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21 Cards in this Set
- Front
- Back
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What are the 4 processes involved in Procurement Management Process?
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1.Plan Procurements - Make sure you need a contract. Determine what kind. What metrics will be used for success, how to pick a seller and how it will be managed.
2. Conduct Procurements - Get the word out, hold Bidder conferences. Evaluate and sign seller. 3. Administer Procurements - Stay on top of the work, make sure the contract is adhered to. Request changes 4. Close Procurements - Make sure product that is produced meets the criteria and contractor gets paid. |
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Describe the Plan Procurement Process
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The Plan Procurement Process is where you think about all of the work that you will contract out for your project before you do anything else and writing a plan for how you'll do it.
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What are the 11 inputs to Plan Procurements?
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1. Cost Performance Baseline
2. Schedule 3. Teaming Agreements - Partnership documents that describe the relationship between buyer and seller 4. Scope Baseline - Shows what you need to do and how contract will fit into it 5. Requirements Documents 6. EEP - Consider your companies experience and expertise contracting 7. Risk Register 8. Risk-Related Contract Decisions 9. Activity-Related Resource Requirements 10. Activity cost Estimates 11. OPA |
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What are the tools used in Plan Procurements?
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1. Make or Buy analysis - build your own or buy. What is the impact of building on cost? risk? scope and schedule?
2. Expert Judgement 3. Contract types - Fixed Price, Cost Reimbursable, Cost Plus, Time and Materials |
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What are the outputs to Plan Procurements?
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1. PMP
2. Procurement Statement of work - a list of work that will be contracted 3. Make or Buy decisions - write down lessons learned 4. Procurement Document - used to help find sellers 5. Source Selection Criteria - used to help figure out which seller to hire 6. Change Requests |
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Elaborate on the different types of contracts
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1. Fixed Price - Pay one amount regardless of how much it costs the contractor. Best when scope is very well known
2. Fixed price plus incentive - bonus for performance goal 3. Cost plus fixed fee 4. Cost plus award fee - pay fee based on evaluation of sellers performance 5. Cost plus incentive fee - incentive based on pre agreed metric 6. Time and Materials - used in labor contracts, pay a rate for each of the people working on the contract |
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What is typically included in the Procurement Documents and Source Selection Criteria? (Outputs of plan Procurement)
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1. Procurement Documents - usually includes contract statement of work, invitation for big which says how to submit bids, invitation for quote and purchase order to seal the deal
2. Source Selection Criteria - Make sure seller is qualified. Check credibility, costs, experience, etc. |
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Describe Conduct Procurements Process
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The Conduct Procurements Process is all about getting the word out to sellers and seeing the responses you get. Once you narrow down the list of sellers, narrow down the list of responses and choose the vendor.
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How do you use the outputs from Plan Procurements to find the right seller.
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1. Make or Buy Decisions - tells you what you need a contractor to do and what to do yourself.
2. Procurement Documents - have all the information you'll give to potential sellers. Includes the a. RFI - Request for Information - documents are sent to sellers to ask for their capability b. RFP Request for Proposal - when you give a seller the opportunity to examine your procurement documents and write a proposal 3. Source Selection Criteria - evaluate everyone fairly 4. Procurement Statement of Work - tells the scope of work that your going to contract to another company |
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What are the inputs to Conduct Procurements?
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1. Procurement Documents
2. Teaming Agreements 3. Source Selection Criteria 4. Project Documents 5. Qualified Seller List 6. Seller Proposals 7. OPA 8. Make or Buy Decisions 9. PMP 10. Risk Register - Knowing your risks will help you find a seller that knows how to deal with them |
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What tools are used in Conduct Procurements?
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1. Internet Search - Find price range. The more complex the work the less helpful this is
2. Advertising - sometimes required to place ad. 3. Independent Estimates - used to determine fair price 4. Procurement Negotiation - Agreeing on the type and terms and price of contract 5. Bidder Conference - get bidders in one room to discuss, provides fairness 6. Expert Judgement 7. Proposal Evaluation Techniques - look closely and determine if proposal is really appropriate for the work |
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What are the outputs to Conduct Procurements?
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1. Selected Sellers - the whole point!
2. Procurement Contract Award - Everyone is signed! 3. Project Document Updates 4. Resource Calendars - sometimes a sellers resources become available to you 5. Change Requests 6. PMP Updates |
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What are the 6 inputs to Administer Procurements process?
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1. Approved Change Requests
2. Work Performance Information 3. Performance Reports - these 3 come from seller, important to judge how well the project work is going 4. PMP 5. Contract 6. Procurement Documents |
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What are the tools and techniques used in Administer Procurements?
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1. Payment System - important to regularly pay seller
2. Records Management System - mange the invoices, receipts, communications, memos, emails, instructions, clarifications, etc 3. Claims Administration - disputes are called claims, and are usually defined in contracts 4. Performance Reporting - monitor the project work and report on progress to company's management 5. Procurement Performance Review - look at variables such as is work done on time? quality? scope? 6. Inspections and Audits - how the buyer verifies the product that it meets needs and terms of contract. 7. Contract Change Control System - setup to handle changes in contract. |
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What are the outputs in Administer Procurements?
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1. Procurement Documentation
2. OPA 3. Change Requests 4. PMP Updates |
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Describe Close Procurements
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Process of closing the contract. Even when it ends disastrously, you need to close out the contract in order to make sure all the companies responsibilities are taken care of.
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What are the inputs to Close Procurements?
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1. PMP
2. Procurement documentation |
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What are the tools used in Close Procurements?
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1. Procurement audits - go over experience and extract lessons learned
2. Records Management System - where all the docs go 3. Negotiated Settlements - ensure all the terms of the contract have been met and there are no outstanding claims on it. |
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What are the outputs used in Close Procurements?
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1. Close Procurements - give notice, typically a formal written one, that the contract is complete
2. OPA Updates - lessons learned and copy of acceptance letter |
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How do you calculate the Point of total Assumption?
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PTA = [(Ceiling Price - Target Price)/Buyers Share Ratio] + Target Cost
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What are Constructive Change requests and how are they handled?
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A direction by the buyer or an action taken by the seller that the other party considers an undocumented change to the contract. These changes are uniquely identified and documented by project correspondence.
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