inspect the work to ensure that it is getting done according to the contract. What process best describes these activities?

• A. Monitor Procurement
• B. Manage Procurement
• C. Plan Procurement Management
• D. Control Procurement