Project Porcurement Plan Purchases and Acquisitions – determining what to purchase or acquire and determining when and how. Plan Contracting – documenting products, services, and results requirements and identifying potential sellers. Request Seller Responses – obtaining information, quotations, bids, offers, or proposals, as appropriate. Select Sellers – reviewing offers, choosing among potential sellers, and negotiating a written contract with each seller. Contract Administration – managing the contract and relationship between the buyer and seller, reviewing and documenting seller performance Contract Closure – completing and settling each contract, including the resolution of any open items, and closing each contract applicable to the project or a project phase.
Project Porcurement A complex project can involve managing multiple contracts or subcontracts simultaneously or in sequence.
Plan Purchases and Acquisitions The Plan Purchases and Acquisitions process identifies which project needs can best be met by purchasing or acquiring products, services It also includes consideration of potential sellers, particularly if the buyer wishes to exercise some degree of influence or control over contracting decisions. It includes reviewing the risks involved in each make-or-buy decision The project schedule can significantly influence the Plan Purchases and Acquisitions process.
Plan Purchases and Acquisitions Inputs Enterprise Environmental Factors Organizational Process Assets Project Scope Statement WBS Project Management Plan
Plan Purchases and Acquisitions Tools Make-or-Buy Analysis Expert Judgement Contract Types Time & Material Contracts
Plan Contracting Plan Contracting: Inputs – Procurement Management Plan – Contract Statement of Work – Make-or-Buy Decision Plan Contracting: Tools and Techniques – Standard Forms – Expert Judgement Plan Contracting: Outputs – Procurement Documents – Evaluation Criteria
Request Seller Responses Tools and Techniques – Bidder Conferences – Advertising – Develop Qualified Sellers List
Request Seller Responses Outputs – Qualified Sellers List The qualified sellers list are those sellers who are asked to submit a proposal or quotation. – Procurement Document Package The procurement document package is a buyer-prepared formal request sent to each seller and is the basis upon which a seller prepares a bid – Proposals Proposals are seller-prepared documents that describe the seller’s ability and willingness to provide the requested products, services, or results described in the procurement documentation.
Select Sellers Price or cost can be the primary determinant for an off-the-shelf item but the lowest proposed price may not be the lowest cost if the seller proves unable to deliver the products, services, or results in a timely manner.
Select Sellers: Tools and Techniques Weighting System – A weighting system is a method for quantifying qualitative data to minimize the effect of personal prejudice on seller selection. Independent Estimates Screening System – A screening system involves establishing minimum requirements of performance for one or more of the evaluation criteria Contract Negotiation
Contract Administration: Tools and Techniques – Inspections and Audits – Performance Reporting – Payment System – Records Management System Contract Administration: Outputs – Requested Changes – Recommended Corrective Actions
Contract Closure The Contract Closure process supports the Close Project process, since it involves verification that all work and deliverables were acceptable. Tools and Techniques – Procurement Audits – Records Management System Outputs – Closed Contracts – Organizational Process Assets Contract file Deliverable acceptance Lessons learned documentation
Ending a Project Ending a project: more than project closure Project life-cycle Project termination is difficult Failure or success? Timing of termination How should a project be terminated? Projects take place in business networks Planning the ending strategy Project-ending competences The ending means managing changes in different relations Success in ending The Ending Project: a case study from the aircraft industry Key points for managers – Managing Project Ending by Virpi Havila and Asta Salmi
Thanks Topics to be covered further: Project Risk Management Study of PC forms and Cashflow Study of Bids
Appendix Project Management in Context of Pakistan – Project Identification & Preparation – Project Appraisal & Approval – Project Authorization Project Activation Pay Package Project Allowance Delegation of Powers Allocation of Funds Opening of Accounts Release of Funds – Project Implementation – Project Completion/Closure
Project Management in Context of Pakistan Financial Management Project Monitoring & Evaluation System – Result Based Monitoring (RBM) Project Evaluation Do’s and don’ts