Procurement

Question 1

Procurement Strategy - definitions

Answer 1

Procurement: the process by which an organisation acquires goods and services

How the project will procure and subsequent manage supply of goods and services

Question 2

Make or buy

Answer 2

Based on specification,

In house - does org have capability and resources? If so may be cheaper

or

External - allows whatever is needed to be acquired but has a contractual overhead

Question 3

Types of contract

Answer 3

Single

Parallel - several contracts for same work

Sequantial - suppliers follow on from one another

Prime and subcontracts - prime contractor subcontracts work

Turnkey contracts - single supplier provides everything required

Partnering - e.g consortium

Internal - service level agreement

Question 4

Reimbursement methods

Answer 4

Time and Materials - price agreed for a unit of cost e.g. day rate

Fixed Price Payment - price fixed for an agreed scope

Cost Plus - costs are reimbursed plus an allowance for profit

Target cost/price payment - under or over performance is shared

Question 5

Supplier Selection

Answer 5

Research market

Pre-qualify suppliers

Issue ITT

Answer queries

Receive and evaluate bids

Award contract