PM Practice Week11 Procurement Management

25 Questions | By Babjam | Last updated: Mar 21, 2022 | Total Attempts: 5338

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1.

Contract closeout is a process that involves:
- A.
  
  Customer satisfaction analysis and final payment
- B.
  
  Administrative closeout and archiving records
- C.
  
  Final contractor payment and lessons learned
- D.
  
  Product verification and administrative closeout
2.

The process of monitoring contract performance, making payments, and awarding contract modifications occurs during:
- A.
  
  Contract administration
- B.
  
  The award phase
- C.
  
  The closeout phase
- D.
  
  Contract resolution
3.

Ending a contract before the objectives have been met by either mutual agreement or breach is called:
- A.
  
  Partial completion
- B.
  
  Closeout
- C.
  
  Cessation
- D.
  
  Termination
4.

Which term describes those costs in a contract that are associated with two or more project but are not traceable to each of them individually?
- A.
  
  Variable
- B.
  
  Direct
- C.
  
  Indirect
- D.
  
  Semivariable
5.

Contract type selection is dependent on the degree of risk or uncertainty facing the project manager. From the perspective of the buyer, preferred contract type in a low risk situation is:
- A.
  
  Firm fixed price
- B.
  
  Fixed price incentive
- C.
  
  Cost-plus fixed fee
- D.
  
  Cost-plus-a-percentage-of-cost
6.

Which term describes the failure by either the buyer or seller to perform part or all of the duties of the contract?
- A.
  
  Termination of the contract
- B.
  
  Partial performance
- C.
  
  Breach of contract
- D.
  
  Contract waiver
7.

Which of the following is an input to contract closeout?
- A.
  
  The contract file
- B.
  
  Contract documentation
- C.
  
  The procurement audit
- D.
  
  Formal acceptance
8.

In some cases, contract termination refers to:
- A.
  
  Contract closure by mutual agreement
- B.
  
  Contract closure by delivery of goods and services
- C.
  
  Contract closure by successful performance
- D.
  
  Certification of receipt of final payment
9.

Which of the following terms is an expression by one party of its compliance to certain terms in the contract provided that the other party expresses its compliance to the identical terms?
- A.
  
  Offer
- B.
  
  Bargain
- C.
  
  Proposal
- D.
  
  Excahange
10.

Which term is not a common name for a procurement document that solicits an offer from prospective sellers?
- A.
  
  Invitation for bid
- B.
  
  Request for information
- C.
  
  Request for quotation
- D.
  
  Invitation for negotiation
11.

A procurement contract will include terms and conditions, and may incorporate other items that the buyer specifies to establish what the seller is to provide or perform.
- A.
  
  True
- B.
  
  False
12.

Sellers are always external to the company performing the project.
- A.
  
  True
- B.
  
  False
13.

The Plan Procurements process includes consideration of the risks involved with each make-or-buy decision.
- A.
  
  True
- B.
  
  False
14.

In project procurement management, the performance data file consists of:
- A.
  
  The project WBS
- B.
  
  Cost information
- C.
  
  Invoice and payment records
- D.
  
  Cost, schedule, and quality information
15.

Requirements for formal acceptance and closure of the contract are usually defined in the:
- A.
  
  Proposal
- B.
  
  Statement of Work
- C.
  
  Contract
- D.
  
  Procurement audit report
16.

Which of the following activities is an important element of effective contract administration?
- A.
  
  Holding a bidders conference
- B.
  
  Establishing the appropriate contract type
- C.
  
  Implementing a contract change control system
- D.
  
  Developing a statement of work
17.

Contract closeout and administrative closure are similar in that they both require:
- A.
  
  That someone other than the project manager manage the activities involved
- B.
  
  Verification that no errors occurred at any time while the work was being performed
- C.
  
  That a WBS was prepared
- D.
  
  Verification that the work was completed satisfactorily
18.

Requirements for inspection and acceptance are defined in the:
- A.
  
  Contract
- B.
  
  Procurement management plan
- C.
  
  Overall project plan
- D.
  
  Specifications
19.

During solicitation planning, the project team is responsible for:
- A.
  
  Determining the make or buy decision
- B.
  
  Developing the procurement documents
- C.
  
  Specifying the schedule perimeters in the form of delivery dates
20.

Teaming agreements are not legal documents, they are formulated between team members only
- A.
  
  True
- B.
  
  False
21.

A make-or-buy analysis is a general management technique used to determine whether particular work can be best accomplished by the project team or must be purchased from outside sources
- A.
  
  True
- B.
  
  False
22.

Budget constraints are not considered when making make-or-buy decisions
- A.
  
  True
- B.
  
  False
23.

Many companies have a lawyer on staff to manage the procurement management.
- A.
  
  True
- B.
  
  False
24.

The guaranteed profit type of contract for a third party supplier is the fixed cost contract.
- A.
  
  True
- B.
  
  False
25.

The type of contract that includes performance incentives is called:
- A.
  
  FP-EPA
- B.
  
  FFP
- C.
  
  FPIF
- D.
  
  CPFF