You are in the process of purchasing 67 desktop computers, monitors, and a standard desktop software package for an upcoming project. What type of contract will you likely use?

The correct answer is A. Purchase order. A purchase order (PO) is the appropriate contract type for procuring standard, commercially available, off-the-shelf goods at a known price. Buying 67 identical desktops, monitors, and software packages is a straightforward commodity purchase - no customization or complex scope d

Program Life Cycle Management

Question

Options

APurchase order
BFixed-price
CCost-plus-percentage of cost
DNet 30

How the community answered

(49 responses)

A
92% (45)
B
2% (1)
C
4% (2)
D
2% (1)

Explanation

A purchase order (PO) is the appropriate contract type for procuring standard, commercially available, off-the-shelf goods at a known price. Buying 67 identical desktops, monitors, and software packages is a straightforward commodity purchase - no customization or complex scope definition is needed. A fixed-price contract is typically used for defined-scope services or custom deliverables, not commodity goods. Cost-plus-percentage of cost is a cost-reimbursable contract type used when costs are uncertain. 'Net 30' refers to a payment term (invoice due within 30 days), not a contract type.

Topics

#Contract types#Procurement#Purchase order#Resource acquisition

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