Project Procurement Management
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1 Project Procurement Introduction Unit 1 Unit 2 Unit 3 PMP Exam Preparation Project Integration Project Scope Project Time Unit 4 Unit 5 Unit 6 Unit 7 Project Cost Project Quality Project Human Resource Project Communications Unit 8 Unit 9 Unit 10 Project Risk Project Procurement Project Professional Stakeholder and Social Responsibility 9-1
2 Project Procurement Overview Plan Procurement Conduct Procurements Control Procurements Project Procurement Close Procurements 9-2
3 Knowledge Areas and Process Groups Initiating Planning Executing Monitoring and Controlling Closing Integration X X X X X Scope X X Time X X Cost X X Quality X X X Human Resources X X Communications X X X 9-3 Risk X X Procurement X X X X Stakeholders X X X X Source: PMBOK Guide, p. 61
4 I. Plan Procurement Purpose Determine what to procure, when, how, and from whom Key Inputs Scope baseline Requirements documentation Teaming agreements Cost and schedule baselines Risk register Contract Types 9-4 Source: PMBOK Guide, p. 317
5 I. Plan Procurement (continued) Key Tools and Techniques Make-or-buy analysis Market research Experts Judgment and Meetings Key Outputs Procurement management plan Contract statements of work (SOW) Make-or-buy decisions Procurement documents Source selection criteria Change requests 9-5
6 Contract Types Fixed Price Contract Type Actual Costs Profit Incentive Firm-Fixed-Price (FFP) No, lump-sum payment Dictated by the ability to meet defined cost and performance criteria No Fixed-Price- Incentive (FPI) Yes, actual cost not to exceed a ceiling price Dictated by the ability to meet defined cost and performance criteria Yes, given for superior performance Fixed Price with Economic Price Adjustment (FP-EPA) No, lump-sum payment adjusted for inflation rates or other external monetary factors Dictated by the ability to meet defined cost and performance criteria and the adjustments made per the external factors No 9-6
7 Contract Types Cost Reimbursement Contract Type Actual Costs Profit Incentive Cost-Plus-Incentive- Fee (CPIF) Yes Allows overrun or underrun sharing of expenses through a predetermined formula Maximum and minimum fee limits the fee in the contract Yes Cost-Plus-Fixed-Fee (CPFF) Yes Fixed fee paid as the contract progresses No Cost-Plus-Award- Fee (CPAF) Yes Dictated by the seller s ability to serve the subjective criteria dictated within the contract and awarded according to the buyer s determination that the criteria have been satisfied Yes Cost-Plus- Percentage-of-Cost (CPPC) Yes Calculated from percentage of actual cost No 9-7
8 Contract Risk Risk Relationships for the Seven Specific Contract Types 9-8
9 Incentive Fee Contracts FPI Target cost $100,000 Target fee $10,000 Target price $110,000 Sharing ratio 75/25 Ceiling price $125,000 Actual cost $115,000 Profit ($100K $115K)(0.25) $3,750 $10,000 $3,750 $6,250 Final price $115,000 + $6,250 $121,250 CPIF Target cost $100,000 Target profit $10,000 Target price $110,000 Sharing ratio 75/25 Minimum fee $2,000 Maximum fee $18,000 Actual cost $80,000 Fee 0.25 x $20,000 $5,000 $10,000 Total fee $15,000 Final price $95,
10 Evaluation Criteria Sample criteria include Understanding of need Production capacity Overall cost Business size and type Technical capability References approach Intellectual property rights Technical approach Property rights Financial capacity 9-10
11 9-11 II. Conduct Procurements Purpose Obtain quotes or bids, select a seller, and award a contract (obtener respuestas de los vendedores, selecciona uno y adjudicar el contrato). Tools and Techniques Bidder conferences (oferentes o proveedores) Advertising and Internet searches Proposal evaluation techniques Independent estimates Procurement negotiations Key Outputs Selected sellers Procurement contract award Resource calendars Change requests Source: PMBOK Guide, p. 329
12 Técnicas de selección de ofertas 1/2 Ponderación por pesos (Weighting system) Método de cuantificación para objetivizar las decisiones y minimizar los efectos de prejuicios en la selección. Se asigna pesos a cada uno de los criterios de evaluación, ordenando los proveedores por el resultado obtenido al multiplicar el valor dado por su peso. Estimación independiente (Independent Estimates or Should-cost ) Estimación realizada por la organización compradora o por otra independiente para contrastarla con la de los proveedores. Si hay discrepancias significativas puede deberse a una incorrecta especificación del SOW Umbrales de paso (Screening System) Se asignan valores mínimos a uno o más criterios (puede incluir una ponderación y estimación independiente) para eliminar aquellas propuestas que no los alcanzan. Negociación de contratos (Contract negotiation)
13 Técnicas de selección de ofertas 2/2 Clasificación de Proveedores (Seller Rating Systems) Contiene información sobre contrataciones anteriores, ratios de calidad, cumplimiento de las cláusulas contractuales. Juicio de expertos (Expert Judgment) Puede incluir expertos de diversas disciplinas: finanzas, aspectos legales, contabilidad, ingeniería, diseño, ventas, fabricación,
14 Contract Negotiations Stages and Tactics Stages and Tactics Protocol Probing Scratch bargaining Closure Agreement Stages Deadlines Surprise Limited authority Missing person Fair and reasonable Strategic delay Reasoning together Withdrawal Unreasonable Suggested arbitration Tactics 9-14
15 III. Control Procurements Purpose Manage the contract and the relationship with the seller Key Outputs Organizational process asset updates Procurement documentation 9-15 Source: PMBOK Guide, p. 335
16 Standard Clauses of Contracts Changes Control who initiates a change request Determine how change is funded Identify final approval authority Require configuration control Warranties Establish a level of quality Express warranty: Explicitly stated Implied warranty: Stated as usable Doctrine of waiver (renuncias) Relinquishing of one party s rights because of a lack of enforcement of those rights 9-16
17 Standard Clauses of Contracts (continued) Delays Identify who caused it and the impact Bonds (fianzas) Performance bond Payment bond Breach (infracciones) Failure to perform a contractual obligation Material breach is more serious than a contract breach 9-17
18 Standard Clauses of Contracts (continued) Damages Punitive damage Damages awarded over and above what will compensate for cost Activities that punish (or make example) of defendant Not normally awarded under contract law Compensatory Damages awarded to cover the loss and nothing more Force majeure The Act of God clause 9-18
19 Elements of a Legally Enforceable Contract For a contract to be legal and enforceable, it must meet the following criteria: Agreement must be voluntary People who sign must have legal capacity to do so Cause must be sufficient to contract (consideración por ambas partes) Purpose must be legal and must not violate public policy 9-19
20 IV. Close Procurements Purpose Complete the contract and all open issues Settle (resolución) the contract Key Outputs Closed procurements Deliverable acceptance Lessons learned documentation PROCUREMENT AUDIT: revisión estructurada del proceso de procurement. No es una auditoría de costes, sino más bien una revisión de las lecciones aprendidas para mejorar otros procesos de procurement Source: PMBOK Guide, p. 343
21 Review 9-21
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