Capm-Procurement

Front 1

What is procurement?

Back 1

Procurement is working with outside companies

Front 2

Process - Plan procurement management

Back 2

in the PLANNING process group; analyzing procurement /outsourcing needs

Front 3

Process - Plan procurement management: inputs

Back 3

project management plan; requirements documentation; risk register; activitiy resource requirements; project schedule; activity cost estimates; stakeholder register

Front 4

Process - Plan procurement management: tools and techniques

Back 4

Make-or-Buy Analysis; expert judgment; market research

Front 5

Process - Plan procurement management: outputs

Back 5

procurement management plan; procurement statement of work; source selection criteria; make-or-buy decisions; change requests

Front 6

What is the procurement plan?

Back 6

Formalizes types of contracts nad procurement documents; details procurement metrics, assumptions, constraints and risks; indicates if/when independent estimates will be used; designates any prequalified sellers; describes the manner in which multiple suppliers are managed; describes the manner which make-or-buy decisions are conducted; the manner in which the PM team will work with the procurement department; manner in which procurement is coordinated with other project processes like scheduling and reporting

Front 7

What does the procurement plan help with?

Back 7

determine make-vs-buy; establish procurement documents (RFP,RFQ,RFI); creates procurement documents for the project; run bidder conferences; address single source and sole source procurement; select vendors; establish contracts with vendors

Front 8

what are make-or-buy decisions and considerations?

Back 8

Make or buy considerations include: make criteria (buyer owns intellectual property and wants to maintain control of it; buyer has excessive qualified capacity), buy criteria (buyer doesn't possess the skills need to make; buyer doesn't possess the capacity to do the work)

Front 9

What is the rent or buy calculation factors?

Back 9

The rent vs buy factors are: Purchase cost and daily maintenance with the purchase option; daily (weekly or monthly) rental fees which typically include maintenance fees;

Front 10

What is a contract?

Back 10

A contract is a mutually binding legal agreement between the buyer and seller where the components are: capacity (competency, of legal age, and individual legal entities); consideration (items to change possession); Offer (proposition to exchange something for something); legal purpose (reason for contract is not illegal in nature); Acceptance (willingness of the buyer to accept the offer of the seller)

Front 11

What are some buyer names?

Back 11

client, customer, prime contractor, contractor, acquiring organization government agency, service requester, purchaser

Front 12

What are some seller names?

Back 12

Contractor, subcontractor, vendor, service provider, supplier

Front 13

What are the four types of contracts?

Back 13

Purchase order, fixed-price, time and materials, cost reimburseable

Front 14

What is a purchase order (PO)?

Back 14

A PO is a unilateral agreement requiring only one-party approval; buyer risk: neutral; seller risk: neutral

Front 15

What is a firm fixed-price?

Back 15

FFP or Lump Sum requires details for the seller to estimate accurately; details are required for a FP contract; buyer risk: minimal; seller risk: significant

Front 16

What is a Fixed-Price incentive fee?

Back 16

FPIF is fixed-price plus an added incentive fee to motivate the seller to exceed the minimum requirements; buyer risk: minimal; seller risk: significant

Front 17

What is a Fixed-price economic price adjustment?

Back 17

FP-EPA is a fixed-price with variability year-toyear on certain expenses of operating and/or production; buyer risk: minimal; seller risk: significant

Front 18

What is a Cost plus fixed-fee?

Back 18

CPFF is when knows the general need but lacks the necessary detail; includes fixed fee while covering seller costs; buyer risk: medium; seller risk: minimal

Front 19

What is cost plus incentive fee?

Back 19

CPIF covers cost and incentivises the seller to do better than certain goals (time or cost) with a special payment; buyer risk: medium; seller risk: minimal

Front 20

What is cost plus award fee?

Back 20

CPAF covers sellers legitimate costs but the majority of payment is relative to buyer satisfaction; buyer risk: minimal; seller risk: significant

Front 21

What is cost plus percentage of cost?

Back 21

CPPC or Cost plus fee (CPF) covers seller costs and an additional fee relative to a percentage of the costs

Front 22

What is time and materials?

Back 22

T&M is stypically staff supplementation or smaller initiatives

Front 23

What is "share"?

Back 23

Share is splitting any remaining money between the buyer and seller (often documented as a percentage: 60/40 share)

Front 24

What is the "point of total assumption"?

Back 24

The point of total assumption is the point at which the seller is responsible for all cost overruns associated with a Fixed-Price Incentive Fee (FPIF) contract

Front 25

What is the point of total assumption formula?

Back 25

PTA= [ {ceiling price (max percentage of the target cost: 140% of cost) - target price (total target value of the contract work: target cost + target profit) } / buyer share (% split) ] + target cost (expected cost of the work)

Front 26

What is the contract scope of work?

Back 26

Contract scope of work describes what the seller will do for the buyer

Front 27

What is a "design" type scope of work?

Back 27

Design type scope of work is when the buyer providers the seller with the exact details of what is required often affiliated with fixed-price contracts

Front 28

What is a "functionality" type scope of work?

Back 28

Functionality type scope of work is when the buyer details to the seller the functionality needed (higher level requirements) allowing the seller to propose solutions typically affiliated with Cost Plus contracts

Front 29

What are four common procurement documents?

Back 29

Request for information, request for quote, request for proposal, invitation for bid

Front 30

What is a request for information procurement document?

Back 30

RFI typically requests information to learn more about a company and their product or service

Front 31

What is a request for quote procurement document?

Back 31

RFQ tpically requests proposals for a small dollar amount or a known commodity-type product that does not require a lot of customization and has a standard price not typically ending with a negotiation (think "quote me a price")

Front 32

What is a request for proposal procurement document?

Back 32

RFP typically requests proposals for bigger, higher priced, customized product or service where the details are negotiated

Front 33

What is a invitation for bid procurement document?

Back 33

IFB sometimes called Request for Bid (RFB) typically a techniques used in sealed government contract bidding and is similar to an RFP

Front 34

Process - Conduct procurements

Back 34

in the EXECUTING process group; incorporates soliciting responses from sellers, selecting sellers and awarding contracts

Front 35

Process - Conduct procurements: inputs

Back 35

procurement management plan; procurement statement of work; source selection criteria; make-or-buy decisions; procurement documents

Front 36

Process - Conduct procurements: tools and techniques

Back 36

bidder conference; proposal evaluation techniques; expert judgment

Front 37

Process - Conduct procurements: outputs

Back 37

selected sellers; agreements; resource calendars

Front 38

What is a qualified sellers list?

Back 38

A qualified sellers list is a list that a buyer can use as a screening mechanism in the procurement process

Front 39

What is a bidder conference?

Back 39

A bidder conference allows sellers to ask buyers questions and questions and answers are provided to all sellers

Front 40

What are two noncompetitive forms of procurement?

Back 40

Sole Source and Single source

Front 41

What is sole source procurement?

Back 41

Sole source involves using a company that has no competition

Front 42

What is single source procurement?

Back 42

Single source involves selecting a prefered partner/vendor

Front 43

What are incentive fees?

Back 43

Incentive fees are fees used by the buyer to get the seller aligned to productivity standards

Front 44

What are negotiations?

Back 44

A negotiation is a deal reached between two parties, hopefully considered a win/win (meaning a win for the buyer and a win for the seller).

Front 45

What are competition negotiation strategies?

Back 45

A competitive negotiation strategy is using one seller against another to attain the best price or the best terms

Front 46

What are deadline negotiation strategies?

Back 46

A deadline negotiation strategy uses deadlines to attempt to get a party to sign a contract

Front 47

What are "The Boss is missing" strategies?

Back 47

A "The boss is missing" negotiation strategy keeps the key approver out of the negotiation room

Front 48

What are agreements (previously called Contract awards)?

Back 48

A negotiation agreement is the legally-binding procurement contract

Front 49

What are standard terms and conditions?

Back 49

Standard terms and conditions are typically common contract items

Front 50

What are special provisions?

Back 50

Special provisions are typically added to a contact to account for any terms and conditions that will not meet the needs of the work involved

Front 51

What is contract interpretation?

Back 51

Contract interpretation is understand what is and is not in the contract like: spelling out any numbers, verbally agreed to requirements, attach any reports and metrics and expectations

Front 52

Process - Control procurements

Back 52

in the MONITORING and CONTROLLING process group; administer procurement affiliations, track buyer and seller performance and make any necessary contract adjustments; focuses on managing interfacing points between buyer and seller(s); emphasises only paying for work that has been completed;

Front 53

Process - Control procurements: inputs

Back 53

project management plan; rocurement documents; agreements, approved change requests; work performance reports; work performance data

Front 54

Process - Control procurements: tools and techniques

Back 54

contract change control system; procurement performance reviews; inspection and audits; performance reporting; payment systems; claims administration; records management system

Front 55

Process - Control procurements: outputs

Back 55

work performance information; change requests; project management plan updates

Front 56

Who is the contract administrator?

Back 56

The contract administrator manages the contract(s)

Front 57

Is the project manager the contract administrator?

Back 57

No, the PM is not the contract administrator. They may be the same person, but they are not the same role.

Front 58

What is centralized contracting?

Back 58

In centralized contracting, the contract administrators have a lot of shared contract expertise and experience and support each others contracts

Front 59

What is decentralized contracting?

Back 59

In decentralized contracting, the contract admin is alone on a project without general contracting support

Front 60

Process - Close procurements

Back 60

in the CLOSING process group; validate that the contract terms and conditions have been met

Front 61

Process - Close procurements

Back 61

project management plan; procurement documents

Front 62

Process - Close procurements

Back 62

procurement audits; procurement negotiations; records management system

Front 63

Process - Close procurements

Back 63

close procurements; organizational process assets udpates

Front 64

What is formal acceptance?

Back 64

Formal acceptance involves the buyer agreeing that the work is complete as a key piece of the contract