Provider Selection and Management

Question 1

what is the definition of Provider Selection and Management

Answer 1

Provider selection and management is the process of identifying, selecting, appointing and supervising providers through the project, programme or portfolio life cycle.

Question 2

what are the 6 generic steps of provider management

Answer 2

1. Research
2. Pre-qualification
3. Tender
4. Award
5. Manage
6. Close

Question 3

what are the 4 steps that describe the Research provider management step

Answer 3

1. Identification of potential providers that have the capability to deliver. This may be made easier where a regularly reviewed and up to date approved supplier list exists.
2. This can be achieved by sending out a pre-qualification questionnaire (PQQ) to potential providers in order to gather information about them.
3. The PQQ can also be used to clarify their capacity, willingness to tender, financial stability and technical experience.
4. References for similar work may also be sought.

Question 4

what are the 2 steps that describe the Pre-qualification provider management step

Answer 4

1. Research may produce a long list of potential suppliers. Pre-qualification seeks to reduce this long list to a manageable number who are the eligible for contract award and who will then be who will be invited to tender.
2. Provider screening aims to reduce the likelihood of provider non-performance and to ensure the provider will be a responsible and responsive partner.

Question 5

what are the 4 steps that describe the Tender provider management step

Answer 5

1. The shortlist of potential providers can be asked to provide a full bid against a set of defined requirements – typically known as an Invitation to Tender (ITT). This may be preceded by a series of filters: Request for Information (RFI), Request for Proposal (RFP) each of which is designed to reduce the number of potential providers and gain more detailed information from those who successfully pass through each stage.
2. The criteria by which the ITTs will be assessed are determined by relevant stakeholders in the buyer organisation and appropriate weighting factors applied to ensure emphasis on the most important selection criteria. Perhaps not surprisingly research3 has shown that price, quality and delivery are the most common criteria.
3. The ITT is compiled and distributed – key elements here are to ensure that the requirements are clearly described and all providers are given an equal chance of success.
4. Records associated with the selection process should be maintained in case of a challenge by an unsuccessful bidder.

Question 6

what are the 2 steps that describe the Award provider management step

Answer 6

1. This step involves the negotiation and agreement of a contract to supply the goods and services. It is key that all parties understand that a legally binding agreement is being entered into and that the contract is not a casual ‘nod of the head’.
2. Information from previous stages can be turned into contract terms with the two main elements being payment terms and how the contract will be executed (non-payment terms).

Question 7

what are the 3 steps that describe the Manage provider management step

Answer 7

1. On award of the contract, a relationship is being formed and this needs to be nurtured and carefully and actively managed.
2. Resorting to legal means to resolve contract disputes should be a last resort – the project manager should see the provider as part of the project team and integrate them as such.
3. Effective communication is a key factor in building and managing the relationship

Question 8

what are the steps that describe the Close provider management step

Answer 8

Once the goods and services have been provided by the provider, the contract will be closed.

This involves:

• ensuring all financial arrangements have been honoured
• ensuring all contract changes have been accounted for
• implementing the support maintenance contract to repair, or upgrade goods provided
• conducting a performance review with the provider
• conducting a lessons learned and capturing these for future use.