PMPG 5012 – Module 7 – Conduct Procurement Process STUDY NOTES (Dec.11.2023)

PMPG 5012 – Module 7 – Conduct Procurement Process STUDY NOTES (Dec.11.2023) TERM DEFINITION 1. Conduct Procurements  The process of obtaining seller responses, selecting a seller, and awarding a contract.  Key benefit: it selects a qualified seller and implements the legal agreement for delivery. 2. Project Management plan includes  Scope management plan  Requirements management plan  Communications management plan  Risk management plan  Configuration management plan  Cost baseline 3. Project Documents  Lessons learned register  Project schedule  Requirements documentation  Risk register  Stakeholder register 4. Procurement Documentation Can include, but is not limited to the following:  Bids documents (RFI, RFP/RFS, RFQ)  Procurement statement of work (SOW)  Independent cost estimates  Source selection criteria 5. Independent Cost Estimate A cost estimate, prepared by an organization independent of the project sponsor, using the same detailed technical and procurement information to make the project estimate. It is used to validate the project estimate to determine whether it is accurate and reasonable. 6. Seller’s Proposal  A Proposal is a seller’s response to an RFP issued by a buyer •A document in which sellers describe what they will do to meet the requirements of a buyer  Includes responses to all sections of the RFP  Includes seller’s price/cost  Contains relevant attachments to support the responses provided by the seller. 7. Enterprise Environmental Factors (EEFs) Could have an impact or influence on conduct procurement processes  Local laws and regulations re. procurement  Marketplace conditions  Information about past experiences of other organizations with potential sellers  Potential external economic environment constraints on procurement 8. Organizational Process Assets (OPAs) Could have an impact or influence on conduct procurement processes  List of preferred sellers  Internal policies and guidelines regarding the selection process  Organizational policies and guidelines governing agreements

 Financial policies and procedures related to invoicing and payment 9. Expert Judgement During the procurement process expertise should be considered from Subject Matter Experts (individuals or groups) in different fields  Technical  Legal and compliance  Operations and client services  Procurement  Financial and accounting 10. Advertising  Placing advertisements in different publications to expand the existing list of potential sellers.  Government jurisdictions require public advertising of government contracts. 11. Bidder Conferences  Meetings between the buyer and potential sellers prior to proposal submission date  Used to ensure all potential bidders have a common understanding of the procurement (no preferential treatment) 12. Data Analysis A proposal evaluation to ensure completion of responses and compliance to the bid documents. 13. Interpersonal & Team Skills Negotiations 14. 15. 16.  Procurement execution stage  Major Inputs, Outputs, Tools and Techniques of Conduct Procurement Process.  Inputs = What you need to conduct procurements. 

1. Proposals – Prepare and submit proposals by the seller. 2. Technical Evaluation – Conduct a technical evaluation of the proposals including quality. 3. Cost Evaluation – Perform a cost evaluation of the proposals. 4. Select – Prepare the final combined quality and cost evaluation to select the winning proposal. 5. Finalize – Finalize negotiations and sign contract between the buyer and the seller. Communication could be the failure point in project procurement if key areas are not addressed:  Expectations - “What’s in it for me?” –a question to be answered from the point of view of every stakeholder to understand what procurement has to do to be successful - Are not synonymous with scope (scope is identified and specifically defined in writing, and used to develop schedule, budget and resources)  Stakeholders - Are diverse , with different priorities from each other and probably the project - Require Identification and analysis (interest, power, stake in the project and procurement process) - Different stakeholders will receive the communications differently  Leadership - A leader has a vision and the ability to motivate other people - A project manager is a leader whose vision includes multiple aspects related to the product, quality requirements, timeline, cost, etc. - In procurement, a project manager has to lead professionals outside of the project team  Tracking and Reporting –very important skills for successful project procurement - Identifying and documenting requirements o Utilizing the knowledge and skills of the team o Effectively asking questions o Active listening to answers - Tracking requirements o Tracking all requirements regardless of the level of interest for different stakeholders - Reporting requirements o Deciding who sees what project information Most respected leaders communicate effectively.