PMAN641 PROJECT PROCUREMENT MANAGEMENTFINAL EXAMINSTRUCTIONSThere are a total of 35 questions. Each of the 25 multiple-choice questions is worth 2 pointsand each of the 10 essay questions is worth 5 points for a total of 100 points. Enter youranswer where indicated. All answers are to be in RED font. This is an openbook/notes/conferences test, but it is not a group project and must be completed individually.For the multiple choice questions, you must select the best answer in order to have the correctanswer. Essay question answers should be concise (no greater than 250 words per answer),specific, and to-the-point. APA format is not required. Long, rambling answers will result inlost points.This final exam file must be renamed with your last name as part of the file name, and postedto your Assignments folder no later than the date and time specified by your professor. Thereare no exceptions to the final exam deadline date and time, so be sure to double-check thatyou have correctly posted the correct final exam to your Assignments folder.All answers must be in the yellow shaded area. Do not provide additional comments for themultiple choice question answers. Doing so will invalidate the answer.Lastly, your answers to the essay questions should fit in the yellow space provided. If,because of fonts or other formatting the answer does not fit, the text will be entered on yourexam, but you will not be able to see all of it at once.Good luck!AnswerMultiple Choice Questions1. Project Manager Mary Ann is not a member of PMI but has applied for PMI certification. She has a meeting with seller A and gets into an argument withSeller A. Mary Ann loses her cool and yells at seller A and tells them to get out of her office. Which of the following is true about Mary Anns conduct?A.B.C.D.It is a violation of PMIs Code of Ethics and Professional Conduct.Since Mary Ann is not a member of PMI, she is not subject to the Code of Ethics and Professional Conduct.While not a per se violation of PMIs Code of Ethics and Professional Conduct, Mary Ann should aspire to a better standard of conduct.It is not a violation of the Institute for Supply Managements Principles and Standards of Ethical Supply Management Conduct.2. Project Manager Amy Sues old college roommate owns a company, Services R Us, which sells the services that Amy Sue needs for her project. Amy Suedecides to include Services R Us as a prospective seller for her projects procurement requirements. Amy Sue is just doing this as a favor to her oldroommate, has no intention of awarding the business to Services R Us, and has no financial interest in Services R Us. Is Amys decision in violation of PMIsCode of Ethics and Professional Conduct?A.B.C.D.xxNo, because Amy Sue has no financial interest in the old roommate’s company Amy Sue’s decision is therefore not an actual conflict of interest under PMI’s Code of Ethics and Professional Conduct.Yes, while there may not be an actual conflict of interest, PMI’s Code of Ethics and Professional Conduct consider an appearance of a conflict of interest as a violation.No, because Amy Sue does not intend on awarding the business to the old roommates company.Yes, because despite Amy Sue’s intentions, she probably will select Services R Us as the seller.3. Project Manager John Boy has a policy of only using experienced, dependable, and proven sellers versus selecting sellers through open competition as ameans to manage procurement risk. What risk management technique is John Boy using?A.B.C.D.Risk Acceptance.Risk Mitigation.Risk TransferRisk Avoidance.x4. Project Procurement Management ________.A.B.C.D.xDescribes the processes required to procure products, services, or results from outside the performing organization.Involves processes to ensure that the project procures products, services, or results at the lowest possible cost.Includes the processes to procure products, services, or results, but does not include the ongoing performance management of the selected seller(s).Is not used by the seller of the product, service, or results under a contract.5. Project Manager Billie Ray is coordinating a conference to allow sellers to obtain clarification on the services that need to be performed. Under whatprocess of Project Procurement Management would this occur?A.B.C.D.Confidential Clarification Sessions.Plan ProcurementsPlan Purchases and Acquisitions.Conduct Procurementsx6. Which document would Alex, a computer programmer, sign in order to protect his Intellectual Property rights prior to starting a consulting project?ABCDEA contract to not engage in unfair business practicesA non-compete contractA non-disclosure agreementA work for hire agreementNone of the above.x7. In PMBOK terms, when sellers are requested to provide responses, the specific means by which the buyer requests the responses is the _____.A.B.C.D.Request for Proposal.Solicitation.Procurement Document Package.Request Seller Responses.x8. Which of the following is included as a part of a procurement management plan?A.B.C.D.Make-or-buy decision.List of pre-qualified selected sellers.Contract statement of work.All of the above.x9. Project Manager Daisy Duke works at a Fortune 100 company and acknowledges that there are some unknowns in her procurement statement of workand specifications. Which contract type should Daisy Duke not use?A.B.C.D.Time and Materials.Cost-Plus-Percentage of Cost.Fixed-Price Incentive.Cost-Reimbursable.x10. Which of the following would not normally be a contract boilerplate item?A.B.C.D.E.Payment termsInsurance clauseGoverning law clausePrice adjustment for currency fluctuationsTax clausex11. Project Managers need to have an understanding of Project Procurement Management because the ________.A.B.C.D.xProject Manager procures the products, services, or results required by the project.Project Manager must ensure that products, services, or results are procured at the lowest possible cost.Project Manager is responsible for defining the needs of the project and for managing the schedule activities of the buyer, who is a part of the project team.Project Manager is responsible for the creation of the procurement management plan, which is then turned over to the buyer, who then initiates the Request Seller Responses.12. Verification by the buyer of whether the products, services, or deliverables provided by the seller meets the buyers acceptance criteria occurs at whatpoint in the Project Procurement Management processes?A.B.C.D.Close ProcurementsChange Control.Acceptance Plan and Verification Process.Contract Administration.x13. Project Manager Billie Jo is purchasing 100 laptops and 20 desktop computers for her project, and the delivery of the computers is time-critical. Billie Jowould like to provide an incentive to the seller for the timely delivery of the computers. Billie Jo, along with the buyer on the project team, has agreed that theselected seller will be paid the cost of the computers plus a 10% fee. Which contract type is being used in this case?A.B.C.D.CPPC.T&M with incentiveCPFF.Fixed Cost.x14. Identify the document that is developed from the project scope statement, the project work breakdown structure (WBS) and the WBS dictionary.A.B.C.D.Contract Management Plan.Make-or-Buy Analysis.Organizational Process Assets.Statement of Work.15. A project manager for a large manufacturing company is working on a project that calls for a new building to be constructed to house a new clean systemmanufacturing process that is critical to the success of the project. Construction is not a core competency of his company. His team has the ability to create adetailed SOW with liquidated damages if specific statements of work deliverables are not met. He is in the Plan Procurements phase of the project, and needsto select a contract type for this work. Which of the following is the best type of contract for this situation?A.B.C.D.FP (Fixed price)CPFF (Cost plus fixed fee)CPIF (Cost plus incentive fee)T&M (Time and materials)16. Bubba is a sales representative for Shrimp Boats R Us company, which is a prospective seller of shrimp boats for your project. Bubba has offered you agreat end-of-the year deal that is substantially below the current prices for the desired boats. Other than meeting Bubba at the sellers pre-response (bidders)conference and seeing his business card, you know nothing other of Bubbas employment with Shrimp Boats R Us. In offering you the special pricing, whatform of agency is Bubba operating under?A.B.C.D.Intended Authority.Express Authority.Sale Agency Authority.Apparent Authority.xxx17. The objective of the _____ is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contractsin a project.A.B.C.D.Lessons Learned Analysis.Procurement Audit.Procurement Documents.SWOT Analysis.x18. What is an oral or written act by an authorized agent which can be construed to have the same effect as a written change order?A.B.C.D.A Constructive Change.Claims Administration.Implied Change Order.Agent-authorized Change Order.x19. Project Manager Buddy Lee has elected to use a Firm Fixed-Price contract type for his procurement. Which type of Procurement Document(s) are correctfor Buddy Lee to use?A.B.C.D.RFP, RFI, RFQ, or IFBRFP, IFB, or FFPRFP, IFB, or RFQRFI, RFQ, or IFBx20. Which of the following is a method / are methods to transfer risk from the buyer to the seller?A.B.C.D.The Delphi Technique.Risk Management Plan.Contract.All of the above.x21. Which of the following is a true statement about Procurement Documents?A.B.C.D.Procurement Documents should be structured to facilitate accurate and complete responses from prospective sellers.Procurement Documents are used to solicit responses from prospective sellers.Procurement Documents may include a copy of the contract type.All of the above.x22. A project manager has just reached the end of a project. Which of the following documents will the project manager need for closure of the project?A.B.C.D.Change requests.Documents that describe the product of the project.Documents that describe the project status.Trend analyses.x23. A contract between buyer and seller specifies that a seller must pay $1,000 per day if the seller fails to deliver the materials according to the projectschedule. What form of contract remedy is the seller agreeing to here?A.B.C.D.Liquidated Damages.Bond.Equitable Relief.Remedial Payment.x24. Which of the following is a true statement concerning evaluation criteria?A.B.C.D.They can often be found in a Procurement Document.They can be objective or subjective.They may be limited to purchase price if the product, service, or result is readily available from a significant number of sellers.All of the above.x25. Which of the following is a method for quantifying qualitative data in order to minimize the effect of personal prejudice on seller selection?A.B.C.D.Weighting System.Screening System.Rating System.All of the above.xEssay QuestionsYou are the Project Manager on a project where a seller is not performing to contract. The products, services, and results delivered by theseller do not adhere to the acceptance testing requirements described in the contract. To make matters worse, despite negotiations, the26 seller is not motivated to substantially correct the issues and your procurement is at a standstill. Explain your options in resolving thismatter short of litigation or ADR.The PMBOK describes 6 "competing project constraints. Select three of those constraints and explain their potential effect on project27 procurements.A prospective seller, Seller XYZ, calls you to discuss the pricing contained in the response they previously provided to you. Seller XYZ isalso a large customer of your company, and has been a long-time supplier to your company with superb performance. You would reallylike to see XYZ win the business for your project. As the Project Manager, you have visibility to all of the pricing provided by other28 prospective sellers. During the discussion, Seller XYZ asks you for guidance on their pricing so that they are competitive with the otherprospective sellers. How do you respond to Seller XYZ? Explain your thought process in deciding to respond and, if appropriate,reference one or more relevant codes of ethics that may apply to this situation.Project Manager Harley Davidson has developed an RFP to request responses from sellers. Based on the requirements and specificationsassociated with the procurement, Harley believes the sellers will likely be niche technology start-up companies that will be called upon to29 produce a significant quantity of the products they produce to fulfill the needs of Harleys government customer. What key Source SelectionCriteria should Harley include to rate or score the sellers responses?Project Manager Suzy Q is involved in managing two different sellers, one of whom is performing under a fixed-price contract type and theother that is performing under a cost-reimbursable contract type. Describe (a) which phase of Project Procurement Suzy Q is in, and (b)30 what tools and techniques that Suzy Q could use to manage each sellers performance under their respective contracts, and how the twodiffering contract types might require different tools and techniques.Describe the role of the Project Manager in Project Procurement Management, including what the Project Manager is and is not31 responsible for.Describe the PMBOK’s recommended process by which a buyer prepares to request seller responses for any given procurement, and32 some of the documents that may result from that process.Buyer Bobbie Sue and Seller Billy Bob are disputing the delivery of products called for under their contract. Bobbie Sue says that theproducts that she pre-paid for do not conform to the requirements of the contract, but Billy Bob refuses to refund the payment or replace the33 products. Bobbie Sue and Billy Bob have tried to work out their differences through negotiation, but cannot come to an agreement. Thishas resulted in a contract dispute. Explain the dispute resolution options available to Bobbie Sue and Billy Bob, and the primary benefits ofeach option.Project Manager Bobbie Sue is evaluating whether to have her companys IT department develop the software needed by her project.34 Under the Plan Procurements process of Project Procurement Management, describe how Bobbie Sue should approach making herdecision.35 Name the contract type that cannot legally be used for US Government procurements, and why that contract type should not be used.Grade