Chapter 6 Agreement Processes

Question 1

What is meant by agreement processes?

Answer 1

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.

Question 2

When is an agreement process a good alternative?

Answer 2

When a supplier can meet a need in a more economical or timely manner.

Question 3

What do systems engineers often due in support of negotiations?

Answer 3

Perform preliminary trade studies on a range of cost, schedule, and technical performance options.

Question 4

What kind of team will have a more favorable outcome in negotiations?

Answer 4

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.

Question 5

What type type of provider will a buyer be pleased to work with?

Answer 5

A knowledgable provider

Question 6

A definition of what is critical to both supplier and acquirer?

Answer 6

Acceptance criteria

Question 7

What is the purpose of the acquisition process?

Answer 7

Obtain a product or service in accordance with the acquirer’s requirements

Question 8

Acquisition Process Inputs

Answer 8

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)

Question 9

How to determine acquisition need?

Answer 9

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

Question 10

What are the Enabling System Requirements for the Acquisition process?

Answer 10

Implementation
Integration
Verification
Transition
Validation
Operation
Maintenance
Disposal

Question 11

Controls and Enablers

Answer 11

Applicable Laws & Regulations
Industry Standards
Agreements
Project Procedures and Standards
Project Directives
Organization/Enterprise policies, procedures and standards
Organizational/Enterprise infrastructure
Project infrastructure

Question 12

What is essential to beginning the Acquisition Process?

Answer 12

Availability of adequate funding.

Question 13

Acquisition Process Outputs

Answer 13

Acquisition strategy
Acquisition RFP
Acquisition agreement
Accepted System
Acquisition report
Acquisition payment

Question 14

Acquisition process activities

Answer 14

Prepare for the acquisition
Advertise the acquisition and select the supplier
Initiate an agreement
Monitor the agreement
Accept the product or service

Question 15

Steps in preparing for acquisition

Answer 15

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)

Question 16

What is involved in advertising the acquisition

Answer 16

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

Question 17

What type of criteria should be applicable to potential suppliers?

Answer 17

Willing to conduct ethical negotiations
Able to meet technical obligations
Willing to maintain open communication throughout the acquisition process

Question 18

What items are needed in evaluating supplier responses to RFP?

Answer 18

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

Question 19

What steps/commitments are involved in negotiating a suppler agreement?

Answer 19

Acquirer commits to:

1. Specify requirements for system of interest
2. participate in verification, validation and acceptance activities with supplier
3. render payment according to schedule
4. participate in exception and change procedures
5. contribute to transparent risk management
6. create agreement establishing criteria for assessing progress toward final delivery

Question 20

What is involved in establishing delivery acceptance criteria?

Answer 20

Clearly stat the criteria by which the acquirer will accept delivery from the supplier
Can use a verification matrix to clarify these criteria

Question 21

What is the purpose of the Supply Process?

Answer 21

Provide an acquirer with a product or service that meets agreed requirements

Question 22

Supply process inputs

Answer 22

Organization Strategic Plan
Supply Request for Proposal (RFP)
Supply Payment

Question 23

Supply process controls and enablers

Answer 23

Applicable Laws & Regulations
Industry Standards
Agreements
Project Procedures and Standards
Project Directives
Organization/Enterprise policies, procedures and standards
Organizational/Enterprise infrastructure
Project infrastructure

Question 24

Supply Process Outputs

Answer 24

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

Question 25

Supply Process Activities

Answer 25

Identify opportunities
Respond to a tender
Initiate an agreement
Execute the agreement
Deliver and support the product or service
Close the agreement

Question 26

Suppliers should select acquirers with what criteria?

Answer 26

Willing to conduct ethical negotiations
Able to meet financial obligations
Willing to maintain open communication throughout the supply process

Question 27

What actions are involved in the supplier responding to a tender and evaluating the acquirer requests?

Answer 27

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

Question 28

Supplier side actions in Initiating an Agreement?

Answer 28

Acquirer commits to:

1. Commit to meeting requirements for system of interest
2. participate in verification, validation and acceptance activities
3. accept payment schedule
4. Exercise exception and change procedures
5. Maintain transparent risk management
6. Establish criteria for assessing progress toward final delivery