Ch 12 Project Procurement Management Flashcards
Selected Sellers
The seller(s) that have been awarded a contract
An output of the Conduct Procurements process (Procurements/Executing)
Conduct Procurements
The process of selecting a seller and awarding them the contract; the key task is evaluating seller proposals
Knowledge Area: Procurements
Process Group: Executing
Inputs:
- Procurement Statement of Work
- Independent Cost Estimates
- Source Selection Criteria
- Seller Proposals
Tools:
- Bidder Conference
- Data Analysis
- Proposal Evaluations
- Negotiations
Outputs:
- Selected Sellers
- Signed Agreements
Cost Plus Incentive Fee (CPIF)
A type of Cost Reimbursable contract where the buyer pays the work expense and an additional fee, if a specific target is met (e.g., finishing two weeks earlier)
Bid Documents*
Documents written by the buyer to inform potential sellers what will be needed to complete the contract and to get a response from potential sellers
They generally include at least one of the following:
- Request for Proposal (RFP)
- Invitation for Bid (IFB) or Request for Bid (RFB)
- Request for Quotation (RFQ)
An output of the Plan Procurement Management process (Procurement/Planning)
Time and Material
A type of contract where the buyer pays for both labor and material
The buyer takes all the risk of cost overrun for both the labor and materials
This type of contract should only be used when the scope his high-level
Procurement Strategy*
Strategy that describes what type of agreement to use and how the project would like delivery to take place
An output of the Plan Procurement Management process (Procurement/Planning)
Fixed Price (Lump Sum)
A type of contract where the buyer pays one flat price (lump sum) for all work in the contract. This would include all labor and materials
The scope must be well-defined and understood, because the seller takes all the risk of executing cost constraints for both labor and materials
Cost Plus Award Fee (CPAF)
A type of Cost Reimbursable contract where the seller is reimbursed for costs, but the award fee will be paid ONLY if the performance criteria outlined in the contract are met
Fixed Price Economic Price Adjustment (FP-EPA)
A type of Fixed Price contract where the fixed cost over the life of the contract is adjusted due to economic conditions (e.g., inflation, the price of commodities)
These contracts usually cover longer periods of time
Proposal Evaluations
A data analysis technique that involves evaluating the proposals that were received from potential vendors
Conducted to ensure the proposal matches the requirements for the project
A tool used to help execute the Conduct Procurements process (Procurements/Executing)
Fixed Price Incentive Fee (FPIF)
A type of Fixed Price contract where the fixed price includes an additional fee for meeting a target set forth in the contract
Independent Cost Estimates
An estimate provided by inspectors or professional estimators to help determine whether or not a given seller is charging too much or too little for work
An important consideration for evaluating proposals
An output of the Plan Procurement Management process (Procurement/Planning)
An input to the Conduct Procurements process (Procurement/Executing)
Claims Administration
Administration of disagreement between buyer and seller concerning money specified by the contract
The best method for resolving a claim is to negotiate a settlement of the claim that is good for both the buyer and seller
A tool used to help execute the Control Procurements process (Procurement/M&C)
Request for Quotation (RFQ)
Type of Bid Document that outlines a buyer’s request to all potential sellers for a price quote per item, hour, foot, or other unit of measure
An output of the Plan Procurement Management process (Procurement/Planning)
Cost Plus Fixed Fee (CPFF)
A type of Cost Reimbursable contract where the buyer pays the work expense and then a fixed fee to the seller for profit