A Guide to Project Management

The terms and conditions of the contract become a key

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Unformatted text preview: total cost. Time and Material (T&M) contracts--T&M contracts are a hybrid type of contractual arrangement that contains aspects of both cost-reimbursable and fixed-price-type arrangements. T&M contracts resemble cost-type arrangements in that they are open ended, because the full value of the arrangement is not defined at the time of the award. Thus, T&M contracts can grow in contract value as if they were cost-reimbursable-type arrangements. Conversely, T&M arrangements can also resemble fixed-unit arrangements when, for example, the unit rates are preset by the buyer and seller, as when both parties agree on the rates for the category of "senior engineers." A Guide to the A Guide to the 12.1.3 Outputs from Procurement Planning .1 Procurement management plan. The procurement management plan should describe how the remaining procurement processes (from solicitation planning through contract closeout) will be managed. For example: What types of contracts will be used? If independent estimates will be needed as evaluation criteria, who will prepare them and when? If the performing organization has a procurement department, what actions can the project management team take on its own? If standardized procurement documents are needed, where can they be found? How will multiple providers be managed? How will procurement be coordinated with other project aspects, such as scheduling and performance reporting? A procurement management plan may be formal or informal, highly detailed or broadly framed, based on the needs of the project. It is a subsidiary element of the project plan described in Section 4.1, Project Plan Development. .2 Statement(s) of work. The statement of work (SOW) describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the item. "Sufficient detail" may vary, based on the nature of the item, the needs of the buyer, or the expected contract form. Project Project Management Management Body of Body of KnowledgeE L KnowledgeE PL MP AM SA S A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST 151 ACROYMNS LIST Chapter 12--Project Procurement Management 12.2 | 12.3 Some application areas recognize different types of SOW. For example, in some government jurisdictions, the term SOW is reserved for a procurement item that is a clearly specified product or service, and the term Statement of Objectives (SOO) is used for a procurement item that is presented as a problem to be solved. The statement of work may be revised and refined as it moves through the procurement process. For example, a prospective seller may suggest a more efficient approach or a less costly product than that originally specified. Each individual procurement item requires a separate statement of work. Howe...
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This document was uploaded on 09/27/2013.

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