CSM Vendor Management & Procurement Flashcards
6 cards from real CSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CSM Vendor Management & Procurement flashcards as text
What is the primary purpose of a Request for Proposal (RFP) in software procurement?
Answer: To solicit detailed technical and commercial proposals from potential vendors
An RFP invites vendors to submit detailed proposals describing how they would meet the buyer's technical, functional, and commercial requirements, enabling a competitive selection process.
Which contract type places the MOST financial risk on the buyer/client in software procurement?
Answer: Time-and-materials (T&M) contract
In a time-and-materials contract, the client pays for actual hours worked and materials used with no cap, so costs can escalate significantly if the project scope is not tightly managed.
What is a Service Level Agreement (SLA) in the context of vendor management?
Answer: A formal agreement specifying the expected level of service, metrics, and remedies for non-compliance
An SLA defines measurable service standards (e.g., uptime, response times), reporting requirements, and penalties or remedies if the vendor fails to meet those standards.
During vendor evaluation, what does a 'proof of concept' (PoC) help a software manager determine?
Answer: Whether the proposed solution technically works in the buyer's specific environment
A PoC is a small-scale technical test that validates whether a vendor's solution can actually perform the required functions within the buyer's unique technical environment.
What is vendor lock-in, and why is it a concern for software managers?
Answer: Excessive dependency on a single vendor's proprietary technology, making switching costly and difficult
Vendor lock-in occurs when proprietary formats, APIs, or platforms make it technically or financially prohibitive to switch vendors, reducing bargaining power and increasing long-term risk.
Which of the following is the MOST important criterion when evaluating a vendor's financial stability during procurement?
Answer: Audited financial statements and credit ratings
Audited financial statements and credit ratings provide objective evidence of a vendor's financial health, reducing the risk of vendor insolvency during the contract period.