Chapter 10 - Managing Project Procurement

All of the following are types of examples of organizations from which software or its components can be procured EXCEPT:

hardware companies.

________ help companies develop custom information systems for internal use, or they develop, host, and run applications for customers.

IT services firms

Off-the-shelf software systems that cannot be modified to meet specific needs are called

turnkey systems.

A(n) ________ system is a system that integrates individual traditional business functions into a series of modules so that a single transaction occurs seamlessly within a single information system rather than several separate systems.

ERP

Which of the following is NOT true about ERP systems?

IT is easier to integrate data using a best-of-breed strategy.

Using different software products from different sources (including in house development) to capitalize on the strengths of different products is referred to as:

best-of-breed strategy.

Software-as-a-Service uses a(n) ________ model.

utility computing

Open source software is different than other types of software because:

the source code is freely available.

When the task requires custom support, companies should turn to:

IT services firms

When the supported task is generic, companies should turn to:

packaged software producers

For complete systems that cross functional boundaries, companies should turn to:

enterprise-wide solutions

When the supported task is generic, but cost is an issue, companies should turn to:

open source software

The procurement of products and/or services from an outside vendor is called:

external acquisition.

How many processes does the project procurement management knowledge area include?

Three

Which of the following is a process in the project procurement management knowledge area?

Plan procurement management

Plan procurement management is part of the ________ process group.

planning

Conduct procurements is part of the ________ process group.

executing

Control procurements is part of the ________ process group.

monitoring and controlling

The process ________ involves determining which project needs can best be met by external acquisition and planning how procurement activities are performed.

plan procurement management

Which of the following is NOT another name for an RFP?

Request for acquisition

The key technique used in procurement planning is:

make-or-buy analysis.

A contract type in which the supplier is bound to the price of the contract is called:

fixed price contract.

Under a cost-reimbursable contract:

indirect costs are typically billed as a percentage of direct costs.

A contract type that involves payment for the actual cost of the product plus a fee that represents the vendor's profits is called:

cost-reimbursable contract.

Under a ________, vendors provide and hourly rate, and an estimate about the time and material needed.

time and materials contract

Only when the requirements are sufficiently detailed, suppliers feel comfortable using a:

fixed price contract.

For a ________, it is often recommended that contract requirements specify review points and progress assessments.

time and materials contract.

________ costs are those incurred by the vendor in the provision of the product or service.

Direct

________ costs are part of the vendor's cost of doing business.

Indirect

________ costs is another term for overhead costs.

Indirect

A(n) ________ addresses such issues as how multiple vendors will be managed, where standardized procurement documents can be obtained, and so on.

procurement management plan

A(n) ________ is a document prepared for potential vendors that describes the service or product being sought.

SOW

Statements of work:

tend to be revised as they move through the procurement process.

Which of the following is NOT an output from the planning purchases and acquisition process?

Change requests

The most common procurement document is the:

RFP

An RFP:

allows buyer and supplier to communicate using the same rules.

Which of the following is NOT part of an RFP?

Stakeholder section

What is NOT true about evaluation criteria?

They focus on quality only.

A method used to quantitatively compare vendor proposals based on evaluation of attributes is called:

weighting system.

A system in which vendors are eliminated based on certain minimum criteria is called:

screening system.

Another term for independent estimates is:

should-cost estimates.

The process during which representatives from the buyer and the vendor engage in discussions to clarify and reach agreement on the structure and the requirements of the contract is called:

contract negotiation.

The process concerned with ensuring that the product or service procured meets the agreed upon performance standards is called:

control procurements.