ch 12 - Chapter 12: Project Procurement Management and...

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Chapter 12: Project Procurement Management and Outsourcing True/False 1. Project procurement management focuses on the contract management and change control processes required to administer contracts or purchase orders issued by authorized project team members. 2. A project team can considered a buyer of products and services but not a seller. 3. The project procurement management process called Plan Contracting entails obtaining bids, quotes, proposals, literature, and other information from potential sellers or service providers. 4. The project procurement management process called Select Sellers entails negotiating, selecting, and contracting with a seller for a particular product or service. 5. The project procurement management process called Plan Purchases and Acquisition begins by determining which project needs can be fulfilled internally by the project team and which can be best met externally. 6. The project procurement management process called Contract Administration entails completing and settling each contract after any open items or settlements are resolved. 7. The decision whether to purchase or outsource specific project needs is similar to a “make or buy” decision that compares the total direct and indirect costs of “making” a particular product or performing a particular service internally to the total direct and indirect costs of “buying” or contracting internally. 8. The Plan Contracting project procurement management process focuses on developing some type of procurement document, such as a request for proposal, which will be used to solicit bids, quotes, or proposals from prospective sellers. 9. The general idea of the Request Seller Responses project procurement process is for the buyer to obtain a reasonable number of high-quality, competitive proposals. 10. The general idea of the Plan Purchases and Acquisition project procurement process is for the buyer to obtain a reasonable number of high-quality, competitive proposals. 11. A contract is a document signed by the buyer and seller that serves as a legally- binding agreement that defines the terms, conditions, and remedies of the buyer-seller relationship.
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12. A contract must be a complex document so that one party cannot take advantage of the other. 13. A website developer negotiates a contract to develop a website for $2,000. This would be an example of a Fixed-Price/Lump-Sum contract 14. A Cost-Plus-Fixed- Fee would be one type of a Cost-Reimbursable contract 15. A Time and Material (T&M) contract is really a hybrid of cost-reimbursable and fixed-price contracts. 16. The project procurement management process called Contract Closure entails verifying that all of the work outlined in the contract is complete and also includes updating records to reflect the final results, archiving information for future use. 17. Outsourcing may be viewed as a more tactical approach, while project procurement
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This note was uploaded on 12/30/2011 for the course IT PMIT taught by Professor Andr during the Spring '11 term at Boğaziçi University.

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ch 12 - Chapter 12: Project Procurement Management and...

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