Learning Chapters on Project Procurement Management
CHAPTER
1 u MENT
JEeT MANAGEMENT
LEARNING
After reading this chapter, you will b • Understand the importance of proj increasing use of outsourcing for inf Describe the work involved in plannin determining the proper type of contract t management plan, statement of work, so buy analysis Discuss what is involved in conducting obtaining seller responses, selecti Understand the process of admin ment relationships and monito Describe the process of closin Discuss types of software availa management
• Marie McBride could not believe how much money her company was paying for outside consultants to help the company finish an important operating system conversion project. The consulting company's proposal said it would provide experienced professionals who had completed similar conversions, and that the job would be finished in six months or less with four consultants working full time. Nine months later her company was still paying high consulting fees, and half of the original consultants on the project had been replaced with new people. One new consultant had graduated from college only two months before and had extremely poor communications skills. Marie's internal staff complained that they were wasting time training some of these "experienced professionals." Marie talked to her company's purchasing manager about the contract, fees, and special clauses that might be relevant to the problems they were experiencing. Marie was dismayed at how difficult it was to interpret the contract. It was very long and obviously written by someone with a legal background. When she asked what her company could do since the consulting firm was not following its proposal, the purchasing manager stated that the proposal was not part of the official contract. Marie's company was paying for time and materials, not specific deliverables. There was no clause stating the minimum experience level required for the consultants, nor were there penalty clauses for not completing the
1 u MENT
JEeT MANAGEMENT
LEARNING
After reading this chapter, you will b • Understand the importance of proj increasing use of outsourcing for inf Describe the work involved in plannin determining the proper type of contract t management plan, statement of work, so buy analysis Discuss what is involved in conducting obtaining seller responses, selecti Understand the process of admin ment relationships and monito Describe the process of closin Discuss types of software availa management
• Marie McBride could not believe how much money her company was paying for outside consultants to help the company finish an important operating system conversion project. The consulting company's proposal said it would provide experienced professionals who had completed similar conversions, and that the job would be finished in six months or less with four consultants working full time. Nine months later her company was still paying high consulting fees, and half of the original consultants on the project had been replaced with new people. One new consultant had graduated from college only two months before and had extremely poor communications skills. Marie's internal staff complained that they were wasting time training some of these "experienced professionals." Marie talked to her company's purchasing manager about the contract, fees, and special clauses that might be relevant to the problems they were experiencing. Marie was dismayed at how difficult it was to interpret the contract. It was very long and obviously written by someone with a legal background. When she asked what her company could do since the consulting firm was not following its proposal, the purchasing manager stated that the proposal was not part of the official contract. Marie's company was paying for time and materials, not specific deliverables. There was no clause stating the minimum experience level required for the consultants, nor were there penalty clauses for not completing the