CPC Project Procurement & Contracts 2

Question 1

A Time and Material (T&M) contract is best suited for:

Accepted Answer

Work where scope is not fully defined and must be flexible to evolve

Answer

Large projects with well-defined, stable requirements

Answer

One-time purchases of standard goods

Answer

Projects where the seller controls all cost risk

Question 2

A project coordinator is administering a vendor contract and notices the vendor is consistently missing deliverable deadlines. The FIRST step should be to:

Accepted Answer

Issue a formal notice to the vendor documenting the breach and requesting a corrective action plan

Answer

Immediately terminate the contract

Answer

Pay the vendor in full to maintain the relationship

Answer

Ignore it until the end of the contract

Question 3

Which contract type provides the seller with an incentive fee for meeting or exceeding performance targets?

Accepted Answer

Fixed Price Incentive Fee (FPIF)

Answer

Cost Plus Fixed Fee (CPFF)

Answer

Time and Material (T&M)

Answer

Firm Fixed Price (FFP)

Question 4

Procurement audits are conducted to:

Accepted Answer

Review the procurement process for successes and failures to capture lessons learned

Answer

Penalize vendors for contract non-compliance

Answer

Renegotiate contract terms mid-project

Answer

Determine the final contract payment amount

Question 5

A change to an existing contract must be handled through:

Accepted Answer

A formal contract amendment or change order approved by both parties

Answer

An email agreement between the project coordinator and vendor

Answer

The project's internal change log only

Answer

Verbal agreement if the change is minor

Question 6

Contract closure differs from project closure in that contract closure:

Accepted Answer

Verifies all deliverables were accepted and all payments settled before the project closes

Answer

Occurs only after all project administrative closure is complete

Answer

Is handled exclusively by the legal department

Answer

Does not require any documentation