PMP Exam Prep

  1. The process of managing the relationship between buyer and seller
    Administer Procurements
  2. A formal document showing the hierarchy of components of pieces and their sub-components or sub-pieces that make up the product
    Bill of Material (BOM)
  3. The person or group in an organization that acquires products, services, or results
  4. A demand for consideration, under the terms of a contract, by a buyer from a seller or by a seller from a buyer
  5. The process of completing the contract; includes settlement on any open items
    Close Procurements
  6. The process of receiving proposals, quotes, and bids, selecting a seller and establishing a contracting for goods or services
    Conduct Procurements
  7. A mutually binding agreement that requires the services provider to supply the specified services or goods and requires the buyer to pay for them per the terms of the document
  8. A contract in which the supplier receives payment for allowable costs plus a fixed fee typically based on estimated cost
    Cost-Plus-Fixed-Fee (CPFF) Contract
  9. A contract in which the supplier receives payment for allowable costs, as well as a pre-negotiated fee and an incentive fee (if incentives are met)
    Cost-Plus-Incentive-Fee (CPIF) Contract
  10. A contract that reimburses the seller for cost, plus a negotiated percentage of the total costs
    Cost-Plus-Percentage of Cost (CPPC) Contract
  11. A contract in which a supplier is paid for direct and indirect cost actually incurred on the project
    Cost-Reimbursable (CR) Contract
  12. A contract in which the seller provides products or services based on a well defined scope of work for a set price
    Firm-Fixed-Price (FFP) Contract
  13. A contract that pays a seller a fixed price for a well defined or detailed product or service
    Fixed-Price Contract
  14. A contract in which the seller provides products or services based on a well defined scope of work for a set price; also includes a fee structure that provides more payment for achieving pre-defined performance objectives
    Fixed-Price-Incentive-Fee (FPIF) Contract
  15. A project or program item causing confusion or disagreement, or an unresolved item needing attention
  16. An initial part of the procurement process in which a decision is made to either create the product by the company that needs it, or to outsource it and hav another company create it
    Make-or-Buy Decision
  17. The process of determining what to buy, the optmum method to make the purchase and creating the documents associated with it
    Plan Procurements
  18. The total amount of money the buyer will pay regardless of cost overrun on the contract
    Point of Total Assumption
  19. The acquisition of goods or services from an outside source (vendor)
  20. Documents involved in the bidding and proposal activities; can include request for information (RFI), request for quote (RFQ), or request for proposal (RFP)
    Procurement Documents (Output/Input)
  21. Document that determines make vs. buy decisions, establishes required procurement documents and creates them, defines how to run bidders conferences, addresses procurement sources, selects vendors, and establishes vendor contracts
    Procurement Mangement Plan
  22. Attaining goods and services for a project or program from outside the organization
    Project Procurement Management
  23. A request to a potential seller from the buyer for specific information
    Request for Information (RFI)
  24. A document that describes what the buyer wants from a potential supplier, as well as criteria for acceptability of the vendor
    Request for Proposal (RFP)
  25. A document used to get bids or quotes from possible suppliers, usually for commodity type items, with minimal customization
    Request for Quote (RFQ)
  26. A part of the payment per the terms of the contract that the buyer retains until the project is complete; used to ensure that the seller completes the work per terms of the contract
  27. An individual or company that provides goods or services to a company or individual
  28. A description of services, products, and work results to be accomplished on a project or other initiative
    Statement of Work (SOW)
  29. A clause in the contract that allows both the buyer and the seller to end the contract
    Termination Clause
  30. A contract that provides for acquiring services at specified fixed hourly rates and materials at cost
    Time and Material (T&M) Contract
Card Set
PMP Exam Prep
Procurement Terminology