Procurement management pmp prep course project

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0 26
Source: PMBoK® Guide,4th Edition, p.329
12.2 Project Procurement Management Data Flow Diagram

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0 27
1. How and where do I find the best contractor for this piece of the
project?
2. How do I get the needs of the project and product across to the
contractors?
3. What would be your selection criteria for vendor selection?
4. Does each item have the same weight?
Does each item have the same weight?
Exercise #2

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0 28
12.2.1.1
Project Management
Plan
Section 4.2.3.1
12.2.1.2 Procurement
Documents
Section 12.1.3.4
12.2.1.3 Source Selection
Criteria
Section 12.1.3.5
12.2.1.4 Qualified Sellers List Sellers who have been previously pre-screened based on
qualifications and past experience
12.2.1.5 Seller Proposals Prepared in response to a procurement document package form the
basic set of information that will be used by evaluation body to select
one or more successful bidders.
12.2.1.6
Project Documents Items that will assist in selecting the appropriate supplier; may include
the Risk Register or Project Scope Documents
12.2.1 Conduct Procurements: Inputs

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0 29
12.2.1.7
Make-or-Buy
Decisions
(Section 12.1.3.3)
12.2.1.8 Teaming Agreements
(Section 12.1.1.3)
12.2.1.9 Organizational
Process Assets
(Section 12.1.1.11)
12.2.1 Conduct Procurements: Inputs
(continued)

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0 30
12.2.2.1
Bidder Conferences
Meetings with prospective sellers prior to preparation of a bid or
proposal
12.2.2.2 Proposal Evaluation
Techniques
Techniques can be used to rate and score proposals, but all will use
expert judgment and some form of evaluation criteria
12.2.2.3
Independent
Estimates
Costs prepared by the buyer’s organization using non-biased factors or
an outside firm to provide a benchmark value to evaluate received
responses
12.2.2.4 Expert Judgment
Relies on prior experience for similar requirements to select sellers
12.2.2.5 Advertising Existing lists of potential sellers can often be expanded by placing
advertisements in general circulation publications
12.2.2.6
Internet Search
Has a major influence on most project procurements
12.2.2.7 Procurement
Negotiations
Clarify the structure, requirements and other terms of purchases to
solidify a mutual agreement between the buyer and seller. These items
need to be resolved prior to signing a contract.
12.2.2 Conduct Procurements: Tools and Techniques

Procurement
Management
PMP Prep Course – Project Procurement Management - PMBOK 4
th
Edition – Version 1.0
Sample: Contract Items to Negotiate
Deliverables
Schedule
Period of Performance
Pricing
Payment Terms
Warranty
Penalties/Incentives
Change Procedures
12.2.2 Conduct Procurements: Tools and Techniques