Project Procurement Management (6)

Question 1

What are the processes in the project procurement management knowledge area?

Answer 1

Plan procurement management, conduct procurements, control procurements

Question 2

What are tailoring considerations for project procurement?

Answer 2

Complexity, physical location, governance and regulatory, availability of contractors

Question 3

What are agile considerations for project procurement?

Answer 3

Supplier might become part of development team, collaborate team and leads to shared risk model, master service agreements

Question 4

What are the inputs for plan procurement management?

Answer 4

Project charter, business docs (business case, benefits MP), PMP (scope, quality, resource MP, scope baseline), project docs (milestones, project team assignments, requirements, traceability matrix, resource requirements, risk register, stakeholder register), EEFs (marketplace, sellers, terms and conditions, legal, contract management, suppliers, payments system), OPAs (preapproved seller lists, formal policies, contract types)

Question 5

What are fixed-price contracts?

Answer 5

Fixed price for defined product, service or result

Good when no changes to scope are expected

Question 6

What is a firm fixed price?

Answer 6

Set at outset and not subject to change

Question 7

What is a fixed price incentive fee?

Answer 7

Price ceiling is set and all costs are responsibility of seller

Question 8

What is fixed price with economic price adjustments?

Answer 8

When seller spans over a number of years

Question 9

What is a cost-reimbursable contract?

Answer 9

Payments to seller for all actual costs plus fee for seller profit
Used if scope may change a lot during execution

Question 10

What is cost plus fixed fee?

Answer 10

Fixed fee is percentage of overall costs

Question 11

What is cost plus incentive fee?

Answer 11

Received predetermined incentive fee based on achieving objectives

Question 12

What is cost plus award fee?

Answer 12

Majority of fee is earned based on subjective performance criteria in contract

Question 13

What are time and material contracts?

Answer 13

Hybrid contract with aspects of fixed price and cost reimbursable

Question 14

What tools are used for plan procurement management?

Answer 14

Expert judgement, data gathering (market research), data analysis (make-or-buy analysis), source selection analysis, meetings

Question 15

What is make-or-buy analysis?

Answer 15

used to determine whether work or deliverables can best be accomplished by project team or should be outsourced

Question 16

What are the types of source selection analysis?

Answer 16

least cost, qualifications only, quality-based, quality and cost based, sole source, fixed budget

Question 17

What are the outputs of plan procurement management?

Answer 17

Procurement MP, procurement strategy, bid documents, procurement statement of work, source selection criteria, make-or-buy decisions, independent cost estimates, change requests, project doc updates (lessons learned, milestones, requirements, traceability matrix, risk register, stakeholder register), OPA updates (information on qualified sellers)

Question 18

What is least cost analysis for sourcing?

Answer 18

Good for getting standard or routine thing with well-established practices

Question 19

What is qualifications only analysis for sourcing?

Answer 19

Buyer establishes short lists and selects bidder with best credibility and experience

Question 20

What is quality-based sourcing?

Answer 20

Firm submits proposal with technical and cost details

Question 21

What is quality and cost based sourcing?

Answer 21

Allows cost to be included as factor in process

Question 22

What is sole source sourcing?

Answer 22

Ask specific seller to prepare proposal and negotiate

Question 23

What is fixed budget sourcing?

Answer 23

Disclosing available budget to invited sellers in RFP and selecting highest-ranking technical proposal within budget

Question 24

What are the components of the procurement MP?

Answer 24

Timing, metrics, roles, constrains and assumptions, legal,

Question 25

What are procurement strategies?

Answer 25

Delivery methods, contract payment types, procurement phases

Question 26

What are delivery methods?

Answer 26

Services provider with no subcontracting Services provider with subcontracting allowed Joint venture between buyer and service provider Service provider acts as representative

Question 27

What are procurement phases?

Answer 27

Sequencing or phasing, milestones, criteria for moving forward, monitoring progress, process for knowledge transfer

Question 28

What are the inputs for conduct procurements?

Answer 28

PMP (scope, requirements, communications, risk, procurement, configuration, cost), project docs (lessons learned, schedule, requirements, risk register, stakeholder register), procurement documentation (bid documents, SOW, independent cost estimates, source selection criteria), seller proposals, EEFs (laws, economics, marketplace, experience with sellers, agreements already in place), OPAs (prequalified sellers, policies, templates, financial policies, payment processes)

Question 29

What are the tools for conduct procurement management?

Answer 29

Expert judgement, advertising, bidder conferences, data analysis (proposal evaluation), interpersonal and team skills (negotiation)

Question 30

What are the outputs of conduct procurement management?

Answer 30

Selected sellers, agreements, change requests, PMP updates (requirements, quality, communications, risk, procurement, scope schedule and cost baseline), project document updates (lessons learned, requirements, traceability matrix, resource calendars, risk register, stakeholder register), OPA updates (list of sellers, information on relevant experience with sellers)

Question 31

What are the inputs for control procurements?

Answer 31

PMP (requirements MP, risk MP, procurement MP, change MP, schedule baseline), project docs (assumptions, lessons learned, milestones, quality reports, requirements, traceability matrix, risk and stakeholder registers), agreements, procurement documentation, approved change requests, work performance data, EEFs (contract change control system, marketplace, payments system), OPAs (procurement policies)

Question 32

What are the tools used for control procurements?

Answer 32

Expert judgement, claims administration, data analysis (performance reviews, earned value analysis, trend analysis), inspection, audits

Question 33

What are the outputs for control procurements?

Answer 33

Close procurements, work performance info, procurement doc updates, change requests, PMP updates (risk, procurement MPs, schedule and cost baseline), project doc updates (lessons learned, resource requirements, traceability matrix, risk register, stakeholder register), OPA updates (payment schedules, seller evaluation, lessons learned)

Question 34

What are constructive changes?

Answer 34

May be disputed by one party so they are uniquely identified and documented by project correspondence (claims)