Project Management Professional (PMP) Exam Practice – Question1623

You are working on a new project in your organization. You need to decide how best to staff the project and handle all its resource requirements. Your first step should be to______________


A. Conduct a make-or-buy analysis
B. Conduct a market survey
C. Solicit proposals from sellers using an RFP to determine whether you should outsource the project
D. Review your procurement department's qualified-seller lists and send an RFP to selected sellers

Correct Answer: A

Explanation:

Explanation:
A make-or-buy analysis is a plan procurement management tool and technique used to determine whether a particular product, service, or result can be produced or performed cost effectively by the performing organization or should be contracted out to another
organization. The analysis includes both direct and indirect costs and any administrative costs incurred to manage the contractor.