ExpertPMP · Question 61 · Task 11: Plan and manage procurement
A project manager is procuring specialized AI/ML consulting services for a digital transformation project. The work involves proprietary algorithms, requires deep integration with existing systems, and has uncertain requirements that may evolve during development. Three vendors have submitted proposals: one offers a fixed-price contract, another proposes time-and-materials with a not-to-exceed limit, and the third suggests a performance-based contract tied to business outcomes. What should the project manager do FIRST?
A project manager is procuring specialized AI/ML consulting services for a digital transformation project. The work involves proprietary algorithms, requires deep integration with existing systems, and has uncertain requirements that may evolve during development. Three vendors have submitted proposals: one offers a fixed-price contract, another proposes time-and-materials with a not-to-exceed limit, and the third suggests a performance-based contract tied to business outcomes. What should the project manager do FIRST?
Answer options:
Analyze the project characteristics, uncertainty levels, and risk tolerance to determine the most appropriate contract type and risk allocation
Choose the fixed-price contract to provide cost certainty and budget control
Select the performance-based contract to align vendor incentives with business outcomes
Request all vendors to resubmit proposals using the same contract type for fair comparison
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