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

T&M contracts pay for labor at agreed rates plus actual material costs, making them flexible when exact scope is uncertain.

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

A formal written notice creates a documented record of the breach and gives the vendor an opportunity to correct performance.

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

FPIF contracts reward sellers with additional fees when they meet defined performance or cost targets, aligning incentives.

Question 4

Procurement audits are conducted to:

Accepted Answer

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

Answer

Procurement audits identify what worked and what didn't in the procurement process so future procurements can be improved.

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

Contract changes must be documented in a formal amendment signed by authorized representatives of both parties.

CPC - Certified Project Coordinator Practice Test

CPC - Certified Project Coordinator Practice Test

CPC Project Procurement & Contracts 2