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Project Procurement Management (Project Procurement Management Processes…
Project Procurement Management
Project Procurement Management Processes
planning procurement management
Contract Statement of Work (SOW)
Procurement Documents
request for proposals
requests for quotes
conducting procurements
deciding whom to ask to do the work
sending appropriate documentation to potential sellers
obtaining proposals or bids
selecting a seller
awarding a contract
controlling procurements
ensures that seller's performance meets contractual requirements
important that legal and contracting professionals be involved in writing and administering contracts
watch for constructive change orders
closing procurements
completing and settling contracts and resolving any open items
determine if all work was completed correctly and satisfactorily
update records to reflect final results
archive information for future use
types of contracts
fixed price or lump sum
cost reimbursable
time and material
unit price
point of total assumption (PTA)
the cost at which the contractor assumes total responsibility for each additional dollar of contract cost
contractors do not want to reach PTA because it hurts them financially
PTA = (ceiling price - target price)/government share + target cost
cost reimbursable contracts
cost plus incentive fee (CPIF)
buyer pays the supplier for allowable performance costs + predetermined fee and an incentive bonus
cost plus fixed fee (CPFF)
buyer pays the supplier for allowance performance costs + fixed fee payment usually based on a % of estimated costs
cost plus percentage of costs (CPPC)
buyer pays the supplier for allowable performance costs + predetermined % based on total costs
Tools and Techniques for Planning Purchases and Acquisitions
expert judgement
market research
make-or-buy analysis
tools to assist in contract closure
procurement audits
negotiated settlements
records management system