A project manager is conducting a procurement for a complex software component. The requirements are not fully defined and will likely evolve. Which contract type is MOST appropriate to share risk and allow for flexibility?
A project manager is reviewing the procurement strategy. The project requires a vendor to develop a proprietary algorithm. The IP (Intellectual Property) rights are a critical concern. Which document must clearly define the IP ownership?
A project manager is leading a project with a fixed price contract. The seller claims that a specific requirement was not in the original scope and asks for a change order. The PM disagrees. What should the PM do FIRST?
A project requires a vendor to conduct research where the scope is not well defined and will evolve. The buyer wants to share the risk with the vendor but cap their own exposure. Which contract type is BEST?
An agile project needs to outsource a specific component. The team wants to collaborate closely with the vendor, sharing risks and rewards. Which contract structure supports this?
A project manager is deciding whether to build a solution in-house or buy it. Building it costs $50,000 upfront plus $1,000/month maintenance. Buying it costs $10,000 upfront plus $3,000/month subscription. At what month do the costs break even?
A project manager is planning a project with a high degree of uncertainty regarding requirements. The organization requires a fixed budget. Which TWO contracting techniques are BEST suited for this scenario?
Full answers, grading, and explanations on why each answer is correct.
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