During the opening rounds of contract negotiation, the other party uses a fait accompli tactic. Which of the following statements is true about fait accompli tactics?

One party agrees to accept the offer of the other party but secretly knows they will bring the issue back up later.

One party claims the issue under discussion was documented and accepted as part of Scope Verification.

One party claims the issue under discussion has already been decided and can't be changed.

One party claim to accept the offer of the other party, provided a contract change request is submitted describing the offer in detail.

Your procurement department has obtained independent estimates. The vendor's proposal is substantially different than the independent estimates. All the following statements are true except:

The SOW was not detailed enough.

The vendor failed to respond according to the terms of the proposal.

The vendor failed to respond to all the items in the SOW.

The vendor failed to respond to all the items in the contract.

What are the tools and techniques of the Contract Administration process?

Contract change control system, payment system, and payment requests

Contract change control system, contract negotiations, and payment system

Contract change control system, contract negotiations and contract changes

Contract change control system, performance reporting, and payment system

You are a project manager for an engineering company. Your company won the bid to add ramp- metering lights to several on-ramps along a stretch of highway at the south end of the city. You subcontracted a portion of the project to another company. The subcontractor's work involves digging the holes and setting the lamp poles in concrete. The subcontractor's performance is not meeting the contract requirements. All the following are valid options except:

You document the poor performance in written form and send the correspondence to the subcontractor.

You terminate the contract for poor performance and submit a change request through Contract Administration

You submit a change request through Contract Administration to ask the subcontractor to comply with the terms of the contract.

You agree to meet with the subcontractor to see if a satisfactory solution can be reached.

You are the project manager for an upcoming outdoor concert event. You're working on the procurement plan for the computer software program that will control the lighting and screen projections during the concert. You're comparing the cost of purchasing a software product to the cost of your company programmers writing a custom software program. You are engaged in which of the following?

Procurement planning

Sensitivity analysis

Transference of risk

Make or buy analysis

You are the project management for an outdoor concert event scheduled one year from today. You're working on the procurement plan for the computer software program that will control the lighting and screen projections during the concert. You've decided to contract with a professional services company that specializes in writing custom software programs. You want to minimize the risk to the organization, so you'll opt for which contract type?

Fixed price plus incentive

Cost plus fixed fee

Fixed price

Cost plus incentive

The major difference between a contract and a project is that:

there are no major differences

a contract is usually bigger than a project

a project is usually bigger than a contract

a contract is a legal relationship; a project is not

You are working under a large Fixed Price Incentive Contract. The pricing for the contract is: target cost:

$100,000 target profit: $ 10,000 target price $110,000 share ratio 80/20 Price ceiling $125, 000. You complete the work for a cost of $120,000. What is the profit you will receive?

a) $ 4,000

b) $ 5,000

c) $ 6,000

d) $ 10,000

You are working under a large Fixed Price Incentive Contract. The pricing for the contract is: target cost:

$100,000 target profit: $ 10,000 target price $110,000 share ratio 80/20 Price ceiling $125, 000. You complete the work for a cost of $120,000. What is the price the buyer will pay?

a) $ 124,000

b) $ 125,000

c) $ 126,000

d) $ 130,000

We are in the process of creating our procurement documents. All the following are names used when the seller selection decision is based on price except:

bid

tender

quote

proposal

As a project manager you are attending your first negotiation with a very large potential client. Two of your company's best salespeople, Bill and Russ, are with you and really leading the negotiation effort. The customer is finding Bill very difficult to deal with and keep looking to Russ to support their case. After the negotiation effort is over and the contract signed Russ and Bill congratulate each other. Bill and Russ were most likely using what negotiation tactic?

lying

missing man

Fait Accompli

good guy/bad guy

During administer procurements; the project team should be focusing on:

the bidder conferences

internet search

make-or-buy analysis

procurement performance reviews

18 All of the following are tools and techniques to conduct procurements except: a). bidder conference

b). independent estimates c). internet search

d). contract type

As you are managing the multiple projects for your customer, the Canadian Government. Each contract seems to have a different type such as Time and Materials, to cost reimbursable and even some fixed price contracts. The corporate accountant calls you to state you are about to hit your PTA (point of total assumption) on one of the contracts. The accountant must be talking about which type of

Time and Materials

cost plus fixed fee

cost plus incentive

fixed price incentive

Multiple sources for critical products may be used to:

mitigate risks

lower costs

obtain quantity discounts

reward the lowest bidder

As part of procurement you are trying to decide if you should rent or buy a piece of equipment. To rent the equipment will cost $1000/week. To purchase the equipment will be $9000 plus a usage cost of

$100/week. On what day will the cost to rent equal the cost to buy?

8 weeks

10 weeks

15 weeks

20 weeks

You are the manager of the design/build of a large manufacturing facility. With your customer, you have signed a Fixed Price Incentive Contract. You know that in this type of contract the risk is shared between the buyer and the seller. The time at which your organization picks up all the financial risk is called:

contract award

contract breach

contract termination

point of total assumption

Close procurements and early terminations are:

different names for the same idea

close procurements comes first, then early termination

Close procurements is ending the contract after the work is complete; early termination is ending the contract while there are still open items

early termination comes first, then close procurements