Project Management and IT: chapter 12

Suppliers are those organizations or individuals who provide procurement services.

While outsourcing, organizations should protect strategic information because it can become vulnerable in the hands of suppliers.

Project procurement management consists primarily of two processes: assessing procurements and controlling procurements.

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 processes.

Risk registers and stakeholder registers are outputs of the planning procurement process.

A single contract can include all three categories of contracts.

Indirect costs are those costs can be traced back to a project in a cost-effective way.

Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.

The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.

In unit pricing, the total value of the contract is a function of the quantities needed to complete the work.

All contracts should include specific clauses that take into account issues unique to the project.

In an FPI contract, all of the risk is borne by the buyer.

An FP-EPA contract carries the least risk for a supplier.

Make-or-buy analysis involves comparing the internal costs of providing a product with the cost of outsourcing.

Contents of the procurement management plan vary with project needs.

The main sections of an RFP can include the statement of work and schedule information.

A key factor in evaluating bids, particularly for projects involving information technology, is the past performance record of the bidder.

Reviewing performance records reduces the risk of selecting a supplier with a poor track record.

In project procurement management, a main output of the controlling process is a source selection criteria.

The contractual relationship is a legal relationship, which means it is subject to state and federal contract laws

The closing procurements process involves updating records to reflect final results and archiving information for future use.

Procurement audits are often done during contract closure to identify lessons learned in the entire procurement process.

"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?

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?

"Most organizations are not in business to provide information technology services, yet many have spent valuable time and resources on information technology functions when they should have instead worked on important competencies such as marketing, customer service, and new product design. Outsourcing helps tackle this problem." Which of the following benefits does outsourcing primarily provide in such a scenario?

"Outsourcing to provide extra workers during periods of peak workloads can be much more economical than trying to fill entire projects with internal resources." Which of the following advantages does this characteristic of outsourcing provide organizations?

A drawback of outsourcing is that:

The first step in project procurement management is:

In project procurement management, the process of _____ involves determining what to procure, when, and how.

In project procurement management, the process of _____ involves obtaining seller responses, selecting sellers, and awarding contracts.

Outputs of the _____ process consist of selected sellers and resource calendars.

Which of the following processes of project procurement management involves managing relationships with sellers, monitoring contract performance, and making changes as needed?

In project procurement management, which of the following processes involve completion and settlement of each contract, including resolution of any open items?

The procurement statements of work are an output of the _____ process of project procurement management.

In project procurement management, the process of conducting procurements is part of the _____ process.

In project procurement management, which of the following is an output of the executing process?

In project procurement management, an output of the _____ monitoring and controlling process.

Which of the following is true of lump-sum contracts?

_____ contracts involve payment to the supplier for direct and indirect actual costs and often include fees.

In a(n) _____ contract, the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus.

With a(n) _____ contract, the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs.

In which of the following contracts does the buyer pay the supplier for allowable performance costs along with a predetermined percentage based on total costs?

From the buyer's perspective, the _____ is the least desirable among all contracts because the supplier has no incentive to decrease costs.

A(n) _____ contract carries the least risk for suppliers.

The _____ is a description of the work required for a procurement.

A(n) _____ is a document used to solicit proposals from prospective suppliers.

A document used to solicit quotes or bids from prospective suppliers is known as a(n) _____.

After planning for procurement management, which of the following does the next process involve?

In project procurement management, which of the following is one of the main outputs of the conducting procurement process?

The process of choosing suppliers or sellers is known as _____.

Which of the following is an output of the contract closure process?