What similarity exists between a cost-reimbursable contract and a time and material contract?

A. They are open ended
B. The closure date is part of the contract.
C. They have fixed bonus rates.
D. They can never grow in value.

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In the procurement process, the seller may be viewed initially as a bidder, then as the selected source and then as the contracted supplier. The seller will typically manage the work as a project. In such an instance, which of the following is not true?

A. The Buyer becomes the customer and is thus a key project stakeholder for the seller.
B. Terms and conditions of the contract become key inputs to many of the seller’s management processes. (ex: major deliverables, key milestones, cost objectives)
C. There need not be a contractual relationship between the buyer and the seller
D. The Seller’s project management team is concerned with all the processes of project management and not just Procurement management.

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The State of New York has contracted your company to provide a claims payment system for Medicaid benefits. In the contract there is a clause that indicates that the State of New York can review your work processes and deliverables. This is an example of?

A. Performance Report
B. Record Management System
C. Deliverables Checklist
D. Inspections and Audits

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During the Conduct Procurements process, the procuring organization found that there were significant differences in the pricing by different sellers. What is the best course of action in such a scenario?

A. Award the project to a supplier who is already on the procuring organization’s preferred supplier list.
B. Cancel the procurement activity.
C. Investigate whether the project statement of work was defective or ambiguous.
D. Award the project to the highest bidder.

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You are involved as project manager in a fairly large-sized project. You are in the process of making a procurement decision and plan to go with a simple purchase order. However, you are doubtful whether this is the correct thing to do and decide to find out more details about the process to be followed. Based on your findings, which of the following would be correct?

A. A simple purchase order is not appropriate for project. The project manager should always use the Request for Proposal (RFP) route.
B. Organizational process assets are guidelines available to the project. As project manager you have the final decision making authority and can decide whether to go in for a simple purchase order or not.
C. The value of the project is immaterial. As project manager, you have the final decision making authority to go in for a simple purchase order as long as you are contracting with an approved vendor
D. You would need to verify the policy constraints that form part of the Organizational process assets. Many organizations have policies that constrain procurement decisions and require use of a longer form of contract for projects above a certain value.

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Which of the following is not an example of a procurement document?

A. Tender Notice
B. Risk Register
C. Request for Proposal (RFP)
D. Invitation for Negotiation

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Which of the following roles in a project is more likely to be involved in negotiations on procurements during the Conduct Procurements phase?

A. Procurement administrator
B. Project coordinator
C. Project manager
D. Project sponsor

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