Project Management Professional (PMP)® Exam Prep …groupon.videotrainer.com/training/accts/careeracademy/courses/... · Project Management Professional (PMP)® Exam Prep Chapter

PMI, PMBOK and PMP are registered marks of the Project Management Institute, Inc.

Project Management Professional (PMP)®

Exam Prep

Chapter 12 - Project Procurement

Management



Slide 1

Looking Glass Development, LLC

(303) 663-5402 / (888) 338-7447

4610 S. Ulster St. #150 Denver, CO 80237

[email protected]

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 2

Processes to purchase or acquire the

products, services, or results needed from outside the project team to

perform the work

Unless otherwise noted,

consider yourself the BUYER

9 / 1 3 /20 13 2v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.

Planning Process Group

12. Project

ProcurementManagement

12.1Plan

ProcurementsManagement

Executing Process Group

12. Project


12.2Conduct

Procurements

Monitoring and Controlling Process Group

12. Project


12.3Control

Procurements

12. Project


Closing Process Group

12.4Close

Procurements

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 3

12.1 Plan ProcurementsIdentify which project needs can best be met by purchasing or acquiring products, services or results outside the project organization.Consider potential sellers, permits, licenses.Project schedule greatly influences, and is influenced by, purchase and acquisition decisions.Review risks & types of contracts.


Planning Process Group

12. Project


12.1Plan

Procurements

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 4

12.1 Plan Procurements


Inputs.1 Project management plan

.2 Requirements

documentations

.3 Risk register

.4 Activity resource requirements

.5 Project schedule

.6 Activity cost estimates

.7 Stakeholder register

.8 Enterprise environmental

factors

.9 Organizational process assets

Tools & Techniques.1 Make-or-buy analysis

.2 Expert judgment

.3 Market research

.4 Meetings

Outputs.1 Procurement

management plan

.2 Procurement statements of work

.3 Procurement documents

.4 Source selection criteria

.5 Make-or-buy decisions

.6 Change request

.7 Project documents updates

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 5

Definition of a Contract..

Contract Type Selection – The type of contract used is dependent on the

degree of uncertainty facing the project manager


Seller’s Risk HighLow

CPPC

Cost Plus

Percentage

Of Costs

CPFF

Cost Plus

Fixed Fee

CPIF

Cost Plus

Incentive

Fee

FPPI

Fixed Price

Plus

Incentive

FFP

Firm-Fixed

Price or

Lump Sum

High Buyer’s RiskLow

Cost-Reimbursable / T & M Fixed Price

Contract Types

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 6

Procurement Management PlanDescribes managing procurement from developing procurement documentation through contract closure.Types of contractsRoles and responsibilities, authorityCoordinationConstraints and assumptionsTimeframesPre-qualified sellersMetrics


____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 7

12.2 Conduct ProcurementsProcess of obtaining seller responses, selecting a seller, & awarding a contract.

Consider ◦ Project risks and contractual agreements◦ Activities resource requirements◦ Activity cost estimates◦ Cost and schedule baselines


Executing Process Group

12. Project


12.2Conduct

Procurements

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 8

12.2 Conduct Procurements




.3 Source selection criteria

.4 Seller proposals

.5 Project documents

.6 Make-or-buy decisions

.7 Procurement statement of work

.8 Organizational process assets

Tools & Techniques.1 Bidder conferences

.2 Proposal evaluation

techniques

.3 Independent estimates

.4 Expert judgments

.5 Advertising

.6 Analytical techniques

.7 Procurement negotiations

Outputs.1 Select sellers

.2 Agreements

.3 Resource calendars

.4 Change requests

.5 Project management plan updates

.6 Project document

updates

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 9

Source Selection Criteria Understanding of need Financial capacity

Life-cycle cost Technical approach

Technical capability Business size & type

Management approach References

Production capacity &interest

Intellectual & otherproperty rights

9 / 1 3 /20 13v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC. 9

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 10

12.3 Control ProcurementsManage procurement relationships

Monitor contract performance

Make changes & corrections as needed

Both the buyer & seller administer contract

Both parties must meet obligations

Manage interfaces amongproviders on large projects


Monitoring and Controlling Process Group

12. Project


12.3Control

Procurements

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 11

12.3 Control Procurements


Inputs.1 Project management

plan


.3 Agreements

.4 Approved change requests

.5 Work performance

reports

.6 Work performance data

Tools & Techniques.1 Contract change

control system

.2 Procurement performance reviews

.3 Inspections & audits

.4 Performance reporting

.5 Payment systems

.6 Claims administration

.7 Records management system

Outputs.1 Work performance

information

.2 Change requests

.3 Project management plan updates

.4 Project document updates

.5 Organizational process assets updates

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 12

12.4 Close ProcurementsProcess supports the Close Project or Phase Process.

Involves verification that all work & deliverable were acceptable.

Administrative activities such as finalizing open claims and updating records.

Could lead to litigation.


12. Project


Closing Process Group

12.4Close

Procurements

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 13

Negotiate SettlementsSpecial case of contract closure

Mutual agreement or default

Terms are in the contract

Buyer may have to compensate seller


____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 14

12.4 Close Procurements




Tools & Techniques.1 Procurement audits

.2 Procurement

negotiations

.3 Records management system

Outputs.1 Closed procurements

.2 Organizational

process assets updates

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________


Slide 15

Project Procurement Management – Summary

Four (4) ProcessesKnow components in each processYou are THE BUYER unless otherwise statedRecognize scenarios to use each type of contractBuyer/Seller risk for types of contractsUse and importance of evaluation criteria

9/19/2013 15v. 7.0 - © Copyright and all rights reserved –2013 Looking Glass Development, LLC.

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________

____________________________________________________________________________



Review Questions:

1. Which of the following is not an input to the plan procurement management

process?

A. Scope statement

B. Requirements documentation

C. Risk register

D. Organizational process assets


process?

A. Teaming agreements

B. Project schedule

C. Activity cost estimates

D. Stakeholder register


process?

A. Risk register

B. Activity cost estimates

C. Activity lists

D. Enterprise environmental factors

4. Which of the following is not a tool or technique used in the plan procurement

management process?

A. Make or buy analysis

B. Expert judgment

C. Market research

D. Proposal evaluation techniques

5. Which of the following is a tool or technique used in the plan procurement

management process?

A. Meetings

B. Independent estimates

C. Proposal evaluation techniques

D. Records management system


6. Which of the following is not an output from the plan procurement management

process?

A. Procurement management plan

B. Project management plan updates

C. Procurement statements of work

D. Make or buy decisions


process?

A. Procurement statements of work

B. Procurement documents

C. Contracts

D. Source selection criteria


process?

A. Change requests

B. Source selection criteria

C. Make or buy decisions

D. Organizational process asset updates

9. Which of the following is not an input to the conduct procurements process?

A. Organizational process assets

B. Procurement documents

C. Risk-related contract decisions

D. Source selection criteria


A. Seller proposals

B. Work performance information

C. Organizational process assets



A. Organizational process assets



D. Approved change requests


12. Which of the following is an input to the conduct procurement process?

A. Approved change requests


C. Risk register

D. Activity resource requirements

13. Which of the following is not a tool or technique used in the conduct

procurements process?

A. Bidder conferences

B. Independent estimates

C. Inspections & audits

D. Advertising

14. Which of the following is not a tool or technique used in the conduct

procurements process?

A. Analytical techniques

B. Advertising

C. Independent estimates

D. Internet search

15. Which of the following is a tool or technique used in the conduct procurement

process?

A. Analytical techniques

B. Payment systems

C. Change request


16. Which of the following is a tool or technique used in the conduct procurement

process?

A. Contract types

B. Payment systems

C. Procurement negotiations


17. Which of the following is not an output from the conduct procurements process?

A. Resource calendars

B. Activity resource requirement updates

C. Change requests

D. Project management plan updates


18. Which of the following is not an output from the conduct procurements process?

A. Make or buy decisions

B. Selected sellers

C. Agreements

D. Project document updates

19. Which of the following is not an input to the control procurements process?

A. Work performance reports

B. Change requests

C. Procurement documents

D. Work performance data

20. Which of the following is not an input to the control procurements process?

A. Expert judgment

B. Approved change requests

C. Agreements

D. Performance reports

21. Which of the following is an input to the control procurements process?

A. Source selection criteria

B. Work performance data

C. Seller proposals

D. Organizational documents

22. Which of the following is not a tool or technique used in the control procurements

process?

A. Contract change control system

B. Procurement performance reviews

C. Performance reporting

D. Proposal evaluation techniques

23. Which of the following is not a tool or technique used in the control procurement

process?

A. Inspections and audits

B. Expert judgment

C. Payment systems

D. Claims administration


24. Which of the following is not a tool or technique used in the control procurements

process?

A. Contract types

B. Records management system

C. Claims administration

D. Performance reporting

25. Which of the following is a tool or technique used in the control procurements

process?

A. Records management system

B. Expert judgment

C. Internet search

D. Independent estimates

26. Which of the following is not an output from the control procurements process?

A. Work performance information

B. Organizational process asset updates

C. Change requests

D. Procurement documents

27. Which of the following is an output from the control procurements process?

A. Approved change requests

B. Project information

C. Work performance information

D. Contract updates

28. Which of the following is an input to the close procurement process?

A. Contracts

B. Project management plan

C. Organizational process assets

D. Approved change requests

29. Which of the following is an input to the close procurement process?

A. Procurement contract award

B. Resource calendars

C. Updated project documents

D. Procurement documents


30. Which of the following is not a tool or technique used in the close procurement

process?

A. Expert judgment

B. Procurement audits

C. Procurement negotiations


31. Which of the following is not a tool or technique used in the close procurements

process?

A. Records management system

B. Contract evaluation techniques

C. Procurement audits

D. Procurement negotiations

32. Which of the following is an output to the close procurements process?

A. Project management plan updates

B. Project document updates

C. Organizational process assets updates

D. Procurement documentation updates

33. Which of the following is an output to the close procurements process?

A. Closed procurements

B. Approved change requests

C. Closed contracts

D. Completed claims administration

34. Which of the following is not a process found in the procurement management

knowledge area?

A. Plan procurement management

B. Conduct procurements

C. Administer contracts

D. Close procurements

35. Once signed, a contract is legally binding unless:

A. It is declared void by appropriate legal counsel

B. One party fails to meet its financial obligation

C. One party fails to deliver the contracted good or service

D. It is in violation of applicable law


36. You are leading a project that requires you to purchase goods and services from

a third party. You negotiate and sign a contract and the contractor provides the

desired product. However, you feel the product does not meet specifications.

The contract is considered to be:

A. Closed

B. Null and void

C. Incomplete

D. Complete

37. Which of the following represents the primary purpose of contract negotiations?

A. To define objectives and stick to them

B. Provide protection for the relationship

C. Gain the greatest financial return

D. Gain the most from the other side

38. Which of the following statements about change control is true and correct?

A. Changes rarely benefits the project

B. A firm fixed price contract minimizes the need for change control

C. The contract should include procedures to accommodate changes

D. More detailed specifications eliminate the causes of changes

39. Which of the following best explain the purpose of incentive clauses in contracts?

A. Reduce risks for the buyer by shifting them to the seller

B. Synchronize objectives

C. Help the seller control costs

D. Help the buyer control costs

40. Which of the following statements concerning procurement documents is true

and correct?

A. Well-designed procurement documents can simplify comparison of

responses

B. In general bid documents should not include the evaluation criteria

C. RFPs are generally the best way to get unbiased proposals

D. Procurement documents are best when they are rigorous and avoid

flexibility to prevent miscommunication


41. Which of the following activities is the best thing for a project manager to do

when completing the conduct procurements process found in the procurement

management knowledge area?

A. Update and evaluate risks

B. Update the budget and schedule

C. Answer the sellers' questions about bid documents

D. Select a contract type

42. Which of the following activities occurs during the plan procurements process?

A. Advertising

B. Answering sellers' questions about the bid documents


D. Proposal evaluation

43. Which of the following is a key objective during contract negotiations?

A. Negotiate a price that meets or exceeds the buyers expectations

B. Obtain a fair and reasonable price

C. Ensure that and effective procurement management process is

established

D. Ensure that all project risks are thoroughly delineated

44. Which of the following best describes the role of the project manager during the

procurement process?

A. The project manager is secondary to the contracting manager

B. The project manager is the primary negotiator

C. The project manager tells the contract manager how the contracting

process should be handled

D. The project manager supplies an understanding of the risks of the project

45. Which of the following is not required in a contract?

A. Acceptance

B. Procurement statement of work

C. Address of the buyer

D. Buyers' signature

46. In which of the following processes would you find bidder conferences?

A. Plan procurements


C. Control procurements

D. Monitor and control procurements


47. You are leading a project that has a number of work packages that are being

completed by external resources. One work package is being completed by a

contractor working on a cost reimbursable contract. You have determined that

the scope of the project must be expanded for this contractor. Additionally, you

are concerned about cost control and would like to change the contract to a firm

fixed price contract. All of the following are the seller's options except:

A. Starting over with a new contract

B. Negotiating a fixed price contract that includes all the desired work

C. Completing the original work and rejecting the additional scope

D. Completing the original work using the original cost reimbursable contract

and then negotiating a new firm fixed price contract for the additional work

48. Which of the following is a reason for centralized contracting?

A. Deeping expertise

B. No single location

C. Increased loyalty to the project

D. Easier access to expertise

49. You are leading a large project and are attempting to negotiate a complex

contract. In the middle of the meeting the selected seller informs you that "they

need to finish up in the next 90 minutes so they can catch an airplane." What

kind of negotiating strategy is this?

A. Extreme demands

B. Delay

C. Good cop, bad cop

D. Deadline

50. You have been tasked with establishing a records management system for a

large project. You are trying to make sure all the records from the procurements

are properly documented and indexed. Which of the following are not concerned

about?

A. Negotiation process

B. Proposal

C. Procurement statement of work

D. Terms and conditions


51. You have been asked to lead a mid-sized project for your organization. Your

sponsor is very concerned about one particular seller that must be used on the

project and wants to make sure you are minimizing the risk to your organization.

You suggest using a firm fixed price contract. Which of the following explains the

recommendation?

A. Schedule risk will be fixed

B. Cost risk will be lower

C. The buyer owns most of the risk

D. Risk is shared equally by all parties

52. You are leading a project that has been in process for 13 months. You are

nearing the completion of a major deliverable that was completed by an external

resource using a cost reimbursable contract. You have entered the close

procurements process. Which of the following must you remember to do?

A. Make sure the seller is not adding work to the contract

B. Make sure the seller is not adding resources

C. Audit the seller's cost submittals

D. Decrease the risk rating of the project

53. You have been asked to lead a mid-sized project for your organization. Your

sponsor is very concerned about one particular seller that must be used on the

project and wants to make sure you are minimizing the risk to your organization.

You suggest using a firm fixed price contract. In a firm fixed price contract, the

fee or profit is:

A. Specifically stated as a line item in each invoice

B. Determine through negotiation at the end of the contract

C. Unknown

D. Part of the negotiation involved in paying every invoice

54. You are leading a large engineering project for your organization. As part of the

standard reporting process you are required to submit earned value calculations

such as SPI, CPI and TCPI. One day your sponsor comes into your office

concerned about your largest contractor gaining extra profit on the CPFF

contract. You explain that they should not be worried about this issue. Which of

the following best justifies this statement?

A. All cost invoices are being audited

B. The seller only receives their fee once the project is completed

C. You are making sure the seller does not cut scope

D. There can only be a maximum 10% increase if there is an unexpected

overrun


55. You are the project manager on a project that is part of a large space program.

Another project manager on the program has just come to you for advice. Their

project currently has limited scope definition and she is very concerned about

protecting the organization from financial risks. Which is the best contract type to

choose?

A. Firm fixed price

B. Cost plus fixed fee

C. Cost plus percentage of cost

D. Cost plus incentive fee

56. You are in the middle of developing a RFP. What part of the procurement

process are you in?



C. Monitor and control procurements


57. You are leading an especially difficult team attempting to complete a large project

that has significant risk to the organization. You are in the middle of your

standard Monday morning meeting where you are attempting to determine

whether the team should produce a particular deliverable themselves or

outsource it to an external party. In what part of the procurement process are

you currently?





58. Your team is meeting and discussing the proposals received to produce a large

required deliverable. The team is about equally split on which provider they

prefer. In what part of the procurement process are you currently?






59. In what part of the procurement process are you in if you are attempting to

complete procurement negotiations?





60. You are leading a project and have just lost a critical internal resource due to

illness and long term disability. The work is very important and cannot be done

by an internal resource. You have decided to make use of an external contractor

to complete the deliverable. Time is of the essence and the deliverable must be

completed quickly. Under these circumstances, which of the following would be

the most helpful to add to the contract?

A. A force majeure clause

B. Schedule targets

C. A clear procurement statement of work

D. Incentives

61. With which type of contract is the seller to be most likely concerned about project

scope?

A. Cost plus fixed fee

B. Cost plus incentive fee

C. Fixed price plus incentive fee

D. Firm fixed price

62. You are leading a very complex project. Part of your job required you to

negotiate the contract with a large reseller. Throughout the negotiations you

required minutes to be kept which you also required the reseller to sign as true

and accurate. Now, several months later the seller is claiming they are not

required to complete certain components of work because they appear in your

notes and not the contract. In this case the seller is:

A. Generally incorrect, because all signed agreements must be upheld

B. Correct because there was a tender and agreement

C. Generally correct, because both parties are only required to perform what

is in the contract

D. Incorrect, because both parties are required to comply with what they

agreed upon


63. Which of the following best explains the differences between the close project or

phase process and the close procurements process?

A. Close procurements occurs before close project or phase

B. Close procurements does not include the integration process

C. Close procurements is done more than once for each individual contract

D. Close procurements does not involve the customer and close project or

phase does

64. You are the project manager on a large petrochemical project. You have

awarded the primary contract to build the required facility to a large European

engineering firm. Within the contract is specific language that requires the

contract to submit a work plan to you for approval prior to initiating work.

However, the seller has failed to provide one prior to commencing work. Which

is the best thing for you to do?

A. Develop the work plan and provide it to the contractor

B. File a letter of intent

C. Issue a default letter

D. Stop the project until the contractor develops a work plan

65. A new, junior project manager comes into your office. They are very excited

about their new project as they see it as an excellent opportunity for

advancement. However, they are also a little worried. They have completed the

procurement statement of work, but they are concerned that it might not address

all of the buyer's needs. This new project manager is about to attend the bidders

conference, and has come to you to ask your advice about what to do during the

session. Which of the following is the best advice you can give him?

A. Let the project sponsor facilitate the session and they have to sign off on

the contract

B. Make sure you clearly negotiate the scope

C. Make sure you give all the sellers enough time to ask questions, and be

careful as they might not want to ask questions while their competitors are

in the room

D. Let the contract manager lead the session as they are responsible for

procurements


66. You have been asked to help a project team make a build versus buy decision.

When looking at this problem, which of the following would justify doing the work

internally?

A. Your company has limited resources

B. There is proprietary data

C. You have the expertise, but not the manpower

D. You do not have control over the work

67. You are leading a U.S. $500,000 IT project for your organization. Your sponsor

just informed you that your project will have to compress the schedule

significantly. There is no longer any time to issue a request for proposal. You

decide to use a contractor you have used many times before. A primary concern

in this situation is:

A. Developing a procurement scope statement

B. The subcontractor evaluation criteria

C. The subcontractor's qualifications

D. Perceived collusion between you and the subcontractor

68. You are managing a U.S. $237,000 civil engineering project and have entered

the control procurements process for six different contract that have been signed

for your project. Your sponsor has just notified you that they must immediately

terminate one of the contracts. What should you do?

A. Complete the control procurements process

B. Begin the close project or phase process

C. Go back to the conduct procurements process

D. Go to the close procurements process

69. Which type of contract is best if you do not have the manpower to audit the

submitted contractor invoices?

A. Firm fixed price

B. Fixed price plus incentive fee

C. Cost plus incentive fee

D. Cost plus fixed fee

70. Which type of contract is inappropriate if you do not have the manpower to audit

the submitted contractor invoices?

A. Firm fixed price

B. Fixed price plus incentive fee

C. Cost plus incentive fee

D. Cost plus fixed fee


71. You are leading a contracting team for a project making use of three external

contractors. You submit a deliverable that the project manager believes is

substandard. The project manager refuses to accept the deliverable and refers

you to the technical specifications section of the contract that specifically

addresses the deliverable in question. You examine the specification and agree

the deliverable failed to meet the specification. What is the best thing to do?

A. Call your team together to review the contract

B. Work with the project manager to issue a change order

C. Enter into negotiations with the project manager to change the contract

D. Review the requirements and the WBS with your team


Answer Key:

1. A

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) - Fifth

Edition, Project Management Institute, Inc., 2013 - The inputs to the plan

procurement management process include:

- Project management plan

- Requirements documentation

- Risk register

- Activity resource requirements

- Project schedule

- Activity cost estimates

- Stakeholder register

- Enterprise environmental factors

- Organizational process assets

2. A

PMBOK® Guide - The inputs to the plan procurement management process

include:



- Risk register


- Project schedule






3. C

PMBOK® Guide - The inputs to the plan procurement management process

include:



- Risk register


- Project schedule





4. D

PMBOK® Guide - The tools and techniques used in the plan procurement

management process include:

- Make or buy analysis

- Expert judgment

- Market research

- Meetings

5. A

PMBOK® Guide - The tools and techniques used in the plan procurement

management process include:

- Make or buy analysis

- Expert judgment

- Market research

- Meetings

6. B

PMBOK® Guide - The outputs to the plan procurement management process

include:

- Procurement management plan

- Procurement statements of work

- Procurement documents

- Source selection criteria

- Make-or-buy decisions

- Change requests

- Project documents updates


7. C


include:






- Change requests


8. D


include:






- Change requests


9. C

PMBOK® Guide - The inputs to the conduct procurements process include:




- Seller proposals

- Project documents

- Make or buy decisions

- Procurement statement of work



10. B





- Seller proposals

- Project documents




11. D





- Seller proposals

- Project documents




12. B





- Seller proposals

- Project documents





13. C

PMBOK® Guide - The tools and techniques used in the conduct procurements

process include:

- Bidder conferences

- Proposal evaluation techniques

- Independent estimates

- Expert judgment

- Advertising

- Analytical techniques

- Procurement negotiations

14. D


process include:




- Expert judgment

- Advertising



15. A


process include:




- Expert judgment

- Advertising




16. C


process include:




- Expert judgment

- Advertising



17. B

PMBOK® Guide - The outputs from the conduct procurements process include:

- Selected sellers

- Agreements

- Resource calendars

- Change requests

- Project management plan updates

- Project document updates

18. A

PMBOK® Guide - The outputs from the conduct procurements process include:

- Selected sellers

- Agreements

- Resource calendars

- Change requests


- Project document updates

19. B

PMBOK® Guide - The inputs to the control procurements process include:



- Agreements

- Approved change requests

- Work performance reports

- Work performance data


20. A




- Agreements


- Work performance reports

- Work performance data

21. B




- Contract

- Performance reports


- Work performance information

22. D

PMBOK® Guide - The tools and techniques used in the control procurements

process include:

- Contract change control system

- Procurement performance reviews

- Inspections and audits

- Performance reporting

- Payment systems

- Claims administration

- Records management system

23. B


process include:





- Payment systems




24. A


process include:





- Payment systems



25. A


process include:





- Payment systems



26. D

PMBOK® Guide - The outputs from the control procurements process include:


- Change requests



- Organizational process assets updates

27. C

PMBOK® Guide - The outputs from the control procurements process include:


- Change requests





28. B

PMBOK® Guide - The inputs to the close procurements process include:



29. D

PMBOK® Guide - The inputs to the close procurements process include:



30. A

PMBOK® Guide - The tools and techniques used in the close procurements

process?

- Procurement audits

- Negotiated settlements


31. B

PMBOK® Guide - The tools and techniques used in the close procurements

process?

- Procurement audits



32. C

PMBOK® Guide - The outputs from the close procurements process include:

- Closed procurements


33. A

PMBOK® Guide - The outputs from the close procurements process include:

- Closed procurements



34. C

PMBOK® Guide - The processes found in the procurement management

knowledge area include:

- Plan procurement management

- Conduct procurements

- Control procurements

- Close procurements

35. D

If the seller completes the work specified in the procurement statement of work

the contract is considered complete. That does not mean the same thing as

closed. The close procurements process still must occur.

36. B

According to Project Management Institute (PMI)® you are always looking for the

win/win situation. You also want to have the relationship last through the entire

project. A contract will not force anyone to stick to objectives. It can only spell

out the penalties if the objectives are not met.

37. D

Remember, the question is really asking, what would you do first. In this case,

you would first continue the payments otherwise you would be in violation of the

terms of the contract. You cannot simply void a contract. While altering the

contract might be a good idea, it is not what you would do first.

38. C

Changes will occur no matter what. It is therefore critically important that any

contract outline how changes are to be made so you can best handle them. All

of the other choices are myths!

39. B

Incentives are specifically intended to help the seller and buyer synchronize

objectives. Sellers are typically motivated by financial means. By providing

special gains, typically financial to the seller, the buyer can motivate the seller

towards specific important targets.

40. A

All of the answers might be true in specific situations, but they are not always

true. Only having well designed procurement documents can simplify

comparison of seller responses is always true.


41. C

During the conduct procurements process, you normally answer questions

submitted by the sellers. The risk analysis processes are done before the

procurement process begins, as procurement is a form of risk mitigation and

transference. Selecting a particular contract type is part of plan procurements.

Changes to the schedule and budget may be an output of the control

procurements process.

42. C

PMBOK® Guide - Everything other than the make or buy decision where you

actually choose to procure a good or service occur in the conduct procurements

process.

43. B

Contract negotiations are about managing expectations and ensuring the

relationship can be maintained throughout the project. They are also about

getting a win-win situation in terms of price. This means the buy gets a fair and

reasonable price.

44. D

This is a question where all of the options are less than perfect. However, the

best or closest option is that the project manager supplies an understanding of

the risks of the project.

45. C

The options in this question make it difficult. Acceptance is a fancy way of saying

a signature from both parties the procurement statement of work is simply what

you will be purchasing. The buyers' signature is required, but not enough. The

address of the buyer is not necessarily required.

46. B

PMBOK® Guide - Conduct procurements where you would find bidder

conferences. Expect a number of questions where you have to know which

process a tool or technique is from.

47. A

The seller does not have the choice to simply start over. The existing contract is

binding and cannot be nullified by a single party.


48. C

Remember, the objective is to select the answer that is best. The best answer in

this case in increase loyalty to the project. A common problem with contracting is

that when it is not centralized there is very little loyalty to the project.

49. D

This is an example of setting a deadline where the negotiations would end.

50. A

To answer this question you need to know what a records management system

is and that it would not be used to keep track of negotiations. The negotiations

process is not a document.

51. B

Remember, unless otherwise specified you are always the buyer. In a firm fixed

price contract the costs will theoretically be lower unless there is significant

scope change.

52. C

There is no guarantee that the risk rating for the project has changed because of

the closed project. You should have already ensured the seller is only delivering

against the contract. So no additional work or resources are valid. The only

thing that makes senses is that you need to audit the cost submittals because

this is a cost reimbursable contract.

53. C

Unlike a cost plus contract, in a firm fixed price contract you have no idea how

much of the firm fixed price is profit.

54. A

Cutting scope on a Cost Plus Fixed Fee contract will decrease profits. A CPFF

contract also does not tend to limit fee increases. The fee in a CPFF contract is

usually paid out on a continuous basis throughout the contract. However, one

way to change the profits in a CPFF contract is to invoice for things to chargeable

to the project.

55. B

Of all the choices given only a cost plus fixed fee contract limited financial risk. A

cost plus incentive fee might, but the incentives are not the best guarantee.


56. A

PMBOK® Guide - Planning procurements includes the development of Requests

for Proposals or the request for sellers to provide proposals covering how they

would meet your needs.

57. A

PMBOK® Guide - This is a basic build versus buy question. Therefore you are in

the plan procurements process.

58. B

PMBOK® Guide - Selected sellers is an output of the conduct procurements

process.

59. B

PMBOK® Guide - Procurement negotiations are a tool and technique used in the

conduct procurements process.

60. D

A clear procurement statement of work is always required, but that does not

ensure it will be done quickly. Incentives are best for aligning the objectives of

the buyer and the seller.

61. D

In a firm fixed price contract the seller has all the cost risk. The only way they

can make a profit is if they are able to clearly define and maintain the project

scope.

62. C

In most situations the seller is only required to comply with what is described in

the contract.

63. A

Several of these answers might be true, but the only one that is guaranteed to be

true is that close procurements occurs before close project or phase.


64. C

Any time a seller does not perform according the contract the project manager

must take action. The best action would be to simply contact the seller and find

out what is happening, but that is not one of the choices.

65. C

This is a trick question of sorts. The fact that it discusses scope might lead you

to pick that answer. However, all the answers but giving the potential sellers time

to ask questions have nothing to do with the bidders conference.

66. B

Each of these answers might be right except for controlling the work. However,

the best answer is that it is best to do the work internally if there is proprietary

data that cannot be shared.

67. C

The primary concern in this situation is whether or not the contractor is actually

qualified to do the work. Everything else will stem from this concern.

Remember, you are always looking for what you would do first and which answer

is best.

68. D

As soon as you are notified of the need to terminate the contract you need to

initiate the close procurements process so you can close the contract in question

to maintain the data for historical purposes.

69. A

A firm fixed price contract does not require detailed review of invoices. Your

primary concern is the deliverables as you are paying a fixed rate.

70. C

A cost plus incentive fee offers the most variability and therefore requires the

most oversight and would be inappropriate if you lack manpower for the needed

audits.

71. D

Calling your team together to review the contract is close, but it is not correct.

The best answer is to review the requirements and the WBS as the WBS, with its

included WBS dictionary clearly describe the deliverables.

Documents

Project Management Professional (PMP)® Exam Prep …groupon.videotrainer.com/training/accts/careeracademy/courses/... · Project Management Professional (PMP)® Exam Prep Chapter