project procurement management
TRANSCRIPT
PROJECT
PROCUREMENT
MANAGEMENT
Need to acquire IT product or
service from outside
Requirement Analysis & Identification
Identify Vendor’s Scope of Work
Review Vendor Managemet Plan
Request Seller Response
Seller Selection
Contract Administration
Vendor Monitoring
Requirement Analysis &
Identification
Make or buy analysis
Identify clear scope to be outsource
including product and service
Ensure the integration with other
deliverables of the project
Include the warranty services to mitigate
deliverables risk
Vendor Scope of Work
Product to be provided
Additional Service Training
Consultancy
Warranty
Quality of Product & Service Clear & detail specification
Agreed method of delivery
Agreed time of delivery
Acceptance criteria
Vendor management
Classification
Qualification & Certification
Performance report
Information update :
Product & service
Management changes
Control person
Financial Performance
Hints on Contract Administration
Scope of the service tasks & expected targets to be achieved
Are the contract terms realistically achievable by the vendor ?
Are procedure for the solution of disputes clearly defined ?
Does the procedure for change management clearly defined ?
Are all appropiate penalty clauses in the client contract reflected in
that of the vendor
Does the validity period of the contract reflect the optimum balance
between flexibility and commercial terms ?
Are the procedures for end of contract clearly defined to include :
Assurance that all tasks are completed
Conditions for the conduct of a Post Conduct Review ?
Vendor Monitoring
Objectives :
To ensure vendor is delivering service
To anticipate any potential dispute
Vendor Review Meeting :
Outstanding actions from last meeting
Supplier performance analysis
Changes to schedule
Changes to contact map/escalation procedure
Project Procurement Management
Project procurement management is
processes to purchase or acquire the
products, services, or result needed from
outside the project to perform the work
Project Procurement Management
Project procurement management is
processes to purchase or acquire the
products, services, or result needed from
outside the project to perform the work
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Plan Purchases and Acquisitions
•Enterprise
Environmental Factors
•Organizational Process
Assets
•Project Scope Statement
•WBS
•WBS Dictionary
•Project Management
PlanRisk register
Risk related contractual
agreements
Resource requirements
Project schedule
Activity cost estimates
Cost baseline
•Make – or – buy
analysis
•Expert judgment
•Contract type
•Procurement
management plan
•Contract statement of
work
•Make – or – buy
decisions
•Requested changes
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Determine what to purchase or acquire and determining
when and how
Type of Contract
Fixed price or Lump-Sum
Fixed Firm Price (FFP)
Fixed Price Incentive Fee (FPIP)
Cost Reimbursable
Cost Plus Percentage of Cost (CPPC)
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Time and Material (T&M)
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Plan Contracting
•Procurement
management plan
•Contract statement of
work
•Make-or-buy decisions
•Project management
plan:Risk register
Risk related contractual
agreements
Resource requirements
Project schedule
Activity cost estimates
Cost baseline
•Standard forms
•Expert judgment
•Procurement
documents
•Evaluation criteria
•Contract statement of
work (updates)
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Documenting products, services, and results requirements
and identifying potential sellers
Procurement Document Type
Bid and Quotation
Generally used when the source selection decision will
be price driven
Proposal
Generally used when non financial consideration such
as technical skills or approach are paramount
Common names of procurement documentsIFB : Invitation for Bid
RFP : Request for Proposal
RFQ : Request for Quotation
IFN : Invitation for Negotiation
Evaluation Criteria
Used to rate or score proposals:
Understanding of need
Overall or life cycle cost
Technical capability
Management approach
Technical approach
Financial capacity
Business size and type
References
Intellectual property rights
Proprietary rights
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Request Seller Responses
•Organizational process
assets
•Procurement
management plan
•Procurement
documents
•Bidder conferences
•Advertising
•Develop qualified
sellers list
•Qualified sellers list
•Procurement
document package
•Proposal
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Obtaining information, quotations, bids, offers, or
proposals, as appropriate
Request Seller Responses
Bidder conferences Contractor/vendor/pre-bid conferences
Meeting with prospective interested sellers prior
to bid/proposal preparation to ensure common
understanding of the procurement, e.g.: Technical requirements
Contract requirements
etc
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Select Sellers
•Organizational process
assets
•Procurement
management plan
•Evaluation criteria
•Procurement
document package
•Proposals
•Qualified sellers list
•Project management
planRisk register
Risk related
Contractual
agreements
•Weighting system
•Independent estimates
•Screening system
•Proposal evaluation
techniques
•Selected sellers
•Contract
•Contract management
plan
•Resources availability
•Procurement
management plan
(updates)
•Requested changes
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Reviewing offers, choosing among potential sellers, and
negotiating a written contract with each seller
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Contract Administration
Managing the contract and relationship between
buyer and seller, reviewing dan documenting
how a seller is performing or has performed to
establish required corrective actions dan provide
a basis for future relationship with the seller, and
managing contract-related changes
Contract Administration
•Contract
•Contract Management Plan
•Selected Seller
•Performance Reports
•Approved Change Request
•Work Performance Information
•Contract Change Control System•Buyer Conducted Performance Review•Inspections and audit•Performance Reporting•Payment System•Claims Administration•Record Management System•Information Technology
•Contract Documentation•Requested Changes•Recommended Corrective Actions•Organizational Process Assets (Updates)•Procurement management plan (updates)
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Project Procurement Management
PM PROCESS
GROUP
PM PROCESS
INITIATING -
PLANNING 12.1 Plan Purchases and Acquisition
12.2 Plan Contracting
EXECUTING 12.3 Request Seller Response
12.4 Select Seller
MONITORING &
CONTROLLING
12.5 Contract Administration
CLOSING 12.6 Contract Closure
Contract Closure
•Procurement Management Plan
•Contract Management Plan
•Contract Documentation
•Contract Closure Procedure
•Procurement Audit
•Record Management System
•Closed Contracts
•Organizational Process Assets (updates)
INPUTS TOOLS &
TECHNIQUES
OUTPUTS
Completing and settling each contract, including the
resolution of any open items, and closing each contract
applicable to the project
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