Chapter 12 Information Technology Project Management Flashcards

Terms Definitions
Bid(Also called "tender" or "quote"- quote being short for "quotation"
A document prepared by sellers providing price for standard items that have been clearly defined by the buyer
Constructive Change Order
Oral or written acts or omissions by someone with actual or apparent authority that can be construed to have the same effect as a written change order
(CPAF)Cost Plus Award Fee Contract
a contract in which the buyer pays the supplier for allowable performance costs plus an award fee based on the satisfaction of subjective performance criteria
(CPFF)Cost Plus Fixed Fee Contract
a contract in which the buyer pays the supplier for allowable performance costs plus a fixed fee payment usually based on a percentage of estimated costs
CPIF ContractCost Plus Incentive Fee Contract
a contract in which the buyer pays the supplier for allowable performance costs along with a predetermined fee and an incentive bonus
CPPC ContractCost Plus Percentage of Costs Contract
a contract in which the buyer pays the supplier for allwable performance costs along with a predetermined percentage based on total costs
What IT funciton has the largest percentage of work outsourced? 
 
a) application development
b) disaster recovery
c) application maintenance
d) help desk support
b) Disaster recover is the largest percentage of work which IT outsources. 
Your organization hired a specialist in a certain field to provide training for a short period of time. Which reason for outsourcing would this fall under?
 
a) reducing costs
b) allowing the client organization to focus on its core business
c) acces
An organization would hire a specialist in a certain filed to provide training for a short period of time in order to c) access skills and technologies.
In which project procurment management process is an RFP often written? 
 
a) planning procurements
b) conducting procurements
c) administering procurements
d) selecting sellers
An RFP is often written in a) planning procurements. 
An item you need for a project has a daily lease cost of $200. To purchase the item there is an investment cost of $6k and a daily cost of $100. Calculated the number of days when the lease cost would be the same as the purchase cost. 
a) 30
b) 40
c)
D) 60
What type of contract has the least amount of risk for the buyer?
 
a) fixed price
b) cost plus incentive fee (CPIF)
c) time and material
d) cost plus fixed fee (CPFF)
A a) fixed price contract has the least amount of risk for the buyer. 
The ____ is the point at which the contractor assumes total responsibility for each additional dollar of contract cost. 
a) breakeven point
b) Share Ratio Point
c) Point of reconcilliation
d) Point of Total Assumption
 
The point of total assumption is the point at which the contractor assumes total responsibility for each additional dollar of contract costs. 
If yoru college wanted to get info from potential sellers for providing a new sports stadium, what type of document would they require of the potential sellers?
 
a) RFP
b) RFQ
c) proposal
d) quote
A c) proposal
Buyers often prepare a ____ list when selecting a seller to make this process more managable. 
 
a) preferred
b) short
c) qualified suppliers
d) BAFO
Buyers often prepare a b) short list when selecting a seller to make this process more manageable. 
A proposal evaluation sheet is an example of a(n)_____
 
a) RFP
b) NPV analysis
c) earned value analysis
d) weighted scoring model
A proposal evaluation sheet is an example of a d) weighted scoring model
______ is a term used to describe various procurement functions that are now done electronically. 
 
a) E-procurement
b) ebay
c) E-commerce
d) EMV
a) E-procurement is a term used to describe various procurement functions that are now done electronically. 
cost reimbursable contracts
contracts involving payment to the supplier for direct and indirect actual costs
fixed price contract
contract with a fixed total price for a well defined product or service, also called a lump sum contract
lump sum contract
contract with a fixed total price for a well defined product or service; also called a fixed price contract
make-or-buy decision
when an organization decides if it is int he best interest to make certain products or perform certain services inside the organization, or if it is better to buy them from an outside organization. 
PTA
Point of Total Assumption: the cost at which the contractor assumes total responsibility for each additional dollar of contract cost in a fixed price incentive fee contract. 
procurement
acquiring goods and/or services from an outside source
project procurement management
the processes required to acquire goods and services for a project from outside the performing organization
proposal
a document prepared by sellers when there are different approaches for meting buyers needs
RFP
request for proposal: a document used to solicit proposals from perspective suppliers. 
RFQ
request for quote: a document used to solicit quotes or bids from prospective suppliers
sellers
contractors, suppliers, or providers who provide goods and services to other organizations
SOW
Statement of Work: a description of the work required for the procurement
Termination clause
a contract clause that allows the buyer or supplier to end the contract
T&M contracts
Time and Material Contracts: A hybrid of both fixed-price and cost-reimbursable contracts
unit pricing
an approach in which the buyer pays the supplier a predetermined amount per unit of service and the total value of the contract is a function of the quantities needed to complete the work
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