Chapter 12 PMBOK 5th edition - Practice Test #10
Which of the following is NOT included in a contract change control system? A Paperwork B Tracking systems C Approval levels D Change criteria
A contract change control system includes paperwork (Choice A), tracking systems (Choice B), approval levels (Choice C) and dispute resolution procedures. Change criteria (Choice D) is the correct answer because it does not apply. PMBOK® 12.3.2.1, pg 383
An independent estimate used when conducting procurements is sometimes used to: A Establish a budget estimate. B Serve as a benchmark of proposed responses. C Build an order of magnitude estimate. D Confuse prospective sellers.
Independent estimates are prepared by an outside professional estimator to serve as a benchmark on proposed responses (Choice B). PMBOK® 12.2.2.3, pg 376
Which of the following would have procurement procedures and policies? A Enterprise environmental factors B Project scope statement C Organizational process assets D WBS
Organizational process assets (Choice C) include formal procurement policies, procedures, and guidelines. PMBOK® 12.1.1.9, pg 362
Control Procurements is part of which project management Process Group? A Monitoring and Controlling B Planning C Closing D Executing
The Control Procurements process is performed as part of the Monitoring and Controlling Process Group (Choice A). PMBOK® 3.9, pg 61
Lusala wants to review the latest version of a vendor contract, but he has to dig through piles of originals, revisions and correspondence. What would have prevented this problem? A He should have shred obsolete papers B Integrated change control C A records management system D Information technology
A records management system (Choice C) is used by the project manager to manage contract and procurement documentation and records. PMBOK® 12.3.2.7, pg 384
What is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selections? A Weighting system B Ranking system C Quantification policy D Qualification measure
A weighting system (Choice A) can be used to establish a negotiating sequence by ranking all proposals by the weighted evaluation scores assigned to each proposal. PMBOK® 12.2, pg 373
Edwardo's project team is evaluating seller responses to their one-paragraph request for proposal (RFP). They requested proposals for building a new gym for the high school. What problem do you think Edwardo's team will face? A Inconsistent responses B Late responses C Expensive responses D Too many responses
Choice A is the correct answer. A one paragraph request for proposal (RFP) will not contain sufficient detail to ensure that the sellers understand the project. Procurement documents must be sufficient to ensure consistent, appropriate responses. PMBOK® 12.1.3.3, pg 368
Claims administration __________. A Involves resolving appeals B Always requires arbitration C Can only be invoked after contract closure D Requires litigation
Choice A is the correct answer. If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract. Settlement of all claims and disputes through negotiation is the preferred method. PMBOK® 12.3.2.6, pg 384
Which of the following is NOT an organizational process assets update associated with the Close Procurement process? A Procurement management plan B Procurement file as a complete set of indexed contract documentation including the closed contract C Deliverable acceptance D Lessons learned documentation
Choices B, C and D are all organizational process assets that are updated as outputs of the Close Procurements process. The procurement management plan (Choice A) is not updated at this stage of the project; therefore it is the correct answer. PMBOK® 12.4.3.2, pg 389
Which of the following is NOT part of the Conduct Procurements process? A Obtaining seller responses B Awarding the contract C Managing multiple sellers D Selecting a seller
Conduct Procurements is the process of obtaining seller responses (Choice A), selecting a seller (Choice D), and awarding a contract (Choice B). In this process, the team will receive bids or proposals and will apply previously defined selection criteria to select one or more sellers. It is not about managing multiple sellers, so Choice C is the correct answer. PMBOK® 12.2, pgs 371- 372
As the project manager, what tool would you use to determine how effectively a seller is meeting contractual objectives? A Inspections and Audits B Performance reporting C Expert judgment D Work performance information
Inspections and audits (Choice A) would help you verify compliance in the seller's work processes or deliverables. Work performance information (Choice D) is an output of the Control Procurements process, not a tool. Performance reporting (Choice B) provides management with information about how effectively the seller is achieving the contractual objectives. PMBOK® 12.3.2.4, pg 383
Annie has a well defined SOW and she wants to minimize costs. What type of contract should she use? A Cost plus fixed fee B Time and materials C Fixed-price D Fixed cost
The correct answer is Choice C. Fixed-price contracts involve setting a fixed total price for a defined product or service to be provided. Sellers under fixed price contracts are legally obligated to complete such contracts, with possible financial damages if they do not. This is a good choice for Annie since her SOW is well defined (she'll get what she expected) and the seller cannot exceed the contracted cost (minimize costs). PMBOK® 12.1.1.9, pg 362
In a firm fixed price (FFP) contract, the seller faces __________ risk and the buyer faces __________ risk. A Quality, cost B Cost, quality C Cost, schedule D Schedule, cost
The most commonly used contract type is the FFP. In this type of contract, any cost increases due to adverse performance is the responsibility of the seller. The buyer must precisely specify the product or services to be procured. So, in common language, the seller cannot charge more for the work, even if their costs go up; therefore, they face cost risk (Choice B). The seller is not motivated to provide a superior product, so the buyer faces quality risk (Choice B). PMBOK® 12.1.1.9, pgs 362-363
What provides guidance for coordinating procurement with other project aspects, such as scheduling and performance reporting? A The contract B Procurement documentation C The PMO D The procurement management plan
The procurement management plan (Choice D) describes how the procurement process will be managed from developing procurement documents through contract closure. PMBOK® lists many areas of guidance provided for within the procurement management plan. PMBOK® 12.1.3.1, pgs 366-367
Which of the following is included in the procurement management plan? A Types of contracts to be used B Selected providers C Qualified buyers D Contracts
The procurement management plan describes how the procurement processes will be managed from developing procurement documents through contract closure. It includes guidance for the types of contracts to be used. PMBOK® 12.1.3.1, pg 366
Updates to organizational process assets can come from all of these Control Procurements activities EXCEPT: A Correspondence. B Payment requests. C Contract negotiation. D Seller performance documentation.
Updates to organizational process assets can come from correspondence (Choice A), payment schedules and requests (Choice B), and seller performance evaluation documentation (Choice D). Contract negotiation (Choice C) is not performed during the Control Procurements process, and therefore is the correct answer. PMBOK® 12.3.3.5, pgs 385-386
By actively managing the contract and carefully wording the terms and conditions, what can be avoided? A Schedule rework B Spelling errors C Project risks D Change requests
By actively managing the contract life cycle and carefully wording the terms and conditions of the procurements, some identifiable project risks (Choice C) may be shared or transferred to a seller. PMBOK®12, pg 357
Which of these statements about contracts is FALSE? A A contract is a mutually binding legal agreement. B A contract can include change request handling. C Contracts are used only for complex procurements. D A contract is a legal relationship subject to remedy in the courts.
Choice C is the correct answer because it is false. A contract can be in the form of a simple purchase order or a complex document. Regardless of the complexity, a contract is a mutually binding legal agreement. PMBOK® 12.2.3.2, pg 377
Which of the following is NOT a tool or technique used with the Close Procurements process? A Procurement audits B Performance reporting C Records management system D Procurement negotiations
Choices A, C and D are all tools or techniques used with the Close Procurements process. Performance reporting (Choice B) is a tool and technique used with the Control Procurements process. PMBOK® 12, pg 356
Julie is trying to find vendors to manufacture components for her project. Which technique listed below will NOT help her get proposals from vendors? A Payment systems B Bidder conferences C Advertising D Independent estimates
Choices B, C and D are all tools and techniques for the Conduct Procurement process. Payment systems is a tool and technique used with the Control Procurement process. PMBOK® 12, pg 356
Which of the following statements about contract termination is FALSE? A Early terminations are handled in the Close Project or Phase process. B Contract termination may result from mutual agreement to terminate the contract. C Termination conditions should be documented in the contract. D Contract termination may result from default of one party.
Early termination of a contract is a special case of procurement closure that can result from a mutual agreement by both parties (Choice B), from the default of one party (Choice D), or for convenience of the buyer if provided for in the contract. The rights and responsibilities of the parties in the event of an early termination are contained in the terminations clause of the contract (Choice C). EARLY terminations are handled in the Close Procurements process, not in the Close Project or Phase process (end of the project or phase); therefore, Choice A is the correct (false) answer. PMBOK® 12.4, pgs 386-387
You are managing a project that has been outsourced to a vendor. During the final walkthrough, your team discovers that the vendor skipped an important deliverable. What should you have done? A Used integrated change control B Used inspections and audits C Withheld payment D Requested more performance reports
Inspections and audits (Choice B) can be conducted during the project to verify compliance in the sellers work processes or deliverables. If authorized by contract, some inspection and audit teams can include buyer procurement personnel. If you had used this tool and technique throughout the project, you would have discovered this problem before the final walkthrough. PMBOK® 12.3.2.3, pg 383
Where can Baird look to find a qualified sellers list? A Yellow pages B Project management plan C Procurement management plan D Organizational process assets
Organizational process assets include elements that can influence the Conduct Procurements process, such as listings of prospective and previously qualified sellers. PMBOK® 12.2.1.8, pg 375
Thinking about procurements, what is a key objective of lessons learned documentation? A To improve future procurements B To identify fault and place blame C To identify sellers not to work with in the future D To identify procurement process shortcomings
Placing blame (Choice B) is never a good project management technique. Choice D is not the best answer because lessons learned includes what went well, not just shortcomings. Choice C is also not a BEST choice. The BEST answer is Choice A since lessons learned is about being able to make improvements. Lessons learned, what had been experienced, and process improvement recommendations, should be developed for the project file to improve future procurements. PMBOK® 12.4.3.2, pg 389
Which of the following is an input to the Plan Procurement Management process? A Expert judgment B Requested changes C Make-or-buy analysis D Activity resource requirements
Plan Procurement Management has 9 inputs: project management plan; requirements documentation; risk register; activity resource requirements (Choice D); project schedule; activity cost estimates; stakeholder register; enterprise environmental factors; and organizational process assets. PMBOK® 12, pg 356
Procurement documents may include: A Rate sheets. B Proposal evaluations. C Required contractual provisions. D Proposals.
Procurement documents are used to solicit proposals from prospective sellers and include a description of the desired form of the response, the relevant statement of work (SOW) and any required contractual provisions (Choice C). PMBOK® 12.1.3.3, pg 368
Where would you find the procurement metrics used to manage contracts? A Procurement SOW B Procurement documents C Make-or-buy decisions D Procurement management plan
Procurement metrics to be used to manage contracts and evaluate sellers would be found in the procurement management plan (Choice D). PMBOK® 12.1.3.1, pg 366
Adam is looking for a list of qualified sellers. What process is he most likely performing today? A Conduct procurements B Plan Procurement Management C Control Procurements D Close Procurements
Qualified sellers is an input to the Conduct Procurements process (Choice A) as an organizational process asset. Since Adam is looking for the list, he is most likely conducting procurements. PMBOK® 12.2.1.8, pg 375
Which of the following terms indicates that the buyer will evaluate based on price? A Proposal B Bid C Offer D Acceptance
Terms such as bid, tender, or quotation are generally used when the seller selection decision will be based on price. PMBOK® 12.1.3.3, pg 368
Which of the following does NOT occur in the Close Procurements process? A Record updates B Deliverable verification C Close project D Information archiving
The Close Procurements process supports the Close Project or Phase process, but Close Project or Phase (Choice C) is a separate process in Project Integration Management. PMBOK® 12.4, pg 387
Which of the following statements about the Control Procurements process is TRUE? A Control Procurements includes managing early contract terminations. B Contracts cannot be changed. C Project managers should interpret all contracts. D Seller evaluations are performed to deny incentives
The Control Procurements process includes managing any early terminations (Choice A) of the contracted work (for cause, convenience, or default) in accordance with the termination clause of the contract. PMBOK® 12.3, pg 381
Which of the following contracts would likely include an incentive clause? A Time and materials (T&M) B Purchase order (PO) C Cost reimbursable D Fixed price
The correct answer is Choice C. Cost-reimbursable contracts involve payments (cost reimbursements) to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit. They may also include financial incentive clauses whenever the seller exceeds, or falls below, defined objectives such as costs, schedule, or technical performance targets. Three of the more common types of cost-reimbursable contracts in use are Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee (CPIF), and Cost Plus Award Fee (CPAF). PMBOK® 12.1.1.9, pg 363
After an inspection and audit, it is determined that there is a weakness the seller needs to correct. What is your next BEST course of action? A Update the lessons learned document B Inform management and wait for instructions C Contact legal to see if there has been a breach of contract D Correspond with the seller regarding the finding
Correspondence (Choice D) is an output of the Control Procurements process as an organizational process asset update. Contract terms and conditions often require written documentation of certain aspects of buyer/seller communications. This can include results of buyer audits and inspections that indicate weaknesses the seller needs to correct. PMBOK® 12.3.3.5, pg 386
Company policy requires you to advertise contract needs in your local paper. How does this benefit your project? A It can expand the list of potential sellers B It speeds up the source selection process C It makes it easier to contact vendors D It is always a legal requirement
Choice A is the correct answer. In general, advertising a request for proposal (RFP) is a good practice for all firms, because it expands the pool of responses. In some cases, it may also be a legal requirement. PMBOK® 12.2.2.5, pg 376
Which of the following is a Close Procurements input? A Procurement audits B Negotiated settlements C Procurement documents D Contract documentation
Procurement documents and project management plan are the only two inputs to the Close Procurements process. PMBOK® 12.4.1, pg 388
Andre's project team has finished their last major deliverable and the customer has accepted it. His team consisted of five local employees and fifteen contract team members. What is the next logical process? A Control Procurements B Close Procurements C Conduct Procurements D Close Project or Phase
Procurements have already been conducted (Choice C) and controlled (Choice A). It's not quite time to close the project or phase (Choice D), though. The next process the team will perform is the Close Procurements process (Choice B). The Close Procurements process addresses each contract applicable to the project or a project phase; this includes the contracts of the contracted resources who were on the project team. PMBOK® 12.4, pg 341
Dan's relationship with his vendor is strained because it takes so long for him to match invoices to contract lines and for his payables department to cut checks. What would increase the efficiency of the Control Procurements process? A Better proposal documents B Approved change requests C A records management system D Arbitration
A records management system (Choice C) can enhance the efficiency since it consists of a specific set of processes, related control functions, and automation tools that are consolidated and combined as part of the project management information system. PMBPOK 12.3.2.7, pg 339
Expert judgment is necessary for planning purchases. Which of the following is NOT consistent with using expert judgment? A Builds buy-in B Helps with input and output assessment C Helps develop seller evaluation criteria D Assists with legal terms in a contract
Expert technical judgment will often be used to assess the inputs and outputs (Choice B). Expert purchasing judgment can be used to develop or modify the criteria for evaluating seller proposals (Choice C). Expert legal judgment can assist with terms and conditions of unique procurements (Choice D). Choice A is the correct answer because it does not apply. PMBOK® 12.1.2.2, pg 365
Which of the following is NOT usually included in a procurement document? A Description of need B Response instructions C Price D Preferred contract type
Procurement documents are used to solicit proposals from prospective sellers and include a description of the desired form of the response, the relevant statement of work (SOW) and any required contractual provisions. Price (Choice C) is not included. PMBOK® 12.1.3.3, pg 368
Procurement performance reviews objectives do NOT include: A Identify successes and failures. B Determine progress with respect to the SOW. C Quantify seller's ability to perform the work. D Resolve disputes.
Procurement performance reviews (a tool and technique)objectives include identifying performance success or failure (Choice A), project progress with respect to the SOW (Choice B), and contract non-compliance, which allow the buyer to quantify the seller's demonstrated ability or inability to perform work (Choice C). Choice D is the correct answer because it does not apply. PMBOK® 12.3.2.2, pg 383
Conduct Procurements is part of which project management Process Group? A Monitoring and Controlling B Planning C Closing D Executing
The Conduct Procurements process is performed as part of the Executing Process Group (Choice D). PMBOK® 3.9, pg 61
For a CPIF contract, the total cost is estimated as $200,000 with an incentive award of $10,000 to complete the project on time. If the seller brings the contract in under cost estimate, they will share the savings with the buyer, with 70% going to the buyer, and 30% going to the seller. If the seller completes the project on time and actual final cost is $190,000, what will the total incentive award be? A $3,000 B $10,000 C $13,000 D $17,000
This is a cost plus incentive fee (CPIF) contract. The seller will receive the original $10,000 incentive award for completing the project on time. In addition, the seller will receive 30% ($3,000) of the $10,000 savings for finishing under cost. The seller will receive a total of $13,000 (Choice C). PMBOK® 12.1.1.9, pg 364
A __________ represents a mutually binding agreement that obligates the seller to provide something of value (e.g., specified products, services, or results) and obligates the buyer to provide monetary or other valuable compensation. A Service level agreement. B Contract. C Purchase order. D Fixed bid.
A contract (Choice B) represents a mutually binding agreement that obligates the seller to provide something of value (e.g., specified products, services, or results) and obligates the buyer to provide monetary or other valuable compensation. An agreement can be simple or complex, and may reflect tile simplicity or complexity of the deliverables or required effort. PMBOK® 12, pg 357
How does the buyer calculate the seller's profit in a fixed-price contract? A It's the contract amount B It's the contract amount less direct cost C The buyer cannot D It's the contract amount less indirect cost
Fixed-price contracts involve setting a fixed total price (including seller's profit) for a defined product or service to be provided. How much profit the seller includes is unknown to the buyer, and therefore the buyer cannot calculate the seller's profit (Choice C). The buyer understands that the seller is legally obligated to complete the contract for the agreed price, and may not realize any profits at all. The seller accepts this risk. PMBOK® 12.1.1.9, pg 362
Which of the following is NOT an input to the Conduct Procurements process? A Source selection criteria B Seller proposals C Procurement contract award D Procurement documents
Choices A, B and D are all inputs to the Conduct Procurements process. Agreements or procurement contract awards (Choice C) is an output. PMBOK® 12, pg 356
The tool and technique that defines the process by which the contract can be modified is the: A Procurement management plan. B Integrated change control process. C Records management system. D Contract change control system.
A contract change control system (Choice D) defines the process by which the procurement can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system ¡s integrated with the integrated change control system. PMBOK® 12.3.2.1, pg 383
All of the following statements about make-or-buy analysis are true EXCEPT: A Budget constraints may influence make-or-buy decisions. B Make-or-buy is a general management technique. C A buy decision requires a decision to lease or purchase. D Only direct costs need to be considered.
A make-or-buy analysis should consider all related costs; both direct costs and indirect support costs. PMBOK® 12.1.2.1, pg 365
A procurement audit is: A A structured review of the procurement process. B An inspection of delivered products. C An analysis of seller invoices. D The process of obtaining buyer acceptance.
A procurement audit is a structured review of the procurement process (Choice A) originating from the Plan Procurement Management process through the Control Procurements process. PMBOK® 12.4.2.1, pg 388
What is a structured review of the seller's progress to deliver project scope and quality, within cost and on schedule? A Inspection B Procurement performance review C Walkthrough D Audit
A procurement performance review (Choice C) is a structured review of the seller's progress to deliver project scope and quality, within cost and on schedule. PMBOK® 12.3.2.2, pg 383
The sellers who have been judged to be in a competitive range based on the bid evaluation, and who have negotiated a draft contract are: A Selected sellers. B Qualified sellers. C Quantified sellers. D Potential sellers.
A qualified seller (Choice B) is one who has been pre-screened for qualifications and past experience, so that procurements are directed to only those sellers who can perform on any resulting contracts. Quantified sellers (Choice C) is a made up term. Potential sellers (Choice D) is a vague term; these sellers may or may not be on the qualified sellers list. The correct answer is Choice A. Selected sellers are those who have been judged to be in a competitive range based upon the outcome of the proposal or bid evaluation, and who have negotiated a draft contract that will become the actual contract when an award is made. PMBOK® 12.2.3.1, pg 377
You are reviewing a 5-year contract for $2,500,000. After negotiations, a decision is made to allow a price increase in the second year based on any increases in specific equipment costs. This is important because, as the buyer, you are concerned about future economic conditions. The seller will also be protected. What kind of contract are you dealing with? A Cost Plus Percentage of Costs contract (CPPC) B Fixed Price Economic Price Adjustment contract (FPEPA) C Fixed Price Award Fee contract (FPAF) D It doesn't matter. You have to finish closing contracts before closing the project
Choice B is the correct answer. The Fixed Price with Economic Price Adjustment contract (FP-EPA) is used whenever the sellers performance period spans a considerable period of years. It is a fixed-price contract, but with a special provision allowing for pre defined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities. PMBOK® 12.1.1.9, pg 363
You are managing an office move project and you need to find a reliable office designer. Although you are new to this type of project, you know your firm experiences several office move projects a year. Your PMO manager gives you good advice for finding a designer. What might it be? A Use the one she used last B Consult the organizational process assets C Send out a request for quotation (RFQ) D Use a purchase order
Choice B is the correct answer. The results of previous projects' sellers evaluations will be stored in organizational process assets (as an output of the Control Procurements process). PMBOK® 12.3.3.5, pg 386
Deliverable acceptance is: A Written by the seller. B A document outlining project requirements. C Documentation of formal acceptance of seller-provided deliverables. D Needed to write a request for proposal (RFP).
Choice C is the correct answer. Documentation of formal acceptance of seller-provided deliverables may be required to be retained by the organization. The Close Procurement process ensures this documentation requirement is satisfied. Requirements for formal deliverable acceptance and how to address nonconforming deliverables are usually defined in the agreement PMBOK® 12.4.3.2, pg 389
Which of the following is NOT an objective of Control Procurements? A Integrate contract outputs into the project B Make sure contract terms are met C Determine how well a seller is performing D Link buyer compensation to seller performance
Choice D is the correct answer, because it is not true. The seller is compensated, not the buyer. PMBOK® 12.3, pg 379
Which of the following terms indicates that the buyer will evaluate the response based on technical factors? A Bid B Quote C Tender D Proposal
Choice D is the correct answer. Bid, quotation and tender all indicate that the buyer is looking at price terms. Proposal indicates that the buyer is interested in other considerations, such as technical capability or technical approach. PMBOK® 12.1.3.3, pg 368
The seller has delivered all items listed in the SOW, but the buyer rejects some of them. What should the seller do? A Sue the buyer B Take back all the deliverables C Expect less money D It depends upon the contract terms
Choice D is the correct answer. Requirements for formal procurement closure are usually defined in the terms and conditions of the contract and are included in the procurement management plan. They will dictate what rights the buyer and seller have in this situation. PMBOK® 12.4.3.1, pg 389
Your project's vendor requests a change to the contract. What should you do next? A Deny the change B Perform claims administration C Enter arbitration D Submit the change
Choice D is the only one that makes any sense. A contract change control system defines the process by which the procurement can be modified. It includes the paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes. The contract change control system is integrated with the integrated change control system. PMBOK® 12.3.2.1, pg 383
Which of these statements related to the Conduct Procurements process is FALSE? A Analytical techniques can help organizations identity the readiness of a vendor to provide the desired end state. B On complex procurements, where source selection will be made based on seller responses to previously defined weighted criteria, a formal evaluation review process will be defined by the buyers procurement policies. C Advertising in trade publications is a good place to start to build a list of potential sellers. D Procurement negotiations conclude with a contract document that can be executed by both buyer and seller.
Choices A (analytical techniques), B (proposal evaluation techniques), C (advertising), and D (procurement negotiations) are all tools and techniques used with the Conduct Procurements process. However, advertising in specialty trade publications (Choice C) is often used to EXPAND an existing list of potential sellers, but it is not the place to START to build a list of potential sellers. A better place to start is with the company's organizational process assets, which will have listings of prospective and previously qualified sellers. Choice C is the correct answer because it is false. PMBOK® 12.2.2, pgs 375-337
Inputs to Conduct Procurements include all of the following EXCEPT: A Make-or-buy decisions. B Source selection criteria. C Procurement documents. D Selected sellers list.
Choices A, B and C are all inputs to the Conduct Procurements process. Selected sellers (Choice D) is an output. PMBOK® 12, pg 356
How does the Close Procurement process support the Close Project or Phase process? A Indicates that nothing more needs to be procured B Informs the project manager that the project or phase is near completion C Ensures contractual agreements are completed or terminated D Releases invoices for payment
Choices A, B and D really don't apply to Close Procurements. The Close Procurements process supports the Close Project or Phase process by ensuring contractual agreements are completed or terminated. PMBOK® 12.4, pg 387
Outputs of the Conduct Procurements process do NOT include: A Selected sellers. B Qualified sellers. C Agreements D Resource calendar.
Choices A, C and D are all outputs of the Conduct Procurements process. Qualified sellers (Choice B) is not an output, and is therefore the correct answer. PMBOK® 12.2.3, pgs 377-379
Guiren's project team is making steady progress. Some of his team members are internal resources and others are engaged through a time and materials contract. Guiren is responsible for controlling procurements. Which of the following will he need to support his work? A Expert judgment B Schedule model C Work performance reports D Organizational program assets
Guiren needs process inputs (such as work performance reports) to help him with his work. Of all the answer choices, work performance reports (Choice C) is the only answer choice that is an input to the Control Procurements process. PMBOK® 12.3, pg 379
Which of the following would NOT be a major component of an agreement contract? A Pricing B Roles and responsibilities C Warranty D Risk register
Project documents that are often considered with the Conduct Procurements process include the risk-related contract decisions included within the risk register (Choice D), but the risk register is not a component of agreements. PMBOK® 12.2.3.2, pgs 377-378
Which of the following statements about selecting a seller is TRUE? A Project teams should select the lowest cost seller. B The selection process should produce one seller for each product. C Selection criteria can be limited to price if the item is available from multiple sellers. D The project manager selects the sellers.
Selection criteria can be limited to purchase price if the procurement item is readily available from a number of acceptable sellers. PMBOK® 12.1.3.4, pg 368
__________ can include information on the suppliers required capabilities, capacity, delivery dates, product cost, life-cycle cost, technical expertise, and the approach to the contract. A Selected seller list. B Quantified seller list. C Source selection criteria D Requested seller list.
Source selection criteria (Choice C) can include information on the suppliers required capabilities, capacity, delivery dates, product cost, life-cycle cost, technical expertise, and the approach to the contract. PMBOK® 12.2.1.3, pg 373
Understanding of need, technical approach, financial capacity and overall cost are all examples of: A Stakeholder management. B Project scope statement. C Contract terms and conditions. D Source selection criteria.
Source selection criteria (Choice D) are often included as a part of the procurement solicitation documents. Many criteria are listed in PMBOK®. Understanding of need, technical approach, financial capacity and overall cost are four examples of source selection criteria. PMBOK® 12.1.3.4, pgs 368-369
What process ensures that the seller's performance meets procurement requirements and that the buyer performs according to the terms of the contract? A Plan Procurement Management B Conduct Procurements C Control Procurements D Close Procurements
The Control Procurements process (Choice C) ensures that both the seller's and buyer's performance meets procurement requirements according to the terms of the legal agreement. PMBOK® 12.3, pg 379
Which of the following is NOT an objective of a procurement audit? A Identify successful procurement processes B Identify failed procurement processes C Correct product quality problems in the project D Help prepare other contracts for the performing organization
The objective of the procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project or on other projects within the performing organization. PMBOK® 12.4.2.1, pg 388
Chen has a set of very complex proposals to evaluate. His project needs a contracted real-time inventory management solution. What is his next BEST action? A Evaluate the proposals B Award the project to the best proposal C Form a multi-discipline review team D Pick the lowest bid
This is a complex SOW. Evaluation of such proposals may be accomplished by a multi-discipline review team (Choice C) with expertise in each of the areas covered by the procurement documents and proposed contract. PMBOK® 12.2.2.4, pg 376
You are trying to plan procurements and need to know more about legal implications regarding health, safety, security and intellectual property rights. What will best help you gain more knowledge about these topics for your particular procurements? A Your corporate library B Requirements documentation C Vendor procurement contracts D The corporate database
You are looking for inputs to the Plan Procurement Management process. Requirements documentation (Choice B) will include contractual and legal implications that may include health, safety, security, performance, environmental, insurance, intellectual property rights, equal employment opportunity, licenses, and permits - all of which are considered when planning for procurements. PMBOK® 12.1.1.2, pg 361
