Contract And Procurement Management: 50 Questions And Answers

Understanding the Cost-as-an-Independent-Variable Perspective

Q1. A significant objective of the cost-as-an-independent-variable (CAIV) perspective is to:

1. reduce the total operating cost (TOC) associated with programs

Q2. What is the purpose of the bidders’ conference?

1. 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

Q3. An exclusive license is most appropriate:

1. for routine technologies

Q4. 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.

1. true

Q5. Buybacks are a form of remuneration for licensing by which the licensor buys back stock shares in the licensee’s business.

1. true

Q6. Which of the following is a tool that is used for performance measurement in contracting?

1. Contractor technical capability analysis

Q7. Performance-based payments on contracts are tied to the achievement of well-defined milestones.

1. true

Q8. Which of the following roles may the staff of a modern project support office play in contract management?

1. Has no role to play

Q9. 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?

1. Trademark

Q10. Performance-based contracts focus on:

1. how the deliverable should be produced

Q11. Procurement planning involves selection of a suitable contractor to execute a project.

1. true

Q12. Grant-back provisions in a licensing agreement require that improvements the licensee makes to a licensed technology revert back to the licensor.

1. true

Q13. The Universal Copyright Convention extends copyright protection to translations of copyrighted works into foreign languages.

1. true

Q14. Unauthorized use of a trademark is called piracy.

1. true

Q15. Work for hire refers to work produced by employees and contractors within the scope of their employment contract.

1. true

Q16. An advantage of the Cost Plus Fixed Fee (CPFF) contract is that:

1. the buyer faces no risk of cost overrun

Q17. When an employee produces an invention as part of her job:

1. ownership of the patent for the invention is assigned to the employer

Q18. At its simplest, acquisition management can be viewed as:

1. inventory management plus contract management

Q19. To protect the intellectual property of the buyer, a contractor is typically made to sign

1. Conflict of interest agreement

Q20. A proposal that reflects the seller’s best and final offer is typically associated with

1. Cost Plus Fixed Fee (CPFF) contract

Q21. Which of the following contracting concepts is not associated with competitive procurements?

1. Sole source bid

Q22. Indefinite delivery contracts are employed:

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

Q23. Quality control is an aspect of contract administration.

1. true

Q24. 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.   

1. true

Q25. From a licensee’s perspective, technology licensing is attractive because it:

1. promotes initiative in the use of a superior technology

Q26. In contracting, the term “volunteerism” refers to the situation where:

1. contracts are carried out on behalf of non-profit organizations

Q27. To ensure efficiency in contract administration, administrative closure activities should be delayed until project completion.

1. true

Q28. Rapid prototyping is a technique geared to

1. maintaining spare parts for complex system

Q29. One of the key characteristics of the Cost Plus Award Fee (CPAF) contract is that:

1. bonus payments are made to sellers based on subjective judgments about project performanc

Q30. The value of a trademark depends on:

1. the perceived quality of the trademarked good

Q31. The fair use principle allows reasonable use of copyrighted material only after permission has been obtained from the copyright owner.

1. true

Q32. A statement of objective (SOO) is:

1. the same as statement of work

Q33. Who bears most risk in a cost reimbursable contract

1. Buyer

Q34. With a pink team review:

1. the project proposal is scrutinized late in the proposal development effort by a panel of people who play the role of customers

Q35. Copyright law protects:

1. the content and expression of an idea

Q36. Which of the following is an example of a situation for which Fixed Price contracts are most appropriate?

1. Production of high risk deliverables

Q37. Buyers use SOWs to express their requirements.

1. true

Q38. A difference between an RFP and an IFB is that with an RFP:

1. there may be no negotiations between buyer and supplier

Q39. Under what conditions is an RFQ an appropriate mode of solicitation?

1. When goods and services are already defined

Q40. In contracting, change control focuses on:

1. changes to the contract scope coming from any source

Q41. In contract and procurement management, data rights means:

1. data developed in conjunction with project execution explicitly becomes the property of either the buyer or seller (or possibly both)

Q42. The cost-as-an-independent-variable sees cost as the key project driver.

1. true

Q43. With performance work statements, attention focuses on defining outcomes.

1. true

Q44. 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.

1. true

Q45. Requirements addressing technical issues stated in non-technical terms are called

1. functional requirements

Q46. Collection of a down payment fee in technology licensing is used when:

1. dealing with non-exclusive license contracts

Q47. 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.

1. true

Q48. Proposals coming from contractors who have unique skills in providing goods and services are called:

1. unsolicited proposals

Q49. Which of the following is an activity at the source selection stage?

1. Evaluation of the contracting firm’s qualifications

Q50. 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.

1. true