TOPIC: Free CAPM® Exam Sample Question

Which of the following processes uses independent estimates of the cost of a procurement item?

A. Conduct Procurements
B. Close Procurements
C. Plan Procurement Management
D. Control Procurements

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HINT: Think of the purpose of independent estimates.

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Answer and Explanation:
The correct answer is A.

During the proposal evaluation, the organization may need to use independent estimates to benchmark against the seller responses. Significant gaps may imply the deficiency of the statement of work or misunderstanding of the requirements, while other processes, such as Plan Procurement Management or Control Procurements, do not require the project to conduct such estimation.

Details for each option:

A. Conduct Procurements
Correct. When evaluating sellers' proposals, the procuring organization may need to estimate the costs of procurement items independently to benchmark against proposed responses.

B. Close Procurements
Incorrect. The PMBOK® Guide does not include Close Procurements as a project management process.

C. Plan Procurement Management
Incorrect. The focus of the Plan Procurement Management process is to document the procurement decisions, identify the approach and potential sellers, and whether independent estimates will be needed. However, it does not use independent estimates.

D. Control Procurements
Incorrect. The focus of the Control Procurement Management process is to ensure that all relevant parties fulfill their obligations agreed in the contract, so it is not necessary to conduct estimating during the Control Procurement process.

Reference: A Guide to the Project Management Body of Knowledge, (PMBOK^® Guide) – Sixth Edition, Project Management Institute Inc., 2017, Page(s) 485