Topic:
Project Procurement Management
IT Project Management
INSTRUCTOR,SHU LIU
HIT SCHOOL OF SOFTWARE
Fall 2005
All rights reserved
Project Procurement Management 2
Outline
Importance of Project Procurement Management?
Project Procurement management Processes:
Procurement Planning (采购计划 )
Solicitation Planning （ 询价计划）
Solicitation （ 询价）
Source Selection（ 供方选择）
Contract Administration （ 合同管理）
Contract Close-out（ 合同收尾）
IT Project Management
Project Procurement Management 3
Project Procurement Management
Procurement means acquiring goods
and/or services from an outside source
Purchasing （ 购）
Outsourcing (外购 )
IT Project Management
Project Procurement Management 4
Project Procurement Management
Organizations or individuals who provide
procurement services are referred to as
suppliers,vendors,subcontractors,or
sellers,with suppliers being the most
widely used term.
Experts predict that by the year 2003 the
worldwide information technology
outsourcing market will grow to over $110
billion
IT Project Management
Project Procurement Management 5
Why Outsource?
To reduce both fixed and recurrent costs
To allow the client organization to focus on
its core business
To access skills and technologies
To provide flexibility
To increase accountability
IT Project Management
Project Procurement Management 6
Concerns on Outsourcing
Do not have much control over those aspects of
projects that suppliers carry out
Could become too dependent on particular
suppliers
If those suppliers went out of business or lost key
personnel,it could cause great damage to your
project
IT Project Management
Project Procurement Management 7
Concerns on Outsourcing
Organizations must also be careful to
protect strategic information that could
become vulnerable in the hands of
suppliers
IT Project Management
Project Procurement Management 8
Project Procurement Management Processes
Procurement planning (采购计划 )
determining what to procure and when
Solicitation planning （ 询价计划）
documenting product requirements and
identifying potential sources
Solicitation （ 询价）
obtaining quotations（ 报价）,bids（ 投标）,offers（ 出价）,or proposals as
appropriate
IT Project Management
Project Procurement Management 9
Project Procurement Management Processes
Source selection （ 供方选择）
choosing from among potential vendors
Contract administration （ 合同管理）
managing the relationship with the vendor
Contract close-out （ 合同收尾）
completion and settlement of the contract
IT Project Management
Project Procurement Management 10
Project Procurement Management Processes
and Key Outputs
IT Project Management
Project Procurement Management 11
Procurement Planning
Procurement planning involves identifying
which project needs can be best met by using
products or services outside the organization,It
includes deciding
whether to procure
how to procure
what to procure
how much to procure
when to procure
IT Project Management
Project Procurement Management 12
Procurement Planning Tools and Techniques
Make-or-buy analysis
determining whether a particular product or service
should be made or performed inside the organization or
purchased from someone else,Often involves financial
analysis
Experts
both internal and external,can provide valuable inputs
in procurement decisions
IT Project Management
Project Procurement Management 13
Make-or Buy Example
Assume you can lease an item you need for a
project for $150/day,To purchase the item,the
investment cost is $1,000,and the daily cost
would be another $50/day.
How long will it take for the lease cost to be the same
as the purchase cost?
If you need the item for 12 days,should you lease it
or purchase it?
IT Project Management
Project Procurement Management 14
Make-or Buy Solution
Set up an equation so the,make” is equal to the,buy”
In this example,use the following equation,Let d be the number
of days to use the item.
$150d = $1,000 + $50d
Solve for d as follows:
Subtract $50d from the right side of the equation to get
$100d = $1,000
Divide both sides of the equation by $100
d = 10 days
The lease cost is the same as the purchase cost at 10 days
If you need the item for 12 days,it would be more economical to
purchase it
IT Project Management
Project Procurement Management 15
What is a Contract
A mutually(相互地 ) binding agreement that
obligates (使负义务 ) the supplier to provide
the specified products or services and obligates
the buyer to pay for them
IT Project Management
Project Procurement Management 16
Types of Contracts (1)
Fixed price or lump sum contracts
Cost reimbursable contracts
Time and material contracts
Unit price contracts
IT Project Management
Project Procurement Management 17
Types of Contracts (2)
Fixed price or lump sum（ 一次付清）
contracts
involve a fixed total price for a well-defined
product or service
Firm-Fixed Price (FFP) contract
Fixed Price Incentive (FPI) contract
IT Project Management
Project Procurement Management 18
Types of Contracts (3)
Firm-Fixed Price (FFP) contract
For example,a company could award a
fixed price contract to purchase 100 laser
printers with a certain print resolution and
print speed to be delivered to one location
within two months.
IT Project Management
Project Procurement Management 19
Types of Contracts (4)
Fixed Price Incentive（ 激励） contract (FPI)
For example,the contract could include an
incentive fee paid if the laser printers are
delivered within one month
IT Project Management
Project Procurement Management 20
Types of Contracts (5)
Cost reimbursable（ 付还的） contracts
involve payment to the supplier for direct and
indirect actual costs
It often includes fees such as a profit
percentage or incentives for meeting or
exceeding selected project objectives.
IT Project Management
Project Procurement Management 21
Types of Contracts (6)
Three type of cost reimbursable contract:
Cost Plus Incentive Fee (CPIF) contract（ 成本加奖励费）
Cost Plus Fixed Fee (CPFF) contract（ 成本加固定费 ）
Cost Plus Percentage of Costs (CPPC)
contract（ 成本加成本百分比费 ）
IT Project Management
Project Procurement Management 22
Types of Contracts (7)
Reimbursable Contracts
Cost plus incentive fee (CPIF)
（ 成本加奖励费）
The buyer pays the seller for allowable performance
costs plus a predetermined fee and an incentive bonus
If the final cost is less than the expected cost,both the
buyer and the supplier benefit from cost savings,
according a renegotiated share formula.
Example…
IT Project Management
Project Procurement Management 23
Example
For example,suppose the expected cost of a project
is $100,000,the fee to the supplier is $10,000,and
the share formula is 85/15,meaning that the buyer
absorbs 85% of the uncertainty and supplier absorbs
15%,
If the final price is $80,000,the cost saving are
$20,000,
How much should the supplier be paid?
The supplier would be paid the final cost and fee
plus an incentive of $3,000 (20,000*15%),for a
total reimbursement of $93,000
IT Project Management
Project Procurement Management 24
Types of Contracts (8)
Reimbursable Contracts
Cost plus fixed fee (CPFF)
（ 成本加固定费 ）
the buyer pays the seller for allowable performance
costs plus a fixed fee payment usually based on a
percentage of estimated costs.
This fee does not vary,however,unless the scope of
the contract changes.
Example…
IT Project Management
Project Procurement Management 25
Example
For example,suppose the expected cost of a
project is $100,000 and the fixed fee is
$10,000,If the actual cost of the contract rises
to $120,000 and the scope of the contract
remains the same,the contractor will still
receive the fee of $10,000.
IT Project Management
Project Procurement Management 26
Types of Contracts (9)
Reimbursable Contracts
Cost plus percentage of costs (CPPC)
The buyer pays the seller for allowable
performance costs plus a predetermined
percentage based on total costs.
IT Project Management
Project Procurement Management 27
Types of Contracts (10)
Cost plus percentage of costs (CPPC)
From the buyer’s perspective,this is the least
desirable type of contract because the supplier
has no incentive to decrease costs.
This type of contract is prohibited for federal
government use,but is sometimes used in
private industry,particularly in the
construction industry.
IT Project Management
Project Procurement Management 28
Types of Contracts (11)
Time and material contracts
Are a hybrid of both fixed price and cost
reimbursable contracts.
For example
an independent computer consultant might have a
contract with a company based on a fee of $80 per
hour for his or her services plus material fees…
IT Project Management
Project Procurement Management 29
Types of Contracts (12)
Unit price contracts
Require the buyer to pay the supplier a predetermined
amount per unit of service,and the total value of the
contract is a function of the quantities needed to
complete the work.
For example
if a company purchases only one unit,the cost might
be $1,000,If the company purchases 10 to 50 unites
the contract cost might be $900…,
IT Project Management
Project Procurement Management 30
Contract Types Versus Risk
It summarizes the spectrum of risk to the buyer and supplier for
different types of contracts,Buyers have the lowest risk with FFP
and have the most risk with CPPC.
成本加奖励费成本加固定费成本加成本百分比费
IT Project Management
Project Procurement Management 31
Statement of Work (SOW)
A statement of work is a description of the
work required for the procurement
Many contracts,mutually binding agreements,
include SOWs
A good SOW gives bidders a better
understanding of the buyer’s expectations
Example of SOW
IT Project Management
Project Procurement Management 32
Statement of Work (SOW) Template
I,Sc ope of W or k,D e s c r i b e t h e w o r k to b e do n e to de t a i l,Spe c if y t h e h a r dw a r e a n d
s o f t w a r e i n v o l ve d a n d t h e e xa c t n a t ur e o f t h e w o r k.
II,L oc at ion of W or k,D e s c r i b e w h e r e t h e w o r k m u s t b e pe r f o r m e d,Spe c i f y t h e
l o c a t i o n o f h a r dw a r e a n d s o f t w a r e a n d w h e r e t h e pe o pl e m us t pe r f o r m t h e w o r k
III,P e r iod of P e r f o r m anc e,Spe c i f y w h e n t h e w o r k i s e x pe c t e d to s t a r t a n d e n d,
w o r ki n g h o ur s,n u m b e r o f h o ur s t h a t c a n b e bill e d pe r w e e k,w h e r e t h e w or k m us t
b e pe r f o r m e d,a n d r e l a t e d s c h e du l e i nf o r m a t i o n,
I V,D e l ive r ab l e s Sc he dul e,L i s t s pe c i f i c de l i ve r a bl e s,de s c r i b e t h e m i n de t a i l,a n d
s pe c i f y w h e n t h e y a r e du e,
V,A ppl ic able St andar ds,Spe c i f y a ny c o m pa ny o r i nd u s t r y - s p e c i f i c s t a n d a r ds t h a t
a r e r e l e va n t to pe r f o r m i ng t h e w o r k.
V I,A c c e pt anc e C r it e r ia,D e s c r i be h o w t h e b u y e r or ga ni z a t i o n w i ll de t e r m i ne i f t h e
w o r k i s a c c e pt a bl e,
V I I,Spec ial R e qui r e m e nt s,Spe c i f y a ny s pe c i a l r e qu i r e m e n t s s uc h a s h a r dw a r e o r
s o f t w a r e c e r t i f i c a t i o ns,m i n im u m d e gr e e o r e x pe r i e nc e l e ve l o f pe r s o n ne l,t r a v e l
r e qu i r e m e n t s,a n d s o o n,
IT Project Management
Project Procurement Management 33
Solicitation Planning 询价计划
Solicitation planning involves preparing several
documents:
Request for Proposals (RFP)报价邀请书
used to solicit proposals from prospective sellers where there
are several ways to meet the sellers’ needs
Requests for Quotes (RFQ)报价邀请
used to solicit quotes for well-defined procurements
Invitations for bid or negotiation and initial contractor
responses are also part of solicitation planning
IT Project Management
Project Procurement Management 34
Outline for a Request for Proposal (RFP)
I,P ur p o s e o f R F P
II,Or gani z a t i o n’ s B a c kg r o un d
I I I,B a s i c R e qu i r e m e n t s
I V,Ha r dwar e a n d S o f t wa r e E n vi r o nm e n t
V,De s c r i pt i o n o f R F P P r o c e s s
VI,S t a t e m e n t o f W o r k a n d S c h e du l e I nf o r m a t i o n
VI I,P o s s i bl e A pp e n d i c e s
A,C ur r e n t S y s t e m O v e r vi e w
B,S y s t e m R e qu i r e m e n t s
C,Vo l u m e a n d S i z e Da t a
D,R e qu i r e d C o n t e n t s o f Ve n do r ’ s R e s po n s e t o R F P
E,S a m p l e C o n t r a c t
IT Project Management
Project Procurement Management 35
Solicitation 询价
Solicitation involves obtaining proposals or bids
from prospective sellers
Organizations can advertise to procure goods and
services in several ways
approaching the preferred vendor
approaching several potential vendors
advertising to anyone interested
A bidders’ conference can help clarify the buyer’s
expectations
IT Project Management
Project Procurement Management 36
Source Selection
Source selection involves
evaluating bidders’ proposals
choosing the best one
negotiating the contract
awarding the contract
It is helpful to prepare formal evaluation
procedures for selecting vendors
Buyers often create a,short list”-top three or five
IT Project Management
Project Procurement Management 37
Sample Proposal Evaluation Sheet
IT Project Management
Project Procurement Management 38
Detailed Criteria for Selecting Suppliers
IT Project Management
Project Procurement Management 39
Be Careful in Selecting Suppliers and Writing
Their Contracts
Many dot-com companies were created to meet
potential market needs,but many went out of
business,mainly due to poor business planning,
lack of senior management operations experience,
lack of leadership,and lack of visions,Check the
stability of suppliers
Even well-known suppliers can impede阻止 project
success,Be sure to write and manage contracts
well with all suppliers
IT Project Management
Project Procurement Management 40
Contract Administration
Contract administration ensures that the seller’s
performance meets contractual requirements
Contracts are legal relationships,so it is important
that legal and contracting professionals be involved
in writing and administering contracts
Many project managers ignore contractual issues,
which can result in serious problems
IT Project Management
Project Procurement Management 41
Suggestions on Change Control for Contracts
Changes to any part of the project need to be
reviewed,approved,and documented by the same
people in the same way that the original part of the
plan was approved
Evaluation of any change should include an impact
analysis,How will the change affect the scope,time,
cost,and quality of the goods or services being
provided?
Changes must be documented in writing,Project
team members should also document all important
meetings and telephone phone calls
IT Project Management
Project Procurement Management 42
Contract Close-out
Contract close-out includes
product verification to determine if all work was
completed correctly and satisfactorily
administrative activities to update records to
reflect final results
archiving information for future use
Procurement audits identify lessons learned in
the procurement process
IT Project Management
Project Procurement Management 43
Using Software to Assist in
Project Procurement Management
Word processing software helps in writing proposals and
contracts,spreadsheets help in evaluating suppliers,databases
help track suppliers,and presentation software aids in
presenting procurement-related information
In the late 1990s and early 2000s,many companies started
using e-procurement software to do many procurement
functions electronically
Companies such as Commerce One,Ariba,Concur
Technologies,SAS,and Baan provide corporate procurement
services over the Internet
Organizations also use other Internet tools to help find
information on suppliers or auction goods and services
IT Project Management
Project Procurement Management 44
Problems and Points to Ponder
What type of contract has the least amount of risk
for the buyer?
What do the letters RFP,RFQ stand for?
Many books on project management and the
people studying project management do not spend
much time on the topic of procurement
management,Why
IT Project Management
Project Procurement Management 45
Problems and Points to Ponder
Some experts recommend working with
preferred vendors,even if their prices may be
higher than other vendors,Why do you think
this is the case?
IT Project Management
Project Procurement Management 46
Problems and Points to Ponder
Suppose you are trying to decide if you should develop an
in-house training program or have employees take courses
from outside vendors,Assume you would need about
50,000 hours of training and the average cost per hour for
outside vendor training is $100,If you did the training in-
house,assume you would have an up-front investment of
$100,000 plus $200,000 in personnel costs,Would it be
more economical to outsource the training or provide it in-
house?
What other factors should you consider in this decision?
IT Project Management
Project Procurement Management 47
Project Management Framework
IT Project Management
Project Procurement Management 48
Project Procurement Management
IT Project Management
INSTRUCTOR,SHU LIU
HIT SCHOOL OF SOFTWARE
Fall 2005
All rights reserved
Project Procurement Management 2
Outline
Importance of Project Procurement Management?
Project Procurement management Processes:
Procurement Planning (采购计划 )
Solicitation Planning （ 询价计划）
Solicitation （ 询价）
Source Selection（ 供方选择）
Contract Administration （ 合同管理）
Contract Close-out（ 合同收尾）
IT Project Management
Project Procurement Management 3
Project Procurement Management
Procurement means acquiring goods
and/or services from an outside source
Purchasing （ 购）
Outsourcing (外购 )
IT Project Management
Project Procurement Management 4
Project Procurement Management
Organizations or individuals who provide
procurement services are referred to as
suppliers,vendors,subcontractors,or
sellers,with suppliers being the most
widely used term.
Experts predict that by the year 2003 the
worldwide information technology
outsourcing market will grow to over $110
billion
IT Project Management
Project Procurement Management 5
Why Outsource?
To reduce both fixed and recurrent costs
To allow the client organization to focus on
its core business
To access skills and technologies
To provide flexibility
To increase accountability
IT Project Management
Project Procurement Management 6
Concerns on Outsourcing
Do not have much control over those aspects of
projects that suppliers carry out
Could become too dependent on particular
suppliers
If those suppliers went out of business or lost key
personnel,it could cause great damage to your
project
IT Project Management
Project Procurement Management 7
Concerns on Outsourcing
Organizations must also be careful to
protect strategic information that could
become vulnerable in the hands of
suppliers
IT Project Management
Project Procurement Management 8
Project Procurement Management Processes
Procurement planning (采购计划 )
determining what to procure and when
Solicitation planning （ 询价计划）
documenting product requirements and
identifying potential sources
Solicitation （ 询价）
obtaining quotations（ 报价）,bids（ 投标）,offers（ 出价）,or proposals as
appropriate
IT Project Management
Project Procurement Management 9
Project Procurement Management Processes
Source selection （ 供方选择）
choosing from among potential vendors
Contract administration （ 合同管理）
managing the relationship with the vendor
Contract close-out （ 合同收尾）
completion and settlement of the contract
IT Project Management
Project Procurement Management 10
Project Procurement Management Processes
and Key Outputs
IT Project Management
Project Procurement Management 11
Procurement Planning
Procurement planning involves identifying
which project needs can be best met by using
products or services outside the organization,It
includes deciding
whether to procure
how to procure
what to procure
how much to procure
when to procure
IT Project Management
Project Procurement Management 12
Procurement Planning Tools and Techniques
Make-or-buy analysis
determining whether a particular product or service
should be made or performed inside the organization or
purchased from someone else,Often involves financial
analysis
Experts
both internal and external,can provide valuable inputs
in procurement decisions
IT Project Management
Project Procurement Management 13
Make-or Buy Example
Assume you can lease an item you need for a
project for $150/day,To purchase the item,the
investment cost is $1,000,and the daily cost
would be another $50/day.
How long will it take for the lease cost to be the same
as the purchase cost?
If you need the item for 12 days,should you lease it
or purchase it?
IT Project Management
Project Procurement Management 14
Make-or Buy Solution
Set up an equation so the,make” is equal to the,buy”
In this example,use the following equation,Let d be the number
of days to use the item.
$150d = $1,000 + $50d
Solve for d as follows:
Subtract $50d from the right side of the equation to get
$100d = $1,000
Divide both sides of the equation by $100
d = 10 days
The lease cost is the same as the purchase cost at 10 days
If you need the item for 12 days,it would be more economical to
purchase it
IT Project Management
Project Procurement Management 15
What is a Contract
A mutually(相互地 ) binding agreement that
obligates (使负义务 ) the supplier to provide
the specified products or services and obligates
the buyer to pay for them
IT Project Management
Project Procurement Management 16
Types of Contracts (1)
Fixed price or lump sum contracts
Cost reimbursable contracts
Time and material contracts
Unit price contracts
IT Project Management
Project Procurement Management 17
Types of Contracts (2)
Fixed price or lump sum（ 一次付清）
contracts
involve a fixed total price for a well-defined
product or service
Firm-Fixed Price (FFP) contract
Fixed Price Incentive (FPI) contract
IT Project Management
Project Procurement Management 18
Types of Contracts (3)
Firm-Fixed Price (FFP) contract
For example,a company could award a
fixed price contract to purchase 100 laser
printers with a certain print resolution and
print speed to be delivered to one location
within two months.
IT Project Management
Project Procurement Management 19
Types of Contracts (4)
Fixed Price Incentive（ 激励） contract (FPI)
For example,the contract could include an
incentive fee paid if the laser printers are
delivered within one month
IT Project Management
Project Procurement Management 20
Types of Contracts (5)
Cost reimbursable（ 付还的） contracts
involve payment to the supplier for direct and
indirect actual costs
It often includes fees such as a profit
percentage or incentives for meeting or
exceeding selected project objectives.
IT Project Management
Project Procurement Management 21
Types of Contracts (6)
Three type of cost reimbursable contract:
Cost Plus Incentive Fee (CPIF) contract（ 成本加奖励费）
Cost Plus Fixed Fee (CPFF) contract（ 成本加固定费 ）
Cost Plus Percentage of Costs (CPPC)
contract（ 成本加成本百分比费 ）
IT Project Management
Project Procurement Management 22
Types of Contracts (7)
Reimbursable Contracts
Cost plus incentive fee (CPIF)
（ 成本加奖励费）
The buyer pays the seller for allowable performance
costs plus a predetermined fee and an incentive bonus
If the final cost is less than the expected cost,both the
buyer and the supplier benefit from cost savings,
according a renegotiated share formula.
Example…
IT Project Management
Project Procurement Management 23
Example
For example,suppose the expected cost of a project
is $100,000,the fee to the supplier is $10,000,and
the share formula is 85/15,meaning that the buyer
absorbs 85% of the uncertainty and supplier absorbs
15%,
If the final price is $80,000,the cost saving are
$20,000,
How much should the supplier be paid?
The supplier would be paid the final cost and fee
plus an incentive of $3,000 (20,000*15%),for a
total reimbursement of $93,000
IT Project Management
Project Procurement Management 24
Types of Contracts (8)
Reimbursable Contracts
Cost plus fixed fee (CPFF)
（ 成本加固定费 ）
the buyer pays the seller for allowable performance
costs plus a fixed fee payment usually based on a
percentage of estimated costs.
This fee does not vary,however,unless the scope of
the contract changes.
Example…
IT Project Management
Project Procurement Management 25
Example
For example,suppose the expected cost of a
project is $100,000 and the fixed fee is
$10,000,If the actual cost of the contract rises
to $120,000 and the scope of the contract
remains the same,the contractor will still
receive the fee of $10,000.
IT Project Management
Project Procurement Management 26
Types of Contracts (9)
Reimbursable Contracts
Cost plus percentage of costs (CPPC)
The buyer pays the seller for allowable
performance costs plus a predetermined
percentage based on total costs.
IT Project Management
Project Procurement Management 27
Types of Contracts (10)
Cost plus percentage of costs (CPPC)
From the buyer’s perspective,this is the least
desirable type of contract because the supplier
has no incentive to decrease costs.
This type of contract is prohibited for federal
government use,but is sometimes used in
private industry,particularly in the
construction industry.
IT Project Management
Project Procurement Management 28
Types of Contracts (11)
Time and material contracts
Are a hybrid of both fixed price and cost
reimbursable contracts.
For example
an independent computer consultant might have a
contract with a company based on a fee of $80 per
hour for his or her services plus material fees…
IT Project Management
Project Procurement Management 29
Types of Contracts (12)
Unit price contracts
Require the buyer to pay the supplier a predetermined
amount per unit of service,and the total value of the
contract is a function of the quantities needed to
complete the work.
For example
if a company purchases only one unit,the cost might
be $1,000,If the company purchases 10 to 50 unites
the contract cost might be $900…,
IT Project Management
Project Procurement Management 30
Contract Types Versus Risk
It summarizes the spectrum of risk to the buyer and supplier for
different types of contracts,Buyers have the lowest risk with FFP
and have the most risk with CPPC.
成本加奖励费成本加固定费成本加成本百分比费
IT Project Management
Project Procurement Management 31
Statement of Work (SOW)
A statement of work is a description of the
work required for the procurement
Many contracts,mutually binding agreements,
include SOWs
A good SOW gives bidders a better
understanding of the buyer’s expectations
Example of SOW
IT Project Management
Project Procurement Management 32
Statement of Work (SOW) Template
I,Sc ope of W or k,D e s c r i b e t h e w o r k to b e do n e to de t a i l,Spe c if y t h e h a r dw a r e a n d
s o f t w a r e i n v o l ve d a n d t h e e xa c t n a t ur e o f t h e w o r k.
II,L oc at ion of W or k,D e s c r i b e w h e r e t h e w o r k m u s t b e pe r f o r m e d,Spe c i f y t h e
l o c a t i o n o f h a r dw a r e a n d s o f t w a r e a n d w h e r e t h e pe o pl e m us t pe r f o r m t h e w o r k
III,P e r iod of P e r f o r m anc e,Spe c i f y w h e n t h e w o r k i s e x pe c t e d to s t a r t a n d e n d,
w o r ki n g h o ur s,n u m b e r o f h o ur s t h a t c a n b e bill e d pe r w e e k,w h e r e t h e w or k m us t
b e pe r f o r m e d,a n d r e l a t e d s c h e du l e i nf o r m a t i o n,
I V,D e l ive r ab l e s Sc he dul e,L i s t s pe c i f i c de l i ve r a bl e s,de s c r i b e t h e m i n de t a i l,a n d
s pe c i f y w h e n t h e y a r e du e,
V,A ppl ic able St andar ds,Spe c i f y a ny c o m pa ny o r i nd u s t r y - s p e c i f i c s t a n d a r ds t h a t
a r e r e l e va n t to pe r f o r m i ng t h e w o r k.
V I,A c c e pt anc e C r it e r ia,D e s c r i be h o w t h e b u y e r or ga ni z a t i o n w i ll de t e r m i ne i f t h e
w o r k i s a c c e pt a bl e,
V I I,Spec ial R e qui r e m e nt s,Spe c i f y a ny s pe c i a l r e qu i r e m e n t s s uc h a s h a r dw a r e o r
s o f t w a r e c e r t i f i c a t i o ns,m i n im u m d e gr e e o r e x pe r i e nc e l e ve l o f pe r s o n ne l,t r a v e l
r e qu i r e m e n t s,a n d s o o n,
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Solicitation Planning 询价计划
Solicitation planning involves preparing several
documents:
Request for Proposals (RFP)报价邀请书
used to solicit proposals from prospective sellers where there
are several ways to meet the sellers’ needs
Requests for Quotes (RFQ)报价邀请
used to solicit quotes for well-defined procurements
Invitations for bid or negotiation and initial contractor
responses are also part of solicitation planning
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Outline for a Request for Proposal (RFP)
I,P ur p o s e o f R F P
II,Or gani z a t i o n’ s B a c kg r o un d
I I I,B a s i c R e qu i r e m e n t s
I V,Ha r dwar e a n d S o f t wa r e E n vi r o nm e n t
V,De s c r i pt i o n o f R F P P r o c e s s
VI,S t a t e m e n t o f W o r k a n d S c h e du l e I nf o r m a t i o n
VI I,P o s s i bl e A pp e n d i c e s
A,C ur r e n t S y s t e m O v e r vi e w
B,S y s t e m R e qu i r e m e n t s
C,Vo l u m e a n d S i z e Da t a
D,R e qu i r e d C o n t e n t s o f Ve n do r ’ s R e s po n s e t o R F P
E,S a m p l e C o n t r a c t
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Solicitation 询价
Solicitation involves obtaining proposals or bids
from prospective sellers
Organizations can advertise to procure goods and
services in several ways
approaching the preferred vendor
approaching several potential vendors
advertising to anyone interested
A bidders’ conference can help clarify the buyer’s
expectations
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Project Procurement Management 36
Source Selection
Source selection involves
evaluating bidders’ proposals
choosing the best one
negotiating the contract
awarding the contract
It is helpful to prepare formal evaluation
procedures for selecting vendors
Buyers often create a,short list”-top three or five
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Project Procurement Management 37
Sample Proposal Evaluation Sheet
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Project Procurement Management 38
Detailed Criteria for Selecting Suppliers
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Project Procurement Management 39
Be Careful in Selecting Suppliers and Writing
Their Contracts
Many dot-com companies were created to meet
potential market needs,but many went out of
business,mainly due to poor business planning,
lack of senior management operations experience,
lack of leadership,and lack of visions,Check the
stability of suppliers
Even well-known suppliers can impede阻止 project
success,Be sure to write and manage contracts
well with all suppliers
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Project Procurement Management 40
Contract Administration
Contract administration ensures that the seller’s
performance meets contractual requirements
Contracts are legal relationships,so it is important
that legal and contracting professionals be involved
in writing and administering contracts
Many project managers ignore contractual issues,
which can result in serious problems
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Project Procurement Management 41
Suggestions on Change Control for Contracts
Changes to any part of the project need to be
reviewed,approved,and documented by the same
people in the same way that the original part of the
plan was approved
Evaluation of any change should include an impact
analysis,How will the change affect the scope,time,
cost,and quality of the goods or services being
provided?
Changes must be documented in writing,Project
team members should also document all important
meetings and telephone phone calls
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Contract Close-out
Contract close-out includes
product verification to determine if all work was
completed correctly and satisfactorily
administrative activities to update records to
reflect final results
archiving information for future use
Procurement audits identify lessons learned in
the procurement process
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Project Procurement Management 43
Using Software to Assist in
Project Procurement Management
Word processing software helps in writing proposals and
contracts,spreadsheets help in evaluating suppliers,databases
help track suppliers,and presentation software aids in
presenting procurement-related information
In the late 1990s and early 2000s,many companies started
using e-procurement software to do many procurement
functions electronically
Companies such as Commerce One,Ariba,Concur
Technologies,SAS,and Baan provide corporate procurement
services over the Internet
Organizations also use other Internet tools to help find
information on suppliers or auction goods and services
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Problems and Points to Ponder
What type of contract has the least amount of risk
for the buyer?
What do the letters RFP,RFQ stand for?
Many books on project management and the
people studying project management do not spend
much time on the topic of procurement
management,Why
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Project Procurement Management 45
Problems and Points to Ponder
Some experts recommend working with
preferred vendors,even if their prices may be
higher than other vendors,Why do you think
this is the case?
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Project Procurement Management 46
Problems and Points to Ponder
Suppose you are trying to decide if you should develop an
in-house training program or have employees take courses
from outside vendors,Assume you would need about
50,000 hours of training and the average cost per hour for
outside vendor training is $100,If you did the training in-
house,assume you would have an up-front investment of
$100,000 plus $200,000 in personnel costs,Would it be
more economical to outsource the training or provide it in-
house?
What other factors should you consider in this decision?
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Project Management Framework
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