Proj 598 Quiz Mohammad Week3
Week 3 : Types of Contracts - Quiz
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Question 1. 1. (TCO B) All of the below would be considered good selection criteria for a buyer to use to select a seller, except (Points : 10) managerial approach of seller, capacity of seller to do the work, and buyer’s ability to create a WBS. proprietary rights of buyer, life cycle cost of product, and warrantee offered by seller. past work done by seller, intellectual property rights, and references associated with a given seller. technical capability of seller, understanding of work by seller, and business type of seller.
Question 2. 2. (TCO A) According to the PMBOK® Guide, there…show more content…
In FP/EPA contracts, there are some different clauses for adjusting prices based on specified contingencies. These clauses may be upward adjustments, downward adjustments, or both.
Firm Fixed Price Contracts (FFP), it is appropriate for most commercial transactions, example: Software package that can be bought for $1,500 regardless of the seller’s cost.
Time-and-Material Category: in such contracts, the parties negotiate hourly rates for a defined type of labor and would agree on the seller gets reimbursed for parts and materials at cost. These types of contracts resemble cost-reimbursable contracts in that they can be left open ended and may be subject to a cost increase for the buyer. The full value of the agreement and the exact quantity of items to be delivered may not be defined by the buyer at the time of the contract award.TIME AND MATERIAL CONTRACTS (T&M) It is often used to obtain a wide verity of professional services, such as information technology services, acquisition support services, equipment repair services, and etc.example: Business consultant to an hourly rate of $150.
Question 4. 4. (TCO D) What are the three types of procurement statements of work? When is each the appropriate for a given contract? (Points :