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PGMP · Question #367

The Project Manager is creating an estimate for building a company WAN (wide area network.. As the Project Manager, you have undertaken the make-or-buy decision and determined that the WAN implementat

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Procurement Management

Question

The Project Manager is creating an estimate for building a company WAN (wide area network.. As the Project Manager, you have undertaken the make-or-buy decision and determined that the WAN implementation should be outsourced because your company does not have the expertise. After receiving all the vendor proposals, you find that two of the proposals specify cost-plus-fixed- fee, two other of the vendors specify fixed-price, another two specify cost-plus-incentive-fee, and the last two specify time and material. Which of the proposals would present the least probability of loss for the company?

Options

  • AProposals that use fixed-price
  • BProposals that use cost-plus-fixed-fee
  • CProposals that use time and material
  • DProposals that use cost-plus-incentive-fee

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Topics

#Contract Types#Procurement Management#Risk Allocation#Vendor Management
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