PMP Procurement Management: Practice Questions & Guide

Procurement on the PMP exam covers planning procurements, conducting procurements (e.g. obtaining seller responses and selecting sellers), and controlling procurements (managing contracts and relationships). You need to know contract types (fixed price, cost reimbursable, time and material) and when each is appropriate.

The project can be buyer or seller; the exam often assumes you’re the buyer. Key outputs include the procurement management plan, procurement documents, source selection criteria, and contracts. You also need to understand how risk is shared between buyer and seller in different contract types.

Common traps include confusing contract types (e.g. FP-EPA vs. CPFF) or who bears the most cost risk. Another trap is skipping procurement planning when the question involves acquiring external resources. Close procurement/contracts is also tested—know when contracts are closed and what happens with disputes or terminations.

Practice procurement questions in the Process domain. Focus on “which contract type?” and “what should the PM do?” when dealing with sellers or contract changes. Use domain filters to find procurement-related items.

Frequently Asked Questions

What procurement topics are on the PMP exam?
PMP procurement questions cover: contract types (Fixed-Price, Cost-Reimbursable, Time & Materials), Plan Procurement Management, Conduct Procurements (vendor selection and evaluation), Control Procurements (performance monitoring), Close Procurements, make-or-buy analysis, and source selection criteria. Procurement falls under the Process domain (41% of the active PMP Version 8 exam).
What is the difference between Fixed-Price and Cost-Reimbursable contracts in PMP?
Fixed-Price contracts set a predetermined price for a defined scope — the seller bears the cost risk. Cost-Reimbursable contracts reimburse the seller's actual costs plus a fee — the buyer bears the cost risk. Time & Materials contracts are a hybrid — unit rates are fixed but total cost varies by time spent. PMI questions often test when to use each type based on scope clarity and risk tolerance.
When do you close procurements?
Procurements are closed when each contract is complete (delivered, accepted, payments done) or terminated. Closure includes formal acceptance, documentation, and release of the team. It can occur before or as part of project closure.
What is source selection?
Source selection is the process of evaluating bids or proposals and choosing sellers. Criteria might be lowest price, best value, or other factors defined in the procurement documents. The outcome is selected sellers and signed contracts.
How many PMP procurement questions are on the exam?
PMI does not publish the exact distribution of topics within domains. Procurement falls under the Process domain (41% of the active PMP Version 8 exam). Based on PMP candidate reports, procurement-related questions typically make up 5–10% of the exam. In the active PMP Version 8 exam, procurement remains part of the Process domain but the overall Process domain weight decreases is 41%.
What is make-or-buy analysis in project management?
Make-or-buy analysis is a decision-making tool used to determine whether a project team should produce a product or service internally (make) or purchase it from an external vendor (buy). Factors include cost, available capacity, confidentiality requirements, proprietary knowledge, and strategic considerations. PMP exam questions on make-or-buy typically test your ability to identify the right factors for each scenario.