PMP Exam Prep

The process of managing the relationship between buyer and seller

A formal document showing the hierarchy of components of pieces and their sub-components or sub-pieces that make up the product

The person or group in an organization that acquires products, services, or results

A demand for consideration, under the terms of a contract, by a buyer from a seller or by a seller from a buyer

The process of completing the contract; includes settlement on any open items

The process of receiving proposals, quotes, and bids, selecting a seller and establishing a contracting for goods or services

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

A contract in which the supplier receives payment for allowable costs plus a fixed fee typically based on estimated cost

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)

A contract that reimburses the seller for cost, plus a negotiated percentage of the total costs

A contract in which a supplier is paid for direct and indirect cost actually incurred on the project

A contract in which the seller provides products or services based on a well defined scope of work for a set price

A contract that pays a seller a fixed price for a well defined or detailed product or service

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

A project or program item causing confusion or disagreement, or an unresolved item needing attention

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

The process of determining what to buy, the optmum method to make the purchase and creating the documents associated with it

The total amount of money the buyer will pay regardless of cost overrun on the contract

The acquisition of goods or services from an outside source (vendor)

Documents involved in the bidding and proposal activities; can include request for information (RFI), request for quote (RFQ), or request for proposal (RFP)

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

Attaining goods and services for a project or program from outside the organization

A request to a potential seller from the buyer for specific information

A document that describes what the buyer wants from a potential supplier, as well as criteria for acceptability of the vendor

A document used to get bids or quotes from possible suppliers, usually for commodity type items, with minimal customization

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

An individual or company that provides goods or services to a company or individual

A description of services, products, and work results to be accomplished on a project or other initiative

A clause in the contract that allows both the buyer and the seller to end the contract

A contract that provides for acquiring services at specified fixed hourly rates and materials at cost