Chapter 12: Project Procurement Management Part 2 – Flashcards
Unlock all answers in this set
Unlock answersquestion
"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?
answer
Provides access to specific skills
question
Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts
answer
False
question
Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing
answer
True
question
The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws
answer
True
question
Reviewing performance records reduce the risk of selecting supplier with a poor track record
answer
True
question
Which of the following is true of lump-sum contracts?
answer
They involve a fixed total price for a well-defined product or service
question
All contracts should include specific clauses that take into account issues unique to the project
answer
True
question
The _____ is a description of the work required for a procurement
answer
SOW
question
In project procurement management, the process of conducting procurements is part of the _____ process
answer
Executing
question
In project procurement management, which of the following is an output of the executing process
answer
Resource calenders
question
In project procurement management, a main output of the controlling process is a source selection criteria
answer
False
question
A _____ is a document used to solicit proposals from prospective suppliers
answer
RFP
question
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?
answer
Reduction in fixed and recurrent costs
question
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 process
answer
True
question
In project procurement management, which of the following is one of the main outputs of the conducting procurement process
answer
A selected seller
question
In project procurement management, which of the following process involve completion and settlement of each contract, including resolutions of any open items?
answer
Closing procurement
question
_____ contracts involve payment to the supplier for direct and indirect actual costs and often included fees
answer
Cost-reimbursable contract
question
Outputs of the _____ process consist of selected sellers and resource calenders
answer
Conducting procurements
question
In a FPI contract, all of the risk is borne by the buyer
answer
False
question
A document used to solicit quotes or bids from prospective suppliers is know as a _____
answer
RFQ
