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

An RFP solicits detailed proposals for comparing vendors on qualifications, approach, pricing, and value.

Question 2

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

Accepted Answer

Fixed-price lump-sum contract

Answer

Fixed-price contracts require the vendor to deliver for a set price, transferring cost overrun risk to them.

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

Measurable standards with defined consequences create accountability and a framework for managing vendor performance.

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

Performance-based contracts define desired outcomes and let vendors determine the best methods.

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

Sole-source is justified when only one vendor can meet the requirement or in genuine emergency situations.

(FMP) Facility Management Professional Practice Test