Chapter 12- Procurement Management Flashcards
contract
mutually binding agreement that obligates the seller to provide a specified product or service or result and obligates the buyer to pay for it
Plan procurement management
Process of documenting project procurement decisions, specifying the approach, and identifying potential sellers. The key benefit it determines whether to acquire outside support, and if so, what to acquire, have to acquire, how much is needed and when to acquire it.
Plan procurement management ITTO
INPUTS Project management plan Requirements documentation Risk register Activity resource requirements Project schedule Activity cost estimates Stakeholder register Enterprise and environmental factors Organisational process assets
TT Make or buy analysis Experts judgment Market research Meetings
OUTPUTS Procurement management plan Procurement statement of work Procurement documents Source selection criteria Make or but decisions Change requests Project documents updates
Fixed -price contracts
Firm Fixed Price contracts (FFP)
Fixed Price Incentive Fee contracts ( FPIF)
Fixed Price with Economic Price Adjustment contract ( FP-EPA)
Cost reimbursable contract
Cost Plus Fixed Fee contracts (CPFF)
Cost Plus Incentive Fee contracts (CPIF)
Cost Plus Award Fee Contracts (CPAF)
Procurement statement of work
Describes the procurement item in sufficient detail to allow perspective sellers to determine if they are capable of providing the products, services or result. May include: Specifications Quantity desired Quality levels Performance data Period of performance Work location
Procurement documents
Request for proposal
Invitation for Bid
Request for Quotation
Source selection criteria
Understanding of need Overall or lifecycle cost Technical capability Risk Management approach Technical approach Warranty Financial capacity Production capacity and interest Business size and type Past performance of sellers References Intellectual property rights Proprietary rights
Conduct Procurement
Process of obtaining seller responses, selecting a seller, and awarding a contract. The key benefit of this process is that it provides alignment of internal and external stakeholders expectations through established agreements.
Plan procurement management ITTO
INPUTS Procurement management plan Procurement documents Source selection criteria The seller proposals Project documents Make or buy decisions Procurement statement of work Organisational process assets
TT Bidder conference Proposal evaluation techniques Independent estimates Experts judgment Advertising Analytical techniques Procurement negotiations
Outputs Selected sellers Agreements Resource calendars Change requests Project management plan updates Project document updates
Bidder conference
Meetings between the buyer and all prospective sellers prior to submittal of a bid or proposal.
Control procurements
Process of managing procurement relationships, monitoring contract performance, and making changes and corrections to contracts as appropriate. Key benefit: it ensures that both the sellers and buyers performance meets procurement requirements according to the terms of the legal agreement.
Control procurements ITTO
INPUTS Project management plan Procurement documents Agreements Approved change requests Work performance reports Work performance data
TT Contract change control system Procurement performance reviews Inspections and audits Performance reporting Payment systems Claims administration Records management system
OUTPUTS Work performance information Change requests Project management plan updates Project documents updates Organisational process assets updates
Contract change control system
Defines the process by which the procurement can be modified. It includes paperwork, tracking systems, dispute resolution procedures, and approval levels necessary for authorizing changes.
Claims administration
The process of processing, adjudicating and communicating and contract claims.