Procurement & Contract Management Flashcards

Which document formally authorizes a vendor to begin work on a procurement?

Answer: Purchase Order

A Purchase Order (PO) is the formal document that authorizes a seller to provide goods or services at a specified price.

A project manager wants the seller to bear most of the cost risk. Which contract type is most appropriate?

Answer: Firm Fixed Price

A Firm Fixed Price (FFP) contract places maximum cost risk on the seller because the price does not change regardless of actual costs.

What is the primary purpose of a Source Selection Criteria in procurement?

Answer: To evaluate and rank seller proposals objectively

Source Selection Criteria provide a structured basis for rating and scoring seller proposals to select the best vendor.

During contract execution, the seller requests a change to the delivery schedule. What should the project manager do first?

Answer: Evaluate the impact through the integrated change control process

All contract changes must be processed through integrated change control to assess impact on scope, schedule, cost, and risk before approval.

What is a 'Teaming Agreement' in project procurement?

Answer: An agreement between two sellers to jointly bid on a contract

A Teaming Agreement is a legal arrangement where two or more sellers partner to respond to a procurement opportunity together.

Which procurement document is used when the buyer needs detailed technical and management information from sellers?

Answer: Request for Proposal (RFP)

An RFP requests detailed proposals including technical approach, management plan, and pricing from prospective sellers.

A contract includes a clause allowing the buyer to end the contract for any reason with 30 days' notice. This is known as termination for:

Answer: Convenience

Termination for Convenience allows the buyer to end a contract without the seller being at fault, typically with notice and partial payment.