PMP EXAM PRACTICE QUESTIONS
DOMAIN: PROJECT PROCUREMENT MANAGEMENT | 2027 EDITION
Target Exam: PMP 2027 Version Total Questions: 10 Verified Q&A Pass Standard: 100% Mastery
Question 1: Contract Types & Risk Allocation
A project manager is overseeing a complex software development initiative where the exact scope and technical
requirements cannot be precisely defined upfront. Which type of contract is most appropriate to mitigate financial
risk for the buyer while encouraging vendor collaboration?
• A) Fixed-Price-Incentive-Fee (FPIF) Contract
• B) Time and Materials (T&M) Contract
• C) Cost-Plus-Fixed-Fee (CPFF) Contract
• D) Firm-Fixed-Price (FFP) Contract
Correct Answer: B | Rationale: A Time and Materials (T&M) contract is a hybrid type containing aspects of both cost-
reimbursable and fixed-price contracts. It is frequently used for staff augmentation, acquisition of experts, and external
support when the scope of work cannot be defined at the time of the contract award.
Question 2: Procurement Statement of Work (SOW)
During the Conduct Procurements process, a prospective seller asks for clarification regarding specific technical
deliverables outlined in the procurement documents. What is the project manager's best course of action?
• A) Answer the question privately via email to ensure prompt response.
• B) Issue a formal addendum and distribute it to all prospective sellers simultaneously.
• C) Refer the seller to the sponsor since technical requirements are baseline scope.
• D) Reject the question to maintain a competitive bidding advantage.
Correct Answer: B | Rationale: To maintain fairness and transparency during procurement, any clarification provided to
one prospective vendor must be shared with all vendors bidding on the project via a formal addendum.
PMP Procurement Management Practice Exam 2027 Page 1 of 5
, PROCUREMENT MANAGEMENT PRACTICE QUESTIONS (CONT.)
Question 3: Make-or-Buy Analysis
An organization is evaluating whether to develop a customized machinery component in-house or purchase it
from an external supplier. The internal team has excess capacity, but purchasing from an external vendor
includes proprietary safety certifications. Which tool should the project manager rely on to make this decision?
• A) Expert Judgment combined with Make-or-Buy Analysis
• B) Variance and Trend Analysis
• C) Resource Leveling and Smoothing
• D) Independent Cost Estimates (ICE)
Correct Answer: A | Rationale: Make-or-buy analysis is a general management technique used to determine whether
an organization can produce a product or service cost-effectively or whether it should be procured from an external
source, integrating expert judgment to weigh qualitative and quantitative factors.
Question 4: Claims Administration
A contractor on a major construction project submits a formal claim for schedule extensions and additional
compensation due to site access delays caused by owner-furnished equipment failures. According to PMBOK
guidelines, how should this contested claim be handled first?
• A) Immediately proceed to litigation in accordance with the jurisdiction court.
• B) Reject the claim outright because owner-furnished equipment is outside the contract terms.
• C) Negotiate and resolve claims through mutually agreed-upon Alternative Dispute Resolution (ADR) procedures.
• D) Terminate the contract for default and re-solicit bids from new vendors.
Correct Answer: C | Rationale: Contested changes, known as claims, are first managed through negotiation according
to the contract terms. If unresolved, they are typically settled through Alternative Dispute Resolution (ADR) methods
before resorting to litigation.
PMP Procurement Management Practice Exam 2027 Page 2 of 5
DOMAIN: PROJECT PROCUREMENT MANAGEMENT | 2027 EDITION
Target Exam: PMP 2027 Version Total Questions: 10 Verified Q&A Pass Standard: 100% Mastery
Question 1: Contract Types & Risk Allocation
A project manager is overseeing a complex software development initiative where the exact scope and technical
requirements cannot be precisely defined upfront. Which type of contract is most appropriate to mitigate financial
risk for the buyer while encouraging vendor collaboration?
• A) Fixed-Price-Incentive-Fee (FPIF) Contract
• B) Time and Materials (T&M) Contract
• C) Cost-Plus-Fixed-Fee (CPFF) Contract
• D) Firm-Fixed-Price (FFP) Contract
Correct Answer: B | Rationale: A Time and Materials (T&M) contract is a hybrid type containing aspects of both cost-
reimbursable and fixed-price contracts. It is frequently used for staff augmentation, acquisition of experts, and external
support when the scope of work cannot be defined at the time of the contract award.
Question 2: Procurement Statement of Work (SOW)
During the Conduct Procurements process, a prospective seller asks for clarification regarding specific technical
deliverables outlined in the procurement documents. What is the project manager's best course of action?
• A) Answer the question privately via email to ensure prompt response.
• B) Issue a formal addendum and distribute it to all prospective sellers simultaneously.
• C) Refer the seller to the sponsor since technical requirements are baseline scope.
• D) Reject the question to maintain a competitive bidding advantage.
Correct Answer: B | Rationale: To maintain fairness and transparency during procurement, any clarification provided to
one prospective vendor must be shared with all vendors bidding on the project via a formal addendum.
PMP Procurement Management Practice Exam 2027 Page 1 of 5
, PROCUREMENT MANAGEMENT PRACTICE QUESTIONS (CONT.)
Question 3: Make-or-Buy Analysis
An organization is evaluating whether to develop a customized machinery component in-house or purchase it
from an external supplier. The internal team has excess capacity, but purchasing from an external vendor
includes proprietary safety certifications. Which tool should the project manager rely on to make this decision?
• A) Expert Judgment combined with Make-or-Buy Analysis
• B) Variance and Trend Analysis
• C) Resource Leveling and Smoothing
• D) Independent Cost Estimates (ICE)
Correct Answer: A | Rationale: Make-or-buy analysis is a general management technique used to determine whether
an organization can produce a product or service cost-effectively or whether it should be procured from an external
source, integrating expert judgment to weigh qualitative and quantitative factors.
Question 4: Claims Administration
A contractor on a major construction project submits a formal claim for schedule extensions and additional
compensation due to site access delays caused by owner-furnished equipment failures. According to PMBOK
guidelines, how should this contested claim be handled first?
• A) Immediately proceed to litigation in accordance with the jurisdiction court.
• B) Reject the claim outright because owner-furnished equipment is outside the contract terms.
• C) Negotiate and resolve claims through mutually agreed-upon Alternative Dispute Resolution (ADR) procedures.
• D) Terminate the contract for default and re-solicit bids from new vendors.
Correct Answer: C | Rationale: Contested changes, known as claims, are first managed through negotiation according
to the contract terms. If unresolved, they are typically settled through Alternative Dispute Resolution (ADR) methods
before resorting to litigation.
PMP Procurement Management Practice Exam 2027 Page 2 of 5
