The document discusses the preparation of a bid package for an oil pipeline project, emphasizing the importance of certain documents in the procurement process. It indicates that independent cost estimates should be excluded from the bid package, as they are primarily used by the buyer for benchmarking rather than shared with prospective sellers. The correct answer to the related question is identified as the exclusion of independent cost estimates.

1. PMP EXAM
SAMPLE Q & A

2. You are leading a project to build an oil pipeline in a foreign country, and you are looking for local
contractors to outsource some of the construction work. You are in the process of preparing the
bid package for prospective sellers. Which of the following documents would you leave out of the
package?
A. Request for proposal
B. Statement of work
C. Independent cost estimates
D. Source selection criteria
HINT: To answer this question correctly, you need to consider the flow of information between
the buyer and prospective sellers before the procurement selections are made.
Question

3. The correct answer is C.
Preparing the bid package for prospective sellers implies you are carrying out the Plan Procurement
Management process. Bid documents (with the request for proposal (RFP) among them), procurement
statement of work (SOW), source selection criteria, independent cost estimates are among the outputs of
this process. These documents are also among the inputs to the Conduct Procurements process. However,
not all of these documents are provided by the buyer to the prospective sellers. Sometimes, to benchmark
procurements, the buying organization develops independent cost estimates either internally or using
external resources such as a professional estimator. Buyers do not usually provide these estimates to the
prospective sellers since a benchmark range may prejudice the sellers into proposing prices that do not
actually work for their business model and resources. The buyer uses these benchmark estimates
principally to verify if bids are reasonable, or if a large number of outliers indicate an issue with
procurement processes or communications. Thus, of the choices provided, leaving the independent cost
estimates out of the bid package makes the most sense and is, therefore, the best answer to the question
asked.
Answer

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A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) standard.
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