PMP Practice Questions #15

Given that a portion of your project involves outsourcing marketing content development, such as videos and images, to a vendor under a Time and Material contract with a flexible scope, and your internal team has already experienced a 50% productivity boost using AI tools, you’ve suggested the vendor to adopt similar AI tools. However, they have shown disinterest. What should you do next?

A) Study the Contract Change Control process to initiate the change. 
B) Train some of the vendor’s team on the new tools to promote the idea.
C) Let the vendor proceed as they believe is best. 
D) Share articles with the vendor demonstrating the benefits of using AI in marketing.

Analysis

The question pertains to a project where a section involves outsourcing marketing content like videos and images to an external vendor, under a Time and Material (T&M) contract with a flexible scope. The internal team, already using AI tools, has experienced a 50% productivity boost. The project manager has suggested the vendor to also adopt these AI tools, but the vendor has shown reluctance. The task is to determine the next best step for the project manager.

Analysis of Options:

Option A: Study the Contract Change Control process to initiate the change. Given the nature of T&M contracts, where vendors get paid based on the time spent, they might not have an incentive to boost productivity as it could lead to decreased billing. Therefore, introducing a change that could potentially decrease their hours (and hence revenue) requires a careful examination of the change control process outlined in the contract. A unilateral decision can’t be taken. The approach has to be in line with the contract’s terms, which is why studying the change control process is a crucial first step.

Option B: Train some of the vendor’s team on the new tools to promote the idea. Training the vendor’s team might be a good idea when trying to influence stakeholders. However, this is a vendor relationship that’s based on a contract. Whether they embrace the idea or not, the project manager can’t ensure the adoption of these tools without examining contractual boundaries first. Furthermore, the training, even if successfully executed, doesn’t guarantee tool adoption, especially when the vendor might not see a direct financial benefit due to the nature of the T&M contract.

Option C: Let the vendor proceed as they believe is best. This might be a viable option if the contract was of a fixed price nature. However, in a T&M arrangement, letting the vendor operate at their discretion without attempting to implement efficiency improvements directly affects the project’s cost. This approach might lead to missed opportunities for cost savings and project efficiency.

Option D: Share articles with the vendor demonstrating the benefits of using AI in marketing. Much like Option B, this option aims to influence the vendor by showcasing the benefits of AI. But, as with training, sharing articles doesn’t guarantee adoption. The primary concern here isn’t the vendor’s unawareness of AI benefits but rather their potential lack of financial incentive to adopt these tools under the T&M contract.

Conclusion: Given the context and the nature of the T&M contract, the most appropriate action would be to understand and work within the contractual boundaries. Hence, Option A: “Study the Contract Change Control process to initiate the change” is the most suitable choice. This choice is also in line with the majority’s viewpoint from the video’s context. It ensures that any push for efficiency is done without violating the terms of the contract.

PMP Exam Content Outline Mapping

Domain	Task
Process	Task 11: Plan and manage procurement
Process	Task 10: Manage project changes
Business	Task 3: Evaluate and address external business environment changes for impact on scope

Topics Covered

• Contract Types
• Contract Change Management
• Change Control
• Risk Management (Opportunity)

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