Conduct Procurements

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract (Table 12.3 and Figure Í2-2). In this process the team will receive bids or proposals and will apply previously defined evaluation criteria, as applicable, to select one or more sellers who arc both qualified to perform the work and acccptablc as a seller. Many factors can be evaluated in the seller selection decision process, for example:

• Pricc or cost can be the primary determinant for a standard 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.

• Proposals arc often separated into technical (approach) and commcrcial (pricc) sections, with each issue evaluated separately. Sometimes, management sections are required as a part of the proposal and also have to be evaluated separately.

• Multiple sources could be required for critical products, services, and results to mitigate risks that can be associated with issues such as delivery schedules and quality requirements. The potentially higher cost associated with such multiple sellers, including any loss of possible quantity discounts, and replacement and maintenance issues, are considered.

The tools and tcchniqucs dcscribcd here can be used alone or in combination to sclcct sellers. For example, a weighting system can be used to:

• Scicct a single seller that will be asked to sign a standard contract, and

• Establish a negotiating scqucncc by ranking all proposals by the weighed evaluation scores assigned to each proposal.

On major procurement items, the overall process of requesting responses from sellers and evaluating sellers' responses can be repeated. A short list of qualified sellers can be established based on a preliminary proposal, A more detailed evaluation can then be conducted based on specific and comprehensive requirements document requested from the sellers on the short list.

Table 12-3. Conduct Procurements inputs, Tools &Techniques, and Outputs


Tools & Techniques


1. Procurement

1, Bidder conferences

1. Selected sellers

management plan

2. Proposal evaluation

2. Procurement award

2. Procurement document


3. Resource calendars


3. Independent estimates

4. Change requests

3. Source selection criteria

4. Procurement

5. Project management plan

4, Qualified seller list



5. Seller proposals

5. Expert judgment

6. Project document

6, Project documents

6, Advertising


7. Make or buy decisions

7. Internet search

I V-/

8. Teaming agreements

^ J

9, Organizational process



Monitor And Control Work Project Dfd
Figure 12-2. Conduct Procurements Data Flow Diagram
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  • Gabriel
    When do you conduct procurement process?
    2 years ago

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