CAPM Procurement Management 5 — Questions and Answers
Question 1: A project team needs to purchase 500 standard office chairs. Which procurement document is most appropriate?
- Request for Proposal (RFP)
- Request for Information (RFI)
- Request for Quotation (RFQ) (Correct answer)
- Invitation for Bid (IFB)
Correct answer: Request for Quotation (RFQ)
An RFQ is used when price is the primary decision factor for purchasing standard, well-defined commodities or small-dollar items.
Question 2: Which of the following best describes 'independent estimates' as used in the Conduct Procurements process?
- Cost estimates prepared by the project team to validate seller proposals (Correct answer)
- Estimates provided by independent industry analysts
- Estimates generated by competing vendors for benchmarking
- Historical cost data from past similar projects
Correct answer: Cost estimates prepared by the project team to validate seller proposals
Independent estimates (also called should-cost estimates) are prepared by the buyer's team to serve as a benchmark for evaluating seller pricing and identifying unreasonable bids.
Question 3: A project manager discovers that a contractor has submitted a request for equitable adjustment after a government regulation changed the project requirements. This request is best classified as a:
- Change request
- Claim (Correct answer)
- Defect report
- Risk response
Correct answer: Claim
A request for equitable adjustment is a type of claim where the seller seeks compensation for additional costs caused by buyer-directed changes or external events beyond the seller's control.
Question 4: What is the key difference between a warranty and an acceptance criterion in procurement?
- Warranties apply only to goods, while acceptance criteria apply only to services
- Acceptance criteria define when a deliverable is approved; warranties cover defects after acceptance (Correct answer)
- Warranties are negotiated, while acceptance criteria are set by law
- Acceptance criteria apply during execution; warranties apply during planning
Correct answer: Acceptance criteria define when a deliverable is approved; warranties cover defects after acceptance
Acceptance criteria determine whether a deliverable meets requirements at delivery, while warranties provide assurance that the deliverable will continue to perform correctly after acceptance.
Question 5: When should a project manager consider using sole-source procurement instead of competitive bidding?
- When the buyer wants the lowest possible price
- When only one qualified seller exists or when emergency conditions require it (Correct answer)
- When the project budget is limited
- When the project scope is poorly defined
Correct answer: When only one qualified seller exists or when emergency conditions require it
Sole-source procurement (non-competitive) is justified when only one vendor has a unique capability, when emergency conditions exist, or when competition is impractical.
Question 6: Which output of the Close Procurements process provides historical information useful for future projects?
- Procurement management plan
- Procurement statement of work
- Closed procurements documentation (Correct answer)
- Source selection criteria
Correct answer: Closed procurements documentation
Closed procurements documentation, including the final contract with all supporting schedules and accepted deliverables, becomes part of organizational process assets for future reference.
Question 7: A project manager is evaluating whether to hire a specialized IT firm or use internal staff for a system integration task. Capacity, cost, and strategic value are all being considered. Which tool is being applied?
- Expert judgment
- Make-or-buy analysis (Correct answer)
- Market research
- Procurement audits
Correct answer: Make-or-buy analysis
Make-or-buy analysis weighs factors such as cost, capacity, strategic importance, and risk to determine whether work should be performed internally or outsourced.
CAPM Procurement Management 5
A project team needs to purchase 500 standard office chairs.
Which procurement document is most appropriate?