CPP Procurement & Contract Management 2

Question 1

A project manager discovers mid-project that a vendor is consistently delivering materials two weeks late. Which contract clause would BEST give the buyer leverage to remedy this situation?

Accepted Answer

Liquidated damages clause

Answer

A liquidated damages clause pre-establishes financial penalties for late delivery, giving the buyer contractual leverage without proving actual loss.

Question 2

Under a Cost-Plus-Incentive-Fee (CPIF) contract, what happens when the actual cost falls below the target cost?

Accepted Answer

The buyer and seller share the savings per the share ratio

Answer

In a CPIF contract, cost underruns are shared between buyer and seller according to the pre-negotiated share ratio, incentivizing cost efficiency.

Question 3

Which procurement document is MOST appropriate when the buyer wants to receive competitive price proposals for well-defined, standard goods?

Accepted Answer

Request for Quotation (RFQ)

Answer

An RFQ is used when specifications are clear and the primary selection criterion is price, making it ideal for standard, well-defined goods.

Question 4

A project team is evaluating source selection criteria. Which criterion BEST reduces risk when the deliverable requires specialized technical expertise?

Accepted Answer

Vendor's past performance and technical capability

Answer

Past performance and technical capability directly assess whether a vendor can successfully execute the specialized work, reducing delivery risk.

Question 5

What is the PRIMARY purpose of a contract Statement of Work (SOW)?

Accepted Answer

To define the work the seller is expected to perform

Answer

The SOW precisely describes the products, services, or results the seller must provide, forming the technical baseline of the contract.

(CPP) Certified Project Professional Practice Test

(CPP) Certified Project Professional Practice Test

CPP Procurement & Contract Management 2