You are the project manager for an outdoor concert event scheduled for one year from today. You’re working on the procurement documents for the computer software program that will control the lighting and screen projections during the concert. You’ve decided to contract with a professional services company that specializes in writing custom software programs. You want to minimize the risk to the organization and want a well-defined set of deliverables for a set price. You have agreed to pay the vendor a bonus if they complete the program at least 30 days earlier than scheduled, so you’ll opt for which contract type?

You have been hired as a contract project manager for Grapevine Vineyards. Grapevine wants you to design an Internet wine club for its customers. Customers must register before being allowed to order wine over the Internet so that legal age can be established. You know this project will require new hardware and an update to some existing infrastructure. You will have to hire an expert to help with the infrastructure assessment and upgrades. You also know that the module to verify registration must be written and tested using data from Grapevine's existing database. This new module cannot be tested until the data from the existing system is loaded. You are going to hire a vendor to perform the programming and testing tasks for this module to help speed up the project schedule. The vendor will be reimbursed for all their costs, and you want to use a contract type that will allow you to give the vendor a little something extra if you are satisfied with the work they do. You know all of the following apply in this situation except for which one?

You are the project manager for the Heart of Texas casual clothing company. Your company is introducing a new line of clothing called Black Sheep Ranch Wear. You will outsource the production of this clothing line to a vendor. You want to use a hybrid approach to manage this project. Which of the following contract types will you use?

You are the project manager for an outdoor concert event scheduled for one year from today. You're working on the procurement documents for the computer software program that will control the lighting and screen projections during the concert. You've decided to contract with a professional services company that specializes in writing custom software programs. You want to minimize the risk to the organization, so you'll opt for which contract type?

Which contract type poses a higher risk for the buyer?

Which contract type can incorporate incentives for meeting or exceeding certain contract deliverables above a firm price for the goods or services rendered?

Cost plus incentive fee, cost plus award fee, cost plus percentage of cost, and cost plus fixed fee are all other names for what contract type?

You are the project manager for the Heart of Texas casual clothing company. It’s introducing a new line of clothing called Black Sheep Ranch Wear. You will outsource the production of this clothing line to a vendor. Your legal department has recommended you use a contract that reimburses the seller’s allowable costs and includes a fixed fee upon completion of the contract. Which of the following contract types will you use?