Posted: May 13th, 2018

254 MGT Contracts and Procurement

 Question 1 1 points Save With a pink team review: the project proposal is scrutinized early in the proposal development effort by a panel of people who play the role of customers project pricing is carefully examined by pricing experts the project proposal is scrutinized late in the proposal development effort by a panel of people who play the role of customers buyers make a preliminary decision on which bid should be granted a contract Question 2 1 points Save When an employee produces an invention as part of her job: ownership of the patent for the invention is assigned to the employer her employer is designated both as inventor and patent owner because she used company resources and time to produce the invention her employer is given a compensatory title as the inventor ownership of the patent for the invention is assigned to her Question 3 1 points Save In contracting, change control focuses on: buyer generated changes changes triggered by events in the environment contractor generated changes changes to the contract scope coming from any source Question 4 1 points Save With performance work statements, attention focuses on defining outcomes.True False Question 5 1 points Save Indefinite delivery contracts are employed: on high risk contracts on low risk contracts when the buyer does not know how many items he/she needs when the seller is not sure how much should be charged for contracted work Question 6 1 points Save To protect the intellectual property of the buyer, a contractor is typically made to sign a: Conflict of interest agreement Non-disclosure agreement An indemnity bond Non-competition agreement Question 7 1 points Save A proposal that reflects the seller’s best and final offer is typically associated with a: Request for Proposal (RFP) Request for Quotation (RFQ) Invitation for Bid (IFB) Cost Plus Fixed Fee (CPFF) contract Question 8 1 points Save Requirements addressing technical issues stated in non-technical terms are called business requirements statement of work functional requirements specifications Question 9 1 points Save The fair use principle allows reasonable use of copyrighted material only after permission has been obtained from the copyright owner. True False Question 10 1 points Save Buyers use SOWs to express their requirements. True False Question 11 1 points Save To ensure efficiency in contract administration, administrative closure activities should be delayed until project completion. True False Question 12 1 points Save What is the purpose of the bidders’ conference? To enable the buyer to interact with successful bidders To enable management to review bids that have been received by the buyer To enable the buyer to negotiate price with successful bidders To enable the buyer to meet with prospective sellers prior to preparation of a proposal to ensure that all prospective sellers have a clear, common understanding of the procurement Question 13 1 points Save Collection of a down payment fee in technology licensing is used when: dealing with a licensee who is not economically sound it is difficult to access the licensee’s “honest” booksdealing with exclusive license contracts dealing with non-exclusive license contracts Question 14 1 points Save A significant objective of the cost-as-an-independent-variable (CAIV) perspective is to:assure all technical requirements have been metdevelop a quantitative model of project costsmake sure that a high quality deliverable is produced at any costreduce the total operating cost (TOC) associated with programsQuestion 15 1 points Save Grant-back provisions in a licensing agreement require that improvements the licensee makes to a licensed technology revert back to the licensor. True False Question 16 1 points Save The cost-as-an-independent-variable sees cost as the key project driver.True False Question 17 1 points Save Under what conditions is an RFQ an appropriate mode of solicitation? When dealing with state-of-art efforts When goods and services are already defined When an award fee can be identified When dealing with non-routine efforts Question 18 1 points Save RFPs are prepared at the solicitation planning stage. True False Question 19 1 points Save Which of the following contracting concepts is not associated with competitive procurements? RFP Sole source bid IFB RFQ Question 20 1 points Save Proposals coming from contractors who have unique skills in providing goods and services are called: best and final offers (BAFOs) negotiated proposals sole source proposals unsolicited proposals Question 21 1 points Save Which of the following roles may the staff of a modern project support office play in contract management? Has no role to play Negotiates detailed contract terms and conditions Provides sponsorship Conducts risk assessment of a proposed project that an organization wants to bid on 
Question 22 1 points Save
Which of the following is not a typical criterion employed
to identify winning contracts?
Effectiveness of the work plan
Technical merit
Organizational capabilities
Political orientation of bidders

Question 23 1 points Save
What function does a level of effort SOW perform?
It establishes a high level listing of specifications that a
contract should address
It defines the dollar value of project scope
It identifies work that needs to be done and the anticipated
person-days (or hours, or years) of effort associated with the work effort
It establishes a detailed listing of specifications that a
contract should address

Question 24 1 points Save
Buybacks are a form of remuneration for licensing by which
the licensor buys back stock shares in the licensee’s business.
True
False

Question 25 1 points Save
Contracts should not close out until final user acceptance
tests (UATs) are conducted.
True
False

Question 26 1 points Save
Performance-based contracts focus on:
how the deliverable should be produced
humanresource allocation
financial management
what should be produced

Question 27 1 points Save
Performance-based payments on contracts are tied to the
achievement of well-defined milestones.
True
False

Question 28 1 points Save
In submitting proposals in response to an RFP, it is
important that the bidder provides the following kinds of information: who will
carry out the effort, what the bidder’s capabilities are, and how much it will
cost to engage in the proposed effort.
True
False

Question 29 1 points Save
Under a Cost Plus Incentive Fee (CPIF) contract, company XYZ
has agreed to pay ABC contracting company an incentive fee of 20% for any cost
savings that will be realized under the contract. Given the following
information, calculate the final price of the contract.
Estimated cost: $200,000
Negotiated Fee: $25,000
Incentive Payment: 20% of cost savings
Actual cost: $180,000
$180,000
$205,000
$209,000
$184,000

Question 30 1 points Save
Contractnegotiation involves clarification and establishing
mutual agreement between buyer and seller on the structure and requirements of
the contract prior to the signing of the agreement.
True
False

Question 31 1 points Save
A contract selection technique that is used heavily when
making contract and grant awards in the sciences, and that depends on outside
experts ranking proposals, is called:
Buss’s ranking technique
scoring
poor man’s hierarchy
peer review

Question 32 1 points Save
An advantage of the Cost Plus Fixed Fee (CPFF) contract is
that:
the buyer faces no risk of cost overrun
it prevents schedule slippage
the seller loses through cost overruns
the buyer can attract higher quality sellers

Question 33 1 points Save
From a licensee’s perspective, technology licensing is
attractive because it:
has few legal issues to contend with
provides opportunities for the licensee’s employees to learn
new technology skills
promotes initiative in the use of a superior technology
reduces dependence on the licensor

Question 34 1 points Save
In contracting, the term “volunteerism” refers to
the situation where:
contractors do not charge buyers for change requests
contracts are carried out on behalf of non-profit
organizations
team members agree to work on a contract without pay
buyers “forgive” small instances of poor
contractor performance

Question 35 1 points Save
One of the key characteristics of the Cost Plus Award Fee
(CPAF) contract is that:
it offers the buyer no leverage in dealing with sellers
bonus payments are made to sellers based on subjective
judgments about project performance
buyers face no risk of cost overruns
there is no explicit payment of additional fees

Question 36 1 points Save
Which of the following is a tool that is used for
performance measurement in contracting?
Contractor technical capability analysis
Earned value estimates
The Peter Principle
Resource leveling analysis

Question 37 1 points Save
In contract and procurement management, data rights means:
data developed in conjunction with project execution
explicitly becomes the property of either the buyer or seller (or possibly
both)
once an RFP has been issued, the seller is under no
obligation to provide additional information relating to the acquisition
all communication between the buyer’s Contracting officer
and a prospective contractor must be disclosed to all other prospective
contractors
all communication between the buyer’s Contracting officer
and a prospective contractor should not be disclosed to other prospective
contractors

Question 38 1 points Save
Who bears most risk in a cost reimbursable contract?
Seller and general public
Buyer and seller bear equal risk
Buyer
Seller

Question 39 1 points Save
Quality control is an aspect of contract administration.
True
False

Question 40 1 points Save
The acceptable quality level (AQL)

defines the minimum acceptable performance of a requirement

is a key component of the statement of work

must lie within 3-sigma of the mean

goes against the basic precepts of quality management, since
it focuses only on what is acceptable and not on what is best

Question 41 1 points Save
Which of the following is not a cost reimbursable contract?
Cost Plus Fixed Fee contract
Time and Materials contract
Cost Plus Incentive Fee contract
Firm fixed price contract

Question 42 1 points Save
Work for hire refers to work produced by employees and
contractors within the scope of their employment contract.
True
False

Question 43 1 points Save
An e-Business company has contracted the services of three
consultancy firms to help install its newly acquired enterprise resource
planning (ERP) technology. Which of the following can be used to distinguish
one consultancy firm from the other?
Patent
Service mark
Trademark
Copyright

Question 44 1 points Save
Contract administration refers to:
preparing and issuing Requests for Proposal (RFPs)
administering the contract negotiation process
administering the source selection process
the process of ensuring that the contractor’s performance
meets contractual requirements

Question 45 1 points Save
Three critical components of performance based contracting
are:

the PWS, AQL, and outcomes analysis

identical to the critical components of activity based
costing

the PWS, QAP, and outcomes analysis

the PWS, QAP, and positive/negative incentives

Question 46 1 points Save
An exclusive license is most appropriate:
when a small investment is needed to use a technology
for unique technologies
only in the traditional industries
for routine technologies

Question 47 1 points Save
Which of the following is an activity at the source
selection stage?
Evaluation of the contracting firm’s qualifications
Project baseline verification
Measuring work performance
Product verification

Question 48 1 points Save
Which of the following is an example of a situation for
which Fixed Price contracts are most appropriate?
Production of high risk deliverables
One-of-a kind projects
R&D projects
Production of routine deliverables

Question 49 1 points Save
A statement of objective (SOO) is:
the same as statement of work
a high level description of what the buyer hopes to gain
from the deliverable
the same as RFQ
the same as IFB

Question 50 1 points Save
Unauthorized use of a trademark is called piracy.
True
False

Question 51 1 points Save
At its simplest, acquisition management can be viewed as:

operations management plus contract management

project management plus operations management

inventory management plus contract management

project management plus contract management

Question 52 1 points Save
In a contractual agreement, where two or more players
develop a new technology, by law the state assumes ownership of the patent of
the technology on behalf of the players to avoid future conflicts between them.

True
False

Question 53 1 points Save
An important function of benefit-cost analysis is that it
allows us to prioritize bids to see which are worthy of winning a contract
award.
True
False

Question 54 1 points Save
The Universal Copyright Convention extends copyright
protection to translations of copyrighted works into foreign languages.
True
False

Question 55 1 points Save
Procurement planning involves selection of a suitable
contractor to execute a project.
True
False

Question 56 1 points Save
The process of identifying and articulating the buyer’s
needs is part of a process that immediately leads to:

WBS construction
Requirements analysis
Baselining
WBS dictionary development

Question 57 1 points Save
A difference between an RFP and an IFB is that with an RFP:
the objective is to request quotations
a request is made for bids whose terms eventually may be
negotiated
there may be no negotiations between buyer and supplier
sealed bids are tendered and opened publicly at one time

Question 58 1 points Save
Under a tie-in clause in a licensing agreement, the licensee
is required to obtain complementary or competing technology from other sources
to tie in with that obtained from the licensor.
True
False

Question 59 1 points Save
When shipping a proposal to a client in response to a
solicitation, it is a good idea to obtain a time-stamped receipt, indicating at
what time the proposal arrived at the client’s site.
True
False

Question 60 1 points Save
In contracting, the term “boilerplate” refers to:
Contingency reserves that are built into contracts to deal
with known unknowns
Written material that can be used over and over again on
proposals and contracts
Penalties directed against contractors who fail to perform
according to contractual requirements
Penalties directed against buyers who fail to meet their
contractual obligations

Question 61 1 points Save
Which of the following items is not a contract monitoring
activity?
Conducting user acceptance tests (UATs)
Reviewing the contractor’s profit and loss statements
Inspecting deliverables
Reviewing contractor progress reports

Question 62 1 points Save
The value of a trademark depends on:
the perceived quality of the trademarked good
who the founder of the company that holds the trade mark is
the aesthetic beauty of the trademark
its age

Question 63 1 points Save
Copyright law protects:
the content of an idea
the expression of an idea
the content and expression of an idea
patents and content of an idea

Question 64 1 points Save
The basic objective of procurement planning is to:
obtain quotations
manage relationships with the seller
determine what to procure and when
choose from potential sellers

Question 65 1 points Save
Rapid prototyping is a technique geared to
identifying customer requirements
developing deliverables as quickly as possible
maintaining spare parts for complex systems
building small deliverables

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