Once the make-or-buy analysis is completed, which document defines the project delivery method?
Show Answer & Explanation
Correct Answer: B. Procurement strategy
The procurement strategy is the document that defines the project delivery method, contract type, and the phases of the procurement process after the make-or-buy analysis has been completed. According to the PMBOK® Guide, the procurement strategy is an output of the Plan Procurement Management process and outlines how the project team will acquire goods and services from outside the organization. It includes decisions about the delivery method (e.g., design-build, design-bid-build, PPP), the contract payment type (e.g., fixed-price, cost-reimbursable, time and material), and the procurement phases. The make-or-buy analysis feeds directly into the procurement strategy, as its results determine whether external procurement is needed and, if so, how it should be structured. The Procurement SOW (Option A) is incorrect because it describes the scope of work to be performed by the vendor, not the delivery method. Terms of reference (Option C) are typically used in consulting or service contexts to describe objectives and scope, not the overarching delivery approach. A change request (Option D) is a formal proposal to modify any aspect of the project and is unrelated to defining delivery methods. Understanding the distinction between these documents is critical for the CAPM exam, as questions often test whether candidates can correctly match outputs to their respective processes.