Post midterm project procurement managment

Question 0

why outsource?

Answer 0

• to reduce fixed and recurrent costs
• to allow the client organization to focus on it’s core business
• to access skills and technologies
• to provide flexibility
• to increase accountability

Question 1

what is procurement?

Answer 1

means acquiring goods and or services from an outside source

Question 2

procurement management processes (4)

Answer 2

1. procurement planning
   - determine what to procure and when
2. conduct procurement
   - bid solicitation and source selection
3. control procurements
   - managing the relationship with the vendors
4. close procurements
   - completion and settlement of the contract

Question 3

Types of contracts (5)

Answer 3

CPPC
-cost plus percentage of cost
CPFF
-cost plus fixed fee
CPIF
-cost plus incentive fee
---cost plus means cost of the good plus vendor profit fee
FPI
-fixed price incentive
FFP
-firm fixed price

Question 4

what is a statement of work (SOW)?

Answer 4

is a description of the work required for the procurement

-many contracts, or mutually binding agreements ink using SOW

a good SOW gives bidders a better understanding of buyers expectations

Question 5

Clauses that project managers should include to help manage project risks: (3)

Answer 5

1. incentive or penalty clause
2. limiting contracts sch as fixed price contracts to reduce the risk of incurring higher costs than expected
3. competition for supplied goods and services to help reduce negative risks and enhance positive risks