172 Best PMP Practice Exam on Project procurement Management

In order to obtain PMP ( project management professional)credential that you need to meet the eligibility such as the experience, education requirements and 35 contact hours. Click here to get further information. Moreover, it is especially important that you need to pass the PMP exam by answer correctly at least 106 out of 200 questions through 4 hours but it depends on the difficult question’s level. It is not easy to pass the PMP exam without preparing well before, so you need to take your time to practice free Pmp exam questions before sitting the exam. Those Pmp practice exam questions free online, providing the concepts included in your materials and the similar type of questions that you will meet in your real test. Especially, it is the best way to remember chapter contents and make your critical thinking about this test without wasting your time because you can practice them any time and anywhere when you are free. Indeed, beside practice these Pmp exam questions that you should read some tips to help you prepare well for your exam or ask somone who pass successfully the exam to know how to prepare effectively. In this article, we offer 172 Best PMP Practice Exam for your self- study, these 172 quiz questions below focusing on project procurement management. After completing these questions below that you just need to click the “submit” button to take full answers automatically and check your practical result by given answers to know what your weakness to practice more. Hope that you enjoy and don’t forget to leave your comment below after finished to let us know your problems if you need a solution. Good time!

Follow the links below to practice more:
33 Free Project Scope Management Questions from Rita’s Course in a Book for Passing the PMP Exam
100 PMBOK 5th Edition PMP Practice Questions Free Online
13 Free Practice Exam Questions Taken from PMP PMBOK 5th Edition
41 Free PMP Practice Test for PMP Risk Management

172 Best PMP Practice Exam on Project Procurement Management - Page 1

12.1 Plan Procurements12.2 Conduct Procurements12.3 Control Procurements12.4 Close Procurements

Project Procurement Management Processes
Conduct Procurements: Selected Sellers
Procurement Statement of Work
Procurement Documentation

1. Procurement Audits2. Procurement negotiations3. Records Management System

Outputs of Close Procurements
Characteristics of Plan Procurements
Tools and Techniques for Close Procurements
Scope Statement Use in Plan Procurements

Source Selection Criteria Use in Conduct Procurements

Includes risk-related information such as the identified risks, risk owners, and risk responses
• In all procurement relationships the final equitable settlement of all outstanding issues, claims, and disputes by negotiation is a primary goal. • Whenever settlement cannot be achieved through direct negotiation, some form of alternative dispute resolution (ADR) including mediation or arbitration may be explored. • When all else fails, litigation in the courts is the least desirable option
• Procurement Management Plan• Baseline Schedule
Can include information on the supplier's required capabilities, capacity, delivery dates, product cost, life-cycle cost, technical expertise, and the approach to the contract

Cost-reimbursable contract types

• Cost Plus Fixed Fee Contracts (CPFF)• Cost Plus Incentive Fee Contracts (CPIF)• Cost Plus Award Fee Contracts (CPAF)
• Types of contracts to be used;• Risk management issues;• Whether independent estimates will be used and if they are needed as evaluation criteria;• Those actions the project management team can take unilaterally, if the performing organization has a prescribed procurement, contracting, or purchasing department;• Standardized procurement documents, if they are needed;• Managing multiple suppliers;• Coordinating procurement with other project aspects, such as scheduling and performance reporting;• Any constraints and assumptions that could affect planned procurements;• Handling the required lead times to purchase items from sellers and coordinating them with the project schedule development;• Handling the make-or-buy decisions and linking them into the Estimate Activity Resource and Develop Schedule processes;• Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes;• Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;• Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS);• Establishing the form and format to be used for the procurement/contract statements of work;• Identifying prequalified sellers, if any, to be used; and Procurement metrics to be used to manage contracts and evaluate sellers
Cost Plus Fixed Fee Contracts
• It is a fixed-price contract, but with a special provision allowing for pre-defined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities.• The EPA clause must relate to some reliable financial index which is used to precisely adjust the final price. • The FP-EPA contract is intended to protect both buyer and seller from external conditions beyond their control

Contract Types Use in Plan Procurements

Time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed-price contracts
• Although the firm-fixed-price type of contractual arrangement is typically the preferred type which is encouraged and often demanded by most organizations, there are times when another contract form may be in the best interests of the project. • If a contract type other than fixed-price is intended, it is incumbent on the project team to justify its use. • The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.• All legal contractual relationships generally fall into one of two broad families, either fixed-price or cost reimbursable. Also, there is a third hybrid-type commonly in use called the time and materials contract. • The more popular of the contract types in use are discussed below as discrete types, but in practice it is not unusual to combine one or more types into a single procurement
• The internet has a major influence on most project procurements and supply chain acquisitions in organizations. • While many commodities, components, and off-the-shelf-items can be quickly located and secured at a fixed-price on the internet, the high-risk, highly complex, procurement effort that must be closely monitored cannot be obtained by this means
The process of completing each project procurement

Teaming Agreements

The risk shared between the buyer and seller is determined by the contract type
Time and material contracts are a hybrid type of contractual arrangement that contain aspects of both cost-reimbursable and fixed-price contracts
Are legal contractual agreements between two or more entities to form a partnership or joint venture, or some other arrangement as defined by the parties.
• Negotiations clarify the structure, requirements and other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final contract language reflects all agreements reached.

1. Bidder Conferences2. Proposal Evaluation Techniques3. Independent Estimates4. Expert Judgement5. Advertising6. Analytical techniques7. Procurement Negotiations

Tools and Techniques for Conduct Procurements
Tools and Techniques for Close Procurements
Outputs of Administer Procurements
Inputs to Plan Procurements

• Types of contracts to be used;• Risk management issues;• Whether independent estimates will be used and if they are needed as evaluation criteria;• Those actions the project management team can take unilaterally, if the performing organization has a prescribed procurement, contracting, or purchasing department;• Standardized procurement documents, if they are needed;• Managing multiple suppliers;• Coordinating procurement with other project aspects, such as scheduling and performance reporting;• Any constraints and assumptions that could affect planned procurements;• Handling the required lead times to purchase items from sellers and coordinating them with the project schedule development;• Handling the make-or-buy decisions and linking them into the Estimate Activity Resource and Develop Schedule processes;• Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes;• Identifying requirements for performance bonds or insur

Procurement Management Plan can include guidance for
Procurement Documentation Use in Close Procurements
Procurement Negotiations
Procurement Statement of Work

Characteristics of Close Procurements

• It identifies those project needs which can best be, or must be, met by acquiring products, services, or results outside of the project organization, versus those project needs which can be accomplished by the project team.• Involves determining whether to acquire outside support and, if so what to acquire, how to acquire it, how much is needed, and when to acquire it. • When the project obtains products, services, and results required for project performance from outside the performing organization, the processes from Plan• Procurements through Close Procurements are performed for each item to be acquired.• Includes consideration of potential sellers, particularly if the buyer wishes to exercise some degree of influence or control over acquisition decisions. • Consideration should also be given to who is responsible for obtaining or holding any relevant permits and professional licenses that may be required by legislation, regulation, or organizational policy in executing the project.• The requirements of the project schedule can significantly influence the strategy during the Plan Procurements process. • Decisions made in developing the procurement management plan can also influence the project schedule and are integrated with Develop Schedule, Estimate Activity Resources, and make-or-buy decisions • Includes consideration of the risks involved with each make-or-buy decision.• Includes reviewing the type of contract planned to be used with respect to mitigating risks, sometimes transferring risks to the seller
• It supports the Close Project or Phase process, since it involves verification that all work and deliverables were acceptable.• Involves administrative activities such as finalizing open claims, updating records to reflect final results and archiving such information for future use. • Close Procurements addresses each contract applicable to the project or a project phase. • In multi-phase projects, the term of a contract may only be applicable to a given phase of the project. • In these cases, the Close Procurements process closes the procurement(s) applicable to that phase of the project. • Unresolved claims may be subject to litigation after closure. • The contract terms and conditions can prescribe specific procedures for contract closure.• Early termination of a contract is a special case of procurement closure that can result from a mutual agreement of both parties, from the default of one party, or for convenience of the buyer if provided for in the contract. • The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract. Based upon those procurement terms and conditions, the buyer may have the right to terminate the whole contract or a portion of the contract, at any time for cause or convenience.• However, based upon those contract terms and conditions, the buyer may have to compensate the seller for seller's preparations and for any completed and accepted work related to the terminated part of the contract
Cost Plus Incentive Fee Contracts
Fixed Price with Economic Project Adjustment Contracts

RFP

Planning Process Group
Executing Process Group
Time and materials
Request for Proposal

Plan Procurements: Enterprise Environmental Factors

• Negotiations clarify the structure, requirements and other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final contract language reflects all agreements reached.
• Correspondence• Payment schedules and requests• Seller performance evaluation documentation
• Risk register • Risk-related contract decisions
• Marketplace conditions;• Products, services, and results that are available in the marketplace;• Suppliers, including past performance or reputation;• Typical terms and conditions for products, services, and results or for the specific industry; and• Unique local requirements

Production capacity and interest

Does the seller have, or can the seller reasonably be expected to obtain, the necessary financial resources?
Does the seller have the capacity and interest to meet potential future requirements?
What has been the past experience with selected sellers?
• Risk register • Risk-related contract decisions

• Fixed-price contracts• Cost-reimbursable contracts• Time and material contracts (T&M)

Contract Types
CPFF
CPIF
FPP

Will the selected seller produce the lowest total cost of ownership (purchase cost plus operating cost)?

Close Procurements
Overall or life-cycle cost
Cost-reimbursable contracts
Closed Procurements

Activity Cost Estimates Use in Plan Procurements

Cost estimates developed by the procuring activity are used to evaluate the reasonableness of the bids or proposals received from potential sellers
Does the seller have, or can the seller be reasonably expected to develop, management processes and procedures to ensure a successful project?
• Negotiations clarify the structure, requirements and other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final contract language reflects all agreements reached.
Does the seller have the capacity and interest to meet potential future requirements?

Inputs to Control Procurements

1. Procurement Management Plan2. Procurement Statement of Work3. Procurement Documents4. Source Selection Criteria5. Make-or-Buy Decisions6. Change Requests7. Project document updates
1. Project Management Plan2. Procurement Documents3. Agreements4. Approved Change Requests5. Work performance reports6. Work Performance data
• To close the contract, all procurement documentation is collected, indexed, and filed. Information on contract schedule, scope, quality, and cost performance along with all contract change documentation, payment records, and inspection results are cataloged. • This information can be used for lessons learned information and as a basis for evaluating contractors for future contracts
1. Project management plan2. Requirements Documentation3. Risk Register4. Activity Resource Requirements5. Project Schedule6. Activity Cost Estimates7. Stakeholder register8. Enterprise Environmental Factors9. Organizational Process Assets

ADR (procurement)

Alternative Dispute Resolution
Request for Proposal
Closing Process Group
Executing Process Group

• Includes, but is not limited to, the procurement contract with all supporting schedules, requested unapproved contract changes, and approved change requests.• Procurement documentation also includes any seller-developed technical documentation and other work performance information such as deliverables, seller performance reports, warranties, financial documents including invoices and payment records, and the results of contract-related inspections

Procurement Statement of Work
Procurement Contract
Plan Procurements Process Group
Procurement Documentation

• The organization can be either the buyer or seller of the products, services, or results of a project.• Includes the contract management and change control processes required to develop and administer contracts or purchase orders issued by authorized project team members.• Includes administering any contract issued by an outside organization (the buyer) that is acquiring the project from the performing organization (the seller), and administering contractual obligations placed on the project team by the contract. • Involve contracts that are legal documents between a buyer and a seller. • It is the project management team's responsibility to make certain that all procurements meet the specific needs of the project while adhering to organizational procurement policies. • The project management team may seek support early from specialists in contracting, purchasing, law, and technical disciplines. Such involvement can be mandated by an organization's policies.

Characteristics of Project Procurement Management
Characteristics of Plan Procurements
Project Procurement Management
Characteristics of Teaming Agreements

Technical capability

• Typically such financial incentives are related to cost, schedule, or technical performance of the seller. • Performance targets are established at the outset, and the final contract price is determined after completion of all work based on the seller's performance.
The process of obtaining seller responses, selecting a seller, and awarding a contract
Does the seller have, or can the seller be reasonably expected to acquire, the technical skills and knowledge needed?
Contain information on specific needs such as people, equipment, or location

• Listings of prospective and previously qualified sellers, and• Information on relevant past experience with sellers, both good and bad

Inspections and Audits
Administer Procurements
Outputs of Plan Procurements
Organizational Process Assets

• an agreement, • an understanding, • a subcontract, or • a purchase order.

the seller can be called a
Contract Types
Contract can also be called
Contract Change Control System

Proprietary rights

Does the seller have the capacity and interest to meet potential future requirements?
Does the seller have, or can the seller be reasonably expected to develop, management processes and procedures to ensure a successful project?
Does the seller assert proprietary rights in the work processes or services they will use or in the products they will produce for the project?
Do the seller's proposed technical methodologies, techniques, solutions, and services meet the procurement documents requirements or are they likely to provide more or less than the expected results?

Characteristics Cost Plus Award Fee Contracts

What has been the past experience with selected sellers?
This contract type is used whenever the seller's performance period spans a considerable period of years, as is desired with many long-term relationships
The determination of fee is based solely on the subjective determination of seller performance by the buyer, and is generally not subject to appeals
The risk shared between the buyer and seller is determined by the contract type

Close Procurements: Lessons Learned Documentation Updates

• The internet has a major influence on most project procurements and supply chain acquisitions in organizations. • While many commodities, components, and off-the-shelf-items can be quickly located and secured at a fixed-price on the internet, the high-risk, highly complex, procurement effort that must be closely monitored cannot be obtained by this means
Selection criteria can be limited to purchase price if the procurement item is readily available from a number of acceptable sellers. Purchase price in this context includes both the cost of the item and all ancillary expenses such as delivery. Other selection criteria can be identified and documented to support an assessment for more complex products, services, or results
Lessons learned, what has been experienced, and process improvement recommendations should be developed for the project file to improve future procurements
1. Project Management Plan2. Procurement Documentation

1. Project Management Plan2. Procurement Documentation

Inputs to Close Procurements
Inputs to Plan Procurements
Conduct Procurements
Inputs to Conduct Procurements

Fixed Price Contracts

This category of contracts involves setting a fixed total price for a defined product or service to be provided
The effort of the buyer and the seller in this process is to collectively prepare a procurement statement of work that will satisfy the requirements of the project. The parties will then negotiate a final contract for award
Are legal contractual agreements between two or more entities to form a partnership or joint venture, or some other arrangement as defined by the parties.
This category of contract involves payments (cost reimbursements) to the seller for all legitimate actual costs incurred for completed work, plus a fee representing seller profit

• It is a fixed-price contract, but with a special provision allowing for pre-defined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decreases) for specific commodities.• The EPA clause must relate to some reliable financial index which is used to precisely adjust the final price. • The FP-EPA contract is intended to protect both buyer and seller from external conditions beyond their control

Characteristics of Cost-reimbursable contracts
Characteristics of Firm Fixed Price Contracts
Characteristics of Fixed Price Contracts
Characteristics of Fixed Price with Economic Project Adjustment Contracts

Contain complete supporting records for administration of the procurement processes. This includes procurement contract awards and the statement of work

Scope Statement Use in Plan Procurements
Characteristics of Administer Procurements
Project Schedule Use in Plan Procurements
Procurement Documents Use in Administer Procurements

Characteristics of Administer Procurements

Does the seller have, or can the seller be reasonably expected to acquire, the technical skills and knowledge needed?
• Required by the buyer and supported by the seller as specified in the procurement contract can be conducted during execution of the project to verify compliance in the seller's work processes or deliverables. • If authorized by contract, some inspection and audit teams can include buyer procurement personnel
• Is used by the project manager to manage contract and procurement documentation and records. It consists of a specific set of processes, related control functions, and automation tools that are consolidated and combined as part of the project management information system • The system contains a retrievable archive of contract documents and correspondence
• Both the buyer and the seller will administer the procurement contract for similar purposes. • Each must ensure that both parties meet their contractual obligations and that their own legal rights are protected. • The Administer Procurements process ensures that the seller's performance meets procurement requirements and that the buyer performs according to the terms of the legal contract. • The legal nature of the contractual relationship makes it imperative that the project management team is aware of the legal implications of actions taken when administering any procurement. • On larger projects with multiple providers, a key aspect of contract administration is managing interfaces among the various providers.• Due to varying organizational structures, many organizations treat contract administration as an administrative function separate from the project organization. • While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department. • This is usually true if the performing organization is also the seller of the project to an external customer.• Administer Procurements includes application of the appropriate project management processes to the contractual relationship(s) and integration of the outputs from these processes into the overall management of the project. • This integration will often occur at multiple levels when there are multiple sellers and multiple products, services, or results involved.

• Contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change, or cannot agree that a change has occurred. • These contested changes are variously called claims, disputes, or appeals.• Claims are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the terms of the contract. • If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract. • Settlement of all claims and disputes through negotiation is the preferred method

Payment Systems
Plan Procurements
Procurement Audit
Claims Administration

Performance Reports Use in Administer Procurements

Seller performance-related documentation includes:• Seller-developed technical documentation and other deliverable information provided in accordance with the terms of the contract, and• Seller performance reports indicate which deliverables have been completed and which have not
• Procurement Management Plan• Baseline Schedule
1. Project Management Plan2. Procurement Documentation
• Requirements documentation,• Requirements traceability documentation, and• Risk register

Planning Process Group

Procurement Contract
Plan Procurements
Plan Procurements Process Group
Close Procurements

Tools and Techniques for Plan Procurements

1. Procurement Management Plan2. Procurement document3. Source Selection Criteria4. Seller Proposals5. Project Documents6. Make-or-Buy Decisions7. Procurement statement of work8. Organizational Process Assets
1. Make-or-Buy Analysis2. Expert Judgement3. Market research4. Meetings
Cost Plus Award Fee Contracts
1. Procurement Audits2. Procurement negotiations3. Records Management System

Selection criteria can be limited to purchase price if the procurement item is readily available from a number of acceptable sellers. Purchase price in this context includes both the cost of the item and all ancillary expenses such as delivery. Other selection criteria can be identified and documented to support an assessment for more complex products, services, or results

Characteristics of Source Selection Criteria
Source Selection Criteria
Characteristics of Close Procurements
Characteristics of Procurement SOW

172 Best PMP Practice Exam on Project procurement Management