PM Test Center

You released an RFP but several of the prospective suppliers have questions regarding some of the scope. You determine that the best way to listen to their concerns and convey your message is to have a(n):

A. Invitation for bid
B. Qualified supplier list
C. Bidders conference
D. Independent estimate

Answer: C. Bidders conference
A bidders conference is a meeting with suppliers to ensure they have a good understanding of the procurement document.

Contracts should typically be communicated through:

A. Informal written
B. Informal verbal
C. Formal written
D. Formal verbal

Answer: C. Formal written
Formal written communication should be used for project documents such as project charters, project plans, and contracts. As a general rule, if it needs sign-off, then you should take a formal written method. Most project communication, however, will fall into the other categories. These could include email (informal written), meetings (informal verbal), and presentations (formal verbal).

After deciding to outsource a part of the project, your sponsor tells you that he wants a contract with the least amount of risk. What type of contract will you be seeking?

A. Fixed price
B. Time and materials
C. Cost plus fixed fee
D. Cost plus percentage of cost

Answer: A. Fixed price
Of the contract types listed, fixed price (aka firm fixed price or lump sum) is the safest bet for the buyer. In a fixed price contract for $100,000, the buyer knows exactly what she is getting (assuming the scope is clearly defined) and how much she is paying. If the work actually takes more than $100,000 to deliver, then it rests on the supplier.

An important output of the Close Procurements process is:

A. Ensuring that the seller is satisfied
B. Reporting earned value to the sponsor
C. Negotiating the next contract for the next project
D. Getting formal acceptance of the deliverable

Answer: D. Getting formal acceptance of the deliverable
Deliverable acceptance is a critical piece of organization process assets updates, an output of the Close Procurements process.

Using a Fixed Price with Economic Price Adjustment Contract (FP-EPA) typically protects the:

A. Buyer
B. Seller
C. Buyer and seller
D. Escrow

Answer: C. Buyer and seller
The intention of a Fixed Price with Economic Price Adjustment Contract is to protect both the buyer and the seller from external conditions outside of their influence.