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Procurement & Contract Management Flashcards

7 cards from real CAPM 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. Which PMBOK process involves obtaining seller responses, selecting a seller, and awarding a contract?

    Answer: Conduct Procurements

    Conduct Procurements is the process of receiving seller bids, applying selection criteria, negotiating, and awarding the contract.

  2. What does 'Point of Total Assumption' (PTA) refer to in procurement?

    Answer: The cost point in an FPIF contract above which the seller bears all cost overruns

    The PTA in a Fixed Price Incentive Fee contract is the cost ceiling beyond which the seller assumes 100% of additional costs with no further fee.

  3. A Statement of Work (SOW) should be written in enough detail to allow sellers to:

    Answer: Provide accurate pricing and understand what is required

    A well-written SOW gives sellers sufficient clarity about deliverables, standards, and requirements to submit accurate and complete proposals.

  4. During contract negotiations, what is the purpose of establishing a 'Best Alternative to a Negotiated Agreement' (BATNA)?

    Answer: To clarify your walk-away position if negotiations fail

    BATNA defines the best outcome you can achieve if negotiations break down, strengthening your negotiating position and clarifying when to walk away.

  5. What is a 'Warranty' in the context of a procurement contract?

    Answer: A seller's guarantee of performance for a specified period after delivery

    A warranty is a contractual commitment by the seller to repair or replace defective goods or services within a defined period after acceptance.

  6. Which of the following is an output of the Close Procurements process?

    Answer: Closed Procurements documentation and final payment

    Closed Procurements documentation, including final acceptance, formal closure notices, and records of lessons learned, are outputs of the Close Procurements process.

  7. When a buyer and seller cannot resolve a contract dispute through negotiation, the next preferred method per the PMBOK Guide is:

    Answer: Mediation or Alternative Dispute Resolution (ADR)

    The PMBOK Guide recommends Alternative Dispute Resolution (ADR) such as mediation or arbitration before resorting to costly litigation.