Content of Course (DLS – http://fitm.asta.edu.ua/moodle)
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