This document contains a sample PMP exam question and answer regarding preparing a bid package for local contractors to bid on construction work for an oil pipeline project. The question asks which document should be left out of the bid package. The options are: request for proposal, statement of work, independent cost estimates, or bid documents. The hint says to consider the flow of information between the buyer and sellers before selection. The answer explains that independent cost estimates, which are used by the buyer to benchmark bids but not provided to sellers, should be left out of the package so as not to prejudice sellers' pricing. Including all other listed documents is appropriate for the bid package.

1. PMP EXAM
SAMPLE Q & A

2. You are leading a project to build an oil pipeline in a foreign country. You want to outsource some
of the construction work to local contractors and 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. Bid documents
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 along with the request for proposal (RFP),
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.
Answer

4. 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 work well with 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

5. All our questions are updated to the latest
A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) standard.
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