Procurement management and сontracts

Content of Course (DLS –

Course Program

Procurement management and contracts

Lecturer – Rippa S., assistant – Lendyk T.

Theme 1 Introduction in Procurement and Contracts Management.

The Project = the “Make” content + the “Buy” content;
Buying Project Scope;
Two Critical Project Relationships: as Buyer or Seller;
Who exactly has the Procurement Delegation of Authority (DOA) or Centralized versus Decentralized Procurement;
The six major Project Procurement Processes (Project Start, Procurement Planning, Solicitation Planning, Solicitation, Source Selection, Contract Administration, Contract Closeout),

Theme 2 Procurement and Contracts Categories

Placing Procurements Into Five Generic Categories (Major (high-risk) Complexity Procurements, Minor (low-risk) Complexity Procurements, Routine buys of Commercial-Off-The-Shelf, Special Procurements: performed under strategic company teaming agreements, Special Procurements: to other components of the project’s company, interdivisional work

Theme 3 Planning for the Procurement of Project Scope

Defining Project Scope, “Make” or “Buy” Analysis, Locating Potential Sellers, Full Funding Considerations . . . the Impact of Procurements, Scope definition must include the early identification of all critical procurements

Theme 4 Corporate Teaming Arrangements and Procurement Risks.

Partnership, Joint Venture, Various Models are Employed for Teaming Agreements (“superior-subordinate” Relationship, sometimes firms trade places, Equal Partners, without teaming, Antitrust Law Implications on the Use of Teaming Arrangements),
Risk Assessment, Risk Management, The Identification of Project Risks, Closure Planning, Risk Management Plan,

Theme 5. Selection of Contract Types.

Art of Selecting a Contract Type, Two Major Contractual Options, the Two Modifying Contractual Fee Provisions (Fixed-priced Contracts, Cost Type Contracts), Incentive Fee Contracts, Award Fee Contracts, The “Fixed-Price” Contract Family, Fixed Price Incentive (FPI) Contracts, Fixed-Price Contracts With Award Fees, Fixed-Price with Economic Price Adjustments (FP-EPA), Fixed-Price: Indefinite-Delivery, or, Indefinite-Quantity Contracts, The “Cost Reimbursable” Contract Family, Cost Contracts, Cost Sharing Contracts, Other General Contract Types of Importance, the Determining the Appropriate Contract Type.

Theme 6. The “Project Procurement Management Plan” and Planning for the Solicitations.

The Definition of Scope: Deciding the “What” the Project Will Procure, Scheduling: Deciding “When” Each Procurement Must Happen, the Budgeting: Estimating “How Much” Each Procurement Will Cost, the Other Procurement Planning Issues of Importance, Management’s Buy-in to the “Procurement Management Plan”.
Issues for Selecting Prospective Suppliers, The Buying Approach: Advertise, Solicit, Negotiate, Compete, the Defining the “What” we plan to Buy, Procurement Competition, the Request for Proposal (RFP), the Planning for the Evaluation of Seller Proposals.

Theme 7. Legal Aspects of Project Procurements.

An Overview of Contract Law, an Overview of Agency Law, the Uniform Commercial Code (UCC), the Bonding the Sellers: “Guarantor” versus “Surety” Obligations, Special Contractual Terms.

Theme 8. Solicitation of Seller Proposals, Source Selection and Contract Award.

Qualified Seller Lists (supplier database), Bidder Conferences (pre-bid conferences), the Sole Sourcing versus Single Sourcing, the Responding to Seller’s Questions During Solicitation.
Ethics in Procurement, the Special Issue: Late Seller Proposals, Special Issue: Unsolicited Proposals, the Special Issue: Alternate (non-responsive) Approach Proposals, Issues for Negotiation, the Forming a Procurement Team to Manage Complex Buys, the Source Selection and Management’s Approval, Contract Award and Go-ahead.

Theme 9. Contract Administration.

Use a simple form of Earned Value to manage Major Complexity Procurements, the Managing “Cost Type” Procurement Contracts Using Simple Earned Value, Project Status Displays: walls or website, Project Status Reviews, the Privity of Contract Issues: dealing with 2nd and 3rd Level Suppliers, the Managing Changes to Project Procurements, Danger Ahead: Constructive Changes, the Managing Time (only) and Time & Materials (T&M) Procurements.

Theme 13. Closing-out Project Procurements.

Termination of the Contractual (Procurement) Relationships, the Settlement of Seller Claims, Project Close-out Checklist.

Theme 14. In Summary – Procurement and Contracts Management.

A Ten steps to implement successful Project Procurement Management.

 Seminars and tests