Question 1

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.

Accepted Answer

A cost-plus-fixed-fee (CPFF) contract is the only option that fits the description provided in the question, which states that the buyer pays the supplier for allowable performance costs plus a fixed fee payment based on a percentage of estimated costs. The other options listed include a cost-plus-incentive-fee (CPIF) contract, which includes a variable fee based on the supplier's performance in meeting certain targets, a cost-plus-percentage-of-cost (CPPC) contract, which involves the supplier receiving a percentage of the total cost of the project as their fee, and a cost-plus-profit (CPPF) contract, which provides the supplier with a profit margin on top of their costs. None of these options include a fixed fee component, as required by the question.

Question 2

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

Accepted Answer

The answer of A(n)____________________ contract has the least amount of...

Question 3

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

Accepted Answer

The answer of _________________________ contracts are a hybrid of both...

Question 4

____ 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.

Accepted Answer

Constructive change orders are acts or omissions that have the same effect as a written change order, even if they are not formalized in writing. These changes can be authorized by someone with actual or apparent authority and can arise from actions such as verbal instructions, directives, or a course of conduct. Direct, destructive, and instructive change orders are not recognized terms in construction contracts.

Question 5

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

Accepted Answer

The answer of ____________________ means acquiring goods and/or services from...

Question 6

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

Accepted Answer

Buyers typically develop a short list of three to five top suppliers to have a few options to choose from while reducing the work involved in selecting a source. A list of one or two suppliers can be too limited, while a list of eight to ten or twelve to fifteen can be overwhelming and time-consuming to evaluate. Therefore, the best choice is B.

Question 7

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

Accepted Answer

SOW stands for "Statement of Work" and is a detailed description of the work that needs to be done for the procurement. RFQ stands for "Request for Quotation" and is a document used to request quotes from suppliers, while RFP stands for "Request for Proposal" and is used when more complex solutions are needed and a competitive bidding process is required. COW is not a common procurement term and is not relevant to this question.

Question 8

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

Accepted Answer

The answer of A(n)____________________ is a contract clause that allows...

Question 9

Many organizations use ____ and templates to generate SOWs.

Accepted Answer

Templates provide a framework for creating SOWs, ensuring consistency and completeness.

Question 10

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

Accepted Answer

RFP (Request for Proposal) is the document used to solicit proposals from prospective suppliers. RFQ (Request for Quotation) is a document used to request quotes for specific products or services. COW and SOW are not relevant to procurement documents.

Question 11

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

Accepted Answer

The answer of From the supplier's perspective,there is the least...

Question 12

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

Accepted Answer

CPIF (Cost Plus Incentive Fee) contract is the best choice for the given scenario. In this type of contract, the buyer agrees to pay the supplier for allowable performance costs along with a predetermined fee and an incentive bonus. The incentive bonus is based on the supplier's performance, which encourages the supplier to meet or exceed the performance targets. This type of contract is suitable when the expected costs are uncertain, and the buyer wants to incentivize the supplier to deliver the best possible outcome.

Question 13

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

Accepted Answer

A Cost Plus Percentage of Cost (CPPC) contract involves the buyer paying the supplier for allowable costs plus a predetermined percentage of those costs.

Question 14

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.

Accepted Answer

The answer of A(n)____________________ decision is one in which an...

Question 15

____________________ 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.

Accepted Answer

The answer of ____________________ can be used in various types...

Question 16

The term ____________________ is widely used in government.

Accepted Answer

The answer of The term ____________________ is widely used in...

Question 17

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

Accepted Answer

The answer of _________________________ involves completion and settlement of each...

Question 18

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.

Accepted Answer

The answer of A well-written ____________________-a mutually binding agreement that...

Question 19

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

Accepted Answer

The answer of ______________________________ includes the processes required to acquire...

Question 20

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

Accepted Answer

An RFQ (Request for Quotation) is a document used to solicit quotes or bids from prospective suppliers. It typically outlines the product or service requirements, as well as the terms and conditions of the purchase. It is commonly used in procurement processes to compare offers from multiple suppliers and select the most suitable one.

B) RFP (Request for Proposal) is also a document used to solicit offers from suppliers, but it typically requires more detailed information and a more comprehensive proposal than an RFQ.

C) COW (Certificate of Work) and D) SOW (Statement of Work) are not related to soliciting bids or quotes from suppliers.

Quiz 12: Project Procurement Management

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.