ITPM Chapter 12 Complete Questions with
100% Correct Answers
T/F: Suppliers are those organizations or individuals who provide procurement services.
True
T/F: While outsourcing, organizations should protect strategic information because it can become
vulnerable in the hands of suppliers.
True
T/F: Project procurement management consists primarily of two processes: assessing procurements
and controlling procurements.
False
T/F: If an organization has no need to buy any products or services from outside the organization,
then it has no need to perform any of the procurement management processes.
True
T/F: Risk registers and stakeholder registers are outputs of the planning procurement process.
False
T/F: A single contract can include all three categories of contracts.
True
T/F: Indirect costs are those costs can be traced back to a project in a cost-effective way.
False
T/F: Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price
contracts.
False
T/F: The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.
False
T/F: In unit pricing, the total value of the contract is a function of the quantities needed to complete
the work.
True
T/F: All contracts should include specific clauses that take into account issues unique to the project.
True
T/F: In an FPI contract, all of the risk is borne by the buyer.
False
T/F: An FP-EPA contract carries the least risk for a supplier.
, False
T/F: Make-or-buy analysis involves comparing the internal costs of providing a product with the cost
of outsourcing.
True
T/F: A company is considering whether to purchase or lease a piece of equipment for an upcoming
project. The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease
(including operating costs). If the company anticipates using the equipment for a total of 20 days, they
will be indifferent as to whether or lease or purchase it.
False
T/F: Contents of the procurement management plan vary with project needs.
True
T/F: The main sections of an RFP can include the statement of work and schedule information.
True
T/F: A key factor in evaluating bids, particularly for projects involving information technology, is the
past performance record of the bidder.
True
T/F: Reviewing performance records reduces the risk of selecting a supplier with a poor track record.
True
T/F: In project procurement management, a main output of the controlling process is a source
selection criteria.
False
T/F: The contractual relationship is a legal relationship, which means it is subject to state and federal
contract laws.
True
T/F: The closing procurements process involves updating records to reflect final results and archiving
information for future use.
True
T/F: Procurement audits are often done during contract closure to identify lessons learned in the
entire procurement process.
True
"A shortage of qualified personnel is one of the main reason that companies outsource. A project may
require experts in a particular field for several months and planning for this procurement ensures that
the needed services will be available for the project." Which of the following benefits does this
characteristic of outsourcing provide an organization?
Provides access to specific skills
100% Correct Answers
T/F: Suppliers are those organizations or individuals who provide procurement services.
True
T/F: While outsourcing, organizations should protect strategic information because it can become
vulnerable in the hands of suppliers.
True
T/F: Project procurement management consists primarily of two processes: assessing procurements
and controlling procurements.
False
T/F: If an organization has no need to buy any products or services from outside the organization,
then it has no need to perform any of the procurement management processes.
True
T/F: Risk registers and stakeholder registers are outputs of the planning procurement process.
False
T/F: A single contract can include all three categories of contracts.
True
T/F: Indirect costs are those costs can be traced back to a project in a cost-effective way.
False
T/F: Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price
contracts.
False
T/F: The fee in a CPFF contract constantly varies even when the scope of a contract remains the same.
False
T/F: In unit pricing, the total value of the contract is a function of the quantities needed to complete
the work.
True
T/F: All contracts should include specific clauses that take into account issues unique to the project.
True
T/F: In an FPI contract, all of the risk is borne by the buyer.
False
T/F: An FP-EPA contract carries the least risk for a supplier.
, False
T/F: Make-or-buy analysis involves comparing the internal costs of providing a product with the cost
of outsourcing.
True
T/F: A company is considering whether to purchase or lease a piece of equipment for an upcoming
project. The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease
(including operating costs). If the company anticipates using the equipment for a total of 20 days, they
will be indifferent as to whether or lease or purchase it.
False
T/F: Contents of the procurement management plan vary with project needs.
True
T/F: The main sections of an RFP can include the statement of work and schedule information.
True
T/F: A key factor in evaluating bids, particularly for projects involving information technology, is the
past performance record of the bidder.
True
T/F: Reviewing performance records reduces the risk of selecting a supplier with a poor track record.
True
T/F: In project procurement management, a main output of the controlling process is a source
selection criteria.
False
T/F: The contractual relationship is a legal relationship, which means it is subject to state and federal
contract laws.
True
T/F: The closing procurements process involves updating records to reflect final results and archiving
information for future use.
True
T/F: Procurement audits are often done during contract closure to identify lessons learned in the
entire procurement process.
True
"A shortage of qualified personnel is one of the main reason that companies outsource. A project may
require experts in a particular field for several months and planning for this procurement ensures that
the needed services will be available for the project." Which of the following benefits does this
characteristic of outsourcing provide an organization?
Provides access to specific skills
