Chapter 12: Project Procurement Management Information Technology Project Management, Fifth Edition.
Project Procurement Management. Procurement Basics Project Procurement Management.
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Transcript of Project Procurement Management. Procurement Basics Project Procurement Management.
![Page 1: Project Procurement Management. Procurement Basics Project Procurement Management.](https://reader036.fdocuments.in/reader036/viewer/2022082403/56649f205503460f94c38b2f/html5/thumbnails/1.jpg)
Project Procurement Management
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Project Procurement Mgt
• Includes all the processes used to purchase/acquire
--products--services--results needed…from outside the project team to complete the
project.
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Processes
“Plan purchases” and “acquisition process” generates
THE PROCUREMENT MANAGEMENT PLAN
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• Procurement Mgt Plan becomes an input to most of the other procurement processes including the “plan contracting process.”
• “Plan contracting process” generates, as an OUTPUT, procurement documents….
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• Those procurement documents are used as an input by the “request seller responses” process. (What might these look like? )
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• The responses come back, and are reviewed. Then they become an INPUT to the “seller response process” –which generates as an OUTPUT the “qualified sellers list.”
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• That list becomes an input to “select sellers process” to generate these two OUTPUTs:
--The selected sellers list--Contract management plan
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The selected sellers list & contract management plan…
• are parts of the input to the “contract administration process” which generates the contract documentation, which in turn…
• IS NEEDED BY THE CONTRACT CLOSURE PROCESS TO CLOSE THE PROJECT
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Remember these items…
• The contract statement of work (SOW) is written by the buyer aka “originator”
• Qualified sellers list comes from those asked to submit a proposal or quote.
• The SOW for each contract is developed from the Project Scope Statement, the Project WBS, and the WBS dictionary.
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Remember for CAPM
• Invitation to bid, request for quote, and request for proposal travel FROM buyer TO seller.
• The Seller responds TO the buyer via a bid, quote or proposal.
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• Of all types of contracts PMBOK discusses, only the firm fixed price contract presents a risk to the seller.
• The contract management plan is an output of the “select sellers” process –NOT of the plan contracting process.
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• The contract type that represents the most risk to the buyer is the “cost plus percentage of cost” because the fee goes up in accordance with the cost overrun.
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Memorize
• When a seller selection decision is based on price - as when buying commercial or standard items—terms like bid, tender, or quote are used.
• When the decision is about a more complex service with many factors, the term used is proposal. (Request for Proposal or RFP).
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Typical reasons for discrepancies like significant cost differences between the cost in a proposal and the independent/earlier cost estimate include:
• Contract statement of work wasn’t accurate• The seller misunderstood scope or other
details• The seller failed to fully respond to RFP or Q• The marketplace changed
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Ready For CAPM?
• procurement