CAPM Project Procurement Management 2

Question 1

In a Cost Plus Incentive Fee (CPIF) contract, what happens if the seller beats the target cost?

Accepted Answer

The seller and buyer share the savings according to a pre-agreed formula

Answer

The seller receives only the base fee with no bonus

Answer

The buyer keeps all savings and the seller is penalized

Answer

The contract is renegotiated at the new cost level

Question 2

Which tool or technique used in Conduct Procurements allows buyers to gather early information from the market before issuing formal procurement documents?

Accepted Answer

Market Research

Answer

Source Selection Criteria

Answer

Bidder Conferences

Answer

Advertising

Question 3

What is the purpose of a Bidder Conference in procurement?

Accepted Answer

To ensure all prospective sellers have a clear and equal understanding of the procurement requirements

Answer

To negotiate the final contract price with the winning bidder

Answer

To evaluate the technical proposals of competing sellers

Answer

To close out contracts with unsuccessful bidders

Question 4

Which contract type is most appropriate for projects where the scope is well-defined and risks of cost overruns are low?

Accepted Answer

Firm Fixed Price (FFP)

Answer

Cost Plus Fixed Fee (CPFF)

Answer

Time and Material (T&M)

Answer

Fixed Price Incentive Fee (FPIF)

Question 5

What is a Teaming Agreement in the context of project procurement?

Accepted Answer

A legal agreement between two potential sellers to combine capabilities to bid on a contract

Answer

An internal agreement between the project team and sponsor

Answer

A contract clause requiring the seller to use subcontractors

Answer

An agreement between stakeholders on project objectives

Question 6

The Control Procurements process is primarily concerned with:

Accepted Answer

Managing procurement relationships, monitoring contract performance, and making changes as needed

Answer

Identifying potential sellers for the project

Answer

Developing the procurement management plan

Answer

Formally closing and documenting completed contracts

Question 7

What does the term 'Privity of Contract' mean in procurement management?

Accepted Answer

The direct legal relationship between two contracting parties

Answer

The confidential pricing information within a contract

Answer

The right of the project manager to audit vendor records

Answer

The privacy clauses protecting trade secrets in a contract