This document contains 50 multiple choice questions about contracts and procurement. The questions cover topics such as technology licensing, competitive procurements, performance based contracting, intellectual property (patents, trademarks, copyright), contract types (fixed price, cost reimbursement), statements of work, requests for proposals/quotations, source selection, and contract administration.

1. MGT 254
Contracts and Procurement
Q1. From a licensee's perspective, technology licensing is
attractive because it:
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
Q2. Which of the following contracting concepts is not
associated with competitive procurements?
a. RFP
b. IFB
c. RFQ
d. Sole source bid
Q3. Three critical components of performance based contracting
are:
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
Q4. 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?
a. Patent
b. Trademark
c. Copyright
d. Service mark

2. Q5. 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.
a. true
b. false
Q6. With a pink team review:
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
Q7. An exclusive license is most appropriate:
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
Q8. To ensure efficiency in contract administration,
administrative closure activities should be delayed until project
completion.
a. true
b. false
Q9. A difference between an RFP and an IFB is that with an
RFP:
a. sealed bids are tendered and opened publicly at one time
b. there may be no negotiations between buyer and supplier

3. c. a request is made for bids whose terms eventually may be
negotiated
d. the objective is to request quotations
Q10. Work for hire refers to work produced by employees and
contractors within the scope of their employment contract.
a. true
b. false
Q11. 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:
a. poor man's hierarchy
b. peer review
c. Buss's ranking technique
d. scoring
Q12. A significant objective of the cost-as-an-independent-
variable (CAIV) perspective is to:
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
Q13. One of the key characteristics of the Cost Plus Award Fee
(CPAF) contract is that:
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
Q14. What is the purpose of the bidders' conference?
a. To enable the buyer to interact with successful bidders

4. 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
Q15. The cost-as-an-independent-variable sees cost as the key
project driver.
a. true
b. false
Q16. The acceptable quality level (AQL)
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
Q17. Grant-back provisions in a licensing agreement require
that improvements the licensee makes to a licensed technology
revert back to the licensor.
a. true
b. false
Q18. With performance work statements, attention focuses on
defining outcomes.
a. true
b. false
Q19. Which of the following is an activity at the source
selection stage?
a. Product verification

5. b. Project baseline verification
c. Measuring work performance
d. Evaluation of the contracting firm's qualifications
Q20. What function does a level of effort SOW perform?
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
Q21. Quality control is an aspect of contract administration.
a. true
b. false
Q22. Buyers use SOWs to express their requirements.
a. true
b. false
Q23. Unauthorized use of a trademark is called piracy.
a. true
b. false
Q24. An advantage of the Cost Plus Fixed Fee (CPFF) contract
is that:
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
Q25. The Universal Copyright Convention extends copyright
protection to translations of copyrighted works into foreign
languages.

6. a. true
b. false
Q26. Under what conditions is an RFQ an appropriate mode of
solicitation?
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
Q27. Performance-based contracts focus on:
a. how the deliverable should be produced
b. what should be produced
c. human resource allocation
d. financial management
Q28. The fair use principle allows reasonable use of
copyrighted material only after permission has been obtained
from the copyright owner.
a. true
b. false
Q29. The value of a trademark depends on:
a. its age
b. who the founder of the company that holds the trade mark
is
c. the perceived quality of the trademarked good
d. the aesthetic beauty of the trademark
Q30. A proposal that reflects the seller's best and final offer is
typically associated with a:
a. Request for Proposal (RFP)
b. Request for Quotation (RFQ)
c. Cost Plus Fixed Fee (CPFF) contract
d. Invitation for Bid (IFB)

7. Q31. Which of the following roles may the staff of a modern
project support office play in contract management?
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
Q32. Who bears most risk in a cost reimbursable contract?
a. Seller
b. Buyer
c. Buyer and seller bear equal risk
d. Seller and general public
Q33. Requirements addressing technical issues stated in non-
technical terms are called
a. business requirements
b. functional requirements
c. specifications
d. statement of work
Q34. In contracting, the term "boilerplate" refers to:
a. Written material that can be used over and over again on
proposals and contracts
b. Penalties directed against contractors who fail to perform
according to contractual requirements
c. Penalties directed against buyers who fail to meet their
contractual obligations
d. Contingency reserves that are built into contracts to deal
with known unknowns
Q35. 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.
a. true

8. b. false
Q36. Which of the following is not a typical criterion employed
to identify winning contracts?
a. Technical merit
b. Political orientation of bidders
c. Organizational capabilities
d. Effectiveness of the work plan
Q37. Copyright law protects:
a. the content of an idea
b. the content and expression of an idea
c. the expression of an idea
d. patents and content of an idea
Q38. Contract administration refers to:
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
Q39. The basic objective of procurement planning is to:
a. choose from potential sellers
b. determine what to procure and when
c. manage relationships with the seller
d. obtain quotations
Q40. Which of the following is a tool that is used for
performance measurement in contracting?
a. Earned value estimates
b. Resource leveling analysis
c. Contractor technical capability analysis
d. The Peter Principle
Q41. Indefinite delivery contracts are employed:

9. 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
Q42. Rapid prototyping is a technique geared to
a. identifying customer requirements
b. developing deliverables as quickly as possible
c. building small deliverables
d. maintaining spare parts for complex systems
Q43. To protect the intellectual property of the buyer, a
contractor is typically made to sign a:
a. Non-competition agreement
b. Conflict of interest agreement
c. Non-disclosure agreement
d. An indemnity bond
Q44. 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.
a. true
b. false
Q45. Proposals coming from contractors who have unique skills
in providing goods and services are called:
a. best and final offers (BAFOs)
b. negotiated proposals
c. sole source proposals
d. unsolicited proposals
Q46. 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.

10. a. true
b. false
Q47. 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.
a. true
b. false
Q48. When an employee produces an invention as part of her
job:
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
Q49. Which of the following is an example of a situation for
which Fixed Price contracts are most appropriate?
a. Production of routine deliverables
b. One-of-a kind projects
c. R&D projects
d. Production of high risk deliverables
Q50. Buybacks are a form of remuneration for licensing by
which the licensor buys back stock shares in the licensee's
business.
a. true
b. false