PMP Questions procurement knowledge page 6

51.

What type of method uses a weighting ranking system for quantifying qualitative data to minimize the effect of personal bias during the process of selecting a seller?

Select one

Independent estimates

Source Selection Criteria

Vendor audits

Sourcing workshops

52.

A project is contracted on a Cost-Plus-Fixed-Fee (CPFF) basis. The targeted cost is US$200,000 with a fee of US$30,000. If the project comes in at US$170,000, what would be the total cost of the contract?

Select one

US$230,000

US$ 195,500

US$ 200,000

US$170,000

53.

You are a project manager for your company. Part of the project requires producing 10,000 widgets, which your company will outsource. The company has agreed to pay all related costs and 5 percent of the estimated project costs. What type of contract has been negotiated?

Select one

Cost-Plus-Incentive-Fee contract

Cost-Plus-Fixed-Fee contract

Time and Material contract

Fixed-price contract

54.

As part of the procurement process, the procuring organization elected to have an estimate of costs prepared by an outside professional estimator. The estimator came up with an estimate of $500,000. However, the cost estimates prepared by prospective sellers were in the range of $200,000. How can this be best interpreted?

Select one

The professional estimator has inflated the estimate of costs.

The prospective sellers do not have the required skills to do the project.

Prospective sellers are trying to underbid and win the project.

The procurement statement of work was deficient and ambiguous.

55.

In a multi-phase project, the procurement team decided to close the procurements applicable to a particular phase of the project. What happens to unresolved claims?

Select one

Unresolved claims are usually resolved at the end of all phases of the project.

Unresolved claims are also closed when the procurements for that phase are closed.

Unresolved claims remain open for a period of one year from closure of procurements.

Unresolved claims may still be subject to litigation after closure.

56.

A seller entered into a contract with a buyer. At the end of the project, the seller was reimbursed for the cost of the project but received a low fee based on certain subjective criteria that were specified in the contract. What type of contract is this likely to be?

Select one

Cost Plus Fixed Fee (CPFF) contract

Fixed Price Incentive Fee (FPIF) contract

Cost Plus Incentive Fee (CPIF) contract

Cost Plus Award Fee (CPAF) contract

57.

A project manager is looking at a make-or-buy analysis as part of the Procurement Management process. What type of costs should the project manager consider for this analysis?

Select one

Direct costs

Indirect costs

Out-of-pocket costs

Both direct as well as indirect costs

Select one

Proposal evaluation techniques

Seller proposals

Cost baseline

Procurement management plan

Select one

The buyer-seller relationship exists only between organizations external to the acquiring organization.

The buyer-seller relationship exists only between organizations internal to the acquiring organization.

The buyer-seller relationship exists at the top level on any one project, and between organizations internal to and external to the acquiring organization.

The buyer-seller relationship may exist at many levels on any one project, and between organizations internal to and external to the acquiring organization.

60.

Many organizations favor fixed-price contracts because the buyer's risk is minimized by such contracts. However, to minimize the seller's risk, which of the following is crucial for a fixed price contract?

Select one

The buyer must precisely specify the number of resources to be used for procurement.

The buyer must precisely specify the service or product to be procured.

The buyer must precisely specify the time for completing the contract.

The buyer must precisely specify the price of the contract.

89 New PMP Procurement Questions & Answers with explanation