project management professional (pmp)® exam prep...
TRANSCRIPT
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Project Management Professional (PMP)®
Exam Prep
Chapter 12 - Project Procurement
Management
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 1
Looking Glass Development, LLC
(303) 663-5402 / (888) 338-7447
4610 S. Ulster St. #150 Denver, CO 80237
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 2
Processes to purchase or acquire the
products, services, or results needed from outside the project team to
perform the work
Unless otherwise noted,
consider yourself the BUYER
9 / 1 3 /20 13 2v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Planning Process Group
12. Project
ProcurementManagement
12.1Plan
ProcurementsManagement
Executing Process Group
12. Project
ProcurementManagement
12.2Conduct
Procurements
Monitoring and Controlling Process Group
12. Project
ProcurementManagement
12.3Control
Procurements
12. Project
ProcurementManagement
Closing Process Group
12.4Close
Procurements
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 3
12.1 Plan ProcurementsIdentify which project needs can best be met by purchasing or acquiring products, services or results outside the project organization.Consider potential sellers, permits, licenses.Project schedule greatly influences, and is influenced by, purchase and acquisition decisions.Review risks & types of contracts.
9 / 1 3 /20 13 3v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Planning Process Group
12. Project
ProcurementManagement
12.1Plan
Procurements
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 4
12.1 Plan Procurements
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Inputs.1 Project management plan
.2 Requirements
documentations
.3 Risk register
.4 Activity resource requirements
.5 Project schedule
.6 Activity cost estimates
.7 Stakeholder register
.8 Enterprise environmental
factors
.9 Organizational process assets
Tools & Techniques.1 Make-or-buy analysis
.2 Expert judgment
.3 Market research
.4 Meetings
Outputs.1 Procurement
management plan
.2 Procurement statements of work
.3 Procurement documents
.4 Source selection criteria
.5 Make-or-buy decisions
.6 Change request
.7 Project documents updates
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 5
Definition of a Contract..
Contract Type Selection – The type of contract used is dependent on the
degree of uncertainty facing the project manager
9 / 1 3 /20 13 5v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Seller’s Risk HighLow
CPPC
Cost Plus
Percentage
Of Costs
CPFF
Cost Plus
Fixed Fee
CPIF
Cost Plus
Incentive
Fee
FPPI
Fixed Price
Plus
Incentive
FFP
Firm-Fixed
Price or
Lump Sum
High Buyer’s RiskLow
Cost-Reimbursable / T & M Fixed Price
Contract Types
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 6
Procurement Management PlanDescribes managing procurement from developing procurement documentation through contract closure.Types of contractsRoles and responsibilities, authorityCoordinationConstraints and assumptionsTimeframesPre-qualified sellersMetrics
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 7
12.2 Conduct ProcurementsProcess of obtaining seller responses, selecting a seller, & awarding a contract.
Consider ◦ Project risks and contractual agreements◦ Activities resource requirements◦ Activity cost estimates◦ Cost and schedule baselines
9 / 1 3 /20 13 7v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Executing Process Group
12. Project
ProcurementManagement
12.2Conduct
Procurements
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 8
12.2 Conduct Procurements
9 / 1 3 /20 13 8v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Inputs.1 Project management plan
.2 Procurement documents
.3 Source selection criteria
.4 Seller proposals
.5 Project documents
.6 Make-or-buy decisions
.7 Procurement statement of work
.8 Organizational process assets
Tools & Techniques.1 Bidder conferences
.2 Proposal evaluation
techniques
.3 Independent estimates
.4 Expert judgments
.5 Advertising
.6 Analytical techniques
.7 Procurement negotiations
Outputs.1 Select sellers
.2 Agreements
.3 Resource calendars
.4 Change requests
.5 Project management plan updates
.6 Project document
updates
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 9
Source Selection Criteria Understanding of need Financial capacity
Life-cycle cost Technical approach
Technical capability Business size & type
Management approach References
Production capacity &interest
Intellectual & otherproperty rights
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 10
12.3 Control ProcurementsManage procurement relationships
Monitor contract performance
Make changes & corrections as needed
Both the buyer & seller administer contract
Both parties must meet obligations
Manage interfaces amongproviders on large projects
9 / 1 3 /20 13 10v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Monitoring and Controlling Process Group
12. Project
ProcurementManagement
12.3Control
Procurements
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 11
12.3 Control Procurements
9 / 1 3 /20 13 11v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Inputs.1 Project management
plan
.2 Procurement documents
.3 Agreements
.4 Approved change requests
.5 Work performance
reports
.6 Work performance data
Tools & Techniques.1 Contract change
control system
.2 Procurement performance reviews
.3 Inspections & audits
.4 Performance reporting
.5 Payment systems
.6 Claims administration
.7 Records management system
Outputs.1 Work performance
information
.2 Change requests
.3 Project management plan updates
.4 Project document updates
.5 Organizational process assets updates
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 12
12.4 Close ProcurementsProcess supports the Close Project or Phase Process.
Involves verification that all work & deliverable were acceptable.
Administrative activities such as finalizing open claims and updating records.
Could lead to litigation.
9 / 1 3 /20 13 12v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
12. Project
ProcurementManagement
Closing Process Group
12.4Close
Procurements
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Slide 13
Negotiate SettlementsSpecial case of contract closure
Mutual agreement or default
Terms are in the contract
Buyer may have to compensate seller
9 / 1 3 /20 13 13v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 14
12.4 Close Procurements
9 / 1 3 /20 13 14v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
Inputs.1 Project management plan
.2 Procurement documents
Tools & Techniques.1 Procurement audits
.2 Procurement
negotiations
.3 Records management system
Outputs.1 Closed procurements
.2 Organizational
process assets updates
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Slide 15
Project Procurement Management – Summary
Four (4) ProcessesKnow components in each processYou are THE BUYER unless otherwise statedRecognize scenarios to use each type of contractBuyer/Seller risk for types of contractsUse and importance of evaluation criteria
9/19/2013 15v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.
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PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Review Questions:
1. Which of the following is not an input to the plan procurement management
process?
A. Scope statement
B. Requirements documentation
C. Risk register
D. Organizational process assets
2. Which of the following is not an input to the plan procurement management
process?
A. Teaming agreements
B. Project schedule
C. Activity cost estimates
D. Stakeholder register
3. Which of the following is not an input to the plan procurement management
process?
A. Risk register
B. Activity cost estimates
C. Activity lists
D. Enterprise environmental factors
4. Which of the following is not a tool or technique used in the plan procurement
management process?
A. Make or buy analysis
B. Expert judgment
C. Market research
D. Proposal evaluation techniques
5. Which of the following is a tool or technique used in the plan procurement
management process?
A. Meetings
B. Independent estimates
C. Proposal evaluation techniques
D. Records management system
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
6. Which of the following is not an output from the plan procurement management
process?
A. Procurement management plan
B. Project management plan updates
C. Procurement statements of work
D. Make or buy decisions
7. Which of the following is not an output from the plan procurement management
process?
A. Procurement statements of work
B. Procurement documents
C. Contracts
D. Source selection criteria
8. Which of the following is not an output from the plan procurement management
process?
A. Change requests
B. Source selection criteria
C. Make or buy decisions
D. Organizational process asset updates
9. Which of the following is not an input to the conduct procurements process?
A. Organizational process assets
B. Procurement documents
C. Risk-related contract decisions
D. Source selection criteria
10. Which of the following is not an input to the conduct procurements process?
A. Seller proposals
B. Work performance information
C. Organizational process assets
D. Make or buy decisions
11. Which of the following is not an input to the conduct procurements process?
A. Organizational process assets
B. Source selection criteria
C. Make or buy decisions
D. Approved change requests
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
12. Which of the following is an input to the conduct procurement process?
A. Approved change requests
B. Source selection criteria
C. Risk register
D. Activity resource requirements
13. Which of the following is not a tool or technique used in the conduct
procurements process?
A. Bidder conferences
B. Independent estimates
C. Inspections & audits
D. Advertising
14. Which of the following is not a tool or technique used in the conduct
procurements process?
A. Analytical techniques
B. Advertising
C. Independent estimates
D. Internet search
15. Which of the following is a tool or technique used in the conduct procurement
process?
A. Analytical techniques
B. Payment systems
C. Change request
D. Make or buy decisions
16. Which of the following is a tool or technique used in the conduct procurement
process?
A. Contract types
B. Payment systems
C. Procurement negotiations
D. Records management system
17. Which of the following is not an output from the conduct procurements process?
A. Resource calendars
B. Activity resource requirement updates
C. Change requests
D. Project management plan updates
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
18. Which of the following is not an output from the conduct procurements process?
A. Make or buy decisions
B. Selected sellers
C. Agreements
D. Project document updates
19. Which of the following is not an input to the control procurements process?
A. Work performance reports
B. Change requests
C. Procurement documents
D. Work performance data
20. Which of the following is not an input to the control procurements process?
A. Expert judgment
B. Approved change requests
C. Agreements
D. Performance reports
21. Which of the following is an input to the control procurements process?
A. Source selection criteria
B. Work performance data
C. Seller proposals
D. Organizational documents
22. Which of the following is not a tool or technique used in the control procurements
process?
A. Contract change control system
B. Procurement performance reviews
C. Performance reporting
D. Proposal evaluation techniques
23. Which of the following is not a tool or technique used in the control procurement
process?
A. Inspections and audits
B. Expert judgment
C. Payment systems
D. Claims administration
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
24. Which of the following is not a tool or technique used in the control procurements
process?
A. Contract types
B. Records management system
C. Claims administration
D. Performance reporting
25. Which of the following is a tool or technique used in the control procurements
process?
A. Records management system
B. Expert judgment
C. Internet search
D. Independent estimates
26. Which of the following is not an output from the control procurements process?
A. Work performance information
B. Organizational process asset updates
C. Change requests
D. Procurement documents
27. Which of the following is an output from the control procurements process?
A. Approved change requests
B. Project information
C. Work performance information
D. Contract updates
28. Which of the following is an input to the close procurement process?
A. Contracts
B. Project management plan
C. Organizational process assets
D. Approved change requests
29. Which of the following is an input to the close procurement process?
A. Procurement contract award
B. Resource calendars
C. Updated project documents
D. Procurement documents
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
30. Which of the following is not a tool or technique used in the close procurement
process?
A. Expert judgment
B. Procurement audits
C. Procurement negotiations
D. Records management system
31. Which of the following is not a tool or technique used in the close procurements
process?
A. Records management system
B. Contract evaluation techniques
C. Procurement audits
D. Procurement negotiations
32. Which of the following is an output to the close procurements process?
A. Project management plan updates
B. Project document updates
C. Organizational process assets updates
D. Procurement documentation updates
33. Which of the following is an output to the close procurements process?
A. Closed procurements
B. Approved change requests
C. Closed contracts
D. Completed claims administration
34. Which of the following is not a process found in the procurement management
knowledge area?
A. Plan procurement management
B. Conduct procurements
C. Administer contracts
D. Close procurements
35. Once signed, a contract is legally binding unless:
A. It is declared void by appropriate legal counsel
B. One party fails to meet its financial obligation
C. One party fails to deliver the contracted good or service
D. It is in violation of applicable law
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36. You are leading a project that requires you to purchase goods and services from
a third party. You negotiate and sign a contract and the contractor provides the
desired product. However, you feel the product does not meet specifications.
The contract is considered to be:
A. Closed
B. Null and void
C. Incomplete
D. Complete
37. Which of the following represents the primary purpose of contract negotiations?
A. To define objectives and stick to them
B. Provide protection for the relationship
C. Gain the greatest financial return
D. Gain the most from the other side
38. Which of the following statements about change control is true and correct?
A. Changes rarely benefits the project
B. A firm fixed price contract minimizes the need for change control
C. The contract should include procedures to accommodate changes
D. More detailed specifications eliminate the causes of changes
39. Which of the following best explain the purpose of incentive clauses in contracts?
A. Reduce risks for the buyer by shifting them to the seller
B. Synchronize objectives
C. Help the seller control costs
D. Help the buyer control costs
40. Which of the following statements concerning procurement documents is true
and correct?
A. Well-designed procurement documents can simplify comparison of
responses
B. In general bid documents should not include the evaluation criteria
C. RFPs are generally the best way to get unbiased proposals
D. Procurement documents are best when they are rigorous and avoid
flexibility to prevent miscommunication
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
41. Which of the following activities is the best thing for a project manager to do
when completing the conduct procurements process found in the procurement
management knowledge area?
A. Update and evaluate risks
B. Update the budget and schedule
C. Answer the sellers' questions about bid documents
D. Select a contract type
42. Which of the following activities occurs during the plan procurements process?
A. Advertising
B. Answering sellers' questions about the bid documents
C. Make or buy decisions
D. Proposal evaluation
43. Which of the following is a key objective during contract negotiations?
A. Negotiate a price that meets or exceeds the buyers expectations
B. Obtain a fair and reasonable price
C. Ensure that and effective procurement management process is
established
D. Ensure that all project risks are thoroughly delineated
44. Which of the following best describes the role of the project manager during the
procurement process?
A. The project manager is secondary to the contracting manager
B. The project manager is the primary negotiator
C. The project manager tells the contract manager how the contracting
process should be handled
D. The project manager supplies an understanding of the risks of the project
45. Which of the following is not required in a contract?
A. Acceptance
B. Procurement statement of work
C. Address of the buyer
D. Buyers' signature
46. In which of the following processes would you find bidder conferences?
A. Plan procurements
B. Conduct procurements
C. Control procurements
D. Monitor and control procurements
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
47. You are leading a project that has a number of work packages that are being
completed by external resources. One work package is being completed by a
contractor working on a cost reimbursable contract. You have determined that
the scope of the project must be expanded for this contractor. Additionally, you
are concerned about cost control and would like to change the contract to a firm
fixed price contract. All of the following are the seller's options except:
A. Starting over with a new contract
B. Negotiating a fixed price contract that includes all the desired work
C. Completing the original work and rejecting the additional scope
D. Completing the original work using the original cost reimbursable contract
and then negotiating a new firm fixed price contract for the additional work
48. Which of the following is a reason for centralized contracting?
A. Deeping expertise
B. No single location
C. Increased loyalty to the project
D. Easier access to expertise
49. You are leading a large project and are attempting to negotiate a complex
contract. In the middle of the meeting the selected seller informs you that "they
need to finish up in the next 90 minutes so they can catch an airplane." What
kind of negotiating strategy is this?
A. Extreme demands
B. Delay
C. Good cop, bad cop
D. Deadline
50. You have been tasked with establishing a records management system for a
large project. You are trying to make sure all the records from the procurements
are properly documented and indexed. Which of the following are not concerned
about?
A. Negotiation process
B. Proposal
C. Procurement statement of work
D. Terms and conditions
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
51. You have been asked to lead a mid-sized project for your organization. Your
sponsor is very concerned about one particular seller that must be used on the
project and wants to make sure you are minimizing the risk to your organization.
You suggest using a firm fixed price contract. Which of the following explains the
recommendation?
A. Schedule risk will be fixed
B. Cost risk will be lower
C. The buyer owns most of the risk
D. Risk is shared equally by all parties
52. You are leading a project that has been in process for 13 months. You are
nearing the completion of a major deliverable that was completed by an external
resource using a cost reimbursable contract. You have entered the close
procurements process. Which of the following must you remember to do?
A. Make sure the seller is not adding work to the contract
B. Make sure the seller is not adding resources
C. Audit the seller's cost submittals
D. Decrease the risk rating of the project
53. You have been asked to lead a mid-sized project for your organization. Your
sponsor is very concerned about one particular seller that must be used on the
project and wants to make sure you are minimizing the risk to your organization.
You suggest using a firm fixed price contract. In a firm fixed price contract, the
fee or profit is:
A. Specifically stated as a line item in each invoice
B. Determine through negotiation at the end of the contract
C. Unknown
D. Part of the negotiation involved in paying every invoice
54. You are leading a large engineering project for your organization. As part of the
standard reporting process you are required to submit earned value calculations
such as SPI, CPI and TCPI. One day your sponsor comes into your office
concerned about your largest contractor gaining extra profit on the CPFF
contract. You explain that they should not be worried about this issue. Which of
the following best justifies this statement?
A. All cost invoices are being audited
B. The seller only receives their fee once the project is completed
C. You are making sure the seller does not cut scope
D. There can only be a maximum 10% increase if there is an unexpected
overrun
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55. You are the project manager on a project that is part of a large space program.
Another project manager on the program has just come to you for advice. Their
project currently has limited scope definition and she is very concerned about
protecting the organization from financial risks. Which is the best contract type to
choose?
A. Firm fixed price
B. Cost plus fixed fee
C. Cost plus percentage of cost
D. Cost plus incentive fee
56. You are in the middle of developing a RFP. What part of the procurement
process are you in?
A. Plan procurements
B. Conduct procurements
C. Monitor and control procurements
D. Close procurements
57. You are leading an especially difficult team attempting to complete a large project
that has significant risk to the organization. You are in the middle of your
standard Monday morning meeting where you are attempting to determine
whether the team should produce a particular deliverable themselves or
outsource it to an external party. In what part of the procurement process are
you currently?
A. Plan procurements
B. Conduct procurements
C. Monitor and control procurements
D. Close procurements
58. Your team is meeting and discussing the proposals received to produce a large
required deliverable. The team is about equally split on which provider they
prefer. In what part of the procurement process are you currently?
A. Plan procurements
B. Conduct procurements
C. Monitor and control procurements
D. Close procurements
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
59. In what part of the procurement process are you in if you are attempting to
complete procurement negotiations?
A. Plan procurements
B. Conduct procurements
C. Monitor and control procurements
D. Close procurements
60. You are leading a project and have just lost a critical internal resource due to
illness and long term disability. The work is very important and cannot be done
by an internal resource. You have decided to make use of an external contractor
to complete the deliverable. Time is of the essence and the deliverable must be
completed quickly. Under these circumstances, which of the following would be
the most helpful to add to the contract?
A. A force majeure clause
B. Schedule targets
C. A clear procurement statement of work
D. Incentives
61. With which type of contract is the seller to be most likely concerned about project
scope?
A. Cost plus fixed fee
B. Cost plus incentive fee
C. Fixed price plus incentive fee
D. Firm fixed price
62. You are leading a very complex project. Part of your job required you to
negotiate the contract with a large reseller. Throughout the negotiations you
required minutes to be kept which you also required the reseller to sign as true
and accurate. Now, several months later the seller is claiming they are not
required to complete certain components of work because they appear in your
notes and not the contract. In this case the seller is:
A. Generally incorrect, because all signed agreements must be upheld
B. Correct because there was a tender and agreement
C. Generally correct, because both parties are only required to perform what
is in the contract
D. Incorrect, because both parties are required to comply with what they
agreed upon
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
63. Which of the following best explains the differences between the close project or
phase process and the close procurements process?
A. Close procurements occurs before close project or phase
B. Close procurements does not include the integration process
C. Close procurements is done more than once for each individual contract
D. Close procurements does not involve the customer and close project or
phase does
64. You are the project manager on a large petrochemical project. You have
awarded the primary contract to build the required facility to a large European
engineering firm. Within the contract is specific language that requires the
contract to submit a work plan to you for approval prior to initiating work.
However, the seller has failed to provide one prior to commencing work. Which
is the best thing for you to do?
A. Develop the work plan and provide it to the contractor
B. File a letter of intent
C. Issue a default letter
D. Stop the project until the contractor develops a work plan
65. A new, junior project manager comes into your office. They are very excited
about their new project as they see it as an excellent opportunity for
advancement. However, they are also a little worried. They have completed the
procurement statement of work, but they are concerned that it might not address
all of the buyer's needs. This new project manager is about to attend the bidders
conference, and has come to you to ask your advice about what to do during the
session. Which of the following is the best advice you can give him?
A. Let the project sponsor facilitate the session and they have to sign off on
the contract
B. Make sure you clearly negotiate the scope
C. Make sure you give all the sellers enough time to ask questions, and be
careful as they might not want to ask questions while their competitors are
in the room
D. Let the contract manager lead the session as they are responsible for
procurements
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
66. You have been asked to help a project team make a build versus buy decision.
When looking at this problem, which of the following would justify doing the work
internally?
A. Your company has limited resources
B. There is proprietary data
C. You have the expertise, but not the manpower
D. You do not have control over the work
67. You are leading a U.S. $500,000 IT project for your organization. Your sponsor
just informed you that your project will have to compress the schedule
significantly. There is no longer any time to issue a request for proposal. You
decide to use a contractor you have used many times before. A primary concern
in this situation is:
A. Developing a procurement scope statement
B. The subcontractor evaluation criteria
C. The subcontractor's qualifications
D. Perceived collusion between you and the subcontractor
68. You are managing a U.S. $237,000 civil engineering project and have entered
the control procurements process for six different contract that have been signed
for your project. Your sponsor has just notified you that they must immediately
terminate one of the contracts. What should you do?
A. Complete the control procurements process
B. Begin the close project or phase process
C. Go back to the conduct procurements process
D. Go to the close procurements process
69. Which type of contract is best if you do not have the manpower to audit the
submitted contractor invoices?
A. Firm fixed price
B. Fixed price plus incentive fee
C. Cost plus incentive fee
D. Cost plus fixed fee
70. Which type of contract is inappropriate if you do not have the manpower to audit
the submitted contractor invoices?
A. Firm fixed price
B. Fixed price plus incentive fee
C. Cost plus incentive fee
D. Cost plus fixed fee
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71. You are leading a contracting team for a project making use of three external
contractors. You submit a deliverable that the project manager believes is
substandard. The project manager refuses to accept the deliverable and refers
you to the technical specifications section of the contract that specifically
addresses the deliverable in question. You examine the specification and agree
the deliverable failed to meet the specification. What is the best thing to do?
A. Call your team together to review the contract
B. Work with the project manager to issue a change order
C. Enter into negotiations with the project manager to change the contract
D. Review the requirements and the WBS with your team
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
Answer Key:
1. A
A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Fifth
Edition, Project Management Institute, Inc., 2013 - The inputs to the plan
procurement management process include:
- Project management plan
- Requirements documentation
- Risk register
- Activity resource requirements
- Project schedule
- Activity cost estimates
- Stakeholder register
- Enterprise environmental factors
- Organizational process assets
2. A
PMBOK® Guide - The inputs to the plan procurement management process
include:
- Project management plan
- Requirements documentation
- Risk register
- Activity resource requirements
- Project schedule
- Activity cost estimates
- Stakeholder register
- Enterprise environmental factors
- Organizational process assets
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
3. C
PMBOK® Guide - The inputs to the plan procurement management process
include:
- Project management plan
- Requirements documentation
- Risk register
- Activity resource requirements
- Project schedule
- Activity cost estimates
- Stakeholder register
- Enterprise environmental factors
- Organizational process assets
4. D
PMBOK® Guide - The tools and techniques used in the plan procurement
management process include:
- Make or buy analysis
- Expert judgment
- Market research
- Meetings
5. A
PMBOK® Guide - The tools and techniques used in the plan procurement
management process include:
- Make or buy analysis
- Expert judgment
- Market research
- Meetings
6. B
PMBOK® Guide - The outputs to the plan procurement management process
include:
- Procurement management plan
- Procurement statements of work
- Procurement documents
- Source selection criteria
- Make-or-buy decisions
- Change requests
- Project documents updates
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
7. C
PMBOK® Guide - The outputs to the plan procurement management process
include:
- Procurement management plan
- Procurement statements of work
- Procurement documents
- Source selection criteria
- Make-or-buy decisions
- Change requests
- Project documents updates
8. D
PMBOK® Guide - The outputs to the plan procurement management process
include:
- Procurement management plan
- Procurement statements of work
- Procurement documents
- Source selection criteria
- Make-or-buy decisions
- Change requests
- Project documents updates
9. C
PMBOK® Guide - The inputs to the conduct procurements process include:
- Project management plan
- Procurement documents
- Source selection criteria
- Seller proposals
- Project documents
- Make or buy decisions
- Procurement statement of work
- Organizational process assets
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
10. B
PMBOK® Guide - The inputs to the conduct procurements process include:
- Project management plan
- Procurement documents
- Source selection criteria
- Seller proposals
- Project documents
- Make or buy decisions
- Procurement statement of work
- Organizational process assets
11. D
PMBOK® Guide - The inputs to the conduct procurements process include:
- Project management plan
- Procurement documents
- Source selection criteria
- Seller proposals
- Project documents
- Make or buy decisions
- Procurement statement of work
- Organizational process assets
12. B
PMBOK® Guide - The inputs to the conduct procurements process include:
- Project management plan
- Procurement documents
- Source selection criteria
- Seller proposals
- Project documents
- Make or buy decisions
- Procurement statement of work
- Organizational process assets
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
13. C
PMBOK® Guide - The tools and techniques used in the conduct procurements
process include:
- Bidder conferences
- Proposal evaluation techniques
- Independent estimates
- Expert judgment
- Advertising
- Analytical techniques
- Procurement negotiations
14. D
PMBOK® Guide - The tools and techniques used in the conduct procurements
process include:
- Bidder conferences
- Proposal evaluation techniques
- Independent estimates
- Expert judgment
- Advertising
- Analytical techniques
- Procurement negotiations
15. A
PMBOK® Guide - The tools and techniques used in the conduct procurements
process include:
- Bidder conferences
- Proposal evaluation techniques
- Independent estimates
- Expert judgment
- Advertising
- Analytical techniques
- Procurement negotiations
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
16. C
PMBOK® Guide - The tools and techniques used in the conduct procurements
process include:
- Bidder conferences
- Proposal evaluation techniques
- Independent estimates
- Expert judgment
- Advertising
- Analytical techniques
- Procurement negotiations
17. B
PMBOK® Guide - The outputs from the conduct procurements process include:
- Selected sellers
- Agreements
- Resource calendars
- Change requests
- Project management plan updates
- Project document updates
18. A
PMBOK® Guide - The outputs from the conduct procurements process include:
- Selected sellers
- Agreements
- Resource calendars
- Change requests
- Project management plan updates
- Project document updates
19. B
PMBOK® Guide - The inputs to the control procurements process include:
- Project management plan
- Procurement documents
- Agreements
- Approved change requests
- Work performance reports
- Work performance data
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
20. A
PMBOK® Guide - The inputs to the control procurements process include:
- Project management plan
- Procurement documents
- Agreements
- Approved change requests
- Work performance reports
- Work performance data
21. B
PMBOK® Guide - The inputs to the control procurements process include:
- Procurement documents
- Project management plan
- Contract
- Performance reports
- Approved change requests
- Work performance information
22. D
PMBOK® Guide - The tools and techniques used in the control procurements
process include:
- Contract change control system
- Procurement performance reviews
- Inspections and audits
- Performance reporting
- Payment systems
- Claims administration
- Records management system
23. B
PMBOK® Guide - The tools and techniques used in the control procurements
process include:
- Contract change control system
- Procurement performance reviews
- Inspections and audits
- Performance reporting
- Payment systems
- Claims administration
- Records management system
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
24. A
PMBOK® Guide - The tools and techniques used in the control procurements
process include:
- Contract change control system
- Procurement performance reviews
- Inspections and audits
- Performance reporting
- Payment systems
- Claims administration
- Records management system
25. A
PMBOK® Guide - The tools and techniques used in the control procurements
process include:
- Contract change control system
- Procurement performance reviews
- Inspections and audits
- Performance reporting
- Payment systems
- Claims administration
- Records management system
26. D
PMBOK® Guide - The outputs from the control procurements process include:
- Work performance information
- Change requests
- Project management plan updates
- Project documents updates
- Organizational process assets updates
27. C
PMBOK® Guide - The outputs from the control procurements process include:
- Work performance information
- Change requests
- Project management plan updates
- Project documents updates
- Organizational process assets updates
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
28. B
PMBOK® Guide - The inputs to the close procurements process include:
- Project management plan
- Procurement documents
29. D
PMBOK® Guide - The inputs to the close procurements process include:
- Project management plan
- Procurement documents
30. A
PMBOK® Guide - The tools and techniques used in the close procurements
process?
- Procurement audits
- Negotiated settlements
- Records management system
31. B
PMBOK® Guide - The tools and techniques used in the close procurements
process?
- Procurement audits
- Procurement negotiations
- Records management system
32. C
PMBOK® Guide - The outputs from the close procurements process include:
- Closed procurements
- Organizational process assets updates
33. A
PMBOK® Guide - The outputs from the close procurements process include:
- Closed procurements
- Organizational process assets updates
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
34. C
PMBOK® Guide - The processes found in the procurement management
knowledge area include:
- Plan procurement management
- Conduct procurements
- Control procurements
- Close procurements
35. D
If the seller completes the work specified in the procurement statement of work
the contract is considered complete. That does not mean the same thing as
closed. The close procurements process still must occur.
36. B
According to Project Management Institute (PMI)® you are always looking for the
win/win situation. You also want to have the relationship last through the entire
project. A contract will not force anyone to stick to objectives. It can only spell
out the penalties if the objectives are not met.
37. D
Remember, the question is really asking, what would you do first. In this case,
you would first continue the payments otherwise you would be in violation of the
terms of the contract. You cannot simply void a contract. While altering the
contract might be a good idea, it is not what you would do first.
38. C
Changes will occur no matter what. It is therefore critically important that any
contract outline how changes are to be made so you can best handle them. All
of the other choices are myths!
39. B
Incentives are specifically intended to help the seller and buyer synchronize
objectives. Sellers are typically motivated by financial means. By providing
special gains, typically financial to the seller, the buyer can motivate the seller
towards specific important targets.
40. A
All of the answers might be true in specific situations, but they are not always
true. Only having well designed procurement documents can simplify
comparison of seller responses is always true.
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41. C
During the conduct procurements process, you normally answer questions
submitted by the sellers. The risk analysis processes are done before the
procurement process begins, as procurement is a form of risk mitigation and
transference. Selecting a particular contract type is part of plan procurements.
Changes to the schedule and budget may be an output of the control
procurements process.
42. C
PMBOK® Guide - Everything other than the make or buy decision where you
actually choose to procure a good or service occur in the conduct procurements
process.
43. B
Contract negotiations are about managing expectations and ensuring the
relationship can be maintained throughout the project. They are also about
getting a win-win situation in terms of price. This means the buy gets a fair and
reasonable price.
44. D
This is a question where all of the options are less than perfect. However, the
best or closest option is that the project manager supplies an understanding of
the risks of the project.
45. C
The options in this question make it difficult. Acceptance is a fancy way of saying
a signature from both parties the procurement statement of work is simply what
you will be purchasing. The buyers' signature is required, but not enough. The
address of the buyer is not necessarily required.
46. B
PMBOK® Guide - Conduct procurements where you would find bidder
conferences. Expect a number of questions where you have to know which
process a tool or technique is from.
47. A
The seller does not have the choice to simply start over. The existing contract is
binding and cannot be nullified by a single party.
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48. C
Remember, the objective is to select the answer that is best. The best answer in
this case in increase loyalty to the project. A common problem with contracting is
that when it is not centralized there is very little loyalty to the project.
49. D
This is an example of setting a deadline where the negotiations would end.
50. A
To answer this question you need to know what a records management system
is and that it would not be used to keep track of negotiations. The negotiations
process is not a document.
51. B
Remember, unless otherwise specified you are always the buyer. In a firm fixed
price contract the costs will theoretically be lower unless there is significant
scope change.
52. C
There is no guarantee that the risk rating for the project has changed because of
the closed project. You should have already ensured the seller is only delivering
against the contract. So no additional work or resources are valid. The only
thing that makes senses is that you need to audit the cost submittals because
this is a cost reimbursable contract.
53. C
Unlike a cost plus contract, in a firm fixed price contract you have no idea how
much of the firm fixed price is profit.
54. A
Cutting scope on a Cost Plus Fixed Fee contract will decrease profits. A CPFF
contract also does not tend to limit fee increases. The fee in a CPFF contract is
usually paid out on a continuous basis throughout the contract. However, one
way to change the profits in a CPFF contract is to invoice for things to chargeable
to the project.
55. B
Of all the choices given only a cost plus fixed fee contract limited financial risk. A
cost plus incentive fee might, but the incentives are not the best guarantee.
PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.
56. A
PMBOK® Guide - Planning procurements includes the development of Requests
for Proposals or the request for sellers to provide proposals covering how they
would meet your needs.
57. A
PMBOK® Guide - This is a basic build versus buy question. Therefore you are in
the plan procurements process.
58. B
PMBOK® Guide - Selected sellers is an output of the conduct procurements
process.
59. B
PMBOK® Guide - Procurement negotiations are a tool and technique used in the
conduct procurements process.
60. D
A clear procurement statement of work is always required, but that does not
ensure it will be done quickly. Incentives are best for aligning the objectives of
the buyer and the seller.
61. D
In a firm fixed price contract the seller has all the cost risk. The only way they
can make a profit is if they are able to clearly define and maintain the project
scope.
62. C
In most situations the seller is only required to comply with what is described in
the contract.
63. A
Several of these answers might be true, but the only one that is guaranteed to be
true is that close procurements occurs before close project or phase.
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64. C
Any time a seller does not perform according the contract the project manager
must take action. The best action would be to simply contact the seller and find
out what is happening, but that is not one of the choices.
65. C
This is a trick question of sorts. The fact that it discusses scope might lead you
to pick that answer. However, all the answers but giving the potential sellers time
to ask questions have nothing to do with the bidders conference.
66. B
Each of these answers might be right except for controlling the work. However,
the best answer is that it is best to do the work internally if there is proprietary
data that cannot be shared.
67. C
The primary concern in this situation is whether or not the contractor is actually
qualified to do the work. Everything else will stem from this concern.
Remember, you are always looking for what you would do first and which answer
is best.
68. D
As soon as you are notified of the need to terminate the contract you need to
initiate the close procurements process so you can close the contract in question
to maintain the data for historical purposes.
69. A
A firm fixed price contract does not require detailed review of invoices. Your
primary concern is the deliverables as you are paying a fixed rate.
70. C
A cost plus incentive fee offers the most variability and therefore requires the
most oversight and would be inappropriate if you lack manpower for the needed
audits.
71. D
Calling your team together to review the contract is close, but it is not correct.
The best answer is to review the requirements and the WBS as the WBS, with its
included WBS dictionary clearly describe the deliverables.