Assessment exam answers (Chapter 12)

Question 1

You are working with your procurement administrator and determining what the best contract type should be for acquiring the equipment you need. You are concerned about your budget because you are working with a funding limit and need to keep the cost risks low. What is the best contract type to use in this situation?

1. Fixed price
2. Cost reimbursable
3. Time and materials
4. Service-level agreement

Fixed price keeps the cost risks low for the project budget, as long as the scope of work is well-known.

Question 2

Your organization has used the ABC company for years to help with large installs of server upgrades in multiple locations, and Doug has been assigned as the resource to your projects. You and Doug have a good working relationship, and you trust him to get the job done. The ABC company has signed a fixed-price incentive fee contract and has stipulated that Doug will get his incentives when the customer...