Project Management-PMAN641 PROJECT PROCUREMENT MANAGEMENT Final Exam

PMAN641 PROJECT PROCUREMENT MANAGEMENT
Final Exam
(Fall 2011)

INSTRUCTIONS

There are a total of 35
questions. Each of the 25
multiple-choice questions is worth 2 points and each of the 10 essay questions is
worth 5 points for a total of 100 points.
Enter your answer where indicated.
All answers are to be in ‘RED’. This is an open
book test, but it is not a group project and must be completed
individually.

For the multiple choice
questions, you must select the bestanswer in order to have the
correct answer. Essay question answers
should be concise (no greater than 250 words per answer), specific, and to-the-point. Neither sources nor APA format is
required. Long, rambling answers will
result in lost points.

This final exam file must be
renamed (with your name as the first part of the file name) and posted to your
Assignments folder no later than the date and time specified in the Classroom. There are no exceptions to the final exam
deadline date and time, so be sure to double-check that (a) you know the
correct deadline and (b) correctly post your completed final exam to your
Assignments folder.

NAME:[Enter Your Name Here]

MULTIPLE CHOICE QUESTIONS

1.
Project Manager Mary Ann is not a member of PMI
but has applied for PMI certification.
She has a meeting with the representative of a potential seller, and
gets into an argument with the representative.
Mary Ann loses her cool and yells at the representative and tells him to
“get out of her office.” Which of the
following is true about Mary Ann’s conduct?

A. It is a violation of PMI’s Code of Ethics
and Professional Conduct.
B. Since Mary Ann is not a member of PMI, she
is not subject to the Code of Ethics and Professional Conduct.
C. While not a per se violation of PMI’s Code
of Ethics and Professional Conduct, Mary Ann should aspire to a better standard
of conduct.
D. It is not a violation of the Institute for
Supply Management’s Principles and Standards of Ethical Supply Management
Conduct.

Your Answer
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2. Project
Manager Amy Sue’s old college roommate owns a company, Services R Us, which
sells the services that Amy Sue needs for her project. Amy Sue decides to include Services R Us as
a prospective seller for her project’s procurement requirements. In reality Amy Sue is just doing this as a
favor to her old roommate, and has no intention of awarding the business to
Services R Us, and has no financial interest in Services R Us. Is Amy’s decision in violation of PMI’s Code
of Ethics and Professional Conduct?

A. No, because Amy Sue has no financial
interest in the old roommate’s company Amy Sue’s decision is therefore not an
actual conflict of interest under PMI’s Code of Ethics and Professional
Conduct.
B. Yes, while there may not be an actual
conflict of interest, PMI’s Code of Ethics and Professional Conduct consider an
appearance of a conflict of interest as a violation.
C. No, because Amy Sue does not intend on
awarding the business to the old roommates company.
D. Yes, because despite Amy Sue’s intentions,
she probably will select Services R Us as the seller.

Your Answer
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3. Project
Manager John Boy has a policy of only using experienced, dependable, and proven
sellers instead of selecting sellers through open competition as a means to
manage procurement risk. What risk
management technique is John Boy using?

A. Risk Acceptance.
B. Risk Mitigation.
C. Risk Transfer
D. Risk Avoidance.

Your Answer
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4.
Project Procurement Management ________.

A. Describes the processes required to procure
products, services, or results from outside the performing organization.
B. Involves processes to ensure that the
project procures products, services, or results at the lowest possible cost.
C. Includes the processes to procure products,
services, or results, but does not include the ongoing performance management
of the selected seller(s).
D. Is not used by the seller of the product,
service, or results under a contract.

Your Answer
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5. Project
Manager Billie Ray is coordinating a conference to allow sellers to obtain
clarification on the services that need to be performed. Under what process of Project Procurement
Management would this occur?

A. Confidential Clarification Sessions.
B. Conduct Contracting.
C. Plan Purchases and Acquisitions.
D. Conduct Procurements

Your Answer
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6. Which
type of document would Alex, a computer programmer, sign in order to protect his
intellectual property rights prior to starting a consulting engagement?

A. A contract to not engage in unfair
business practices

B. A non-compete contract

C. A non-disclosure agreement

D. A cost-plus agreement
E. All
of the above.

Your Answer
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7. In
PMBOK terms, when sellers are requested to provide responses, the specific
means by which the buyer requests the responses is the _____.

A. Request for Proposal.
B. Solicitation.
C. Procurement Document Package.
D. Request Seller Responses.

Your Answer
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8.
Which of the following is included as a part of
a procurement management plan?

A. Make-or-buy decision.
B. List of pre-qualified selected sellers.
C. Contract statement of work.
D. All of the above.

Your Answer
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9. Project
Manager Daisy Duke works at a Fortune 100 company and acknowledges that there
are some “unknowns” in her procurement statement of work and
specifications. Which contract type
should Daisy Duke not use?

A. Time and Materials.
B. Cost-plus incentive fee.
C. Fixed-Price Incentive.
D. Cost-Reimbursable.

Your Answer
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10.
Which of the following would not normally
be a contract boilerplate item?

a. Payment terms
b. Insurance clause
c. Governing law clause
d. Price adjustment for
currency fluctuations
e. Tax clause

Your Answer
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11. Project
Managers need to have an understanding of Project Procurement Management
because the ________.

A. Project Manager procures the products,
services, or results required by the project.
B. Project Manager must ensure that products,
services, or results are procured at the lowest possible cost.
C. Project Manager is responsible for defining
the needs of the project and for managing the schedule activities of the procurement
professional who is a part of the project team.
D. Project Manager is responsible for the
creation of the procurement management plan, which is then turned over to the
buyer, who then initiates the Request Seller Responses.

Your Answer
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12. Verification
by the buyer of whether the products, services, or deliverables provided by the
seller meets the buyer’s acceptance criteria occurs at what point in the
Project Procurement Management process?

A. Verify Scope
B. Change Control process
C. Perform quality assurance
D. Contract Administration

Your Answer =>

13. Project
Manager Billie Jo is purchasing 100 laptops and 20 desktop computers for her
project, and the delivery of the computers is time-critical. Billie Jo would like to provide an incentive
to the seller for the timely delivery of the computers. Billie Jo, along with the buyer on the
project team, has agreed that the selected seller will be paid the cost of the
computers plus a 10% fee. Which contract
type is being used in this case?

A. CPPC.
B. CPIF.
C. CPFF.
D. Fixed Cost.

Your Answer
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14. What
is the document that is developed from the project scope statement, the project
work breakdown structure (WBS), and the WBS dictionary?

A. Contract Management Plan.
B. Make-or-Buy Analysis.
C. Organizational Process Assets.
D. Statement of Work.

Your Answer
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15. A
project manager for a large manufacturing company is working on a project that
calls for a new building to be constructed to house a new clean system
manufacturing process that is critical to the success of the project.
Construction is not a core competency of his
company. His team has the ability to create a detailed SOW with liquidated
damages in the event that specific deliverables are delivered on time. The PM
is in the Plan Procurements phase of the project, and needs to select a
contract type for this work. Which of the following is the best type of
contract for this situation?

a. FP (Fixed price)
b. CPFF (Cost
plus fixed fee)
c. CPIF (Cost
plus incentive fee)
d. T&M (Time
and materials)

Your Answer
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16. Bubba
is a sales representative for Shrimp Boats R Us company, which is a prospective
seller of shrimp boats for your project.
Bubba has offered you a great end-of-the year deal that is substantially
below the current prices for the desired boats.
Other than meeting Bubba at the sellers pre-response (bidders)
conference and seeing his business card, you know nothing other of Bubba’s
employment with Shrimp Boats R Us. In
offering you the special pricing, what form of agency is Bubba operating under?

A. Intended Authority.
B. Express Authority.
C. Sale Agency Authority.
D. Apparent Authority.

Your Answer
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17. The
objective of the _____ is to identify successes and failures that warrant
recognition in the preparation or administration of other procurement contracts
in a project.

A. Lessons Learned Analysis.
B. Procurement Audit.
C. Procurement Documents.
D. SWOT Analysis.

Your Answer
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18. What
is an oral or written act by an authorized agent which can be construed to have
the same effect as a written change order?

A. A Constructive Change.
B. Claims Administration.
C. Implied Change Order.
D. Agent-authorized Change Order.

Your Answer
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19. Project
Manager Buddy Lee has elected to use a Firm Fixed-Price contract type for his
procurement. Which type of Procurement
Document(s) are most appropriate for Buddy Lee to use?

A. RFP, RFI, or RFQ
B. RFP or FFP
C. RFP or RFQ
D. RFI or RFQ

Your Answer
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20.
Which of the following is a method / are methods
to transfer risk from the buyer to the seller?

A. The Delphi
Technique.
B. Risk Management Plan.
C. Contract.
D. All of the above.

Your Answer
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21.
Which of the following is a true statement about
Procurement Documents?

A. Procurement Documents should be structured
to facilitate accurate and complete responses from prospective sellers.
B. Procurement Documents are used to solicit
responses from prospective sellers.
C. Procurement Documents may include a copy of
the contract type.
D. All of the above.

Your Answer
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22. A
project manager has just reached the end of a project. Which of the following
documents will the project manager need for closure of the project?

A.
Change requests.

B. Documents that describe the product
of the project.

C. Documents that describe the project
status.

D. Trend analyses.

Your Answer =>

23. A
contract between buyer and seller specifies that a seller will pay $1,000 per
day if the seller fails to deliver the materials according to the project
schedule. What form of contract remedy is the seller agreeing to here?

A. Liquidated Damages.
B. Insurance
C. Equitable Relief.
D. Remedial Payment.

Your Answer
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24.
Which of the following is a true statement
concerning evaluation criteria?

A. They can often be found in a Procurement
Document.
B. They can be objective or subjective.
C. They may be limited to purchase price if the
product, service, or result is readily available from a significant number of
sellers.
D. All of the above.

Your Answer =>

25. Which
of the following is a method for quantifying qualitative data in order to
minimize the effect of personal prejudice on seller selection?

A. Weighting System.
B. Screening System.
C. Rating System.
D. All of the above.

Your Answer =>

SHORT ANSWER QUESTIONS

26. You
are the Project Manager on a project where a seller is not performing to
contract. The products delivered by the
seller do not adhere to the acceptance testing requirements described in the
contract. To make matters worse, despite
negotiations, the seller is not motivated to substantially correct the issues,
and your procurement is at a standstill.
Explain your options in resolving this matter short of litigation or ADR.

Your Answer =>

27. The
PMBOK describes 6 “competing project constraints.” Select three of those
constraints and explain their potential effect on project procurements.

Your Answer =>

28. A
prospective seller, Seller XYZ, calls you to discuss the pricing contained in
the response her company had previously provided to you. In addition to being a large customer of your
company, Seller XYZ has also been a dependable, long-time supplier to your
company. You would really like to see
them win the business for your project.
As the Project’s Procurement Manager, you have visibility into all of
the pricing provided by other prospective sellers. During your discussions,
Seller XYZ asks you for “guidance” on her company’s pricing so that they can be
competitive with the other prospective sellers.
How do you respond to Seller XYZ?
Explain your thought process in deciding how to respond and, if
appropriate, reference one or more relevant codes of ethics that may apply to
this situation.

Your Answer =>

29. Project
Manager Harley Davidson has developed an RFP to request response from
sellers. Based on the requirements and
specifications associated with the procurement, Harley believes the sellers
will likely be niche technology start-up companies that will be called upon to
produce a significant quantity of the products they produce to fulfill the
needs of Harley Davidson’s project. What
key Source Selection Criteria should Harley include to rate or score the
sellers’ responses?
30.
Your
Answer =>

31. Project
Manager Suzy Q is involved in managing two different sellers, one of whom is
performing under a fixed-price contract type and the other that is performing
under a cost-reimbursable contract type.
Describe (a) which phase of Project Procurements Suzy Q is in, and (b)
what tools and techniques that Suzy Q could use to manage each seller’s
performance under their respective contracts, and how the two differing contract
types might require different tools and techniques.

Your
Answer =>

32. Describe
the role of the Project Manager in Project Procurement Management, including
identifying what the Project Manager is and is not responsible for in the
procurement process.

Your Answer =>

33.
Describe the PMBOK’s recommended process by
which a buyer prepares to request seller responses for any given procurement.

Your Answer =>

34. Buyer
Bobbie Sue and Seller Billy Bob are disputing the delivery of products called
for under their contract. Bobbie Sue
says that the products that she pre-paid for do not conform to the requirements
of the contract, but Billy Bob refuses to refund the payment or replace the
products. Bobbie Sue and Billy Bob have
tried to work out their differences through negotiation, but cannot come to an
agreement. This has resulted in a contract dispute. Explain the dispute resolution options
available to Bobbie Sue and Billy Bob, and the primary benefits of each option.

Your
Answer =>

35. Project
Manager Lani Jo is evaluating whether to have her company’s IT department
develop the software needed by her project.
Based on the Plan Procurements process of Project Procurement
Management, describe the technique(s) and factors Bobbie Sue should use in
making her decision.

Your
Answer =>

36. Name
the contract type that cannot legally be used for US Government procurements, and
why that contract type should not be used.

Your Answer =>