30 Manage Procurement Questions Answer and Explanation

Your construction project is in execution, and you require a major change to one of your supplier agreements. Can you directly make this change with mutual consent of the supplier during the Control Procurements process, or do you have to visit the Perform Integrated Change Control process, as well?

You have recently joined an organization as the procurements manager. You have just received an invoice from a contractor. Some of the items from the invoice are as follows: EV of work completed to date: $50,000. AC of work completed to date: $40,000. Total costs reimbursed by the buyer to date: $35,000. If the contract between the buyer and the contractor is a CPIF contract, what is the total value payable to this contractor? (Assume that the contract allows for a 10 percent fee over net payable whenever CPI > 1).

You are building a mile-long bridge on a T&M contract. During the excavation activity, you learned some telephone cables are crossing the alignment where you have to construct the bridge. You need to relocate these telephone cables, but there is no provision of such an activity in the contract. Further, the relocation of the cables is a costly task, and you need to do a lot of government paperwork, as well. You requested an amendment in the contract, but the buyer rejected it. Despite many efforts, you both could not resolve this issue. What should you do next?

Which of the following is not a tool or technique of the Control Procurements process?

Organizations evaluate whether to buy products or make the items themselves. Which of the following is not a factor that influences makeor-buy decisions:

Which of the following is an output of the Conduct Procurements process?

Three years back, your organization awarded a fixed price contract to a reputable local contractor to construct a new airport terminal in the city. A few days back, you received a change request from the contractor requesting to adjust the contract’s price. The contractor is claiming that as a result of the recent national recession, the prices of raw materials have gone up and he cannot complete the rest of the project at the contract price. Is the contactor’s request legitimate?

As part of the procurement process, the procuring organization elected to have an estimate of costs prepared by an outside professional estimator. The estimator came up with an estimate of $500,000. However, the cost estimates prepared by prospective sellers were in the range of $200,000. How can this be best interpreted?

The State of New York has contracted with your company to provide a claims payment system for Medicaid benefits. In the contract, a clause states that the State of New York can review your work processes and deliverables. This is an example of:

Project knowledge management is concerned with managing which type of project knowledge?

The performance reports produced during the Control Procurements process are then provided to which project management process for further processing?

You have received a proposal for an RFP that was sent to vendors. One of the vendors has proposed doing the project for $12,500. The cost for the project is $10,000, and their profit will be $2,500. Which type of contract is most suitable if the type of work is predictable and the requirements are well-defined and not likely to change?

You are the project manager for a Fortune 100 IT company, and you are currently engaged in an important project. You want to choose the best contractor for a specialized task. What should you do to evaluate potential contractors?

Large organizations typically manage a wide range of projects; from small projects to large initiatives requiring long-term commitments. Which of the following factors can be used in scaling such projects:

A project manager is looking at a make-or-buy analysis as part of the Procurement Management process. What type of costs should the project manager consider for this analysis?

If you had an experience with a particularly well or poorly performing vendor, what is the correct way to document this experience for future projects?

Which of the following techniques can help clarify the structure, requirements, and other terms of the purchases so that mutual agreement between a buyer and a seller can be reached prior to signing the contract?

A number of deliverables were submitted to the buyer as part of a project. Where would the project manager find documentation on the requirements for formal deliverable acceptance and on how nonconforming deliverables can be addressed?

Apart from the difference in the overall governance approach used for the projects performed under the predictive and adaptive lifecycles, the project manager should also be familiar with:

You have just received an invoice from your supplier that contains some uncertified items. Payments to the supplier are processed through your corporate accounts payable system only after certification of satisfactory work by the project quality control specialist. What should you do?

During the Control Procurements process, a number of documents might get updated due to various reasons. Which of the following components of the project management plan is least likely to get updated during this process?

What is the purpose of a bidder conference?

Which of these is not an input to the Control Procurements process?

Maintaining good supplier relationships should be important to all project managers. A good buyer-seller relationship is a partnership that results in a win-win situation that nurtures both parties. Which of the following is both a short- and long-term benefit of treating a supplier with courtesy, honesty, and fairness?

A project is contracted on a Cost-Plus-Fixed-Fee (CPFF) basis. The targeted cost is US$200,000 with a fee of US$30,000. If the project comes in at US$170,000, what would be the total cost of the contract?

In a manufacturing project, you have requested bids to procure stainlesssteel products. However, your sponsor insists that you conduct bidder conferences before selecting sellers. What mandatory standard in the PMI Code of Ethics and Professional Conduct is met by conducting bidder conferences?

Which of the following is accurate regarding agreements in Project Procurement Management?

Andy’s project stakeholders are not happy as the project is lagging behind schedule. During the executive committee meeting, Andy requests all stakeholders to keep their calm as most of the project deliverables have been completed and only quality inspections of these deliverables is pending. He assures the stakeholders that he is planning to crash the project to meet the completion deadline. What should be the stakeholders’ biggest concern now?

A project manager feels the need of updating one of the project supplier contracts to meet the project’s current needs. However, before any change requests, the project manager must know the right process to incorporate a change into this specific contract. What should he do first?

Rosanne is an experienced project manager working on a pharmaceutical project. This project involves two large vendors supplying chemical products with specific compositions for preparing drugs. While reviewing documents to see how a seller is performing, she notices the seller did not meet some of the contractual terms. Since it is a first-time violation, she would like to initiate a corrective action to bring the seller’s performance in line with the statement of work. Which of the following are not outputs of Rosanne’s effort?