Question 1

_____ is a contract type that provides an incentive for performing on the project above the established baseline in the contract.

Accepted Answer

A)  Cost reimbursable contract with a percentage fee 
B)  Cost reimbursable contract with a fixed fee 
C)  Fixed price with incentive fee contract 
D)  Fixed price with price adjustment contract 
E)  Cost reimbursable contract with an incentive fee 
A)  Cost reimbursable contract with a percentage fee 
B)  Cost reimbursable contract with a fixed fee 
C)  Fixed price with incentive fee contract 
D)  Fixed price with price adjustment contract 
E)  Cost reimbursable contract with an incentive fee C

Question 2

Discuss the role of suppliers.

Accepted Answer

Goods or services that are commonly available with little variation in quality or availability are called commodities. Purchasing commodities from suppliers focuses on achieving the lowest cost. Cost of commodities can often be found in the suppliers' catalog. On smaller, less complex projects, supplies can be purchased as needed from the supplier's catalog. Additional cost savings are often available if large quantities of a commodity are purchased from the same supplier. On larger, more complex projects, a list of materials and supplies is developed from the project cost estimate. This list is provided to suppliers as a request for quote RFQ) and the suppliers respond with their lowest price. Many organizations maintain a list of suppliers that meet the organization's requirements which usually include the proven ability to meet the quality and schedule specifications. The project team develops and sends an RFQ to the identified qualified suppliers. The suppliers then develop a quote that lists the specific materials to be provided and the price for each and a schedule for delivery. The project team evaluates each quote from suppliers and determines that the supplier bid meets all the requirements and in most cases, the supplier with the lowest price will be awarded the bid.

Question 3

On smaller, less complex projects, the procurement team can consist of work teams within the procurement function with special expertise in contracting.

Accepted Answer

A) True 
 B)False  False

Question 4

The logistics for the project can be managed by the project team, but cannot be included in the RFP or RFQ.

Accepted Answer

A) True 
 B)False

Question 5

A cost reimbursable contract with a fixed fee is used to encourage performance in areas critical to the project.

Accepted Answer

A) True 
 B)False

Question 6

_____ is a contract based on an agreed-on unit price for services or materials if the amount needed is not known accurately.

Accepted Answer

A)  Cost reimbursable contract with a percentage fee 
B)  Cost reimbursable contract with a fixed fee 
C)  Fixed price with incentive fee contract 
D)  Fixed unit price contract 
E)  Fixed unit cost contract 
A)  Cost reimbursable contract with a percentage fee 
B)  Cost reimbursable contract with a fixed fee 
C)  Fixed price with incentive fee contract 
D)  Fixed unit price contract 
E)  Fixed unit cost contract

Question 7

According to Luu, Ng, and Chen, which of the following selection priorities are the MOST important considerations in the decision to outsource activities?

Accepted Answer

A)  Quality and risk 
B)  Complexity and flexibility 
C)  Schedule and complexity 
D)  Flexibility and budget 
E)  Budget and schedule 
A)  Quality and risk 
B)  Complexity and flexibility 
C)  Schedule and complexity 
D)  Flexibility and budget 
E)  Budget and schedule

Question 8

A _____ requires a bidder to provide a price and additional information for a defined scope of work.

Accepted Answer

A)  request for tender 
B)  request for quote 
C)  request for partnership 
D)  request for offer 
E)  request for information 
A)  request for tender 
B)  request for quote 
C)  request for partnership 
D)  request for offer 
E)  request for information

Question 9

The fixed price contract with price adjustment is used for short projects.

Accepted Answer

A) True 
 B)False

Question 10

Work done by members of the organization rather than outsiders is work that is self-performed.

Accepted Answer

A) True 
 B)False

Question 11

_____ involves the work processes associated with shortening the time of delivering a product or service.

Accepted Answer

The answer of _____ involves the work processes associated with...

Question 12

Which type of manager develops detailed specifications and assures compliance to these specifications?

Accepted Answer

A)  The manager of third party contracts 
B)  The manager of supplier contracts 
C)  The manager of vendor contracts 
D)  The manager of partnering arrangements 
E)  The manager of operations 
A)  The manager of third party contracts 
B)  The manager of supplier contracts 
C)  The manager of vendor contracts 
D)  The manager of partnering arrangements 
E)  The manager of operations

Question 13

With a fixed unit price contract, if the estimate of units is not accurate, the contract has to be changed.

Accepted Answer

A) True 
 B)False

Question 14

A _____ is a contract used on small jobs with a high degree of uncertainty in which the contractor might charge an hourly rate for labor, plus the cost of materials, plus a percentage of the total costs.

Accepted Answer

A)  labor-hour contract 
B)  service contract 
C)  supply contract 
D)  research and development contract 
E)  time and materials contract 
A)  labor-hour contract 
B)  service contract 
C)  supply contract 
D)  research and development contract 
E)  time and materials contract

Question 15

Long lead items are equipment or materials that will require a long time to acquire or build.

Accepted Answer

A) True 
 B)False

Question 16

While outsourcing work has both benefits and risks, self-performing work has benefits but no risks.

Accepted Answer

A) True 
 B)False

Question 17

Vendors and suppliers usually require payments during the life of the contract.

Accepted Answer

A) True 
 B)False

Question 18

The term for services or products provided by another company is _____.

Accepted Answer

A)  open source 
B)  expediting 
C)  filtered 
D)  outsourced 
E)  logistics 
A)  open source 
B)  expediting 
C)  filtered 
D)  outsourced 
E)  logistics

Question 19

A general report includes the original goals and objectives and statements that show how the project met those goals and objectives.

Accepted Answer

A) True 
 B)False

Question 20

In a cost reimbursable contract, _____.

Accepted Answer

A)  the contract usually details the quality of the goods or services, the timing needed to support the project, and the cost of delivering goods or service 
B)  the organization agrees to pay the contractor for the cost of performing the service or providing the goods plus a profit 
C)  the contract provides an incentive for performing on the project above the established baseline in the contract 
D)  the contractor assumes the risks for unexpected increases in labor and materials that are needed to provide the service or materials and in the quantity of time and materials needed 
E)  developing a clear scope of work, creating a list of highly qualified bidders, and developing a clear contract is critical 
A)  the contract usually details the quality of the goods or services, the timing needed to support the project, and the cost of delivering goods or service 
B)  the organization agrees to pay the contractor for the cost of performing the service or providing the goods plus a profit 
C)  the contract provides an incentive for performing on the project above the established baseline in the contract 
D)  the contractor assumes the risks for unexpected increases in labor and materials that are needed to provide the service or materials and in the quantity of time and materials needed 
E)  developing a clear scope of work, creating a list of highly qualified bidders, and developing a clear contract is critical

_____ is a contract type that provides an incentive for performing on the project above the established baseline in the contract.

Discuss the role of suppliers.

On smaller, less complex projects, the procurement team can consist of work teams within the procurement function with special expertise in contracting.

The logistics for the project can be managed by the project team, but cannot be included in the RFP or RFQ.

A cost reimbursable contract with a fixed fee is used to encourage performance in areas critical to the project.

_____ is a contract based on an agreed-on unit price for services or materials if the amount needed is not known accurately.

According to Luu, Ng, and Chen, which of the following selection priorities are the MOST important considerations in the decision to outsource activities?

A _____ requires a bidder to provide a price and additional information for a defined scope of work.

The fixed price contract with price adjustment is used for short projects.

Work done by members of the organization rather than outsiders is work that is self-performed.

_____ involves the work processes associated with shortening the time of delivering a product or service.

Which type of manager develops detailed specifications and assures compliance to these specifications?

With a fixed unit price contract, if the estimate of units is not accurate, the contract has to be changed.

A _____ is a contract used on small jobs with a high degree of uncertainty in which the contractor might charge an hourly rate for labor, plus the cost of materials, plus a percentage of the total costs.

Long lead items are equipment or materials that will require a long time to acquire or build.

While outsourcing work has both benefits and risks, self-performing work has benefits but no risks.

Vendors and suppliers usually require payments during the life of the contract.

The term for services or products provided by another company is _____.

A general report includes the original goals and objectives and statements that show how the project met those goals and objectives.

In a cost reimbursable contract, _____.

Introduction to Project Management

Project Profiling

Project Phases and Organization

Understanding and Meeting Client Expectations

Working With People on Projects

Communication Technologies

Starting a Project

Project Time Management

Estimating and Managing Costs

Managing Project Quality

Managing Project Risk

Filters

Exam 12: Project Procurement and Closure

_____ is a contract type that provides an incentive for performing on the project above the established baseline in the contract.

Discuss the role of suppliers.

On smaller, less complex projects, the procurement team can consist of work teams within the procurement function with special expertise in contracting.

The logistics for the project can be managed by the project team, but cannot be included in the RFP or RFQ.

A cost reimbursable contract with a fixed fee is used to encourage performance in areas critical to the project.

_____ is a contract based on an agreed-on unit price for services or materials if the amount needed is not known accurately.

According to Luu, Ng, and Chen, which of the following selection priorities are the MOST important considerations in the decision to outsource activities?

A _____ requires a bidder to provide a price and additional information for a defined scope of work.

The fixed price contract with price adjustment is used for short projects.

Work done by members of the organization rather than outsiders is work that is self-performed.

_____ involves the work processes associated with shortening the time of delivering a product or service.

Which type of manager develops detailed specifications and assures compliance to these specifications?

With a fixed unit price contract, if the estimate of units is not accurate, the contract has to be changed.

A _____ is a contract used on small jobs with a high degree of uncertainty in which the contractor might charge an hourly rate for labor, plus the cost of materials, plus a percentage of the total costs.

Long lead items are equipment or materials that will require a long time to acquire or build.

While outsourcing work has both benefits and risks, self-performing work has benefits but no risks.

Vendors and suppliers usually require payments during the life of the contract.

The term for services or products provided by another company is _____.

A general report includes the original goals and objectives and statements that show how the project met those goals and objectives.

In a cost reimbursable contract, _____.

Introduction to Project Management

Project Profiling

Project Phases and Organization

Understanding and Meeting Client Expectations

Working With People on Projects

Communication Technologies

Starting a Project

Project Time Management

Estimating and Managing Costs

Managing Project Quality

Managing Project Risk

Filters