University of Managmenet and Technology MGT 254 questions

Question 1

Three critical components of performance based contracting are:

the PWS, AQL, and outcomes analysis

identical to the critical components of activity based costing

the PWS, QAP, and outcomes analysis

the PWS, QAP, and positive/negative incentives

Question 2

Who bears most risk in a cost reimbursable contract?

Buyer

Seller and general public

Buyer and seller bear equal risk

Seller

Question 3

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

Conducts risk assessment of a proposed project that an organization wants to bid on

Has no role to play

Negotiates detailed contract terms and conditions

Provides sponsorship

Question 4

Which of the following is not a typical criterion employed to identify winning contracts?

Effectiveness of the work plan

Political orientation of bidders

Technical merit

Organizational capabilities

Question 5

A contract selection technique that is used heavily when making contract and grant awards in the sciences, and that depends on outside experts ranking proposals, is called:

peer review

Buss's ranking technique

poor man's hierarchy

scoring

Question 6

In contracting, change control focuses on:

contractor generated changes

changes to the contract scope coming from any source

buyer generated changes

changes triggered by events in the environment

Question 7

Copyright law protects:

the content and expression of an idea

patents and content of an idea

the expression of an idea

the content of an idea

Question 8

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

True

False

Question 9

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

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

her employer is given a compensatory title as the inventor

ownership of the patent for the invention is assigned to her

her employer is designated both as inventor and patent owner because she used company resources and time to produce the invention

Question 10

A proposal that reflects the seller's best and final offer is typically associated with a:

Request for Proposal (RFP)

Invitation for Bid (IFB)

Cost Plus Fixed Fee (CPFF) contract

Request for Quotation (RFQ)

Question 11

Rapid prototyping is a technique geared to

developing deliverables as quickly as possible

identifying customer requirements

maintaining spare parts for complex systems

building small deliverables

Question 12

Performance-based contracts focus on:

human resource allocation

what should be produced

how the deliverable should be produced

financial management

Question 13

The basic objective of procurement planning is to:

obtain quotations

manage relationships with the seller

choose from potential sellers

determine what to procure and when

Question 14

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

True

False

Question 15

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

True

False

Question 16

From a licensee's perspective, technology licensing is attractive because it:

promotes initiative in the use of a superior technology

provides opportunities for the licensee's employees to learn new technology skills

reduces dependence on the licensor

has few legal issues to contend with

Question 17

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

Sole source bid

RFP

IFB

RFQ

Question 18

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

a request is made for bids whose terms eventually may be negotiated

there may be no negotiations between buyer and supplier

the objective is to request quotations

sealed bids are tendered and opened publicly at one time

Question 19

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

sole source proposals

best and final offers (BAFOs)

negotiated proposals

unsolicited proposals

Question 20

At its simplest, acquisition management can be viewed as:

project management plus operations management

inventory management plus contract management

project management plus contract management

operations management plus contract management

Question 21

What is the purpose of the bidders' conference?

To enable management to review bids that have been received by the buyer

To enable the buyer to negotiate price with successful bidders

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

To enable the buyer to interact with successful bidders

Question 22

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

statement of work

specifications

functional requirements

business requirements

Question 23

Unauthorized use of a trademark is called piracy.

True

False

Question 24

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

True

False

Question 25

Buyers use SOWs to express their requirements.

True

False

Question 26

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

buyers face no risk of cost overruns

it offers the buyer no leverage in dealing with sellers

bonus payments are made to sellers based on subjective judgments about project performance

there is no explicit payment of additional fees

Question 27

Contracts should not close out until final user acceptance tests (UATs) are conducted.

True

False

Question 28

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

True

False

Question 29

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

the buyer can attract higher quality sellers

the seller loses through cost overruns

the buyer faces no risk of cost overrun

it prevents schedule slippage

Question 30

With performance work statements, attention focuses on defining outcomes.

True

False

Question 31

The acceptable quality level (AQL)

goes against the basic precepts of quality management, since it focuses only on what is acceptable and not on what is best

is a key component of the statement of work

defines the minimum acceptable performance of a requirement

must lie within 3-sigma of the mean

Question 32

Under a Cost Plus Incentive Fee (CPIF) contract, company XYZ has agreed to pay ABC contracting company an incentive fee of 20% for any cost savings that will be realized under the contract. Given the following information, calculate the final price of the contract.

Estimated cost: $200,000

Negotiated Fee: $25,000

Incentive Payment: 20% of cost savings

Actual cost: $180,000

$184,000

$205,000

$180,000

$209,000

Question 33

The value of a trademark depends on:

its age

the aesthetic beauty of the trademark

the perceived quality of the trademarked good

who the founder of the company that holds the trade mark is

Question 34

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.

True

False

Question 35

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

R&D projects

One-of-a kind projects

Production of routine deliverables

Production of high risk deliverables

Question 36

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

True

False

Question 37

An exclusive license is most appropriate:

for routine technologies

when a small investment is needed to use a technology

only in the traditional industries

for unique technologies

Question 38

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

True

False

Question 39

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.

True

False

Question 40

Contract administration refers to:

preparing and issuing Requests for Proposal (RFPs)

administering the source selection process

administering the contract negotiation process

the process of ensuring that the contractor's performance meets contractual requirements

Question 41

Which of the following items is not a contract monitoring activity?

Conducting user acceptance tests (UATs)

Inspecting deliverables

Reviewing the contractor's profit and loss statements

Reviewing contractor progress reports

Question 42

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

An indemnity bond

Conflict of interest agreement

Non-competition agreement

Non-disclosure agreement

Question 43

A statement of objective (SOO) is:

the same as RFQ

the same as statement of work

a high level description of what the buyer hopes to gain from the deliverable

the same as IFB

Question 44

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.

True

False

Question 45

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.

True

False

Question 46

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.

True

False

Question 47

In contract and procurement management, data rights means:

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

all communication between the buyer's Contracting officer and a prospective contractor should not be disclosed to other prospective contractors

all communication between the buyer's Contracting officer and a prospective contractor must be disclosed to all other prospective contractors

once an RFP has been issued, the seller is under no obligation to provide additional information relating to the acquisition

Question 48

Which of the following is not a cost reimbursable contract?

Cost Plus Incentive Fee contract

Firm fixed price contract

Time and Materials contract

Cost Plus Fixed Fee contract

Question 49

The process of identifying and articulating the buyer's needs is part of a process that immediately leads to:

Requirements analysis

WBS construction

Baselining

WBS dictionary development

Question 50

Indefinite delivery contracts are employed:

when the seller is not sure how much should be charged for contracted work

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

on low risk contracts

on high risk contracts

Question 51

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

True

False

Question 52

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

Project baseline verification

Evaluation of the contracting firm's qualifications

Measuring work performance

Product verification

Question 53

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

When an award fee can be identified

When goods and services are already defined

When dealing with non-routine efforts

When dealing with state-of-art efforts

Question 54

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

Resource leveling analysis

Contractor technical capability analysis

The Peter Principle

Earned value estimates

Question 55

Quality control is an aspect of contract administration.

True

False

Question 56

An important function of benefit-cost analysis is that it allows us to prioritize bids to see which are worthy of winning a contract award.

True

False

Question 57

In contracting, the term "volunteerism" refers to the situation where:

team members agree to work on a contract without pay

contracts are carried out on behalf of non-profit organizations

buyers "forgive" small instances of poor contractor performance

contractors do not charge buyers for change requests

Question 58

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

True

False

Question 59

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?

Copyright

Service mark

Trademark

Patent

Question 60

In contracting, the term "boilerplate" refers to:

Penalties directed against contractors who fail to perform according to contractual requirements

Penalties directed against buyers who fail to meet their contractual obligations

Contingency reserves that are built into contracts to deal with known unknowns

Written material that can be used over and over again on proposals and contracts

Question 61

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

assure all technical requirements have been met

develop a quantitative model of project costs

reduce the total operating cost (TOC) associated with programs

make sure that a high quality deliverable is produced at any cost

Question 62

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

dealing with exclusive license contracts

it is difficult to access the licensee's "honest" books

dealing with a licensee who is not economically sound

dealing with non-exclusive license contracts

Question 63

RFPs are prepared at the solicitation planning stage.

True

False

Question 64

What function does a level of effort SOW perform?

It identifies work that needs to be done and the anticipated person-days (or hours, or years) of effort associated with the work effort

It establishes a detailed listing of specifications that a contract should address

It establishes a high level listing of specifications that a contract should address

It defines the dollar value of project scope

Question 65

With a pink team review:

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

buyers make a preliminary decision on which bid should be granted a contract

project pricing is carefully examined by pricing experts

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