CAPM Procurement & Contract Management 2

Question 1

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

Accepted Answer

Purchase Order

Answer

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

Question 2

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

Accepted Answer

Firm Fixed Price

Answer

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

Question 3

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

Accepted Answer

To evaluate and rank seller proposals objectively

Answer

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

Question 4

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

Accepted Answer

Evaluate the impact through the integrated change control process

Answer

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

Question 5

What is a 'Teaming Agreement' in project procurement?

Accepted Answer

An agreement between two sellers to jointly bid on a contract

Answer

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

CAPM Practice Test