Would be implemented in the following condition the

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Would be implemented in the following condition:The project under schedule pressureA seller has unique qualificationThere is only one sellerA seller hold a patentOther mechanism exist that seller’s prices are reasonable.Type of noncompetitive procurementSingle source: contract directly to preferred seller.Sole source: there is one seller; might be a company owns a patent
Exercise: Contract Calculation In this cost plus incentive fee contract, the cost estimated at $210,000 and the fee at $25,000. The project is over, and the buyer has agreed that the costs were, in fact, $200,000. Because the seller's costs came in lower than the estimated costs, the seller shares in the savings: 80 percent to the buyer and 20 percent to the seller. Calculate the final price.is
12.2 Conduct ProcurementsThe process of obtaining seller responses, selecting a seller, and awarding a contract.Inputs1.Project management plan2.Procurement documents3.Source selection criteria4.Qualified seller list5.Seller proposals6.Project documents7.Make-or-buy decisions8.Teaming agreements9.Organizational Tools & Techniques1.Bidder conferences2.Proposal evaluation techniques3.Independent estimates4.Expert judgment5.Advertising6.Internet search7.Procurement negotiationsOutputs1.Selected sellers2.Procurement contract award3.Resource calendars4.Change requests5.Project management plan updates6.Project document updates
Proposal Evaluation (Tools & Techniques)Proposal or Bid or Price Quote EvaluationOne or a combination of following process used for selecting seller:Weighting systemEvaluate by weighting the source selection criteriaIndependent estimateEstimation created in-house or with outside assistanceScreening systemEliminate sellers who do no meet minimum requirementPast performance history
Presentation33 1/3%-Team Management60%-Format40%Request for proposal33 1/3%-Technical50%-Company Profile25%-Previous experience25%Overall100%Price33 1/3%-Day rates85%-Other Expenses15%Point rating System (Sellers RFP Evaluation)
Source selection criteria (Evaluation of Sellers)Some criteria for evaluating proposals and bids (due diligence):Understanding of needTechnical CapabilityPast performance of sellers (experience)Project management approachFinancial stability & capacityIntellectual & property rightsOverall or life cycle costRiskWarrantyReferences

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