Conducting Procurements

Many times project managers must purchase goods or services to complete some or all of the work of the project. Sometimes the entire project is completed on contract. The Conduct Procurements process is concerned with obtaining responses to bids and proposals from potential vendors, selecting a vendor, and awarding the contract. This process has several inputs:

■ Project management plan (procurement management plan)

■ Source selection criteria

■ Qualified seller list

■ Seller proposals

■ Project documents

■ Make-or-buy decisions

■ Teaming agreements

■ Organizational process assets

I've talked about most of these inputs in previous chapters. Procurement documents include requests for proposals (RFPs), requests for information (RFIs), requests for quotations (RFQs), and so on. The responses to those proposals become inputs to this process. Source selection criteria was defined in the Plan Procurements process that we talked about in Chapter 7. In the tools and techniques section for this process, we'll talk more about how seller proposals are evaluated.

Qualified sellers lists are lists of prospective sellers who have been preapproved or prequalified to provide contract services (or provide supplies and materials) for the organization. For example, your organization might require vendors to register and maintain information regarding their experience, offerings, and current prices on a qualified seller list. Vendors must usually go through the procurement department to get placed on the list. Project managers are then required to choose their vendors from the qualified seller list published by the procurement department. However, not all organizations have qualified seller lists. If a list isn't available, you'll have to work with the project team to come up with your own requirements for selecting vendors.

In the following sections, you'll examine some new tools and techniques that will help vendors give you a better idea of their responses, and then you'll move on to the outputs of this process, two of which are the selected seller and procurement contract award.

Remember that the purpose of the Conduct Procurements process is to obtain responses to your RFP (or similar procurement document), select the right vendor for the job, and award the contract. The tools and techniques of this process are designed to assist the vendors in getting their proposals to you and include techniques for evaluating those proposals. The tools and techniques are as follows:

■ Bidder conferences

■ Proposal evaluation techniques

■ Independent estimates

■ Expert judgment

■ Advertising

■ Internet search

■ Procurement negotiations

We'll look at each of these tools and techniques next with the exception of expert judgment.

The Conduct Procurements process is used only if you're obtaining goods or services from outside your own organization. If you have all the resources you need to perform the work of the project within the organization, you won't use this process.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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