Conduct Procurement

Conduct Procurement - Inputs
Project Management contains procurement management plan and this describes how the
Plan procurement process will be managed from preparing procurement
documentation through close procurements
Procurement as explained earlier provide an audit trail for contracts and other
Documents agreements
Source Selection criteria are set of guidelines, either subjective or objective, that are used by the
performing organization to select a particular contract/ vendor (seller) from
among the proposals received.
Seller proposals are responses to the procurement document package that will be used for
selection of the sellers by the organization’s evaluation body
Project documents that are important inputs to this process include risk register and risk related
contract decisions.
Make- or -buy decisions as explained earlier is based on the outcome of Make –orbuy- Analysis.
The factors that influence the decision making include , core competencies
of the organization, value delivered, risk associated with meeting the need
in a cost=effective manner and internal capability as compared to the
vendor community.
Procurement Statement of Work - provides suppliers with a clearly stated set of goals , requirements,
and outcomes from which they can provide a quantifiable response.
The statement of work include
q Specifications
q Quantity desired
q Quality levels
q Performance data, period of performance, work location and other requirements
Organizational Process that can influence this process include listings of prospective and previously
Assets qualified sellers and information on relevant past experience with sellers,
prior agreements
Conduct Procurement - Tools and Techniques

Bidder conferences are meetings wherein the prospective supplier (sellers) are called in to
ensure that all the supplier have a clear understanding of the work defined in
the procurement documents.
Proposal evaluation are used to evaluate the proposals by giving a rating score to each proposal
techniques
Independent estimates are sometimes prepared by the procuring organization using internal expert
in estimation or an outside professional estimator
Expert Judgment includes a team of experienced and skilled experts for evaluation of
proposals under various areas of expertise as mentioned in the procurement
documents and contract
Advertising is used by the performing organization to invite the potential sellers to be
Contracted
Analytical Techniques procurements involve defining a need in such as way that vendors can bring
value through offerings. To ensure that the need can be and is met,
analytical techniques can help organizations identify the readiness of a
vendor to provide the desired end state. By examining past performance
information, teams may identify areas that may have more risk and that
need to be monitored closely to ensure success of the project
Procurement between the buyers and the potential sellers are performed with the goal of
negotiations reaching mutual agreement on the contractual terms and conditions. The
goal is to reach a win-win scenario between the buyer and seller.
Plan Procurement - Outputs

Selected Sellers are those who have met the evaluation criteria and negotiated a draft
contract with the buyer, which will become the actual contract when the
contract is awarded
Agreement is a formal document governing the relationship between the buyer and the
seller. The contract describes the work to be performed and perhaps the
way in which the work will be performed. An important to include with the
contract is how disputes will be resolved. Depending upon the application
area, an agreement can also be called an understanding , a contract, a
subcontract, or a purchase order. Regardless of the document complexity , a
contract is a mutually binding legal agreement that obligates the seller to
provide the specific products, services, or results and obligates the buyer to
compensate the seller. The major component of agreement are:
Major components of an agreement

q Statement of work or deliverables
q Schedule baselines
q Performance reporting
q Period of performance
q Roles and responsibilities
q Seller’s place of performance
q Pricing
q Payment Terms
q Place of delivery
q Inspection and acceptance criteria
q Warranty
q Product Support
q Limitation of liability
q Fees and retainer
Penalties
q Incentives
q Insurance and performance bonds
q Subordinate subcontractor approvals
q Change request handling and
q Termination clause and alternative dispute resolution (ADR) mechanism. The ADR method can be
decided in advance as a part of the procurement award.
Resource Calendar state the availability and the quantity of contracted resource and the project
period (dates) during which the resources are active or idle
Change Requests to the project management pan, its subsidiary plans and other components
are processed for review and disposition through the Perform Integrated
Change Control process.
Project Management the elements of the project management plan that may be updated include
Plan Updates Cost baseline, Scope baseline, Schedule baseline, Communication
management plan, and Procurement management plan.
Project Document As discussed earlier.
Updates
Selected Sellers are those who have met the evaluation criteria and negotiated a draft
contract with the buyer, which will become the actual contract when the
contract is awarded
Procurement Contract is a formal document governing the relationship between the buyer and the
Award seller. The contract describes the work to be performed and perhaps the way
in which the work will be performed. An important to include with the
contract is how disputes will be resolved.
Resource Calendar state the availability and the quantity of contracted resource and the project
period (dates) during which the resources are active or idle
Change Requests As discussed earlier
Project Management As discussed earlier
Plan Updates
Project Document As discussed earlier
Updates

Conduct Procurement

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Conduct Procurement

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What are some of the important inputs to the procurement process?

What techniques are used to evaluate proposals?

Conduct Procurement - Inputs

Conduct Procurement - Tools and Techniques

Plan Procurement - Outputs

Major components of an agreement

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