Project Procurement Phases

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Running head: ASSIGNMENT #1: PROJECT PROCUREMENT PROCESSES

Assignment #1: Project Procurement Processes
By
Sue Dickson
PMAN 641 – Project Procurement Management
Professor William C. Andersen
University of Maryland University College
February 15, 2013

Table of Contents
Introduction3
Plan Procurements3
Conduct Procurements5
Administer Procurements6
Close Procurements7
Conclusion7
References8

Assignment #1: Project Procurement Processes
Introduction
According to the Project Management Body of Knowledge (PMBOK) there are four phases in the project procurement process. The PMBOK Guide (Project Management Institute, 2008) defines these as Plan Procurements, Conduct Procurements, Administer Procurements, and Close Procurements. (p. 313) This paper will show my understanding of those project phases and how I have applied them in my personal experience managing government conferences. Plan Procurements

The PMBOK Guide (Project Management Institute, 2008) states that “Plan Procurements is the process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers.” Inputs include a baseline of the scope, documentation of the requirements, teaming agreements, a risk register, contract decisions related to risk, requirements for activity resources, the project schedule, estimates for activity costs, a baseline of cost performance, enterprise environmental factors, and the organizational process assets. These inputs will result in outputs including the procurement management plan, the statement of work for the procurement, make or buy decisions, procurement documents, criteria used for source selection, and, if necessary, change requests. (p. 55) Plan Procurements (Project Management Institute, 2008) is also where decisions are made on outside support including what kind of support will be required, the levels of outside support that are needed, how and when the support should be acquired. Potential sellers are also considered including what level of control or autonomy over acquisition decisions is best and who will be responsible for any relevant licenses and permits. Make or buy risks are also considered during this phase. (pp. 317-318) In my government conference projects, we take the plan procurements phase seriously. We write a detailed statement of scope with a description of the service or materials being procured, a table of deliverables, and performance criteria for those deliverables. Depending on the item, we may include a work breakdown structure (WBS). Activity resources are defined for staff, equipment, and services. Activity cost estimates are based on both past performance and industry data. We identify potential risks through project team brainstorming, meetings with client subject matter experts, past conference attendee surveys, and after action reporting from like conferences. From this data we develop a risk register and perform both qualitative and quantitative risk analysis. Key differences between corporate and government sides include regulatory requirements that must be considered, teaming agreements follow strict government structure, we generally must partner with vendors on the GSA schedule, and the procurement processes are ruled by the government contracting officer under current regulations. We almost always use firm-fixed price contracts which have a set price for defined services or equipment. The PMBOK Guide (Project Management Institute, 2008) states that the Procurement Management Plan should describe how the procurement processes are to be managed from the development of the procurement documents through the contract closure phase. (p. 324) Unfortunately, we do not always develop an appropriate procurement management plan. It may be because most of the procurements for conference requirements are small. The one exception is facility procurement. Because these have the potential to run tens of thousands...
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