MGT 554-1 Exam

MGT 554-1 Exam

Question 1

Contract administration refers to:
Select one:
a. preparing and issuing Requests for Proposal (RFPs)
b. administering the source selection process
c. the process of ensuring that the contractor’s performance meets contractual requirements
d. administering the contract negotiation process

Question 2

An e-Business company has contracted the services of three consultancy firms to help install its newly acquired enterprise resource planning (ERP) technology. Which of the following can be used to distinguish one consultancy firm from the other?
Select one:
a. Patent
b. Trademark
c. Copyright
d. Service mark

Question 3

A difference between an RFP and an IFB is that with an RFP:
Select one:
a. sealed bids are tendered and opened publicly at one time
b. there may be no negotiations between buyer and supplier
c. a request is made for bids whose terms eventually may be negotiated
d. the objective is to request quotations

Question 4

A significant objective of the cost-as-an-independent-variable (CAIV) perspective is to:
Select one:
a. assure all technical requirements have been met
b. reduce the total operating cost (TOC) associated with programs
c. make sure that a high quality deliverable is produced at any cost
d. develop a quantitative model of project costs

Question 5

Unauthorized use of a trademark is called piracy.
Select one:
a. true
b. false

Question 6

Under a tie-in clause in a licensing agreement, the licensee is required to obtain complementary or competing technology from other sources to tie in with that obtained from the licensor.
Select one:
a. true
b. false

Question 7

Proposals coming from contractors who have unique skills in providing goods and services are called:
Select one:
a. best and final offers (BAFOs)
b. negotiated proposals
c. sole source proposals
d. unsolicited proposals

Question 8

Who bears most risk in a cost reimbursable contract?
Select one:
a. Seller
b. Buyer
c. Buyer and seller bear equal risk
d. Seller and general public

Question 9

Three critical components of performance based contracting are:
Select one:
a. the PWS, QAP, and outcomes analysis
b. the PWS, AQL, and outcomes analysis
c. the PWS, QAP, and positive/negative incentives
d. identical to the critical components of activity based costing

Question 10

With performance work statements, attention focuses on defining outcomes.
Select one:
a. true
b. false

Question 11

In contracting, the term “volunteerism” refers to the situation where:
Select one:
a. contractors do not charge buyers for change requests
b. team members agree to work on a contract without pay
c. buyers “forgive” small instances of poor contractor performance
d. contracts are carried out on behalf of non-profit organizations

Question 12

To protect the intellectual property of the buyer, a contractor is typically made to sign a:
Select one:
a. Non-competition agreement
b. Conflict of interest agreement
c. Non-disclosure agreement
d. An indemnity bond

Question 13

Which of the following contracting concepts is not associated with competitive procurements?
Select one:
a. RFP
b. IFB
c. RFQ
d. Sole source bid

Question 14

An exclusive license is most appropriate:
Select one:
a. for unique technologies
b. for routine technologies
c. only in the traditional industries
d. when a small investment is needed to use a technology

Question 15

Which of the following roles may the staff of a modern project support office play in contract management?
Select one:
a. Provides sponsorship
b. Conducts risk assessment of a proposed project that an organization wants to bid on
c. Negotiates detailed contract terms and conditions
d. Has no role to play

Question 16

With a pink team review:
Select one:
a. the project proposal is scrutinized late in the proposal development effort by a panel of people who play the role of customers
b. the project proposal is scrutinized early in the proposal development effort by a panel of people who play the role of customers
c. project pricing is carefully examined by pricing experts
d. buyers make a preliminary decision on which bid should be granted a contract

Question 17

The cost-as-an-independent-variable sees cost as the key project driver.
Select one:
a. true
b. false

Question 18

What is the purpose of the bidders’ conference?
Select one:
a. To enable the buyer to interact with successful bidders
b. To enable the buyer to negotiate price with successful bidders
c. To enable management to review bids that have been received by the buyer
d. To enable the buyer to meet with prospective sellers prior to preparation of a proposal to ensure that all prospective sellers have a clear, common understanding of the procurement

Question 19

An advantage of the Cost Plus Fixed Fee (CPFF) contract is that:
Select one:
a. it prevents schedule slippage
b. the buyer faces no risk of cost overrun
c. the buyer can attract higher quality sellers
d. the seller loses through cost overruns

Question 20

In contracting, change control focuses on:
Select one:
a. contractor generated changes
b. buyer generated changes
c. changes to the contract scope coming from any source
d. changes triggered by events in the environment

Question 21

Rapid prototyping is a technique geared to
Select one:
a. identifying customer requirements
b. developing deliverables as quickly as possible
c. building small deliverables
d. maintaining spare parts for complex systems

Question 22

RFPs are prepared at the solicitation planning stage.
Select one:
a. true
b. false

Question 23

From a licensee’s perspective, technology licensing is attractive because it:
Select one:
a. reduces dependence on the licensor
b. promotes initiative in the use of a superior technology
c. provides opportunities for the licensee’s employees to learn new technology skills
d. has few legal issues to contend with

Question 24

Contract negotiation involves clarification and establishing mutual agreement between buyer and seller on the structure and requirements of the contract prior to the signing of the agreement.
Select one:
a. true
b. false

Question 25

When shipping a proposal to a client in response to a solicitation, it is a good idea to obtain a time-stamped receipt, indicating at what time the proposal arrived at the client’s site.
Select one:
a. true
b. false

Question 26

In contract and procurement management, data rights means:
Select one:
a. all communication between the buyer’s Contracting officer and a prospective contractor should not be disclosed to other prospective contractors
b. all communication between the buyer’s Contracting officer and a prospective contractor must be disclosed to all other prospective contractors
c. data developed in conjunction with project execution explicitly becomes the property of either the buyer or seller (or possibly both)
d. once an RFP has been issued, the seller is under no obligation to provide additional information relating to the acquisition

Question 27

Indefinite delivery contracts are employed:
Select one:
a. on high risk contracts
b. on low risk contracts
c. when the buyer does not know how many items he/she needs
d. when the seller is not sure how much should be charged for contracted work

Question 28

What function does a level of effort SOW perform?
Select one:
a. It establishes a detailed listing of specifications that a contract should address
b. It establishes a high level listing of specifications that a contract should address
c. It defines the dollar value of project scope
d. It identifies work that needs to be done and the anticipated person-days (or hours, or years) of effort associated with the work effort

Question 29

An important function of benefit-cost analysis is that it allows us to prioritize bids to see which are worthy of winning a contract award.
Select one:
a. true
b. false

Question 30

When an employee produces an invention as part of her job:
Select one:
a. ownership of the patent for the invention is assigned to her
b. ownership of the patent for the invention is assigned to the employer
c. her employer is given a compensatory title as the inventor
d. her employer is designated both as inventor and patent owner because she used company resources and time to produce the invention

Question 31

Under what conditions is an RFQ an appropriate mode of solicitation?
Select one:
a. When goods and services are already defined
b. When dealing with non-routine efforts
c. When an award fee can be identified
d. When dealing with state-of-art efforts

Question 32

Grant-back provisions in a licensing agreement require that improvements the licensee makes to a licensed technology revert back to the licensor.
Select one:
a. true
b. false

Question 33

Procurement planning involves selection of a suitable contractor to execute a project.
Select one:
a. true
b. false

Question 34

The acceptable quality level (AQL)
Select one:
a. defines the minimum acceptable performance of a requirement
b. is a key component of the statement of work
c. must lie within 3-sigma of the mean
d. goes against the basic precepts of quality management, since it focuses only on what is acceptable and not on what is best

Question 35

In submitting proposals in response to an RFP, it is important that the bidder provides the following kinds of information: who will carry out the effort, what the bidder’s capabilities are, and how much it will cost to engage in the proposed effort.
Select one:
a. true
b. false

Question 36

Which of the following is not a typical criterion employed to identify winning contracts?
Select one:
a. Technical merit
b. Political orientation of bidders
c. Organizational capabilities
d. Effectiveness of the work plan

Question 37

At its simplest, acquisition management can be viewed as:
Select one:
a. inventory management plus contract management
b. operations management plus contract management
c. project management plus contract management
d. project management plus operations management

Question 38

Which of the following is an activity at the source selection stage?
Select one:
a. Product verification
b. Project baseline verification
c. Measuring work performance
d. Evaluation of the contracting firm’s qualifications

Question 39

Buybacks are a form of remuneration for licensing by which the licensor buys back stock shares in the licensee’s business.
Select one:
a. true
b. false

Question 40

To ensure efficiency in contract administration, administrative closure activities should be delayed until customer acceptance has been achieved.
Select one:
a. true
b. false

Question 41

The basic objective of procurement planning is to:
Select one:
a. choose from potential sellers
b. determine what to procure and when
c. manage relationships with the seller
d. obtain quotations

Question 42

Work for hire refers to work produced by employees and contractors within the scope of their employment contract.
Select one:
a. true
b. false

Question 43

The Universal Copyright Convention extends copyright protection to translations of copyrighted works into foreign languages.
Select one:
a. true
b. false

Question 44

Which of the following is an example of a situation for which Fixed Price contracts are most appropriate?
Select one:
a. Production of routine deliverables
b. One-of-a kind projects
c. R&D projects
d. Production of high risk deliverables

Question 45

A contract selection technique that is used heavily when making contract and grant awards in the sciences, and that depends on outside experts ranking proposals, is called:
Select one:
a. poor man’s hierarchy
b. peer review
c. Buss’s ranking technique
d. scoring

Question 46

Collection of a down payment fee in technology licensing is used when:
Select one:
a. dealing with a licensee who is not economically sound
b. dealing with exclusive license contracts
c. dealing with non-exclusive license contracts
d. it is difficult to access the licensee’s “honest” books

Question 47

The fair use principle allows reasonable use of copyrighted material only after permission has been obtained from the copyright owner.
Select one:
a. true
b. false

Question 48

Requirements addressing technical issues stated in non-technical terms are called
Select one:
a. business requirements
b. functional requirements
c. specifications
d. statement of work

Question 49

Performance-based payments on contracts are tied to the achievement of well-defined milestones.
Select one:
a. true
b. false

Question 50

One of the key characteristics of the Cost Plus Award Fee (CPAF) contract is that:
Select one:
a. it offers the buyer no leverage in dealing with sellers
b. bonus payments are made to sellers based on subjective judgments about project performance
c. there is no explicit payment of additional fees
d. buyers face no risk of cost overruns

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MGT 554-1 Exam

Multiple Choice Questions

Question 1

Contract administration refers to:
Select one:
a. preparing and issuing Requests for Proposal (RFPs)
b. administering the source selection process
c. the process of ensuring that the contractor’s performance meets contractual requirements
d. administering the contract negotiation process

Question 2
An e-Business company has contracted the services of three consultancy firms to help install its newly acquired enterprise resource planning (ERP) technology. Which of the following can be used to distinguish one consultancy firm from the other?
Select one:
a. Patent
b. Trademark
c. Copyright
d. Service mar

Question 3t
A difference between an RFP and an IFB is that with an RFP:
Select one:
a. sealed bids are tendered and opened publicly at one time
b. there may be no negotiations between buyer and supplier
c. a request is made for bids whose terms eventually may be negotiated
d. the objective is to request quotations

Question 4
A significant objective of the cost-as-an-independent-variable (CAIV) perspective is to:
Select one:
a. assure all technical requirements have been met
b. reduce the total operating cost (TOC) associated with programs
c. make sure that a high quality deliverable is produced at any cost
d. develop a quantitative model of project costs

Question 5
Unauthorized use of a trademark is called piracy.
Select one:
a. true
b. false

Question 6
Under a tie-in clause in a licensing agreement, the licensee is required to obtain complementary or competing technology from other sources to tie in with that obtained from the licensor.
Select one:
a. true
b. false

Question 7
Proposals coming from contractors who have unique skills in providing goods and services are called:
Select one:
a. best and final offers (BAFOs)
b. negotiated proposals
c. sole source proposals
d. unsolicited proposals

Question 8
Who bears most risk in a cost reimbursable contract?
Select one:
a. Seller
b. Buyer
c. Buyer and seller bear equal risk
d. Seller and general public

Question 9
Three critical components of performance based contracting are:
Select one:
a. the PWS, QAP, and outcomes analysis
b. the PWS, AQL, and outcomes analysis
c. the PWS, QAP, and positive/negative incentives
d. identical to the critical components of activity based costing

Question 10
With performance work statements, attention focuses on defining outcomes.
Select one:
a. true
b. false

Question 11
In contracting, the term “volunteerism” refers to the situation where:
Select one:
a. contractors do not charge buyers for change requests
b. team members agree to work on a contract without pay
c. buyers “forgive” small instances of poor contractor performance
d. contracts are carried out on behalf of non-profit organizations

Question 12
To protect the intellectual property of the buyer, a contractor is typically made to sign a:
Select one:
a. Non-competition agreement
b. Conflict of interest agreement
c. Non-disclosure agreement
d. An indemnity bond

Question 13
Which of the following contracting concepts is not associated with competitive procurements?
Select one:
a. RFP
b. IFB
c. RFQ
d. Sole source bid

Question 14
An exclusive license is most appropriate:
Select one:
a. for unique technologies
b. for routine technologies
c. only in the traditional industries
d. when a small investment is needed to use a technology

Question 15
Which of the following roles may the staff of a modern project support office play in contract management?
Select one:
a. Provides sponsorship
b. Conducts risk assessment of a proposed project that an organization wants to bid on
c. Negotiates detailed contract terms and conditions
d. Has no role to play

Question 16
With a pink team review:
Select one:
a. the project proposal is scrutinized late in the proposal development effort by a panel of people who play the role of customers
b. the project proposal is scrutinized early in the proposal development effort by a panel of people who play the role of customers
c. project pricing is carefully examined by pricing experts
d. buyers make a preliminary decision on which bid should be granted a contract

Question 17
The cost-as-an-independent-variable sees cost as the key project driver.
Select one:
a. true
b. false

Question 18
What is the purpose of the bidders’ conference?
Select one:
a. To enable the buyer to interact with successful bidders
b. To enable the buyer to negotiate price with successful bidders
c. To enable management to review bids that have been received by the buyer
d. To enable the buyer to meet with prospective sellers prior to preparation of a proposal to ensure that all prospective sellers have a clear, common understanding of the procurement

Question 19
An advantage of the Cost Plus Fixed Fee (CPFF) contract is that:
Select one:
a. it prevents schedule slippage
b. the buyer faces no risk of cost overrun
c. the buyer can attract higher quality sellers
d. the seller loses through cost overruns

Question 20
In contracting, change control focuses on:
Select one:
a. contractor generated changes
b. buyer generated changes
c. changes to the contract scope coming from any source
d. changes triggered by events in the environment

Question 21
Rapid prototyping is a technique geared to
Select one:
a. identifying customer requirements
b. developing deliverables as quickly as possible
c. building small deliverables
d. maintaining spare parts for complex systems

Question 22
RFPs are prepared at the solicitation planning stage.
Select one:
a. true
b. false

Question 23
From a licensee’s perspective, technology licensing is attractive because it:
Select one:
a. reduces dependence on the licensor
b. promotes initiative in the use of a superior technology
c. provides opportunities for the licensee’s employees to learn new technology skills
d. has few legal issues to contend with

Question 24
Contract negotiation involves clarification and establishing mutual agreement between buyer and seller on the structure and requirements of the contract prior to the signing of the agreement.
Select one:
a. true
b. false

Question 25
When shipping a proposal to a client in response to a solicitation, it is a good idea to obtain a time-stamped receipt, indicating at what time the proposal arrived at the client’s site.
Select one:
a. true
b. false

Question 26
In contract and procurement management, data rights means:
Select one:
a. all communication between the buyer’s Contracting officer and a prospective contractor should not be disclosed to other prospective contractors
b. all communication between the buyer’s Contracting officer and a prospective contractor must be disclosed to all other prospective contractors
c. data developed in conjunction with project execution explicitly becomes the property of either the buyer or seller (or possibly both)
d. once an RFP has been issued, the seller is under no obligation to provide additional information relating to the acquisition

Question 27
Indefinite delivery contracts are employed:
Select one:
a. on high risk contracts
b. on low risk contracts
c. when the buyer does not know how many items he/she needs
d. when the seller is not sure how much should be charged for contracted work

Question 28
What function does a level of effort SOW perform?
Select one:
a. It establishes a detailed listing of specifications that a contract should address
b. It establishes a high level listing of specifications that a contract should address
c. It defines the dollar value of project scope
d. It identifies work that needs to be done and the anticipated person-days (or hours, or years) of effort associated with the work effort

Question 29
An important function of benefit-cost analysis is that it allows us to prioritize bids to see which are worthy of winning a contract award.
Select one:
a. true
b. false

Question 30
When an employee produces an invention as part of her job:
Select one:
a. ownership of the patent for the invention is assigned to her
b. ownership of the patent for the invention is assigned to the employer
c. her employer is given a compensatory title as the inventor
d. her employer is designated both as inventor and patent owner because she used company resources and time to produce the invention

Question 31
Under what conditions is an RFQ an appropriate mode of solicitation?
Select one:
a. When goods and services are already defined
b. When dealing with non-routine efforts
c. When an award fee can be identified
d. When dealing with state-of-art efforts

Question 32
Grant-back provisions in a licensing agreement require that improvements the licensee makes to a licensed technology revert back to the licensor.
Select one:
a. true
b. false

Question 33
Procurement planning involves selection of a suitable contractor to execute a project.
Select one:
a. true
b. false

Question 34
The acceptable quality level (AQL)
Select one:
a. defines the minimum acceptable performance of a requirement
b. is a key component of the statement of work
c. must lie within 3-sigma of the mean
d. goes against the basic precepts of quality management, since it focuses only on what is acceptable and not on what is best

Question 35
In submitting proposals in response to an RFP, it is important that the bidder provides the following kinds of information: who will carry out the effort, what the bidder’s capabilities are, and how much it will cost to engage in the proposed effort.
Select one:
a. true
b. false

Question 36
Which of the following is not a typical criterion employed to identify winning contracts?
Select one:
a. Technical merit
b. Political orientation of bidders
c. Organizational capabilities
d. Effectiveness of the work plan

Question 37
At its simplest, acquisition management can be viewed as:
Select one:
a. inventory management plus contract management
b. operations management plus contract management
c. project management plus contract management
d. project management plus operations management

Question 38
Which of the following is an activity at the source selection stage?
Select one:
a. Product verification
b. Project baseline verification
c. Measuring work performance
d. Evaluation of the contracting firm’s qualifications

Question 39
Buybacks are a form of remuneration for licensing by which the licensor buys back stock shares in the licensee’s business.
Select one:
a. true
b. false

Question 40
To ensure efficiency in contract administration, administrative closure activities should be delayed until customer acceptance has been achieved.
Select one:
a. true
b. false

Question 41
The basic objective of procurement planning is to:
Select one:
a. choose from potential sellers
b. determine what to procure and when
c. manage relationships with the seller
d. obtain quotations

Question 42
Work for hire refers to work produced by employees and contractors within the scope of their employment contract.
Select one:
a. true
b. false

Question 43
The Universal Copyright Convention extends copyright protection to translations of copyrighted works into foreign languages.
Select one:
a. true
b. false

Question 44
Which of the following is an example of a situation for which Fixed Price contracts are most appropriate?
Select one:
a. Production of routine deliverables
b. One-of-a kind projects
c. R&D projects
d. Production of high risk deliverables

Question 45
A contract selection technique that is used heavily when making contract and grant awards in the sciences, and that depends on outside experts ranking proposals, is called:
Select one:
a. poor man’s hierarchy
b. peer review
c. Buss’s ranking technique
d. scoring

Question 46
Collection of a down payment fee in technology licensing is used when:
Select one:
a. dealing with a licensee who is not economically sound
b. dealing with exclusive license contracts
c. dealing with non-exclusive license contracts
d. it is difficult to access the licensee’s “honest” books

Question 47
The fair use principle allows reasonable use of copyrighted material only after permission has been obtained from the copyright owner.
Select one:
a. true
b. false

Question 48
Requirements addressing technical issues stated in non-technical terms are called
Select one:
a. business requirements
b. functional requirements
c. specifications
d. statement of work

Question 49
Performance-based payments on contracts are tied to the achievement of well-defined milestones.
Select one:
a. true
b. false

Question 50
One of the key characteristics of the Cost Plus Award Fee (CPAF) contract is that:
Select one:
a. it offers the buyer no leverage in dealing with sellers
b. bonus payments are made to sellers based on subjective judgments about project performance
c. there is no explicit payment of additional fees
d. buyers face no risk of cost overruns