Procurement and Closing Flashcards
What is procurement?
Procurement means acquiring goods and/or
services from an outside/external source.
What are the procurement processes?
Planning, conducting, controlling
Request for Proposals
Used to solicit proposals from prospective sellers
Requests for Quotes
Used to solicit quotes or bids from prospective suppliers
Three Categories for Procurement Contracts
- Fixed-price or lump-sum
- Cost-reimbursable
- Time and material
Describe the fixed cost contract
The price for the goods or services is predetermined and remains fixed throughout the project, regardless of the actual costs incurred by the seller.
When is the fixed cost contract suitable?
when the Statement of Work (SOW) is sufficiently detailed and stable such that the seller can prepare an accurate fixed price for completing the work
Describe the Cost Reimbursable Contract
This category involves the payment of the seller’s actual costs, plus a fee typically representing the seller’s profit
Three types of cost reimbursable contracts
- Cost-plus-percentage of cost
- Cost-plus-fixed fee
- Cost-plus-incentive fee
Describe Time and Material Contracts
Combine aspects of both fixed-price and cost-reimbursable contracts. They involve paying the seller based on the time spent (hourly or daily rates) and the materials used, plus an additional fee or profit.
From the buyers perspective list the risk of the contracts from highest to lowest
T and M
CPPC
CPFF
CPIF
FP
What is a Statement of Work?
A document which describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item and potentially at what cost.
Name some closing processes
- Formalize acceptance of project
- Document lessons learned
- Archive project reports and data
