Project Procurement Management

• Project Procurement Management involves the processes to purchase or acquire products.
• It also includes management and control processes to develop and administer agreements, MOAs, and SLAs.
• Planning Procurement Management documents project procurement decisions.
• A Request for Information (RFI) is used when more info on goods and services is needed from sellers.
• A Request for Quotation (RFQ) is used when more information is needed on how vendors would satisfy requirements and/or costs.
• A Request for Proposal (RFP) is used when there is a problem in the project and the solution is not easy to determine.
• The Procurement Statement of Work (SOW) is developed from the project scope baseline for each procurement.
• The Statement of Work (SOW) describes the procurement item in sufficient detail, so prospective sellers can determine their capability to provide the products, services, or results.
• Make-or-buy analysis determines whether particular work can be best accomplished by the project team or must be purchased from outside sources.
• Contract Administration refers to post-contract activity, dealing with commercial and contractual matters, procurement, and cost management of live construction projects.
• An Offeror in a "bid" is expected to be knowledgeable about ordinary and normal industrial or construction practices pertinent to the work.
• Contractual closure is followed up with administrative closure.

Stakeholder Management

• Project Stakeholder Management includes the processes required to identify the people, groups, or organizations involved.
• The stakeholders can be challenging with different attitudes, cultures, values, and motives.
• Power/Interest, Power/Influence, or Impact/Influence Grids consider:
  • Level of Authority (Power)
  • Level of Concern (Interest)
  • Ability to Influence (Influence).
• The Stakeholder Cube combines the grid elements into a three-dimensional model.
• The Salience Model describes classes of stakeholders based on assessments of their power, need for immediate attention (urgency), and appropriateness of their involvement (legitimacy).

Planning Stakeholder Engagement

• Mind mapping is used to visually organize information about stakeholders and their relationship to each other and the organization.
• The Stakeholder engagement assessment matrix supports comparison between current and desired engagement levels for successful project delivery.
• The Stakeholder engagement assessment matrix consists of rows, each representing one stakeholder or a group of homogenous stakeholders.

Identifying Stakeholders

• Identifying project stakeholders involves regularly analyzing and documenting relevant information regarding their interests, involvement, interdependencies, influence, and potential impact on project success.

Planning Stakeholder Engagement

• Planning stakeholder engagement involves developing approaches to involve project stakeholders based on their needs, expectations, interests, and potential impact on the project.

Managing Stakeholder Engagement

• Managing stakeholder engagement involves communicating and working with stakeholders to meet their needs and expectations, address issues, and fosters appropriate stakeholder involvement.

Monitoring Stakeholder Engagement

• Monitoring stakeholder engagement involves monitoring project stakeholder relationships and tailoring strategies for engaging stakeholders through modification of engagement strategies and plans.

Acronyms

• MOA: Memoranda of Agreement
• SLAs: Service Level Agreement
• FFP: Firm Fixed Price
• FPIF: Fixed Price Incentive Fee
• FPEPA: Fixed Price with Economic Price Adjustments
• CPFF: Cost Plus Fixed Fee
• CPIF: Cost Plus Incentive Fee
• CPAF: Cost Plus Award Fee
• RFI: Request for Information
• RFQ: Request for Quotation
• RFP: Request for Proposal
• SOW: Statement of Work
• CDRL: Contract Data Requirements List

Project Risk Management Process

• Plan procurement management
• Conduct procurement
• Control procurement

Trends and Emerging Practices

• Advances in tools
• More advance risk management
• Change contract processes
• Logistics and supply chain management
• Technology and stakeholder relations
• Trial engagements

Fixed-Price Contracts

• FFP
• FPIF
• FPEPA

Cost-Reimbursable Contracts

• CPFF
• CPIF
• CPAF

Source Selection Analysis

• Least Cost
• Qualifications only
• Quality-based/highest technical proposal score
• Quality and cost-based
• Sole source
• Fixed budget

Information Included in SOW

• Specifications
• Quantity desired
• Quality levels
• Performance data
• Period of performance
• Work location

Procurement of SOW

• Clear
• Complete
• Concise

Source Selection Criteria

• Capability and capacity
• Product cost and life cycle cost
• Delivery dates
• Technical expertise and approach
• Specific relevant experience
• Adequacy of proposed approach and work plan is responding to the SOW
• Key staff’s qualifications, availability, and competence
• Financial stability of the firm
• Management experience
• Sustainability of the knowledge transfer program, including training

Order or Precedence

• Specifications
• Other instructions
• Other documents, such as exhibits, attachments, SOW, CDRL
• Contract Clauses
• The schedule

Types of Changes

• Administrative changes
• Change order
• Contract modification
• Undefinitized contract action
• Supplemental agreement
• Constructive change

Typical Cause of Constructive Changes

• Defective specifications
• Erroneous interpretation
• Over inspection
• Failure to disclose knowledge
• Acceleration of performance
• Late or unsuitable owner
• Failure to cooperate
• Improper options
• Misusing data

Rights of Contracts Administrator

• Reject entire shipment
• Accept entire shipment
• Accept part of shipment

Proposal-Contractual Interaction (Assists)

• Type of contract
• Required terms and conditions
• Any special requirements
• Cash-glow requirements
• Patent and proprietary data
• Insurance and tax considerations
• Finance and accounting

Proposal-Contractual Interaction (Review)

• Proposal
• Legal
• Insurance
• Tax
• Project management
• Engineering
• Estimating
• Construction
• Purchasing

Stakeholder Management Project Stakeholder Management

• Identify Stakeholders
• Plan stakeholder engagement
• Manage stakeholder Engagements
• Monitor stakeholder engagements

Tailoring Considerations

• Stakeholder Diversity
• Complexity of stakeholder relationships
• Communication technology

Data Representation

• Power/interest, power/influence, impact/influence grids
• Stakeholder cube
• Salience model
• Directions of influence (upward, downward, outward, sideward)
• Prioritization

Stakeholder Level of Engagement Matrix

• Unaware
• Resistant
• Neutral
• Supportive
• Leading

Desire of Stakeholder Engagement Level / Project Management Institute’s framework lists

• Needs
• Expectations
• Interests
• Potential Impact