CPC Project Procurement & Contracts

Question 1

A fixed-price contract transfers the majority of cost risk to:

Accepted Answer

The seller (vendor)

Answer

The buyer (project organization)

Answer

Both parties equally

Answer

The project sponsor

Question 2

A cost-reimbursable contract transfers the majority of cost risk to:

Accepted Answer

The buyer

Answer

The seller

Answer

Both parties equally

Answer

The project coordinator

Question 3

A Statement of Work (SOW) in procurement is used to:

Accepted Answer

Describe the work to be performed by a vendor in sufficient detail for bidding

Answer

List all project team members and their hourly rates

Answer

Define the project charter

Answer

Document lessons learned after contract close

Question 4

Which document is used to solicit competitive bids from multiple vendors for clearly defined goods or services?

Accepted Answer

Request for Proposal (RFP) or Invitation for Bid (IFB)

Answer

Project charter

Answer

Scope baseline

Answer

Risk register

Question 5

What is the primary purpose of source selection criteria in procurement?

Accepted Answer

To provide an objective basis for evaluating and comparing vendor proposals

Answer

To limit the number of vendors who can submit proposals

Answer

To set the fixed price for the contract before bidding

Answer

To document the project's risk tolerance

Question 6

Make-or-buy analysis in procurement helps the project team decide:

Accepted Answer

Whether to produce goods/services internally or procure them externally

Answer

Which vendor to select from a shortlist

Answer

How to structure a contract's payment terms

Answer

When to close out a vendor contract