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” books
dealing 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 met

develop a quantitative model of project costs

make sure that a high quality deliverable is produced at any cost

reduce the total operating cost (TOC) associated with programs

Question 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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