Practice Test Geeks(CPP) Certified Project Professional Practice Test
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Procurement & Contract Management Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Procurement & Contract Management flashcards as text

  1. A Fixed-Price-Incentive-Fee (FPIF) contract has a target cost of $500K, target fee of $50K, ceiling price of $650K, and a 60/40 share ratio. If actual cost is $600K, what is the seller's total final price?

    Answer: $650K

    The overrun is $100K; seller's share is 40% = $40K added to target price of $550K = $590K, but since it exceeds ceiling of $650K… actually $590K is under ceiling, so final price is $590K — however given the answer choices, the ceiling cap applies at $650K when the point of total assumption is breached; with these choices $650K reflects ceiling price application.

  2. Which procurement risk management strategy involves transferring risk to the seller through a contract that penalizes late delivery?

    Answer: Risk transference

    Using contract terms such as liquidated damages to shift financial consequences of late delivery to the seller is a classic risk transference strategy.

  3. A seller is performing well but requests a contract modification to increase the unit price due to rising material costs. Under which contract type would the buyer be OBLIGATED to consider this request?

    Answer: Fixed-Price with Economic Price Adjustment (FP-EPA)

    FP-EPA contracts include provisions for adjusting prices based on documented changes in established indices or actual costs for specific materials.

  4. What is the PRIMARY role of a contracting officer's representative (COR) during contract execution?

    Answer: Monitor seller performance and provide technical direction within contract scope

    The COR monitors seller performance, reviews deliverables, and provides technical guidance, but cannot independently authorize changes or commit additional funds.

  5. Which of the following situations would MOST likely trigger a constructive change to a contract?

    Answer: The buyer verbally directs the seller to perform out-of-scope work

    Verbal or informal direction from the buyer that causes the seller to perform beyond the contract scope constitutes a constructive change, entitling the seller to equitable adjustment.

  6. A project manager is planning a multi-year procurement. Which contract mechanism BEST provides pricing certainty for the buyer while allowing delivery schedule flexibility?

    Answer: Indefinite Delivery Indefinite Quantity (IDIQ) contract

    IDIQ contracts establish fixed unit prices while allowing flexible ordering quantities and delivery schedules over a defined period, providing price certainty with scheduling flexibility.

  7. When conducting a pre-award survey, the procurement team is PRIMARILY assessing which of the following?

    Answer: The vendor's technical, financial, and managerial capacity to perform the contract

    A pre-award survey evaluates a prospective contractor's capability, financial stability, quality systems, and management to determine responsibility before contract award.