Review of Unit 2

1
Review of Unit 2
2
Poorly defined projects will result in projects
taking on additional work. This is known as

• Scope Deviation
• Scope Creep
• Crashing Scope
• Scope Increase

3
The main output of Plan Purchases and
Acquisitions in Procurement Management is

• RFP
• WBS
• Scope Statement
• Procurement Management Plan

4
Make or Buy decisions outline what work will be
completed outside the company under legal
relationships called

• Contracts
• SOWs
• Partnerships
• Organizational Process Assets

5
Companies may outsource products due to

• Lack of resources
• Time
• Expertise
• All of the above

6
There are 3 tools and techniques for Plan
Purchases and Acquisitions. Which is not one of
them -

• Expert Judgment
• Make or Buy Analysis
• Contract Types
• Cost Analysis

7
Incentive Fee Contracts are measured

• Subjectively
• Objectively
• Too broad criteria
• All of the above

8
Fixed Price/Lump Sum contracts include

• FFP FPIF Contracts
• FFP FPPC contracts
• FFP CPFF Contracts
• FPIF Time and Materials Contracts

9
Poor contract selection is the ______ responsibili
ty

• Sellers
• Buyers
• Customers
• None of the above

10
FFP Contracts should be used when

• Changes are anticipated but requirements are well
  defined
• Minimal scope detail is available
• Item is well defined and minimal change is
  anticipated
• Buyer and Seller can share in savings based on
  predetermined

11
The riskiest contract from a sellers perspective
is

• FPIF
• CPIF
• CPPC
• FFP

12
A difference between a FPIF CPIF Incentive
contract is

• FPIF is based on a predetermined incentive
• CPIF has no price ceiling and FPIF has a price
  ceiling
• Changes can be accommodated in FPIF but not in
  CPIF contracts
• FPIF has no price ceiling and CPIF has a price
  ceiling

13
The contract that provides minimum incentive For
the seller to control costs is

• FPIF
• CPIF
• CPFF
• FFP

14
What contract type contains both aspects of Cost
Reimbursable and Fixed Price Types

• FPIF
• CPPC
• CPFF CPF
• Time Materials

15
Make or Buy Analysis

• Assume you can buy an item you need for
  150/day. To make the item, the investment cost
  is 1000 and the daily cost is another 50/day

How long will it take for the buy cost to be the
same as the make cost?
16
FPIF Contracts

• Target Cost 100,000
• Target Profit 10 (10,000)
• Contract Value 110,000
• Price Ceiling 120,000
• Share Ratio 90/10

Final Costs 90,000 Actual Fee Final Price