Procurement Management 20Q test

Question 1 of 20

1. A contractor is working on a fixed price contract. About halfway through the contract, the Contractor’s Project manager informs the contract administrator that financial problems are making it difficult for the contractor to pay employees and subcontractors. The contractor asks for a partial payment for work accomplished. Which of the following actions by the buyer would most likely solve problems for the Project, also factoring the work done so far?

1. Paying for work accomplished to date

2. Terminate the contract

3. Stop the further work

4. Pay to the subcontractors directly

Question 1 of 20

Question 2 of 20

2. The Project manager prepares a WBS by decomposing to a very large number of levels with accuracy. This would be most needed in case of which type of contract?

1. Time and Material

2. FFP

3. CPIF

4. CPFF

Question 2 of 20

Question 3 of 20

3. Which of the following would you least consider during a Make or Buy decision?

1. Existing Project Management Information Systems

2. Need to maintain confidentiality

3. Availability of suitable vendors in the market

4. Efforts needed to integrate Suppliers’ products with your product

Question 3 of 20

Question 4 of 20

4. Control Procurement is done to ensure that:

1. The seller passes the screening criteria and gets a very high score in the Ranking system.

2. Both parties meet their contractual obligations and their own legal rights are protected.

3. Make or buy analysis is done properly and any work for which internal expertise is available is not outsourced

4. The contract is a legal document and could be produced in the court in case of any contention.

Question 4 of 20

Question 5 of 20

5. You are a Project member in a country, where, unlike your home country and against the rules of your company for acceptance of any gift, there is a custom of giving presents during social occasions. You get invited to one of these social gatherings and have a costly gift presented to you by the client. What is the best course of action for you?

1. Postpone accepting the gift

2. Inform the client that as per norms set, you cannot accept the gift

3. Decline the gift outright

4. Ask your close friend to accept the gift and keep it

Question 5 of 20

Question 6 of 20

6. Sam, the project manager of AMZ project have floated the RFQ for a sub system that needs to be maintained for 3 years after which it will be decommissioned. Two proposals A and B have been short-listed and their financials are respectively, $ 20,000 license fee and a fee of $1000 per month for maintenance and $10,000 license fee and a fee of $2000 for maintenance. Who will you choose among A and B?

 

1. B

2. A

3. Procure sub system from B and ask A to maintain it.

4. Neither A nor B

Question 6 of 20

Question 7 of 20

7. You have awarded a FFP contract to a building contractor. Which one of the following measures is less suitable for measuring the progress in this context?

1. EAC

2. SV

3. SPI

4. Milestones achieved

Question 7 of 20

Question 8 of 20

8. All of the following could be a weighting criteria except:

1. Project Management approach followed by vendor.

2. The reference sites provided by the vendor

3. Number of certified professionals with the vendor.

4. Willingness of the vendor to work at the Project site, if required by Contract terms.

Question 8 of 20

Question 9 of 20

9. A Project manager discovers that there is a part of the Project that contains some risk. His or her strategy with this risk is to subcontract the work to an outside supplier by using a firm fixed price contract. The Project manager should:

1. Ensure that the supplier understands the risk before the contract is signed.

2. Assign a member of the Project team to monitor the activity of the supplier to make sure that the supplier deals appropriately with the risk when it occurs.

3. Make every effort to make sure that the supplier is made aware of the risk after the contract is signed.

4. Ensure that the Project team does not reveal the risk to the supplier until the contract is signed.

Question 9 of 20

Question 10 of 20

10. One of the Machines to be procured for the Project involves long lead times for import.

Which is the document wherein the Project Manager considers this constraint first in a Procurement Management Lifecycle?

1. Agreements

2. Procurement SOW

3. Procurement Management Plan

4. Contract type selection

Question 10 of 20

Question 11 of 20

11. You are providing a Service to a Buyer organization under a contract. In between the Contract, the CEO of the Buyer organization has changed and the organization has intimated that it will not proceed ahead with the Project, as the new CEO’s priorities have changed.
Which is the best course of action from your end?

1. Perform Contract/Administrative closure

2. Review Contract selection criteria

3. Initiate Procurement Performance Reviews

4. Perform Procurement negotiations

Question 11 of 20

Question 12 of 20

12. A company requires skilled electricians for a wiring jobs.
It wants to inspect the wiring done by the electricians periodically and ensure the best quality of work, as it is critical to the Company’s business operations.

Which type of contract is best in this context?

1. JV

2. FFP

3. Fixed Price with Economic Price Adjustment

4. T & M

Question 12 of 20

Question 13 of 20

13. One of the bids you are submitting states that the Project Manager should be a PMP. You have decided that this Project will be handled by John, who is very quick and smart as per your judgment. You have also asked John to prepare for the PMP examination. As a backup, you are also considering Mike (who is also not a PMP) – for the position of PM.

Which one of the following represents a violation of code of ethics?

1. Deciding not to Bid for the Project

2. Putting John as the Project Manager in the Bid response, without any further clarification of his status

3. Putting Mike as the Project Manager – stating that he is not a PMP

4. Stating John as the Project Manager – with the note that he is in the process of finishing the PMP Certification

Question 13 of 20

Question 14 of 20

14. You need to procure a High power transmitter for an Electronic component. Proposals have been called from three vendors A, B and C. You want to ensure that you get the best price for the specifications given for the Transmitter.

Which of the following actions will facilitate this Procurement objective the most?

1. Floating an RFI prior to calling of Proposals

2. Refining the Procurement Management Plan

3. Preparation of ‘Independent’ estimates for the Transmitter

4. Perusing the Procurement audits of prior Projects

Question 14 of 20

Question 15 of 20

15. A new car body design is underway, and body style is slated to be one of the more important criteria for buyer selections in the next buying season. The completion date for the Project is moved up to six months earlier than planned due to some market intelligence information received. This revision in schedule causes the Project manager to consider subcontracting part of the Project to an outside party. What is the most important consideration in making this decision?

1. Effective communications between the project team and the subcontractor

2. Independent estimates

3. Ability of the subcontractor to meet the delivery commitments

4. Cost of work to the subcontractor

Question 15 of 20

Question 16 of 20

16. When are Bidder conferences held?

1. After submission of proposals

2. During Control Procurements

3. After floating the RFP

4. After signing the contract

Question 16 of 20

Question 17 of 20

17. A Project manager is managing a Project to design a microchip for a client. He decides to subcontract the work to a microchip subcontractor. The subcontractor fails to deliver the work on time, and the Project manager invokes a penalty clause that was written into the contract. It is found that the person signing the contract for the contractor was less than twenty-one years of age when the contract was actually signed (the local law states that contract must be signed by persons "over 21" years of age - to render a contract valid).   What is the next option for the Project manager?

1. The work must be completed by the subcontractor, and the penalty clauses must be deducted from the amount paid to the subcontractor

2. The contract is void for lack of competent parties, and the Project manager should look out for possible ‘non-legal’ remedies.

3. The company can invoke the penalty clause, and it must be honored.

4. Do nothing.

Question 17 of 20

Question 18 of 20

18. Under what circumstances is it better for a contractor to subcontract?

Situation A. The subcontractor can perform the work at a lower cost than the     contractor.

Situation B. The work to be subcontracted represents almost the entire overall work effort.

Situation C. The subcontractor possesses special technical and engineering skills that the contractor does not have.

Situation D. The Project team members are not showing sufficient productivity because of morale problems in the company

1. Situations A and C

2. Situations A and D

3. Situations B and D

4. Situations C and D

Question 18 of 20

Question 19 of 20

19. You have engaged a Subcontractor for a Construction work. The Subcontractor’s quality of work has been generally good. However the bills raised by him are according to his funding requirements, which are different from your earlier projections during the Contract finalization.
Which of the following is the best action for you as the Project Manager?

1. Ask the Subcontractor to raise a Contract change request

2. Review the Seller Rating Systems

3. Have a relook at the SOW

4. Review Contract type selection

Question 19 of 20

Question 20 of 20

20. You are performing a construction project for a client. A joint inspection has been agreed at site on a particular day to review the progress. You are present at the site, however, the stipulated client representative has not shown up as per the agreed schedule.

Which of the following is the best course of action for the Project Manager?

1. Proceed with the work after informing the status to the client

2. Have a relook at communication channels

3. Raise a claim for additional cost and time

4. Cancel the Contract

Question 20 of 20