Project Procurement Management (6) Flashcards
What are the processes in the project procurement management knowledge area?
Plan procurement management, conduct procurements, control procurements
What are tailoring considerations for project procurement?
Complexity, physical location, governance and regulatory, availability of contractors
What are agile considerations for project procurement?
Supplier might become part of development team, collaborate team and leads to shared risk model, master service agreements
What are the inputs for plan procurement management?
Project charter, business docs (business case, benefits MP), PMP (scope, quality, resource MP, scope baseline), project docs (milestones, project team assignments, requirements, traceability matrix, resource requirements, risk register, stakeholder register), EEFs (marketplace, sellers, terms and conditions, legal, contract management, suppliers, payments system), OPAs (preapproved seller lists, formal policies, contract types)
What are fixed-price contracts?
Fixed price for defined product, service or result
Good when no changes to scope are expected
What is a firm fixed price?
Set at outset and not subject to change
What is a fixed price incentive fee?
Price ceiling is set and all costs are responsibility of seller
What is fixed price with economic price adjustments?
When seller spans over a number of years
What is a cost-reimbursable contract?
Payments to seller for all actual costs plus fee for seller profit
Used if scope may change a lot during execution
What is cost plus fixed fee?
Fixed fee is percentage of overall costs
What is cost plus incentive fee?
Received predetermined incentive fee based on achieving objectives
What is cost plus award fee?
Majority of fee is earned based on subjective performance criteria in contract
What are time and material contracts?
Hybrid contract with aspects of fixed price and cost reimbursable
What tools are used for plan procurement management?
Expert judgement, data gathering (market research), data analysis (make-or-buy analysis), source selection analysis, meetings
What is make-or-buy analysis?
used to determine whether work or deliverables can best be accomplished by project team or should be outsourced
What are the types of source selection analysis?
least cost, qualifications only, quality-based, quality and cost based, sole source, fixed budget
What are the outputs of plan procurement management?
Procurement MP, procurement strategy, bid documents, procurement statement of work, source selection criteria, make-or-buy decisions, independent cost estimates, change requests, project doc updates (lessons learned, milestones, requirements, traceability matrix, risk register, stakeholder register), OPA updates (information on qualified sellers)
What is least cost analysis for sourcing?
Good for getting standard or routine thing with well-established practices
What is qualifications only analysis for sourcing?
Buyer establishes short lists and selects bidder with best credibility and experience
What is quality-based sourcing?
Firm submits proposal with technical and cost details
What is quality and cost based sourcing?
Allows cost to be included as factor in process
What is sole source sourcing?
Ask specific seller to prepare proposal and negotiate
What is fixed budget sourcing?
Disclosing available budget to invited sellers in RFP and selecting highest-ranking technical proposal within budget
What are the components of the procurement MP?
Timing, metrics, roles, constrains and assumptions, legal,
What are procurement strategies?
Delivery methods, contract payment types, procurement phases
What are delivery methods?
Services provider with no subcontracting
Services provider with subcontracting allowed
Joint venture between buyer and service provider
Service provider acts as representative
What are procurement phases?
Sequencing or phasing, milestones, criteria for moving forward, monitoring progress, process for knowledge transfer
What are the inputs for conduct procurements?
PMP (scope, requirements, communications, risk, procurement, configuration, cost), project docs (lessons learned, schedule, requirements, risk register, stakeholder register), procurement documentation (bid documents, SOW, independent cost estimates, source selection criteria), seller proposals, EEFs (laws, economics, marketplace, experience with sellers, agreements already in place), OPAs (prequalified sellers, policies, templates, financial policies, payment processes)
What are the tools for conduct procurement management?
Expert judgement, advertising, bidder conferences, data analysis (proposal evaluation), interpersonal and team skills (negotiation)
What are the outputs of conduct procurement management?
Selected sellers, agreements, change requests, PMP updates (requirements, quality, communications, risk, procurement, scope schedule and cost baseline), project document updates (lessons learned, requirements, traceability matrix, resource calendars, risk register, stakeholder register), OPA updates (list of sellers, information on relevant experience with sellers)
What are the inputs for control procurements?
PMP (requirements MP, risk MP, procurement MP, change MP, schedule baseline), project docs (assumptions, lessons learned, milestones, quality reports, requirements, traceability matrix, risk and stakeholder registers), agreements, procurement documentation, approved change requests, work performance data, EEFs (contract change control system, marketplace, payments system), OPAs (procurement policies)
What are the tools used for control procurements?
Expert judgement, claims administration, data analysis (performance reviews, earned value analysis, trend analysis), inspection, audits
What are the outputs for control procurements?
Close procurements, work performance info, procurement doc updates, change requests, PMP updates (risk, procurement MPs, schedule and cost baseline), project doc updates (lessons learned, resource requirements, traceability matrix, risk register, stakeholder register), OPA updates (payment schedules, seller evaluation, lessons learned)
What are constructive changes?
May be disputed by one party so they are uniquely identified and documented by project correspondence (claims)
