Procurement and Vendor Selection PK0-005 Practice Questions (Page 7)

Questions 31–34

1. 31foundation · easy

   What is the primary purpose of contract negotiation in procurement?

   • ATo force the vendor to accept the lowest possible price
   • BTo reach a mutually acceptable agreement on terms and conditions
   • CTo eliminate all risks from the contract
   • DTo finalize the project schedule
   Reveal Solution Discussion Select an answer first
2. 32expert · hard

   A project manager is in the final stage of vendor selection. Two vendors have scored very closely in the evaluation. Vendor X has a slightly higher technical score but a lower past performance score. Vendor Y has a slightly lower technical score but a higher past performance score. The project is critical to the organization's strategic goals. Which vendor should be selected?

   • ASelect neither and re-issue the RFP to find a better vendor.
   • BSelect the vendor with the lower price to save costs.
   • CVendor Y, because a proven track record of performance is a more reliable indicator of success for a critical project.
   • DVendor X, because the technical score is the most important criterion for a strategic project.
   Reveal Solution Discussion Select an answer first
4. 33foundation · easy

   Which of the following is a common risk associated with relying on a single vendor for a critical project component?

   • ALower quality
   • BReduced cost
   • CVendor lock-in
   • DIncreased competition
   Reveal Solution Discussion Select an answer first
5. 34expert · hard · select all that apply

   A project manager is evaluating a vendor that will provide a critical component for a new product launch. The vendor is a small company that has been in business for only two years. The project manager has identified several risks. Which of the following are appropriate risk mitigation strategies? (Select all that apply.)

   • AConduct a thorough financial background check on the vendor.
   • BSelect a different, more established vendor regardless of cost.
   • CAccept the risk as the vendor has a good reputation in the industry.
   • DRequire the vendor to provide a performance bond or bank guarantee.
   • ENegotiate a contract with a penalty clause for late delivery.
   Check answers Discussion Select an answer first