Question 1

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.

Accepted Answer

The mentioned outputs are specific to the Conducting Procurements process, which includes activities such as evaluating bids, negotiating contracts, and selecting vendors or suppliers. Closing the Contract focuses on confirming that all work and deliverables have been completed, while Administering the Contract involves monitoring, verifying, and managing the performance of contracted parties. Requesting Seller Responses is a sub-process within Conducting Procurements, used to obtain proposals or bids from potential vendors or suppliers.

Question 2

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

Accepted Answer

Cost-reimbursable contracts involve payment to the supplier for direct and indirect actual costs, including overhead and profit. In these contracts, the buyer reimburses the supplier for all allowable costs incurred in performing the work, plus a fee usually representing profit. The types of cost-reimbursable contracts include cost plus fixed fee (CPFF), cost plus incentive fee (CPIF), and cost plus award fee (CPAF).

Question 3

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

Accepted Answer

Conducting procurements involves obtaining seller responses, selecting sellers, and awarding contracts as part of the procurement process. Planning purchases and acquisitions is the initial stage of procurement planning, while selecting sellers is a specific step within conducting procurements. Requesting seller responses is also a part of conducting procurements, but it is only one part of the overall process.

Question 4

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

Accepted Answer

Lump sum contracts involve a fixed total price for a well-defined product or service. This means that once the contract is signed, the vendor is responsible for delivering the product or service within the agreed-upon specifications and for the agreed-upon price. If the cost of delivering the product or service turns out to be more than the vendor anticipated, the vendor bears the additional costs. Lump sum contracts are often used for projects with clear deliverables and a defined scope of work.

Question 5

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.

Accepted Answer

According to the October 2005 ITAA report, spending for global sources of computer software and services was expected to grow at a compound annual rate of about 20 percent.

Question 6

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

Accepted Answer

Planning procurements involves identifying what needs to be procured, when it is needed, and how it will be procured. It is a key part of the procurement process as it sets the stage for the rest of the procurement activities, including conducting procurements and administering procurements.

Question 7

There are ____ main processes of project procurement management.

Accepted Answer

The PMBOK® Guide identifies four main processes of project procurement management, which are: Plan Procurement Management, Conduct Procurements, Control Procurements, and Close Procurements.

Question 8

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

Accepted Answer

The process mentioned in the question is specifically related to procurement contracts, which is why option C - closing procurements - is the correct answer. Options A, B, and D do not address the procurement process specifically.

Question 9

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

Accepted Answer

Outsourcing some information technology functions can be a great investment for many projects as it can help save costs, bring in specialized expertise, and allow for better focus on core business functions.

Question 10

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

Accepted Answer

The past performance record of the bidder is an important factor in evaluating bids, particularly for projects involving information technology. This allows the bidder to demonstrate their experience and expertise in similar projects, and provides the buyer with an indication of the bidder's ability to deliver the project successfully.

Question 11

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

Accepted Answer

E-procurement refers to the use of electronic methods and technologies to manage procurement functions such as requisitioning, tendering, purchasing, invoicing, and payment. Therefore, the statement is true.

Question 12

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

Accepted Answer

Experts often recommend balancing technical, management, and cost criteria based on the specific needs and priorities of the project, rather than universally prioritizing technical criteria.

Question 13

"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.

Accepted Answer

The statement highlights the benefit of outsourcing that allows the client organization to focus on its core business rather than spending valuable time and resources on information technology functions.

Question 14

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

Accepted Answer

The statement specifically mentions gaining access to specific skills and technologies, which falls under the benefit of outsourcing known as "Access skills and technologies." The other options (A, B, and D) are also benefits of outsourcing but are not mentioned in the statement.

Question 15

"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.

Accepted Answer

Economies of scale allow outsourcing suppliers to reduce costs, which can lead to reduced fixed and recurrent costs for the client.

Question 16

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 ____.

Accepted Answer

The ITAA-sponsored report stated that total savings from offshore resources during the 2005-2010 period are estimated to grow from $8.7 billion to $20.4 billion. Therefore, the best choice is B.

Question 17

"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.

Accepted Answer

Outsourcing provides flexibility in terms of being able to quickly scale up or down the workforce as needed during peak workloads. This allows the organization to avoid the expense of hiring and training new employees for short-term projects.

Question 18

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

Accepted Answer

Administering procurements involves managing relationships with sellers, monitoring contract performance, and making changes as needed to ensure successful completion of the project. This is the process of managing procurement relationships from start to finish.

Question 19

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

Accepted Answer

Contract negotiations are typically a part of the source selection process, as the government or organization must negotiate terms and conditions with the winning bidder before finalizing the contract.

Question 20

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

Accepted Answer

The main sections of an RFP typically include the statement of work, schedule or timeline, scope of services, evaluation criteria, and instructions for submitting a proposal.

Quiz 12: Project Procurement Management