Main Page

What is the Project Procurement Management?

Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

What are the processes of Project Procurement Management?

12.1 Plan Procurement Management 12.2 Conduct Procurements 12.3 Control Procurements

Main Page

Company or person who provides services or goods.

Seller (E.g. contractors, subcontractors, vendors, service provider or s...

Company or person who purchases the services, goods or materials.

Company or person who purchases the services, goods or materials? Buyer

Who is responsible to make sure all work in contract is done?

Who is responsible to make sure all work in contract is done? Project Ma...

What is decentralized purchasing?

For smaller organizations without a purchasing, contracting, or procurem...

What is centralized purchasing?

For more mature organizations, the actual procurement and contracting fu...

What is Master Services agreement (MSA)?

Is a contract that spells out most but not all of the terms between the ...

A contract that spells out most but not all of the terms, mostly used in adaptive/agile environments?

A contract that spells out most but not all of the terms, mostly used in...

What is the "Plan Risk Management" process?

Plan Procurement Management is the process of documenting project procur...

What is the key benefit of "Plan Risk Management" process?

The key benefit of this process is that it determines whether to acquire...

What are the inputs of "Plan Risk Management" process?

.1 Project charter .2 Business documents .3 Project management plan ....

What are the tools and techniques of "Plan Risk Management" process?

.1 Expert judgment .2 Data gathering .3 Data analysis .4 Source selec...

What are the outputs of "Plan Risk Management" process?

.1 Procurement management plan .2 Procurement strategy .3 Bid document...

Which project management plan components which influence the "Plan Risk Management" process?

• Scope management plan • Quality management plan • Resource managemen...

Which project documents which influence the "Plan Risk Management" process?

• Milestone list • Project team assignments • Requirements documentati...

Which project documents which updated during "Plan Risk Management" process?

• Lessons learned register • Milestone list • Requirements documentati...

What are the 3 main contract categories?

There are many types of contracts. There are three main categories: – F...

Buyer has the best cost risk, because additional costs that might occur is the responsibility of seller. Which contract type is it?

Firm Fixed Price Contracts (FFP)

A price is set but based on performance of the seller, additional incentives can be paid. Which contract type is it?

Fixed Price Incentive Fee Contracts (FPIF)

Protects both buyer and seller from external conditions (E.g. inflation, cost increases for materials) beyond their control. Which contract type is it?

Fixed Price with Economic Price Adjustment (FP-EPA)

Used if scope is uncertain and costs cannot be estimated correctly. Which contract category is it?

Used if scope is uncertain and costs cannot be estimated correctly. Whic...

Buyer has the most risk since total costs are unknown. Which contract category is it?

Cost Reimbursable Contracts

All costs for performing the contract work and a fixed fee payment is paid by the buyer. Which contract type is it?

Cost Plus Fixed Fee Contracts (CPFF)

If final costs are less or greater than original estimates, buyer and seller share costs from the departures based on prenegotiated cost sharing formula (e.g. 80% to buyer, 20% to seller). Which contract type is it?

If final costs are less or greater than original estimates, buyer and se...

All costs for performing the contract work is paid and the majority of the fee is earned only based on broad subjective performance criteria of the seller. Which contract type is it?

All costs for performing the contract work is paid and the majority of t...

Hybrid type of contracts, contains aspects of cost reimbursable and fixed-price contracts. Which contract category is it?

Hybrid type of contracts, contains aspects of cost reimbursable and fixe...

Generally used for staff augmentation, acquisition of experts, and any outside support when a work could not be precisely described.Which contract category is it?

Generally used for staff augmentation, acquisition of experts, and any o...

What is the formula for Time and Material Contracts (T&M) Contract?

Time and Material Contracts (T&M) Contract = 100$ per hour + expense...

Cost Plus Award Fee Contracts (CPAF) Contract?

Cost Plus Award Fee Contracts (CPAF) Contract = Cost + $5,000 every mont...

What is the formula for Cost Plus Incentive Fee Contracts (CPIF) Contract?

Cost Plus Incentive Fee Contracts (CPIF) Contract = Cost + 80/20 sharing...

What is the formula for Cost Plus Fixed Fee Contracts (CPFF) Contract?

Cost Plus Fixed Fee Contracts (CPFF) Contract = Cost + $100,000

What is the formula for Fixed Price with Economic Price Adjustment Contract? (FP-EPA)

Fixed Price with Economic Price Adjustment Contract = $800.000 + 2nd yea...

What is the formula for Fixed Price Incentive Fee Contracts Contract ? (FPIF)

Fixed Price Incentive Fee Contracts Contract = $800.000 + $10.000 for ev...

What is the formula for Fixed Price Contract Contract ? (FFP)

Fixed Price Contract Contract = $800.000