PCC Contract Management & Procurement Flashcards

Which contract type best incentivizes the contractor to control costs while sharing savings with the owner?

Answer: Cost-plus-incentive-fee

Cost-plus-incentive-fee contracts include a formula that shares cost savings or overruns between buyer and seller, aligning their interests.

During procurement planning, a make-or-buy analysis helps the project team determine:

Answer: Whether to produce goods internally or purchase them externally

A make-or-buy analysis weighs the cost and feasibility of in-house production against outsourcing to an external vendor.

A contractor submitting a claim for additional compensation due to unforeseen site conditions is exercising rights under which contract provision?

Answer: Differing site conditions clause

A differing site conditions clause entitles the contractor to seek additional compensation when subsurface or concealed conditions differ materially from those indicated in the contract.

In the source selection process, which evaluation method uses a weighted scoring matrix to compare vendor proposals?

Answer: Best value trade-off

Best value trade-off uses weighted criteria to compare price, technical approach, and past performance, allowing a higher-cost proposal to win if it offers superior value.

A project controls specialist tracks contract burn rate. This metric primarily measures:

Answer: How quickly the project is using budgeted contract funds over time

Contract burn rate tracks the rate at which contracted funds are being spent, helping forecast if the contract budget will be exhausted before completion.

Which document establishes the rules, responsibilities, and procedures governing how a contract will be administered throughout its lifecycle?

Answer: Contract management plan

The contract management plan defines roles, processes, reporting requirements, and controls for managing the contract from award through closeout.