12 Procurement Flashcards
Project Procurement Management Overview
processes to purchase or acquire products, services or results from outside of the project team
Internal SLA’s and MOA’s (memoranda of agreements)
Procurement Processes:
Plan Procurement (P) Conduct Procurements (E) Control Procurements (M)
Procurement: Key Concepts
Project Manager is not always (or usually) the legal signing authority
Contracts should clearly state deliverables and results, mutually binding agreement.
Decentralized purchasing ( Proj Man has signing authority) vs. Centralized purchasing (separate department with a role of purchasing)
Should be formal
Procurement Trends
Advances in tools (online)
Advanced risk management
Changing Contracting Processes (considering international contracting)
Logistics and supply chain management (factor delivery times)
Technology and Stakeholder relations (audit/scrutiny)
Trial Engagements
Procurement Tailoring Considerations
Complexity of procurement
Physical Location
Governance and regulatory environment
Availability of contractors
Plan Procurement Management Process
Planning
documenting project procurement decisions, specify approach and identify sellers
Determines: need outside support?, what, how, how much, when to acquire
Plan Procurement Inputs
PC Business Documents - Business Case - benefits management plan PMP -scope management - quality management plan - resource management plan - scope baseline Project documents - milestone list - project team assignments - requirements documentation - requirements traceability matric - resource requirements - risk register - stakeholder register EEF/OPA
Plan Procurement T/T
EJ Data Gathering - Market research Data Analysis - Make or buy analysis Source Selection analysis Meetings
Plan Procurement Outputs
Procurement Management Plan Procurement Strategy Bid documents Procurement statement of work source selection criteria Make or buy decisions Independent cost estimates Change requests Project Document updates - LL - Milestone list - Requirements documents - requirements traceability matrix - risk register - stakeholder register OPA updates
Contract Types
Fixed Price (lump sum) - firm fixed price (FFP) - Fixed price incentive fee (FPIF) - Fixed price with economic price adjustments (FPEPA) Cost-reimbursable Contracts (cost plus) - Cost plus fixed fee (CPFF) - Cost plus incentive fee (CPIF) - Cost plus award fee (CPAF) Time and Material Contract (T&M), unit price
Conduct Procurements Overview
Executing
getting seller responses, selecting a seller, awarding a contract
Conduct Procurements Inputs
PMP - Scope - Requirements - Communication management - Risk Management - Procurement management - configuration management - cost baseline Project documents - LL - Project schedule - requirements documentation - risk register - stakeholder register Procurement documentation Seller Proposals EEF/OPA
Conduct Procurements T/T
EJ Advertising Bidder conferences Data Analysis - Proposal evaluation Interpersonal and team skills - negotiation
Conduct Procurements Outputs
Selected Sellers Agreements Change requests PMP updates - requirements management - quality management - communication management plan - risk plan - procurement plan - scope baseline - schedule baseline - cost baseline Project documents Updates - LL - requirement documentation - Requirements traceablilty matrix - resource calendars - Riske register - stakeholder register OPA updates
Control Procurements Overview
Monitor and Control
monitoring relationships, contract performance, making changes and corrections, and closing out contracts
Verify terms and conditions
Integration of procurement and project processes
