Procurement 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 Management flashcards as text
A project manager is managing a contract where the seller is paid $200,000 in costs plus a bonus if costs come in under the target. This describes which contract type?
Answer: Cost Plus Incentive Fee
Cost Plus Incentive Fee (CPIF) reimburses the seller's actual costs and adds an incentive fee when predetermined performance criteria (such as cost targets) are met.
What does a 'point of total assumption' (PTA) represent in a Fixed Price Incentive Fee contract?
Answer: The cost level above which the seller bears all additional costs
The PTA is the cost threshold in an FPIF contract above which the seller assumes 100% of additional cost overruns, effectively converting it to a firm fixed price.
During Control Procurements, a project manager reviews seller invoices and approves payments. Which tool or technique is being applied?
Answer: Payment systems
Payment systems are a tool of Control Procurements that involve reviewing and approving seller invoices in accordance with contract terms.
A project manager wants to use competitive sealed bidding to select a vendor. Which solicitation document is most appropriate?
Answer: Invitation for Bid (IFB)
An Invitation for Bid (IFB) is used when the buyer wants competitive bids based on a defined scope and will award to the lowest qualified bidder.
Which of the following is NOT typically included in a procurement statement of work (SOW)?
Answer: Seller's profit margin
A procurement SOW describes what the buyer needs from the seller; the seller's profit margin is internal to the seller's pricing strategy and is not part of the SOW.
A project manager is closing a contract after all deliverables have been accepted. Which document formally records that the contract has been completed?
Answer: Contract closure notice
A formal written notice of contract closure, issued by the authorized procurement administrator, formally documents that all contractual obligations have been fulfilled.
What is the role of a 'source selection criteria' document in procurement management?
Answer: It establishes the weighted factors used to evaluate seller proposals
Source selection criteria define and weight the factors (such as price, technical capability, and past performance) used to objectively evaluate and compare seller proposals.