You work as a project manager for BlueWell Inc.

A make-or-buy analysis is used to verify whether a particular work can best be accomplished by the project team or must be purchased from outside sources. The budget constraints can influence the make-or-buy decisions. A make-or-buy analysis must consider all related costs; both direct and indirect support costs.

Answer option B is incorrect. Expert judgment is a technique based on a set of criteria that has been acquired in a specific knowledge area or product area. It is obtained when the project manager or project team requires specialized knowledge that they do not possess.

Answer option A is incorrect. The type of contract to be used and the specific contract terms and conditions fix the degree of risk being assumed by the buyer and seller.

Answer option C is incorrect. Negotiations clarify the structure, requirements and other terms of the purchase so that the mutual agreement can be reached prior to signing the contracts.