Question 1
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 2
Who
bears most risk in a cost reimbursable contract?

Buyer

Seller
and general public

Buyer
and seller bear equal risk

Seller

Question 3
Which
of the following roles may the staff of a modern project support office play in
contract management?

Conducts
risk assessment of a proposed project that an organization wants to bid on

Has no
role to play

Negotiates
detailed contract terms and conditions

Provides
sponsorship

Question 4
Which
of the following is not a typical criterion employed to identify winning
contracts?

Effectiveness
of the work plan

Political
orientation of bidders

Technical
merit

Organizational
capabilities

Question 5
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:

peer
review

Buss’s
ranking technique

poor
man’s hierarchy

scoring

Question 6
In
contracting, change control focuses on:

contractor
generated changes

changes
to the contract scope coming from any source

buyer
generated changes

changes
triggered by events in the environment

Question 7
Copyright
law protects:

the
content and expression of an idea

patents
and content of an idea

the
expression of an idea

the
content of an idea

Question 8
Work
for hire refers to work produced by employees and contractors within the scope
of their employment contract.

True

False

Question 9
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 given a compensatory title as the inventor

ownership
of the patent for the invention is assigned to her

her
employer is designated both as inventor and patent owner because she used company
resources and time to produce the invention

Question 10
A
proposal that reflects the seller’s best and final offer is typically
associated with a:

Request
for Proposal (RFP)

Invitation
for Bid (IFB)

Cost
Plus Fixed Fee (CPFF) contract

Request
for Quotation (RFQ)

Question 11
Rapid
prototyping is a technique geared to

developing
deliverables as quickly as possible

identifying
customer requirements

maintaining
spare parts for complex systems

building
small deliverables

Question 12
Performance-based
contracts focus on:

human
resource allocation

what
should be produced

how the
deliverable should be produced

financial
management

Question 13
The
basic objective of procurement planning is to:

obtain
quotations

manage
relationships with the seller

choose
from potential sellers

determine
what to procure and when

Question 14
The
cost-as-an-independent-variable sees cost as the key project driver.

True

False

Question 15
To
ensure efficiency in contract administration, administrative closure activities
should be delayed until project completion.

True

False

Question 16
From a
licensee’s perspective, technology licensing is attractive because it:

promotes
initiative in the use of a superior technology

provides
opportunities for the licensee’s employees to learn new technology skills

reduces
dependence on the licensor

has few
legal issues to contend with

Question 17
Which
of the following contracting concepts is not associated with competitive
procurements?

Sole
source bid

RFP

IFB

RFQ

Question 18
A
difference between an RFP and an IFB is that with an RFP:

a
request is made for bids whose terms eventually may be negotiated

there
may be no negotiations between buyer and supplier

the
objective is to request quotations

sealed
bids are tendered and opened publicly at one time

Question 19
Proposals
coming from contractors who have unique skills in providing goods and services
are called:

sole
source proposals

best
and final offers (BAFOs)

negotiated
proposals

unsolicited
proposals

Question 20
At its
simplest, acquisition management can be viewed as:

project
management plus operations management

inventory
management plus contract management

project
management plus contract management

operations
management plus contract management

Question 21
What is
the purpose of the bidders’ conference?

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

To
enable the buyer to interact with successful bidders

Question 22
Requirements
addressing technical issues stated in non-technical terms are called

statement
of work

specifications

functional
requirements

business
requirements

Question 23
Unauthorized
use of a trademark is called piracy.

True

False

Question 24
Performance-based
payments on contracts are tied to the achievement of well-defined milestones.

True

False

Question 25
Buyers
use SOWs to express their requirements.

True

False

Question 26
One of
the key characteristics of the Cost Plus Award Fee (CPAF) contract is that:

buyers
face no risk of cost overruns

it
offers the buyer no leverage in dealing with sellers

bonus
payments are made to sellers based on subjective judgments about project
performance

there
is no explicit payment of additional fees

Question 27
Contracts
should not close out until final user acceptance tests (UATs) are conducted.

True

False

Question 28
Procurement
planning involves selection of a suitable contractor to execute a project.

True

False

Question 29
An
advantage of the Cost Plus Fixed Fee (CPFF) contract is that:

the
buyer can attract higher quality sellers

the
seller loses through cost overruns

the
buyer faces no risk of cost overrun

it
prevents schedule slippage

Question 30
With
performance work statements, attention focuses on defining outcomes.

True

False

Question 31
The
acceptable quality level (AQL)

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

is a
key component of the statement of work

defines
the minimum acceptable performance of a requirement

must
lie within 3-sigma of the mean

Question 32
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

$184,000

$205,000

$180,000

$209,000

Question 33
The
value of a trademark depends on:

its age

the
aesthetic beauty of the trademark

the
perceived quality of the trademarked good

who the
founder of the company that holds the trade mark is

Question 34
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 35
Which
of the following is an example of a situation for which Fixed Price contracts
are most appropriate?

R&D
projects

One-of-a
kind projects

Production
of routine deliverables

Production
of high risk deliverables

Question 36
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 37
An
exclusive license is most appropriate:

for
routine technologies

when a
small investment is needed to use a technology

only in
the traditional industries

for
unique technologies

Question 38
The
Universal Copyright Convention extends copyright protection to translations of
copyrighted works into foreign languages.

True

False

Question 39
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 40
Contract
administration refers to:

preparing
and issuing Requests for Proposal (RFPs)

administering
the source selection process

administering
the contract negotiation process

the
process of ensuring that the contractor’s performance meets contractual
requirements

Question 41
Which
of the following items is not a contract monitoring activity?

Conducting
user acceptance tests (UATs)

Inspecting
deliverables

Reviewing
the contractor’s profit and loss statements

Reviewing
contractor progress reports

Question 42
To
protect the intellectual property of the buyer, a contractor is typically made
to sign a:

An
indemnity bond

Conflict
of interest agreement

Non-competition
agreement

Non-disclosure
agreement

Question 43
A statement
of objective (SOO) is:

the
same as RFQ

the
same as statement of work

a high
level description of what the buyer hopes to gain from the deliverable

the
same as IFB

Question 44
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 45
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 46
Contract
negotiation 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 47
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)

all
communication between the buyer’s Contracting officer and a prospective
contractor should not be disclosed to other prospective contractors

all
communication between the buyer’s Contracting officer and a prospective
contractor must be disclosed to all other prospective contractors

once an
RFP has been issued, the seller is under no obligation to provide additional
information relating to the acquisition

Question 48
Which
of the following is not a cost reimbursable contract?

Cost
Plus Incentive Fee contract

Firm
fixed price contract

Time
and Materials contract

Cost
Plus Fixed Fee contract

Question 49
The
process of identifying and articulating the buyer’s needs is part of a process
that immediately leads to:

Requirements
analysis

WBS
construction

Baselining

WBS
dictionary development

Question 50
Indefinite
delivery contracts are employed:

when
the seller is not sure how much should be charged for contracted work

when
the buyer does not know how many items he/she needs

on low
risk contracts

on high
risk contracts

Question 51
Buybacks
are a form of remuneration for licensing by which the licensor buys back stock
shares in the licensee’s business.

True

False

Question 52
Which
of the following is an activity at the source selection stage?

Project
baseline verification

Evaluation
of the contracting firm’s qualifications

Measuring
work performance

Product
verification

Question 53
Under
what conditions is an RFQ an appropriate mode of solicitation?

When an
award fee can be identified

When
goods and services are already defined

When
dealing with non-routine efforts

When
dealing with state-of-art efforts

Question 54
Which
of the following is a tool that is used for performance measurement in
contracting?

Resource
leveling analysis

Contractor
technical capability analysis

The
Peter Principle

Earned
value estimates

Question 55
Quality
control is an aspect of contract administration.

True

False

Question 56
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 57
In
contracting, the term “volunteerism” refers to the situation where:

team
members agree to work on a contract without pay

contracts
are carried out on behalf of non-profit organizations

buyers
“forgive” small instances of poor contractor performance

contractors
do not charge buyers for change requests

Question 58
The
fair use principle allows reasonable use of copyrighted material only after
permission has been obtained from the copyright owner.

True

False

Question 59
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?

Copyright

Service
mark

Trademark

Patent

Question 60
In
contracting, the term “boilerplate” refers to:

Penalties
directed against contractors who fail to perform according to contractual
requirements

Penalties
directed against buyers who fail to meet their contractual obligations

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

Question 61
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

reduce
the total operating cost (TOC) associated with programs

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

Question 62
Collection
of a down payment fee in technology licensing is used when:

dealing
with exclusive license contracts

it is
difficult to access the licensee’s “honest” books

dealing
with a licensee who is not economically sound

dealing
with non-exclusive license contracts

Question 63
RFPs
are prepared at the solicitation planning stage.

True

False

Question 64
What
function does a level of effort SOW perform?

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

It
establishes a high level listing of specifications that a contract should
address

It
defines the dollar value of project scope

Question 65
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

buyers
make a preliminary decision on which bid should be granted a contract

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

Question 1 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 2 Who
bears most risk in a cost reimbursable contract? Buyer Seller
and general public Buyer
and seller bear equal risk Seller Question 3 Which
of the following roles may the staff of a modern project support office play in
contract management? Conducts
risk assessment of a proposed project that an organization wants to bid on Has no
role to play Negotiates
detailed contract terms and conditions Provides
sponsorship Question 4 Which
of the following is not a typical criterion employed to identify winning
contracts? Effectiveness
of the work plan Political
orientation of bidders Technical
merit Organizational
capabilities Question 5 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: peer
review Buss’s
ranking technique poor
man’s hierarchy scoring
Question 6 In
contracting, change control focuses on: contractor
generated changes changes
to the contract scope coming from any source buyer
generated changes changes
triggered by events in the environment Question 7 Copyright
law protects: the
content and expression of an idea patents
and content of an idea the
expression of an idea the
content of an idea Question 8 Work
for hire refers to work produced by employees and contractors within the scope
of their employment contract. TrueFalse Question 9 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 given a compensatory title as the inventor ownership
of the patent for the invention is assigned to her her
employer is designated both as inventor and patent owner because she used company
resources and time to produce the invention Question 10 A
proposal that reflects the seller’s best and final offer is typically
associated with a: Request
for Proposal (RFP) Invitation
for Bid (IFB) Cost
Plus Fixed Fee (CPFF) contract Request
for Quotation (RFQ) Question 11 Rapid
prototyping is a technique geared to developing
deliverables as quickly as possible identifying
customer requirements maintaining
spare parts for complex systems building
small deliverables Question 12 Performance-based
contracts focus on: human
resource allocation what
should be produced how the
deliverable should be produced financial
management Question 13 The
basic objective of procurement planning is to: obtain
quotations manage
relationships with the seller choose
from potential sellers determine
what to procure and when Question 14 The
cost-as-an-independent-variable sees cost as the key project driver. TrueFalse Question 15 To
ensure efficiency in contract administration, administrative closure activities
should be delayed until project completion. TrueFalse Question 16 From a
licensee’s perspective, technology licensing is attractive because it: promotes
initiative in the use of a superior technology provides
opportunities for the licensee’s employees to learn new technology skills reduces
dependence on the licensor has few
legal issues to contend with Question 17 Which
of the following contracting concepts is not associated with competitive
procurements? Sole
source bid RFP IFB RFQ Question 18 A
difference between an RFP and an IFB is that with an RFP: a
request is made for bids whose terms eventually may be negotiated there
may be no negotiations between buyer and supplier the
objective is to request quotations sealed
bids are tendered and opened publicly at one time Question 19 Proposals
coming from contractors who have unique skills in providing goods and services
are called: sole
source proposals best
and final offers (BAFOs) negotiated
proposals unsolicited
proposals Question 20 At its
simplest, acquisition management can be viewed as: project
management plus operations management inventory
management plus contract management project
management plus contract management operations
management plus contract management Question 21 What is
the purpose of the bidders’ conference? 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 To
enable the buyer to interact with successful bidders Question 22 Requirements
addressing technical issues stated in non-technical terms are called statement
of work specifications
functional
requirements business
requirements Question 23 Unauthorized
use of a trademark is called piracy. TrueFalse Question 24 Performance-based
payments on contracts are tied to the achievement of well-defined milestones. TrueFalse Question 25 Buyers
use SOWs to express their requirements. TrueFalse Question 26 One of
the key characteristics of the Cost Plus Award Fee (CPAF) contract is that: buyers
face no risk of cost overruns it
offers the buyer no leverage in dealing with sellers bonus
payments are made to sellers based on subjective judgments about project
performance there
is no explicit payment of additional fees Question 27 Contracts
should not close out until final user acceptance tests (UATs) are conducted. TrueFalse Question 28 Procurement
planning involves selection of a suitable contractor to execute a project. TrueFalse Question 29 An
advantage of the Cost Plus Fixed Fee (CPFF) contract is that: the
buyer can attract higher quality sellers the
seller loses through cost overruns the
buyer faces no risk of cost overrun it
prevents schedule slippage Question 30 With
performance work statements, attention focuses on defining outcomes. TrueFalse Question 31 The
acceptable quality level (AQL) goes
against the basic precepts of quality management, since it focuses only on what
is acceptable and not on what is best is a
key component of the statement of work defines
the minimum acceptable performance of a requirement must
lie within 3-sigma of the mean Question 32 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: $200,000Negotiated Fee: $25,000Incentive Payment: 20% of cost savingsActual cost: $180,000 $184,000
$205,000
$180,000
$209,000
Question 33 The
value of a trademark depends on: its age
the
aesthetic beauty of the trademark the
perceived quality of the trademarked good who the
founder of the company that holds the trade mark is Question 34 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. TrueFalse Question 35 Which
of the following is an example of a situation for which Fixed Price contracts
are most appropriate? R&D
projects One-of-a
kind projects Production
of routine deliverables Production
of high risk deliverables Question 36 Grant-back
provisions in a licensing agreement require that improvements the licensee
makes to a licensed technology revert back to the licensor. TrueFalse Question 37 An
exclusive license is most appropriate: for
routine technologies when a
small investment is needed to use a technology only in
the traditional industries for
unique technologies Question 38 The
Universal Copyright Convention extends copyright protection to translations of
copyrighted works into foreign languages. TrueFalse Question 39 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. TrueFalse Question 40 Contract
administration refers to: preparing
and issuing Requests for Proposal (RFPs) administering
the source selection process administering
the contract negotiation process the
process of ensuring that the contractor’s performance meets contractual
requirements Question 41 Which
of the following items is not a contract monitoring activity? Conducting
user acceptance tests (UATs) Inspecting
deliverables Reviewing
the contractor’s profit and loss statements Reviewing
contractor progress reports Question 42 To
protect the intellectual property of the buyer, a contractor is typically made
to sign a: An
indemnity bond Conflict
of interest agreement Non-competition
agreement Non-disclosure
agreement Question 43 A statement
of objective (SOO) is: the
same as RFQ the
same as statement of work a high
level description of what the buyer hopes to gain from the deliverable the
same as IFB Question 44 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. TrueFalse Question 45 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. TrueFalse Question 46 Contract
negotiation 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. TrueFalse Question 47 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) all
communication between the buyer’s Contracting officer and a prospective
contractor should not be disclosed to other prospective contractors all
communication between the buyer’s Contracting officer and a prospective
contractor must be disclosed to all other prospective contractors once an
RFP has been issued, the seller is under no obligation to provide additional
information relating to the acquisition Question 48 Which
of the following is not a cost reimbursable contract? Cost
Plus Incentive Fee contract Firm
fixed price contract Time
and Materials contract Cost
Plus Fixed Fee contract Question 49 The
process of identifying and articulating the buyer’s needs is part of a process
that immediately leads to: Requirements
analysis WBS
construction Baselining
WBS
dictionary development Question 50 Indefinite
delivery contracts are employed: when
the seller is not sure how much should be charged for contracted work when
the buyer does not know how many items he/she needs on low
risk contracts on high
risk contracts Question 51 Buybacks
are a form of remuneration for licensing by which the licensor buys back stock
shares in the licensee’s business. TrueFalse Question 52 Which
of the following is an activity at the source selection stage? Project
baseline verification Evaluation
of the contracting firm’s qualifications Measuring
work performance Product
verification Question 53 Under
what conditions is an RFQ an appropriate mode of solicitation? When an
award fee can be identified When
goods and services are already defined When
dealing with non-routine efforts When
dealing with state-of-art efforts Question 54 Which
of the following is a tool that is used for performance measurement in
contracting? Resource
leveling analysis Contractor
technical capability analysis The
Peter Principle Earned
value estimates Question 55 Quality
control is an aspect of contract administration. TrueFalse Question 56 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. TrueFalse Question 57 In
contracting, the term “volunteerism” refers to the situation where: team
members agree to work on a contract without pay contracts
are carried out on behalf of non-profit organizations buyers
“forgive” small instances of poor contractor performance contractors
do not charge buyers for change requests Question 58 The
fair use principle allows reasonable use of copyrighted material only after
permission has been obtained from the copyright owner. TrueFalse Question 59 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? Copyright
Service
mark Trademark
Patent Question 60 In
contracting, the term “boilerplate” refers to: Penalties
directed against contractors who fail to perform according to contractual
requirements Penalties
directed against buyers who fail to meet their contractual obligations 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 Question 61 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 reduce
the total operating cost (TOC) associated with programs make
sure that a high quality deliverable is produced at any cost Question 62 Collection
of a down payment fee in technology licensing is used when: dealing
with exclusive license contracts it is
difficult to access the licensee’s “honest” books dealing
with a licensee who is not economically sound dealing
with non-exclusive license contracts Question 63 RFPs
are prepared at the solicitation planning stage. TrueFalse Question 64 What
function does a level of effort SOW perform? 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
It
establishes a high level listing of specifications that a contract should
address It
defines the dollar value of project scope Question 65 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 buyers
make a preliminary decision on which bid should be granted a contract 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