FMP Procurement and Contract Negotiation 2

Question 1

What is the primary purpose of a Request for Proposal in facility procurement?

Accepted Answer

To solicit detailed proposals from qualified vendors for comparison and evaluation

Answer

To automatically select the lowest-cost vendor

Answer

To eliminate the need for contract negotiations

Answer

To bypass the budgeting process

Question 2

Which contract type transfers the most financial risk to the vendor?

Accepted Answer

Fixed-price lump-sum contract

Answer

Cost-plus contract

Answer

Time and materials contract

Answer

Unit price contract

Question 3

What is the most important element to include in a facility services contract?

Accepted Answer

Clear performance standards with measurable KPIs and remedies for non-compliance

Answer

The vendor marketing brochure

Answer

A guarantee of the lowest possible price

Answer

The vendor complete employee roster

Question 4

What is the advantage of a performance-based contract over a prescriptive contract?

Accepted Answer

It focuses on outcomes achieved rather than specific methods, encouraging vendor innovation

Answer

It requires less vendor expertise

Answer

It eliminates the need for performance monitoring

Answer

It always costs less

Question 5

When should a facility manager consider sole-source procurement?

Accepted Answer

When only one vendor can provide the specialized product or service, or in genuine emergencies

Answer

Whenever a preferred vendor offers a discount

Answer

For all purchases under ten thousand dollars

Answer

When the procurement process takes too long

Question 6

What is the purpose of a vendor pre-qualification process?

Accepted Answer

To verify that potential vendors meet minimum capability, financial stability, and experience requirements

Answer

To reduce the number of proposals to read

Answer

To give unfair advantage to incumbent vendors

Answer

To bypass reference checks