Project Procurement & Contracts Flashcards
6 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Project Procurement & Contracts flashcards as text
A fixed-price contract transfers the majority of cost risk to:
Answer: The seller (vendor)
In a fixed-price contract, the seller agrees to deliver for a set price regardless of actual costs, bearing the risk of overruns.
A cost-reimbursable contract transfers the majority of cost risk to:
Answer: The buyer
In a cost-reimbursable contract, the buyer pays all allowable costs, so cost overruns fall on the buyer.
A Statement of Work (SOW) in procurement is used to:
Answer: Describe the work to be performed by a vendor in sufficient detail for bidding
The SOW provides sellers with the information they need to understand the scope and prepare accurate bids or proposals.
Which document is used to solicit competitive bids from multiple vendors for clearly defined goods or services?
Answer: Request for Proposal (RFP) or Invitation for Bid (IFB)
An RFP or IFB is sent to potential vendors to obtain competitive offers on defined requirements.
What is the primary purpose of source selection criteria in procurement?
Answer: To provide an objective basis for evaluating and comparing vendor proposals
Source selection criteria define weighted factors (price, technical approach, experience) used to fairly compare proposals.
Make-or-buy analysis in procurement helps the project team decide:
Answer: Whether to produce goods/services internally or procure them externally
Make-or-buy analysis weighs the cost, risk, capability, and strategic implications of internal production versus outsourcing.