Project Procurement Management Quiz

Project Procurement Management

• Includes processes to purchase products, services, or results from outside the project team.
• Manages and controls agreements like contracts, purchase orders, memorandums of agreement (MOAs), or internal service level agreements (SLAs).
• Personnel authorized to procure goods/services can be project team members, management, or part of the organization's purchasing department.

Procurement Management

• Selects appropriate relationships & contract approaches for purchased goods or outsourced services.
• Prepares requests for quotes (RFQs) and requests for proposals (RFPs). Evaluates partnership opportunities
• Evaluates RFQs, RFPs, and partnerships.
• Awards and signs contracts.
• Manages quality and timely performance.
• Manages contract changes.
• Closes contracts.

Plan Procurement Management

• Documents project procurement decisions.
• Specifies the approach and identifies potential sellers.
• First step in the procurement process: planning for purchases and acquisitions, detailing a procurement plan that outlines what will be purchased.

Plan Procurements (Continued)

• Defines need for the project.
• Develops procurement statement of work, specifications, & work breakdown structure.
• Prepares work breakdown structure dictionary, if needed.
• Performs make-or-buy analysis.
• Documents milestones and schedules.
• Includes cost estimating, including life-cycle costing.
• Determines whether qualified sellers exist.
• Identifies source selection criteria.
• Prepares a list of possible project/procurement risks (e.g., risk register).
• Develops a procurement plan and obtains authorization and approval.
• Creates the Statement of Work (SOW), a narrative description of work and the resources required.
• Describes all work and activities the seller must complete.

Procurement Options

• Make or buy
• Buy or rent
• Lease or rent

Proposal Evaluation

• Uses weighting systems to select the best matching seller.
• Screens out sellers who fail to meet requirements.
• Some sellers make presentations of their proposals.
• Compares seller' proposed costs with in-house or outside estimates.
• Considers advertising methods (newspapers, magazines, internet, etc.).
• Evaluates past performance history of sellers.
• Reviews agreements, terms, and conditions, business terms, payments, reporting requirements, proposal, and procurement statement of work.

Contract Types

• Buyer has risk: Firm fixed price (FFP) is lowest, then Cost Plus Incentive Fee (CPIF)
• Seller has risk: Cost Plus Fixed Fee (CPFF) is lowest, then Time & Materials (T&M).
• Includes Firm Fixed Price (FFP), Fixed Price Incentive Fee (FPIF), Fixed Price Incentive Firm Target (FPIF), Fixed Price Award Fee (FPAF), Fixed Price Economic Price Adjustment (FPEPA), Purchase Order, and Time & Material (T&M).

Contract Administration

• Ensures performance meets contractual requirements, verifying and settling contracts, including resolving open items.

Plan Quality Management

• Defines quality.
• Covers processes for planning, managing, and monitoring project quality.
• Develops quality requirements, quality policy for the project.
• Documents how the project meets quality standards.

Manage Quality

• Translates quality plan into project activities.
• Executes quality tasks, ensures defect-free work.
• Monitors specific project results and checks for compliance.
• Identifies causes of unsatisfactory performance and ways to eliminate those causes.
• Uses quality tools and techniques to perform quality activities.
• Includes various tools and techniques like cause-and-effect diagrams, flowcharts, histograms, control charts, and Pareto diagrams.

Test your knowledge on Project Procurement Management, covering key processes involved in purchasing goods and services from external sources. This quiz explores documentations, contract management, and evaluation of supplier partnerships essential for effective procurement. Assess your understanding of planning and executing procurement strategies.