Project Management and IT- chapter 12

Suppliers are those organizations or individuals who provide procurement services.

True

While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers.

True

Project procurement management consists primarily of two processes: assessing procurements and controlling procurements.

False

If an organization has no need to buy any products or services from outside the organization, then it has no need to perform any of the procurement management processes.

True

Risk registers and stakeholder registers are outputs of the planning procurement process.

False

A single contract can include all three categories of contracts.

True

Indirect costs are those costs can be traced back to a project in a cost-effective way.

False

Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.

False

The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.

False

In unit pricing, the total value of the contract is a function of the quantities needed to complete the work.

True

All contracts should include specific clauses that take into account issues unique to the project.

True

In an FPI contract, all of the risk is borne by the buyer.

False

An FP-EPA contract carries the least risk for a supplier.

False

Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing.

True

Contents of the procurement management plan vary with project needs.

True

The main sections of an RFP can include the statement of work and schedule information.

True

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

True

Reviewing performance records reduces the risk of selecting a supplier with a poor track record.

True

In project procurement management, a main output of the controlling process is a source selection criteria.

False

The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws

True

The closing procurements process involves updating records to reflect final results and archiving information for future use.

True

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

True

"A shortage of qualified personnel is one of the main reason that companies outsource. A project may require experts in a particular field for several months and planning for this procurement ensures that the needed services will be available for the project." Which of the following benefits does this characteristic of outsourcing provide an organization?

C. Provides access to specific skills

Outsourcing suppliers can often provide economies of scale, especially for hardware and software, that may not be available to the client alone. Which of the following benefits does this offer an organization?

A. Reduction in fixed and recurrent costs

"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 instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem." Which of the following benefits does outsourcing primarily provide in such a scenario?

D. Helps force on an organization’s core business

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations?

B. Provides a company flexibility in staffing

A drawback of outsourcing is that:

C. it can make an organization become overly dependent on particular suppliers.

The first step in project procurement management is:

D. planning procurement management.

In project procurement management, the process of _____ involves determining what to procure, when, and how.

D. planning procurement management

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.

A. Conducting Procurements

Outputs of the _____ process consist of selected sellers and resource calendars.

B. Conducting procurements

Which of the following processes of project procurement management involves managing relationships with sellers, monitoring contract performance, and making changes as needed?

D. Controlling procurements

In project procurement management, which of the following processes involve completion and settlement of each contract, including resolution of any open items?

C. Closing procurements

The procurement statements of work are an output of the _____ process of project procurement management.

A. Planning

In project procurement management, the process of conducting procurements is part of the _____ process.

B. Executing

In project procurement management, which of the following is an output of the executing process?

D. Resource Calender

In project procurement management, an output of the _____ monitoring and controlling process.

A. Change Request

Which of the following is true of lump-sum contracts?

B. They involve a fixed total price for a well-defined product or service.

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

C. Cost-reimbursable contracts

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

B. CPIF

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

In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs?

C. CPPC

From the buyer’s perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

D. CPPC

A(n) _____ contract carries the least risk for suppliers.

A. CPPC

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

D. SOW

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

C. REP

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

A. RFQ

After planning for procurement management, which of the following does the next process involve?

D. Sending appropriate documentation to potential sellers

In project procurement management, which of the following is one of the main outputs of the conducting procurement process?

A. A selected seller

The process of choosing suppliers or sellers is known as _____.

A. Source Selection

Which of the following is an output of the contract closure process?

B. Updates to organizational process