PMP SET 1.10.Procurement

1. Evaluation criteria are an output of which process?

• A. Plan procurement quality
• B. Conduct procurements
• C. Plan procurement management
• D. Seller evaluation criteria

2. A project manager for a large manufacturing concern is working on a project that calls for a new building to be constructed to house a new clean system manufacturing process that is critical to the success of the project. Construction is not a core competency of his company. His team has the ability to create a detailed SOW with penalties if specific statements of work deliverables are not met. He is in procurement planning evaluating which contract would work the best. Which of the following is BEST type of contract for this situation?

• A. FP (Fixed price)
• B. CPFF (Cost plus fixed fee)
• C. CPIF (Cost plus incentive fee)
• D. T&M (Time and materials)

3. One of your sellers on your project abruptly goes out of business. What should you do?

• A. File for a portion of the company's assets
• B. Hire a new seller immediately under a time and materials contract
• C. Terminate the project
• D. Terminate the contract with that seller

4. Which of the following statements concerning bid documentation is correct?

• A. Bid documents that are well-designed can simplify comparison of responses.
• B. Bid documentation must be rigorous with no flexibility to allow consideration of seller suggestions.
• C. In general, bid documents should not include evaluation criteria.
• D. Bid documents should include only the statement of work.

5. Your company is receiving a shipment of goods from the seller when you get a call from the contracting officer who tells you that the shipment does not meet the requirements of the contract. You look at the shipment yourself and determine that the shipment meets the needs of the project. What should you do?

• A. Send the shipment back
• B. Accept the shipment
• C. Issue a change order to change the contract specifications
• D. Expect to receive a claim from the seller

6. From the seller's point of view, the contract is considered closed when:

• A. Scope of work is complete.
• B. Lessons learned is complete.
• C. The archives are completed.
• D. Final payment is made.

7. During a routine walk-through, you discover that a seller has neglected to properly produce a major component of its deliverable. What should you do?

• A. Insist that the seller follow their manage quality initiatives
• B. Insist that the contract be adhered to via correspondence
• C. Schedule a meeting to discuss the discrepancy
• D. Inform the project sponsor of the discrepancy

8. What's the BEST way to describe how the contract's terms and conditions are created?

• A. They are based on a risk analysis.
• B. They are created by the contracting officer assigned to the project.
• C. They use only the company's existing standard terms and conditions.
• D. They are based on the needs of the seller.

9. A parking lot fencing project was bid at US$11 per foot. The parking lot has four equal sides of 125 feet and requires installing a six-foot diameter culvert on one side. Fencing should take 100 feet per day, and the culvert installation will cost US$500 and take one day to complete. The culvert must be installed before work can begin on that side of the fence. After three days of work, one side is complete, another has 75 feet installed, and the culvert is completely installed. At this point, the customer tells you that the culvert needs to be increased to a seven-foot diameter. You determine that this will cost US$1000 and require two additional days. What should you do FIRST?

• A. Call a team meeting and determine if schedule and cost alternatives can maintain the current cost and schedule requirements
• B. Review the scope of work for mention of the diameter of the culvert
• C. Ask for a change order to cover the change
• D. Renegotiate the contract

10. During project execution, conflicts can arise between the contracting officer and the project manager because the contracting officer:

• A. Is the only one who can change the contract.
• B. Works for a different department.
• C. Needs to obtain the project manager's approval to make project changes.
• D. Has a different approach to creating a contract.