CPC Project Procurement & Contracts 1

Question 1

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

Accepted Answer

The seller (vendor)

Answer

In a fixed-price contract, the seller agrees to deliver for a set price regardless of actual costs, bearing the risk of overruns.

Question 2

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

Accepted Answer

The buyer

Answer

In a cost-reimbursable contract, the buyer pays all allowable costs, so cost overruns fall on the buyer.

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

The SOW provides sellers with the information they need to understand the scope and prepare accurate bids or proposals.

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

An RFP or IFB is sent to potential vendors to obtain competitive offers on defined requirements.

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

Source selection criteria define weighted factors (price, technical approach, experience) used to fairly compare proposals.

CPC - Certified Project Coordinator Practice Test