Project Management and IT: chapter 12\\\Chapter
12: Project Management and IT – Key Concepts
Explained 2026
Suppliers are those organizations or individuals who provide procurement services.
True
While outsourcing, organizations should protect strategic information because it can become
vulnerable inthehands of suppliers.
True
Project procurement management consists primarily of two processes: assessing procurements and
controlling procurements.
False
If an organization has no need to buy any products or services from outsidetheorganization, then it
has no need to perform any oftheprocurement management processes.
True
Risk registers and stakeholder registers are outputs oftheplanning procurement process.
False
A single contract can include all three categories of contracts.
True
Indirect costs are those costs can be traced back to a project in a cost-effective way.
False
Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.
False
The fee in a CPFF contract constantly varies even whenthescope of a contract remainsthesame.
False
In unit pricing,thetotal value ofthecontract is a function ofthequantities needed to completethework.
True
All contracts should include specific clauses that take into account issues unique totheproject.
True
In an FPI contract, all oftherisk is borne bythebuyer.
, False
An FP-EPA contract carriestheleast risk for a supplier.
False
Make-or-buy analysis involves comparingtheinternal costs of providing a product withthecost of
outsourcing.
True
Contents oftheprocurement management plan vary with project needs.
True
The main sections of an RFP can includethestatement of work and schedule information.
True
A key factor in evaluating bids, particularly for projects involving information technology, isthepast
performance record ofthebidder.
True
Reviewing performance records reducestherisk of selecting a supplier with a poor track record.
True
In project procurement management, a main output ofthecontrolling process is a source selection
criteria.
False
The contractual relationship is a legal relationship, which means it is subject to state and federal
contract laws
True
The closing procurements process involves updating records to reflect final results and archiving
information for future use.
True
Procurement audits are often done during contract closure to identify lessons learned intheentire
procurement process.
True
"A shortage of qualified personnel is one ofthemain reason that companies outsource. A project may
require experts in a particular field for several months and planning for this procurement ensures
thattheneeded services will be available fortheproject." Which ofthefollowing benefits does this
characteristic of outsourcing provide an organization?
C. Provides access to specific skills
12: Project Management and IT – Key Concepts
Explained 2026
Suppliers are those organizations or individuals who provide procurement services.
True
While outsourcing, organizations should protect strategic information because it can become
vulnerable inthehands of suppliers.
True
Project procurement management consists primarily of two processes: assessing procurements and
controlling procurements.
False
If an organization has no need to buy any products or services from outsidetheorganization, then it
has no need to perform any oftheprocurement management processes.
True
Risk registers and stakeholder registers are outputs oftheplanning procurement process.
False
A single contract can include all three categories of contracts.
True
Indirect costs are those costs can be traced back to a project in a cost-effective way.
False
Buyers absorb lesser risk with cost-reimbursable contracts than they do with fixed-price contracts.
False
The fee in a CPFF contract constantly varies even whenthescope of a contract remainsthesame.
False
In unit pricing,thetotal value ofthecontract is a function ofthequantities needed to completethework.
True
All contracts should include specific clauses that take into account issues unique totheproject.
True
In an FPI contract, all oftherisk is borne bythebuyer.
, False
An FP-EPA contract carriestheleast risk for a supplier.
False
Make-or-buy analysis involves comparingtheinternal costs of providing a product withthecost of
outsourcing.
True
Contents oftheprocurement management plan vary with project needs.
True
The main sections of an RFP can includethestatement of work and schedule information.
True
A key factor in evaluating bids, particularly for projects involving information technology, isthepast
performance record ofthebidder.
True
Reviewing performance records reducestherisk of selecting a supplier with a poor track record.
True
In project procurement management, a main output ofthecontrolling process is a source selection
criteria.
False
The contractual relationship is a legal relationship, which means it is subject to state and federal
contract laws
True
The closing procurements process involves updating records to reflect final results and archiving
information for future use.
True
Procurement audits are often done during contract closure to identify lessons learned intheentire
procurement process.
True
"A shortage of qualified personnel is one ofthemain reason that companies outsource. A project may
require experts in a particular field for several months and planning for this procurement ensures
thattheneeded services will be available fortheproject." Which ofthefollowing benefits does this
characteristic of outsourcing provide an organization?
C. Provides access to specific skills
