Chapter 6 Agreement Processes Flashcards
Define the activities necessary to establish an agreement between two organizations
What is meant by agreement processes?
Define the activities necessary to establish an agreement between two organizations
If the Acquisition Process is invoked, it provides the means for conducting business with a supplier of products that are supplied for use as an operational system of services in support of operational activities or of elements of a system being developed by a project. If the Supply Process is invoked it provides the means for conducting a project in which the result is a product or service that is delivered to the acquirer.
When is an agreement process a good alternative?
When a supplier can meet a need in a more economical or timely manner.
What do systems engineers often due in support of negotiations?
Perform preliminary trade studies on a range of cost, schedule, and technical performance options.
What kind of team will have a more favorable outcome in negotiations?
A prepared team.
Accuracy of options is important to ensure the team is prepared.
An understanding of the impact to project risk is also important.
What type type of provider will a buyer be pleased to work with?
A knowledgable provider
A definition of what is critical to both supplier and acquirer?
Acceptance criteria
What is the purpose of the acquisition process?
Obtain a product or service in accordance with the acquirer’s requirements
Acquisition Process Inputs
Acquisition need
Enabling system requirements
Acquisition proposal (responses of one or more candidate suppliers to an acquisition RFP)
Acquired system (the system, subsystem or system element (product or service) is delivered to the acquirer consistent with the delivery conditions of agreement)
How to determine acquisition need?
Identify the need cannot be bet within the organization encountering the need
Determine if organization’s unmet need can be met in more economical manner by contracting with an external supplier
What are the Enabling System Requirements for the Acquisition process?
Implementation Integration Verification Transition Validation Operation Maintenance Disposal
Controls and Enablers
Applicable Laws & Regulations Industry Standards Agreements Project Procedures and Standards Project Directives Organization/Enterprise policies, procedures and standards Organizational/Enterprise infrastructure Project infrastructure
What is essential to beginning the Acquisition Process?
Availability of adequate funding.
Acquisition Process Outputs
Acquisition strategy Acquisition RFP Acquisition agreement Accepted System Acquisition report Acquisition payment
Acquisition process activities
Prepare for the acquisition Advertise the acquisition and select the supplier Initiate an agreement Monitor the agreement Accept the product or service
Steps in preparing for acquisition
Develop/maintain acquisition plans, strategies, policies and procedures to satisfy organizational goals and objects.
Obtain the needs from project management and technecal SE organizations
Identify a list of potential suppliers (internal and/or external)
What is involved in advertising the acquisition
Identify needs in RFP using a set of requirements that are the basis for the procurement specification
Select appropriate suppliers, ranking them by their suitability to meet the overall need and establish supplier preferences and corresponding justifications
Evaluate supplier responses to the RFP
What type of criteria should be applicable to potential suppliers?
Willing to conduct ethical negotiations
Able to meet technical obligations
Willing to maintain open communication throughout the acquisition process
What items are needed in evaluating supplier responses to RFP?
System-of-interest meets acquirer needs and complies with industry and other standards
Assessments from project portfolio management and quality management processes and recommendation form the requesting organization are necessary to determine the suitability of each response and the ability of the supplier to meet stated commitments
What steps/commitments are involved in negotiating a suppler agreement?
Acquirer commits to:
- Specify requirements for system of interest
- participate in verification, validation and acceptance activities with supplier
- render payment according to schedule
- participate in exception and change procedures
- contribute to transparent risk management
- create agreement establishing criteria for assessing progress toward final delivery
What is involved in establishing delivery acceptance criteria?
Clearly stat the criteria by which the acquirer will accept delivery from the supplier
Can use a verification matrix to clarify these criteria
What is the purpose of the Supply Process?
Provide an acquirer with a product or service that meets agreed requirements
Supply process inputs
Organization Strategic Plan
Supply Request for Proposal (RFP)
Supply Payment
Supply process controls and enablers
Applicable Laws & Regulations Industry Standards Agreements Project Procedures and Standards Project Directives Organization/Enterprise policies, procedures and standards Organizational/Enterprise infrastructure Project infrastructure
Supply Process Outputs
Supply Strategy (include inputs to determine supply constraints and the identificaton of potential acquirers)
Supply Proposal (response to the RFP)
Supply Agreement
Supplied System
Supply Report
Supply Process Activities
Identify opportunities Respond to a tender Initiate an agreement Execute the agreement Deliver and support the product or service Close the agreement
Suppliers should select acquirers with what criteria?
Willing to conduct ethical negotiations
Able to meet financial obligations
Willing to maintain open communication throughout the supply process
What actions are involved in the supplier responding to a tender and evaluating the acquirer requests?
System of interest meets acquirer requirements and complies with industry and other standards
Assessments from the Project Portfolio Management, Human Resource Management, and Quality Management processes are necessary to determine the suitability of response and the ability of the organization to meet these commitments
Supplier side actions in Initiating an Agreement?
Acquirer commits to:
- Commit to meeting requirements for system of interest
- participate in verification, validation and acceptance activities
- accept payment schedule
- Exercise exception and change procedures
- Maintain transparent risk management
- Establish criteria for assessing progress toward final delivery
