Deck 12: Project Procurement Management

Question 1

If there is no need to buy any products or services from outside the organization,then there is no need to perform any of the other procurement management processes.

Answer 1

True

Question 2

The buyer absorbs less of the risk with cost-reimbursable contracts than they do with fixed-price contracts.

Answer 2

False

Question 3

Experts outside the company,including potential suppliers themselves,cannot provide expert judgment.

Answer 3

False

Question 4

Contents of the procurement management plan will vary with project needs.

Question 5

Most people view offshore outsourcing as being good.

Question 6

It is important to use appropriate words in a contract SOW such as may instead of must.

Question 7

Many companies are realizing that they can use offshore outsourcing and create more jobs at home.

Question 8

Few organizations use some form of outsourcing to meet their information technology needs.

Question 9

Make-or-buy analysis involves estimating the internal costs of providing a product or service and comparing that estimate to the cost of outsourcing.

Question 10

A contract SOW should not specify the location of the work.

Question 11

Lead times for purchases and acquisitions should not be included in a procurement management plan.

Question 12

According to a 2008 report on IT outsourceing trends in the U.S.and Canada,application development is the least popular form of IT outsourcing and was used by only 25 percent of organizations surveyed.

Question 13

Any type of contract should include specific clauses that take into account issues unique to the project.

Question 14

The cost savings and use of offshore resources lower inflation,increase productivity,and lower interest rates.

Question 15

The success of many information technology projects that use outside resources is often due to good project cost management.

Question 16

Many private companies use the term procurement instead of purchasing.

Question 17

Some termination clauses state that the buyer can terminate a contract for any reason and give the supplier only 24 hours' notice.

Question 18

It is always less effective to hire skilled consultants to perform specific tasks for a short period of time than to hire or keep employees on staff full time.

Question 19

When an organization outsources work,it often does not have as much control over those aspects of projects that suppliers carry out.

Question 20

The total value of the contract is a function of the quantities needed to complete the work.

Question 21

Outputs of the ____ process include selected sellers,procurement contract awards,resource calendars,change requests,and updates to the project management plan and other project documents.

A)Closing the contract
B)Conducting procurements
C)Requesting seller responses
D)Administering the contract

Question 22

____ involve payment to the supplier for direct and indirect actual costs.

A)CPFF contracts
B)Lump sum contracts
C)Cost-reimbursable contracts
D)Time and material contracts

Question 23

____ involves obtaining seller responses,selecting sellers,and awarding contracts.

A)Conducting procurements
B)Selecting sellers
C)Requesting seller responses
D)Planning purchases and acquisitions

Question 24

____ contracts involve a fixed total price for a well-defined product or service.

A)CPFF
B)Lump sum
C)Cost-reimbursable
D)Time and material

Question 25

An October 2005 Information Technology Association of America (ITAA)-sponsored report stated that spending for global sources of computer software and services is expected to grow at a compound annual rate of about ____ percent.

A)10
B)20
C)30
D)40

Question 26

____ involves determining what to procure,when,and how.

A)Planning contracting
B)Administrating procurements
C)Conducting procurements
D)Planning procurements

Question 27

There are ____ main processes of project procurement management.

A)three
B)four
C)five
D)six

Question 28

____ involves completion and settlement of each contract,including resolution of any open items.

A)Exiting procurements
B)Closing out accounts
C)Closing procurements
D)Ending procurements

Question 29

For many projects,properly ____ some information technology functions can be a great investment.

A)outsourcing
B)scaling
C)increasing
D)planning

Question 30

A key factor in evaluating bids,particularly for projects involving information technology,is the past performance record of the bidder.

Question 31

The term "e-procurement" often describes various procurement functions that are now done electronically.

Question 32

Experts in source selection recommend that technical criteria should be given more weight than management or cost criteria.

Question 33

"Most organizations are not in business to provide information technology services,yet many have spent valuable time and resources on information technology functions when they should have focused on core competencies such as marketing,customer service,and new product design." refers to the ____ benefit of outsourcing.

A)Reduce both fixed and recurrent costs
B)Provide flexibility
C)Access skills and technologies
D)Allow the client organization to focus on its core business

Question 34

"Organizations can gain access to specific skills and technologies when they are required by using outside resources." refers to the ____ benefit of outsourcing.

A)Reduce both fixed and recurrent costs
B)Provide flexibility
C)Access skills and technologies
D)Allow the client organization to focus on its core business

Question 35

"Outsourcing suppliers are often able to use economies of scale that may not be available to the client alone,especially for hardware and software." refers to the ____ benefit of outsourcing.

A)Reduce both fixed and recurrent costs
B)Allow the client organization to focus on its core business
C)Access skills and technologies
D)Provide flexibility

Question 36

An October 2005 Information Technology Association of America (ITAA)-sponsored report stated that total savings from offshore resources during the 2005-2010 period are estimated to grow from $8.7 billion to ____.

A)$10.2 billion
B)$20.4 billion
C)$50.4 billion
D)$107.9 billion

Question 37

"Outsourcing to provide extra staff during periods of peak workloads can be much more economical than trying to staff entire projects with internal resources." refers to the ____ benefit.

A)Reduce both fixed and recurrent costs
B)Provide flexibility
C)Access skills and technologies
D)Allow the client organization to focus on its core business

Question 38

____ involves managing relationships with sellers,monitoring contract performance,and making changes as needed.

A)Closing procurements
B)Selecting sellers
C)Requesting seller responses
D)Administering procurements

Question 39

It is customary to have contract negotiations during the source selection process.

Question 40

The main sections of an RFP never include the statement of work and schedule information.

Question 41

With a(n)____ contract,the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

A)CPFF
B)CPIF
C)CPPC
D)CPPF

Question 42

A(n)____________________ contract has the least amount of risk for the buyer.

Question 43

_________________________ contracts are a hybrid of both fixed-price and cost-reimbursable contracts.

Question 44

____ change orders are oral or written acts or omissions by someone with actual or apparent authority that can be construed to have the same effect as a written change order.

A)Direct
B)Constructive
C)Destructive
D)Instructive

Question 45

____________________ means acquiring goods and/or services from an outside source.

Question 46

Buyers typically develop a short list of the top ____ suppliers to reduce the work involved in selecting a source.

A)one to two
B)three to five
C)eight to ten
D)twelve to fifteen

Question 47

The ____ is a description of the work required for the procurement.

A)RFQ
B)RFP
C)COW
D)SOW

Question 48

A(n)____________________ is a contract clause that allows the buyer or supplier to end the contract.

Question 49

Many organizations use ____ and templates to generate SOWs.

A)details
B)outlines
C)plans
D)samples

Question 50

A(n)____ is a document used to solicit proposals from prospective suppliers.

A)RFQ
B)RFP
C)COW
D)SOW

Question 51

From the supplier's perspective,there is the least risk with a(n)____ contract.

A)CPFF
B)FFP
C)CPPC
D)CPFF

Question 52

With a(n)____ contract,the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

A)CPFF
B)CPIF
C)CPPC
D)CPPF

Question 53

With a(n)____ contract,the buyer pays the supplier for allowable performance costs along with a predetermined percentage based on total costs.

A)CPFF
B)CPIF
C)CPPC
D)CPPF

Question 54

A(n)____________________ decision is one in which an organization decides if it is in its best interests to make certain products or perform certain services inside the organization,or if it is better to buy them from an outside organization.

Question 55

____________________ can be used in various types of contracts to require the buyer to pay the supplier a predetermined amount per unit of product or service.

Question 56

The term ____________________ is widely used in government.

Question 57

_________________________ involves completion and settlement of each contract,including resolution of any open items.

Question 58

A well-written ____________________-a mutually binding agreement that obligates the seller to provide the specified products or services and obligates the buyer to pay for them-can clarify responsibilities and sharpen focus on key deliverables of a project.

Question 59

______________________________ includes the processes required to acquire goods and services for a project from outside the performing organization.

Question 60

A(n)____ is a document used to solicit quotes or bids from prospective suppliers.

A)RFQ
B)RFP
C)COW
D)SOW

Question 61

A(n)____________________ is a document prepared by sellers providing pricing for standard items that have been clearly defined by the buyer.

Question 62

What are RFPs and RFQs? How and why are these documents created,and what issues must be considered when creating them?

Question 63

What is a SOW? What is a contract SOW?

Question 64

Selecting suppliers or sellers,often called ____________________ selection,involves evaluating proposals or bids from sellers,choosing the best one,negotiating the contract,and awarding the contract.

Question 65

If a SOW is used as part of a contract to describe only the work required for that particular contract,it is called a(n)____________________ statement of work.

Question 66

Experts in source selection highly recommend that buyers use formal proposal ____________________ sheets during source selection.

Question 67

List and briefly describe the four main processes of project procurement management.

Question 68

What are the three types of cost-reimbursable contracts? Briefly describe each type.

Question 69

A(n)____________________ is a document prepared by a seller when there are different approaches for meeting buyer needs.

Question 70

What are four reasons that many companies are turning to outsourcing?

Question 71

Many organizations use samples and ____________________ to generate SOWs.

Question 72

A(n)____________________ conference is a meeting with prospective sellers prior to preparation of their proposals or bids.

Question 73

Tools to assist in contract closure include ____________________,negotiated settlements,and a records management system.

Question 74

____________________ are often done during contract closure to identify lessons learned in the entire procurement process.

Question 75

A(n)____________________ system provides the ability to easily organize,find,and archive procurement-related documents.