nerdexam
CompTIA

PK0-004 · Question #749

A project manager chose an architect based on the architect's presentation, but company policy states vendors must be selected based on the lowest bid. Which of the following applies to this…

The correct answer is D. The project manager did not conform to the compliance standard. Selecting a vendor based on a presentation rather than following the mandated lowest-bid policy means the project manager violated the organization's procurement compliance rules.

Basics of IT and governance

Question

A project manager chose an architect based on the architect’s presentation, but company policy states vendors must be selected based on the lowest bid. Which of the following applies to this situation?

Options

  • AThe PMO did not sign a letter of intent.
  • BThe project manager neglected to conduct a communication requirements analysis.
  • CThe project sponsor was not consulted in the final decision-making process.
  • DThe project manager did not conform to the compliance standard.

How the community answered

(49 responses)
  • A
    4% (2)
  • B
    2% (1)
  • C
    8% (4)
  • D
    86% (42)

Why each option

Selecting a vendor based on a presentation rather than following the mandated lowest-bid policy means the project manager violated the organization's procurement compliance rules.

AThe PMO did not sign a letter of intent.

A letter of intent is a preliminary agreement used before a contract is signed; the issue here is the selection method, not the absence of a letter of intent.

BThe project manager neglected to conduct a communication requirements analysis.

A communication requirements analysis identifies stakeholder communication needs and has no bearing on how vendor selection criteria must be applied.

CThe project sponsor was not consulted in the final decision-making process.

While sponsor consultation is a best practice, the core violation is ignoring the mandatory lowest-bid policy, not a failure to consult the sponsor.

DThe project manager did not conform to the compliance standard.Correct

Organizational compliance standards govern how procurement decisions must be made; company policy explicitly required selecting the lowest bidder. By deviating from this policy, the project manager failed to conform to the established compliance standard, which carries legal, ethical, and procedural consequences.

Concept tested: Procurement compliance and vendor selection policy adherence

Source: https://www.pmi.org/learning/library/procurement-management-compliance-standards-6768

Topics

#compliance standards#vendor selection#procurement policy#governance

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full PK0-004 Practice