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MindMap Gallery Information System Project Manager Tutorial (4th Edition) Chapter 16_Project Procurement Management
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Information System Project Manager Tutorial (4th Edition) Chapter 16_Project Procurement Management
This file is a self-made mind map of "Chapter 16_Project Procurement Management" of the Information System Project Management Tutorial (4th Edition). It includes planning procurement management, implementing procurement, controlling procurement, etc. According to the key points of previous exams, the importance is marked and all the content is integrated in detail, which can make the final review and the beginning of study more effective with half the effort. I spent more than ten hours compiling and summarizing the reading of all chapters, all of which are the latest version.
Edited at 2023-12-13 10:29:02- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- Project Management Process Template
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
Information System Project Manager Tutorial (4th Edition) Chapter 16_Project Procurement Management
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- One Hundred Years of Solitude Character Relationship Chart
One Hundred Years of Solitude is the masterpiece of Gabriel Garcia Marquez. Reading this book begins with making sense of the characters' relationships, which are centered on the Buendía family and tells the story of the family's prosperity and decline, internal relationships and political struggles, self-mixing and rebirth over the course of a hundred years.
- Project Management Process Template
Project management is the process of applying specialized knowledge, skills, tools, and methods to project activities so that the project can achieve or exceed the set needs and expectations within the constraints of limited resources. This diagram provides a comprehensive overview of the 8 components of the project management process and can be used as a generic template for direct application.
- Recommended to you
- Outline
Project Procurement Management
basic concept
Project procurement management includes the various processes involved in purchasing or obtaining required products, services, or results from outside the project team
Project procurement management includes the management and control processes required to prepare and manage agreements
management basics
protocol
effect
Describe the relationship between buyer and seller
Examples based on application areas
1. protocol
Contracts, purchase orders, memoranda of agreement (MOA), service level agreements (SLA)
2. seller
Contractors, suppliers, service providers, suppliers
3. buyer
Owners of final products, subcontractors, purchasing agencies, service demanders, purchasers
contract
Expected deliverables and results should be clearly stated, including any knowledge transfer from seller to buyer
Anything not stipulated in the contract is not legally enforceable
contract of purchase
include
Terms and conditions, and other stipulations of the Buyer regarding the work to be performed or the products to be delivered by the Seller
Because they are legally binding, a contract or agreement needs to go through an additional approval process, often involving the Legal Department
approval procedure
Ensure that the contract adequately describes the products, services or results to be provided by the seller and complies with laws and regulations regarding procurement
In complex projects, multiple contracts may need to be managed simultaneously or successively
1. The life cycles of different contracts can start and end at any stage of the project life cycle 2. The buyer-seller relationship is the relationship between the purchasing organization and an external organization and can exist at many levels of the project
new management practices
1. Tool improvements
Buyers are able to centrally advertise their purchases using online tools
Sellers are able to use online tools to centrally find procurement documents and fill them out directly online
2. More advanced risk management
Accurately allocate specific risks to the party best able to manage them when drafting contracts
The buyer must accept risks beyond the contractor's control
Risk management can be clearly stated in the contract as part of the contract work
3. Changing Contract Signing Practices
In order to reduce problems and claims during execution, it is increasingly common to adopt internationally recognized standard contract templates
4. Logistics and supply chain management
5. Technology and Stakeholder Relations
Webcam, record the scene and avoid disagreements
6. Trial purchase
management process
Tailoring considerations
Complexity of procurement, physical location, governance and regulatory environment, contractor availability
Agile and adaptive methods
In an agile or adaptive environment, collaboration with specific vendors may be required to augment the team. This collaborative relationship can create a risk-sharing procurement model, allowing buyers and sellers to share project risks and project benefits.
For large projects
Might adopt an agile or adaptive approach for some deliverables and a more stable approach for others
The overall collaboration relationship can be managed through a main agreement, such as a Master Services Agreement (MSA), with agile or adaptive work written into appendices or supplementary documents.
Planning Procurement Management
Process overview
definition
It is the process of recording project procurement decisions, clarifying procurement methods, and identifying potential sellers.
main effect
Determine whether goods and services will be obtained from outside the project and, if so, what goods and services will be obtained when and how
Conduct only once or only at predefined points in the project
Goods and services may be procured from other parts of the performing organization or from external sources
Procurement-related roles and responsibilities should be identified early in the planning procurement management process
Participants in the procurement process may include personnel from the purchasing or procurement department, as well as personnel from the legal department, and the responsibilities of these personnel should also be documented in the procurement management plan
Procurement steps
Passed the dictation test
1. Prepare procurement statement of work (SOW) or outline of work (TOR)
2. Prepare high-level cost estimates and develop budgets
3. Post a tender advertisement
4. Identify list of qualified sellers
5. Prepare and issue tender documents
6. Preparation and submission of proposals by the seller
7. Technical (including quality) assessment of proposals
8. Cost assessment of proposals
Technology first, cost later
9. Prepare the final comprehensive evaluation report (including quality and cost) and select the winning proposal
10. Negotiations end and buyer and seller sign contract
The project schedule has an important impact on the formulation of procurement strategies in the planning and procurement management process.
Decisions made when developing the procurement management plan also affect the project schedule
Influence each other
enter
1. Project management documents
The approved results or related documents in the project management stage can be used as the basis for planning procurement management.
Describe the necessary information from a business perspective and use it to decide whether the desired results of the project are worth the investment required
Include business needs and cost-benefit analysis to justify the project and determine project boundaries
Ensure that procurement management meets the needs and benefits described in project management documents
2. Project Charter
The process includes goals, project description, overall milestones, and pre-approved financial resources
3. project management plan
1. scope management plan
Explain how to manage the contractor's scope of work during the project implementation phase
2. quality management plan
Contains industry standards and guidelines that the project needs to follow
Standards and Guidelines
should be written into a tender document, such as an invitation for proposals, and will ultimately be referenced in the contract
Can be used to pre-qualify suppliers or as part of supplier selection criteria
Check whether the scope and quality of outsourced work are up to standard
3. resource management plan
Include information about which resources need to be purchased or leased, as well as any assumptions or constraints that may affect procurement
4. Scope Baseline
A statement of work (SOW) and outline of work (TOR) should be prepared for the work known in the project scope to see which WBS need to be outsourced
4. project files (Classified by process output)
1. Gather requirements
requirements document
Technical requirements that the seller needs to meet
Requirements of contractual and legal significance, such as health, safety, security, performance, environmental, insurance, intellectual property, equal employment opportunities, licenses, permits, and other non-technical requirements
Requirements Tracking Matrix
Connect product requirements from source to deliverables that satisfy the requirements
2. Define activities
Milestone List
A list of key milestones indicating when the seller needs to deliver results
3. Estimate activity resources
Resource requirements
Contains information about specific needs, such as the team and physical resources that may need to be procured
4. Access to resources
Project team dispatches work orders
Contains information about the project team’s skills and capabilities and the time they are available to support procurement activities
5. Identify risks
risk register
List the risks, as well as the results of risk analysis and risk response planning. Some risks should be transferred to third parties through purchase agreements (buy insurance)
6. Identify stakeholders
Stakeholder register
A stakeholder register provides detailed information about project participants and their interests in the project, including regulators, contract signers and legal staff
5. business environment factors
6. organizational process assets
type of contract
Tools & Techniques
1. expert judgment
2. data collection
market research
Including examining industry conditions and specific seller capabilities
3. data analysis
Make-or-Buy Analysis
Used to determine whether a piece of work or deliverable is best completed by the project team itself or should be procured externally
technology
Payback period, return on investment (ROI), internal rate of return (IRR), discounted cash flow, net present value (NPV), benefit cost (BCA)
4. Supplier selection analysis
Before determining the selection approach, it is necessary to review the priorities of the project’s competing requirements
Because competitive selection methods may require the seller to invest significant time and resources upfront, the evaluation method should be stated in the procurement documents so that bidders understand how they will be evaluated.
Method of choosing
New in the fourth edition
1. lowest cost
Suitable for standardized or routine purchases
2. Qualifications only
Suitable for situations where the purchase value is relatively small and it is not worth the time and cost to carry out a complete selection process
3. Score based on quality or technical solution
Invite a number of organizations to submit proposals with technical and cost details; if the technical proposals are acceptable, invite them to contract negotiations
step
First evaluate the technical proposal and examine the quality of the technical solution
Negotiate and select the seller with the highest technical proposal score
4. Based on quality and cost
Consider both quality and cost factors simultaneously
If project risk and/or uncertainty is high, quality should be a key factor relative to cost
5. sole source
The buyer requests a specific seller to prepare a technical and financial proposal and then negotiates the proposal
Since there is no competition, this approach should only be taken if there is a good reason and should be treated as a special case
6. fixed budget
Only suitable if the statement of work is well defined, no changes are expected, and the budget is fixed and cannot be exceeded
Disclose the available budget to the invited sellers in the invitation for proposal and then select the seller with the highest scoring technical proposal within the budget
5. Meeting
Used to determine strategies for managing and overseeing procurement
output
1. Procurement Management Plan
Contains various activities to be carried out during the procurement process
It should be recorded whether international competitive bidding, domestic competitive bidding, local bidding, etc. are to be carried out.
content
1. How to coordinate procurement with other work of the project, such as project schedule formulation and control
2. Timetable for carrying out important procurement activities
3. Procurement metrics used to manage contracts
4. Stakeholder roles and responsibilities related to procurement, and if the performing organization has a procurement department, the project team's authority and limitations
5. Constraints and assumptions that may affect procurement efforts
6. Jurisdiction and currency of payment
7. Whether an independent estimate (base bid) needs to be prepared and whether it should be used as the evaluation criterion
8. Risk management matters, including requirements for performance bonds or insurance contracts to mitigate certain project risks
9. Pre-qualified seller to be used (if any)
2. Procurement documents
1. Procurement strategy
Make time
Once the make-or-buy analysis is completed and a decision is made to purchase from external sources for the project
Project delivery methods, types of legally binding agreements, and how procurement will be progressed through the procurement phase should be set out in the procurement strategy
details
1. delivery method
Different delivery methods should be used for professional services projects and building construction projects
Classification
Delivery Methods for Professional Services Projects
Delivery methods for industrial or commercial construction projects
2. type of contract
By payment type
1. Fixed-Price Contract
type
1. Fixed total price (Firm Fixed Price, FFP)
2. Total price plus incentive fee (Fixed Price Incentive Fee, FPIF)
3. Fixed Price with Economic Price Adjustment (FPEPA)
2. cost reimbursement contract
Cost Plus Fixed Fee (CPFF)
Cost Plus Incentive Fee (CPIF)
Cost Plus Award Fee (CPAF)
3. Time and Material (T&M, also known as time and means contract)
See contract management for details.
3. Procurement stage
Related Information
1. Sequence or stage division of procurement work, description of each stage, and specific objectives of each stage
2. Procurement performance indicators and milestones for monitoring
3. Criteria for transition from one stage to the next
4. Monitoring and evaluation plan for tracking procurement progress
5. The process of transferring knowledge to subsequent stages
2. Procurement Statement of Work
in accordance with
Prepare a statement of work (SOW) for each procurement based on the project scope baseline, defining only that portion of the project scope that will be included in the associated contract
content
Describe the products, services or results to be procured in sufficient detail to enable the potential seller to determine whether it has the ability to provide such products, services or results (inform the seller of its own requirements)
Equivalent to: a scope of work statement for outsourced work
include
Specifications, required quantities, quality levels, performance data, performance period, work location and other requirements
Outline of Work (TOR)
For service procurement
content
1. The tasks that the contractor needs to perform, and the coordination required
2. Applicable standards that contractors must meet
3. Data needs to be submitted for approval
4. A detailed list of all data and services provided by the Buyer to the Contractor, where applicable, that will be used for the performance of the Contract
5. Schedule for submission and review (or approval) of initial results
3. Bidding Documents
effect
Requesting proposals from potential sellers
Factors to consider when choosing a seller
Price (such as when purchasing commercial or standard products)
Often the terms tender, tender or quotation are used
Other factors (such as technical capabilities or technical methods)
Often terms such as proposal are used
Classification
1. Request for Information (RFI)
Requiring the seller to provide more information about the goods and services to be purchased
Information only, usually followed by an invitation to quote or an invitation to propose
2. Request for Quotation (RFQ)
Suppliers are required to provide additional information on how the demand will be met and/or how much it will cost
3. Request for Proposal (RFP)
A problem arises in the project and the solution is difficult to determine
The most formal "invitation" document, it is subject to strict procurement rules regarding content, timelines, and responses from the seller.
Which invitation to choose depends on the goods or services required
Developed by the buyer, which should specify the response format, relevant procurement statement of work, and required contract terms
It should make it easy for potential sellers to make an accurate and complete response (for the seller to prepare response documents), and it should also be easy for the buyer to evaluate the seller's response.
Level of complexity and detail should be commensurate with the value of the procurement and associated risks
4. Make or buy decision
Use make-or-buy analysis to determine whether a particular piece of work is best done in-house by the project team, or whether it needs to be sourced from outside sources.
5. independent cost estimate
Your own estimate (base bid)
For larger purchases, the purchasing organization may prepare its own independent estimate or hire an outside professional estimator to produce a cost estimate and use it as a benchmark against which to evaluate the seller's bid.
Significant discrepancies between the seller's quote and the estimated baseline may indicate that the procurement statement of work is flawed or unclear, or that the potential seller has misunderstood or failed to fully respond to the procurement statement of work.
6. Supplier selection criteria
Bid evaluation criteria (stated in the bidding documents)
include
Capabilities and potential; product costs and life cycle costs; delivery dates; technical expertise and methods; specific relevant experience; work methods and work plans used to respond to the statement of work; qualifications, availability and competencies of key employees; financial stability of the organization nature; management experience; knowledge transfer plans, including training plans, etc.
For international projects, evaluation criteria may also include “local content” requirements, such as having nationals among proposed key employees; for different criteria, numerical scores, color codes, or written descriptions may be used to demonstrate that the seller meets the purchasing organization’s requirements. degree of need
These criteria are part of a weighting system whereby all proposals are ranked with a weighted score in order to determine the order of negotiations and the conclusion of a contract with a particular seller
3. change request
Decisions regarding the procurement of goods, services, or resources may result in change requests; other decisions during planning procurement may also result in change requests
4. Project files (updated)
1. Lessons Learned Register
Updated to document any lessons learned related to regulations and compliance, data collection, data analysis, and supplier selection analysis
2. Milestone List
A list of key milestones indicating when the seller needs to deliver results
3. requirements document
Technical requirements that the seller needs to meet
Requirements of contractual and legal significance, such as health, safety, security, performance, environmental, insurance, intellectual property, equal employment opportunities, licenses, permits and other non-technical requirements
4. Requirements Tracking Matrix
Connect product requirements from source to deliverables that satisfy the requirements
5. risk register
Depends on the seller’s organization, the duration of the contract, the external environment, the project delivery method, the contract type chosen, and the final agreed price
Any seller selected carries special risks
6. Stakeholder register
Update to record any additional information about stakeholders, especially regulators, contract signers, and legal personnel
5. Organizational process assets (updated)
Information about Qualified Sellers
Given the legal nature of procurement, the contents of the above table should not be viewed as prescriptive descriptions, but rather as a general outline of the type and content of documents required to guide the implementation of the procurement process. Organizational, environmental and legal requirements will determine the type and content of documentation specifically required for the project
Implement procurement
Process overview
definition
Is the process of obtaining seller responses, selecting the seller, and awarding the contract
main effect
Select a qualified seller and sign a legal agreement regarding the delivery of goods or services
Need to be carried out regularly throughout the project
The end product of this process is a signed agreement, including a formal contract
enter
1. project management plan
1. scope management plan
Describe how the scope of work will be managed, including the scope of work for which the seller is responsible
2. demand management plan
Describe how requirements will be analyzed, documented, and managed. It may also include how the seller will manage the requirements that should be implemented under the agreement
3. communication management plan
Describe how communication occurs between buyers and sellers
4. risk management plan
The components of a project management plan that describe how project risk management activities will be scheduled and implemented
5. Procurement Management Plan
Contains activities that should be carried out during the procurement process
6. configuration management plan
Defines which configuration items are configuration items, which configuration items require formal change control, and the change control process for these configuration items
Include the seller’s form and process for conducting configuration management so that it is consistent with the approach taken by the buyer
7. cost basis
Includes the budget to conduct the procurement, the costs to manage the procurement process, and the costs to manage the seller
2. project files (Classified by process output)
1. Gather requirements
requirements document
Technical requirements that the seller needs to meet
Requirements of contractual and legal significance, such as health, safety, security, performance, environmental, insurance, intellectual property, equal employment opportunities, licenses, permits, and other non-technical requirements
2. Develop a progress plan
Project schedule
Determine start and end dates for project activities, including procurement activities. It also stipulates the contractor's final delivery date
3. Identify risks
risk register
Depends on the seller’s organization, the duration of the contract, the external environment, the project delivery method, the contract type chosen, and the final agreed price
Any seller selected carries special risks
4. Identify stakeholders
Stakeholder register
Contains all details related to the identified stakeholders
5. Knowledge of directing and managing projects
Lessons Learned Register
3. Procurement documents
definition
Procurement documents are various written documents used to reach legal agreements, which may include older documents from before the start of the current project
include
1. Bidding Documents
Includes an invitation for information, an invitation for proposals, an invitation for quotations or other documents sent to the seller to facilitate the seller's preparation of response documents
2. Procurement Statement of Work
Clearly explain the goals, needs and results to the seller so that the seller can make a quantitative response accordingly
3. independent cost estimate
Can be prepared internally or externally and used to evaluate the reasonableness of proposals submitted by bidders
4. Supplier selection criteria
Describe how bidder proposals will be evaluated, including evaluation criteria and weightings
To mitigate risk, a buyer may decide to enter into agreements with multiple sellers in order to reduce losses if a single seller goes wrong and affects the overall project.
4. seller proposal
Include bid documents
A proposal prepared by a seller in response to a procurement package that contains basic information that will be used by the evaluation team to select one or more bidders (sellers)
If the seller will submit a price proposal, it is best to ask them to separate the price proposal from the technical proposal
The evaluation team reviews each proposal based on the supplier selection criteria and selects the vendor that best meets the purchasing organization's needs.
5. business environment factors
6. organizational process assets
Tools & Techniques
1. expert judgment
Proposal evaluation, negotiation, related functional areas such as finance, engineering, design, development, supply chain management, etc.
2. advertise
Tender
definition
It is communication with users or potential users about products, services or results.
effect
Expand existing list of potential sellers
Most government agencies require that procurement advertisements be publicly advertised or that information about proposed government contracts be posted online.
3. bidders meeting
tender
Also known as a contractor meeting, supplier meeting or pre-bid meeting, a meeting between a buyer and a potential seller before the seller submits a proposal
Purpose
Ensure all potential bidders have clear and consistent understanding of procurement requirements Understand and ensure that no bidder will receive special treatment
meeting minutes
Questions and answers raised during the meeting (the questioner does not need to record), suggestions and other content will be recorded and compiled into documents, and finally used as supplementary documents to the bidding documents.
4. data analysis
bid evaluation
Proposal evaluation
Evaluate proposals to determine whether they respond completely and adequately to the bidding documents, procurement statement of work, supplier selection criteria and other documents included in the bidding package
5. Interpersonal and team skills
Procurement negotiation
definition
Refers to clarifying the structure of the contract, the rights and obligations of the parties, and other terms before signing the contract so that both parties can reach a consensus
end sign
The buyer and seller have signed a contract document or other formal agreement that is enforceable by both parties
Negotiator
leader
The member of the procurement team with contract signing authority
participants
The project manager and other members of the project management team can participate in negotiations and provide necessary assistance
output
1. selected seller
one or more
definition
The bidder judged to be the most competitive in the proposal evaluation or bid evaluation
For more complex, high-value and high-risk purchases, the selected seller will be submitted to senior management of the organization for approval before the contract is awarded.
2. protocol
contract
definition
is an agreement binding on both parties
effect
Force the seller to provide specified products, services or results; force the buyer to pay corresponding remuneration to the seller
A legally protected buyer-seller relationship is established
main content
1. Procurement statement of work or key deliverables
2. A schedule, milestone, or date specified in a schedule
3. performance report
4. Pricing and payment terms
5. Inspection, quality and acceptance criteria
6. Warranty and follow-up product support
7. incentives and punishments
8. Insurance and performance bonds
9. Approval of subordinate subcontractors
10. General terms and conditions
11. Change request processing
12. Termination Provisions and Alternative Dispute Resolution
Packing note, the selected seller must sign an agreement!
3. change request
Change requests to the project management plan, its subplans and other components
4. Project Management Plan (updated)
1. demand management plan
Project requirements may change due to seller's requirements
2. quality management plan
The seller may propose alternative quality standards or alternative solutions that affect the quality management methods specified in the quality management plan
3. communication management plan
After selecting a seller, the communication management plan needs to be updated to record the seller’s communication needs and methods.
4. risk management plan
Each agreement and seller presents unique risks that will require an updated risk management plan and specific risks should be recorded in a risk register
5. Procurement Management Plan
The procurement management plan may need to be updated based on the outcome of contract negotiation and signing
6. Scope Baseline
The project work breakdown structure and deliverables in the scope baseline need to be explicitly considered when executing procurement activities
This process may result in changes to any or all deliverables
7. progress baseline
If changes in seller deliverables impact the overall schedule performance of the project, the baseline schedule may need to be updated and approved to reflect current expectations
8. cost basis
During project delivery, the contractor's material prices and labor prices may change frequently with the external economic environment, and such changes need to be reflected in the cost baseline.
5. Project files (updated)
1. Lessons Learned Register
Document challenges encountered during procurement implementation, possible workarounds, and what worked
2. requirements document
Technical requirements that the seller needs to meet
Requirements of contractual and legal significance, such as health, safety, security, performance, environmental, insurance, intellectual property, equal employment opportunities, licenses, permits, and other non-technical requirements
3. Requirements Tracking Matrix
As vendors are integrated into the project plan, changes to the requirements register and tracking matrix may need to be made based on the capabilities of the specific vendor.
4. Resource Calendar
Resource calendars related to schedule may need to be updated based on seller's availability
5. risk register
Depends on the seller’s organization, the duration of the contract, the external environment, the project delivery method, the contract type chosen, and the final agreed price
Each selected seller brings special risks and during the contract signing process the risk register should be changed to reflect the specific risks each seller brings
6. Stakeholder register
Contains all details related to the identified stakeholders, the stakeholder register needs to be updated after entering into an agreement with a specific seller
6. Organizational process assets (updated)
List of potential and pre-qualified sellers; relevant experience working with sellers, including pros and cons, etc.
Control purchasing
Process overview
definition
Is the process of managing purchasing relationships, monitoring contract performance, implementing necessary changes and corrections, and closing contracts
main effect
Ensure that buyers and sellers fulfill legal agreements and meet project needs
Need to be carried out throughout the project
Both buyers and sellers have similar purposes in administering procurement contracts, and each party must ensure that both parties fulfill their contractual obligations and that their respective legal rights are protected
Both the buyer and seller are responsible for managing the purchase contract
For larger projects with multiple suppliers, an important aspect of contract management is managing communication between the various suppliers
Given the legal significance of contracts, many organizations view contract management as an organizational function separate from the project. Therefore, the procurement manager can be a project team member, but usually also reports to the contract management manager in another department.
The quality of procurement controls, including the independence and credibility of procurement audits, is a key determinant of procurement system reliability
Procurement controls can be more effective if the contract provides for payment based on project outputs and deliverables rather than project inputs such as work hours
Before the conclusion of the contract, if both parties reach a consensus, the agreement can be modified at any time according to the change control clause in the agreement. Modifications to the agreement are usually recorded in writing.
enter
1. project management plan
1. demand management plan
Describe how contractor requirements will be analyzed, documented and managed
2. risk management plan
Describe how seller-initiated risk management activities are structured and implemented
3. Procurement Management Plan
Specifies the activities that need to be carried out in controlling the procurement process
4. change management plan
Contains information on how to handle changes initiated by the seller
5. progress baseline
If the seller's schedule slippage affects the overall schedule performance of the project, the schedule may need to be updated and approved to reflect current expectations
2. project files (Classified by process output)
1. Develop project charter
Hypothetical log
Documented assumptions made during the procurement process
2. Guidance in managing project work
Lessons Learned Register
Lessons learned early in the project can be used in the future to improve contractor performance and procurement processes
3. Gather requirements
requirements document
Technical requirements that the seller needs to meet
Requirements of contractual and legal significance, such as health, safety, security, performance, environmental, insurance, intellectual property, equal employment opportunities, licenses, permits, and other non-technical requirements
Requirements Tracking Matrix
Connect product requirements from source to deliverables that satisfy the requirements
4. Define activities
Milestone List
A list of key milestones indicating when the seller needs to deliver results
5. Management quality
quality report
Used to identify non-conforming seller processes, procedures or products
6. Identify risks
risk register
Depends on the seller's organization, the duration of the contract, the external environment, the project delivery method, the contract type selected, and the final agreed price
Each seller selected brings special risks
7. Identify stakeholders
Stakeholder register
Includes information about identified stakeholders, such as contract team members, selected sellers, specialists who signed the contract, and other stakeholders involved in the procurement
3. Procurement documents
Contains complete supporting records used to manage the procurement process, including statements of work, payment information, contractor work performance information, plans, drawings and other correspondence
4. protocol
An agreement is reached by two parties and includes a unanimous understanding of the obligations of each party. Check the relevant agreement to confirm compliance with its terms and conditions
5. job performance data
Contains seller data related to project status, such as: technical performance; activities started, in progress, or completed; costs incurred or invested; payments made to the seller
6. Approved change request
The contract is subject to changes, including modifications to the terms and conditions of the contract, such as modifications to the procurement statement of work, pricing, and description of products, services, or results
In complex projects and program sets, change requests may be initiated by a seller participating in the project and have an impact on other sellers participating in the project. The project team should have the ability to identify, communicate and resolve changes that impact the work of multiple sellers
7. business environment factors
8. organizational process assets
Tools & Techniques
1. expert judgment
2. Claims management
claim
If the buyer and seller cannot agree on compensation for the change, or disagree as to whether the change should occur, then the requested change becomes a contested change or a potential constructive change.
The above disputed changes are called claims
If not properly resolved, they can become disputes and eventually lead to grievances
Throughout the contract life cycle, claims are typically recorded, processed, monitored and managed in accordance with the terms of the contract
Negotiation is the preferred method of resolving all claims and disputes
3. data analysis
1. performance review
Measure, compare and analyze quality, resource, schedule and cost performance against agreement to review performance of contract work (review seller performance)
2. Earned Value Analysis (EVA)
Calculate schedule and cost variances, and schedule and cost performance indices to determine the degree of deviation from targets
3. trend analysis
Can be used to prepare estimates at completion (EAC) on cost performance to determine whether performance is improving or deteriorating
4. examine
definition
Refers to the buyer's structured review of the work being performed by the contractor, which may involve a simple review of the deliverables or an on-site review of the work itself
Party A’s inspection of Party B’s deliverable results
5. audit
independent review
definition
Structured review of procurement process
Rights and obligations related to auditing should be clearly defined in the procurement contract
Party A’s audit of its entire procurement process
Check Party B and audit yourself
output
1. Procurement documents
Procurement closed
The buyer, usually through its authorized procurement administrator, provides formal written notice to the seller that the contract has been completed
Close request
The requirements for formal closing of a procurement, usually specified in the terms and conditions of the contract and included in the procurement management plan
include
All deliverables have been delivered on time, to quality, and according to technical requirements; there are no outstanding claims or invoices, and all final payments have been made.
The project management team should approve all deliverables before closing the procurement
2. Procurement Documents (updated)
update content
The entire schedule used to support the contract, proposed but not approved contract changes, and approved change requests
Technical documentation prepared by the seller, and other work performance information such as: status of deliverables, seller performance reports and warranties, financial documents (including invoices and payment records), and contract-related inspection results
3. job performance information
Is the performance status of the work being performed by the seller
Includes deliverable completion and technical performance achievement compared to contract requirements, as well as cost incurred and recognition of completed work compared to SOW budget
4. change request
Change requests to the project management plan, its subplans and other components may be made during the Control Procurement process
Presumptive change
definition
Refers to a situation in which during the performance of a contract, when a change occurs between the two parties, one party to the contract fails to inform the other party based on the actual facts, and the initiator of the change shall bear the responsibility for the losses caused to the party subject to the change.
Proposed but unresolved changes may include instructions issued by the buyer or actions taken by the seller that the other party believes constitutes a constructive change to the contract.
Because constructive changes may be disputed between the parties and may give rise to claims from one party against the other, constructive changes should generally be specifically identified and documented in project correspondence.
5. Project Management Plan (updated)
1. risk management plan
Each agreement and seller presents unique risks, and if a significant unanticipated risk occurs during the execution of the contract, the risk management plan may need to be updated
Specific risks should be recorded in a risk register
2. Procurement Management Plan
Contains activities that need to be carried out during the procurement process and may require updates to the procurement management plan based on the performance of the work performed by the seller
3. progress baseline
If the seller makes significant schedule changes that impact the overall schedule performance of the project, the baseline schedule may need to be updated and approved to reflect current expectations
Buyers should be aware of delays in one seller's progress, which may have knock-on effects on the work of other sellers
4. cost basis
During project delivery, the contractor's material prices and labor prices may change frequently with the external economic environment, and such changes need to be reflected in the cost baseline.
6. Project files (updated)
1. Lessons Learned Register
Document and update techniques and measures that can effectively maintain and correct the scope, schedule and cost of procurement work
If a claim has already occurred, relevant information should be recorded to avoid a recurrence, as well as other information on how to improve the procurement process.
2. Resource requirements
As the contractor's work progresses, resource requirements need to change when work execution does not meet the original plan.
3. Requirements Tracking Matrix
Update the requirements tracking matrix to record the implemented requirements
4. risk register
Depends on the seller's organization, the duration of the contract, the external environment, the project delivery method, the contract type selected, and the final agreed price
Each seller selected brings special risks
5. Stakeholder register
As work progresses during the execution phase, contractors and suppliers may change and changes should be recorded in the stakeholder register
7. Organizational process assets (updated)
1. Procurement file
2. Payment plans and requests
3. Seller Performance Evaluation Document
4. Pre-Qualified Seller List Update
Some sellers may be disqualified and removed from the list due to poor performance, so this list should be updated based on the results of the control procurement process
5. Lessons Learned Knowledge Base