PK0-004 · Question #299
A project manager of a particular project receives formal notification that a vendor has gone out of business. New vendors with similar products at similar costs have been identified. Which of the…
The correct answer is A. Initiate RFQs to qualified vendors, update the project management plan and communicate the. When a vendor goes out of business and replacement vendors have already been identified, the immediate next step is to formally solicit those vendors via RFQ and update the project management plan.
Question
A project manager of a particular project receives formal notification that a vendor has gone out of business. New vendors with similar products at similar costs have been identified. Which of the following should the project manager do FIRST?
Options
- AInitiate RFQs to qualified vendors, update the project management plan and communicate the
- BUndertake a make-or-buy decision analysis; communicate the issue with the project sponsor
- CCall a stakeholder meeting following the project communications plan to urgently review the
- DCommunicate the issue with the project sponsor following the project communications plan, call a
How the community answered
(24 responses)- A67% (16)
- B4% (1)
- C21% (5)
- D8% (2)
Why each option
When a vendor goes out of business and replacement vendors have already been identified, the immediate next step is to formally solicit those vendors via RFQ and update the project management plan.
Because the problem states that qualified vendors with similar products at similar costs have already been identified, a make-or-buy analysis is not required. The correct first action is to initiate RFQs (Requests for Quotation) to those vendors to formalize procurement, update the project management plan to reflect the change, and communicate the issue to relevant stakeholders - this follows proper procurement management process.
A make-or-buy decision analysis is unnecessary because the question explicitly states that new vendors have already been identified, meaning the decision to procure externally has effectively been reaffirmed.
Calling a full stakeholder meeting is not the most efficient first step when viable replacement vendors are already known and procurement action can begin immediately.
Communicating with the sponsor before initiating RFQs unnecessarily delays procurement action when the path forward (qualified vendors at similar cost) is already clear.
Concept tested: Procurement management response to vendor failure
Source: https://www.pmi.org/pmbok-guide-standards/foundational/pmbok
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