PMP - Procurement Management review

  1. What are the three broad categories of contracts recognized by PMI?
    • - Fixed Price or Lump Sum
    • - Cost Reimbursable
    • - Time and Material
  2. Name three types of cost reimbursable contracts. which poses the highest risk for the buyer?
    • Cost Plus Fixed Fee (CPFF)
    • Cost Plus Incentive Fee (CPIF)
    • Cost Plus Award Fee (CPAF)

    CPFF poses a greater risk for the buyer
  3. Name three common types of Fixed price contracts. which poses the greatest risk for the seller?
    • Fixed Price Economic Price Adjustment
    • Fixed Price Incentive Fee (FPIF)
    • Firm Fixed Price (FFP)

    FFP poses the greatest risk to the seller
  4. Identify 8 negotiating tactics
    • 1. Deadline
    • 2. Good-cop / Bad-cop
    • 3. Fait Accompli
    • 4. Missing Man
    • 5. Limited Authority
    • 6. Delay
    • 7. Personal Insults
    • 8. Fair and reasonable
  5. During plan contracting what are the ways to originate a contract?
    Unilateral: is essentially a purchase order for standardized routine items. Vendors often accept the orders automatically without even signing them in advance

    • Bilateral: can be initiated one of three ways
    • - IFB - Appropriate for routine items where the buyer's objective is simply to get the best possible price

    - RFQ - used for purchase of low monetary value commodity items.

    - RFP - used for complex, non-standard items of relatively high monetary value
  6. What are source selection criteria?
    • As an output from plan procurements, these criteria are used to rate or score proposals. The criteria may be objective or subjective and can include
    • - Price
    • - Life Cycle Cost
    • - Understanding of Need
    • - Technical Capability
    • - Management approach
    • - Financial Stability
    • - Previous performance record
Card Set
PMP - Procurement Management review
PMP Procurement Management Review