Project procurement management process

Select a procurement document for the turnaround project and explain your selection;
develop a proposal evaluation method for the turnaround project that will be used to
select a supplier.
This portfolio work, project procurement and evaluation, is based on your selected
business or IT project. You may choose to base your assessment on the Revive LLC case
study for the development of a new online employee orientation module, or you may
select an organization of your own choosing. Both human resource (HR) and information
technology (IT) employees, as well as contractors, will be utilized in this project.
Project Procurement Management Plan is defined as “a component of the project or
program management plan that describes how a project team will acquire goods and
services from outside of the performing organization” (Project Management Institute,
2021).
The procurement process should be dynamic and flexible to ensure the best combination
of quality and pricing is obtained. For a more complex process many factors should enter
into the decision-making process to obtain the best possible outcome with the lowest
total cost of ownership, or TCO.
Per the PMBOK® Guide, and as referenced in Kerzner (2017), project procurement
management includes the processes where the project obtains a product or service from
outside the project organization. The organization’s perspective regarding procurement
can either be as the buyer or the seller of the product or service. Project procurement
management also includes the contract management and change control processes that
are required to administer the signed contracts or any issued purchase orders. According
to the latest PMBOK, project procurement management includes the following major
processes (Project Management Institute, 2021):
1. Aligning of Delivery Cadence, Development Approach, and Life Cycle.
2. Working with Procurements.
3. Contracting.
4. The Bid Process
References
Kerzner, H. R. (2017). Project management: A systems approach to planning, scheduling, and
controlling (12th ed.). Wiley.
Project Management Institute. A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) – Seventh Edition and The Standard for Project Management. Newtown
Square. PA. 2021, pp. 108–132.
The above-mentioned processes can be quite involved and the ramification of the
decisions and outcomes can be costly. There is generally a great deal of interaction and
overlap between these processes. With procurement management, it is imperative that
the project team seeks the support of contract (legal) and procurement (purchasing)
specialists and involve such specialists early on.
The first key procurement management process—plan purchases and acquisitions—
determines what, when, and how to procure. After the decision is made about which
project needs can best be met by procuring products or services from outside of the
project organization, the team continues to the second key process: the “plan
contracting.” This process involves preparing the documents needed for solicitation and
the evaluation criteria used to score proposals. The most common documents for
solicitation are the request for quote (RFQ) and the request for proposal (RFP). The RFP
is generally more exhaustive and is used when all of the details of a solicitation are well
known. The responses from various suppliers may fill in some of the missing blanks. The
RFQ is most generally used for price and delivery quotations on specific items. Although
the above statements are generally true, some organizations use these documents
interchangeably.
Writing a good RFP is essential if you want to receive a thorough and complete response
from suppliers and vendors. To ensure a thorough and properly written RFP you will
need to include SMEs (subject matter experts) who have experience in the appropriate
discipline.
For this assessment, choose either Option A or Option B. You do not need to do both.
Both options will be graded using the same scoring guide.
Option A: Project Revive LLC, and you as the consultant, must be concerned with all the
processes of project management and not just with the procurement process. However,
for the purposes of this course you will concentrate on the application of the three
procurement processes. The assessment focuses on analyzing and creating different
procurement documents.
Consider issues that may limit the project options, such as budget cost and staffing
decisions for NearlyFree.com. NearlyFree.com is a fictitious company and the project
documents for NearlyFree.com project scenario are linked below.
As part of your job as the consultant, you convinced your client, NearlyFree.com, to
procure a new employee orientation web-based training software system (the product)
from a third-party vendor. Therefore, the buy rather than make decision has already been
made. Although you have had a lot of experience procuring external resources,
NearlyFree.com is a small company and has not been through the rigorous procurement
process considered as best practice by Fortune 500 companies. So, as part of your
services, you will guide NearlyFree.com through key aspects of the procurement
process. The first step is helping NearlyFree.com recognize different procurement
documents and make the right selection for this project.
At this point in the process, you also need to help NearlyFree.com prepare to evaluate
the proposals and information they obtained from the solicitation process. You will
develop a proposal evaluation method that will be used to select a supplier.
Option A Resources:
• NearlyFree.com Organizational Background and IT Governance [DOCX] Download
NearlyFree.com Organizational Background and IT Governance [DOCX].
• Project Charter [PDF] Download Project Charter [PDF].
• Project Schedule [MPP] Download Project Schedule [MPP].
• Project Scope Statement [PDF] Download Project Scope Statement [PDF].
• Quality Statement [PDF] Download Quality Statement [PDF].
• Statement of Work Template [DOC] Download Statement of Work Template
[DOC].
• Task Costs [XLS] Download Task Costs [XLS].
• Work Breakdown Structure [DOC] Download Work Breakdown Structure [DOC].
• Work Breakdown Structure [VSD] Download Work Breakdown Structure [VSD].
Option B: You may choose a business of your own. It must include (but is not limited to)
the following criteria:
• Clearly indicate the title of the project in every assessment.
• You must have access to the following documentation:
o Scope statement.
• Final deliverable and product definition.
• Project work-breakdown structure.
• Project schedule.
• Quality plan.
• Project costs (estimates and actuals).
•
For both Option A or B, you are the project manager.
Microsoft Project is the recommended software tool for this course due to its wide
industry acceptance and its use in many project management professional roles. To make
this easier, you have the ability to download and install your own version of MS Project
for use in this course. See the Software Preparation and Technology Access activity in
Assessment 1 for more information.
Practice using MS Project in this course will prepare you for future professional PM roles
and responsibilities; please use MS Project for those tasks supported by MS Project. If
you have access to other tools such as MS Visio, MS PowerPoint, MS Word, or other
project management software that you believe may still meet the requirements of this
course, please discuss your selected alternative with faculty.
Use the PMBOK® Guide as the model for developing the deliverables.
Part 1: Project Procurement Analysis
Deliverable: Select a procurement document for the turnaround project and explain your
selection.
Complete the following tasks to assist in a selection:
• Analyze each procurement document—RFQ, RFP, RFI, and IFB—by describing the
characteristics of each document and appropriate situations in which each applies.
• Select a procurement document for the turnaround project and explain your
selection.
Part 2: Project Procurement Proposal Evaluation
Deliverable: Develop a proposal evaluation method for the turnaround project that will
be used to select a supplier.
Complete the following tasks:
• Develop bid solicitation criteria.
o Define minimum acceptable criteria for bidding.
o Explain how you selected the criteria.
• Explain a strategy or approach for soliciting bids.
• Evaluate risks associated with proposal evaluation.
o This may include items such as past performance, quality ratings, delivery
performance, and contractual compliance.
•
o Describe risks and potential problems related to evaluating proposals and
suggest strategies for overcoming these issues.
 Use the Evaluation Criteria Weighting System multimedia activity as
an example for creating your proposal evaluation.
• Develop a plan to mitigate each major risk.
• Apply evaluation criteria to select suppliers.
Use the software of your choice to develop the deliverables for this assessment.
This assessment has two deliverables:
1. Develop a comprehensive Project Procurement Analysis.
2. Develop a comprehensive Project Procurement Proposal Evaluation.
3. References: There is no set number of references required for this assessment.
Use scholarly or academic sources where applicable.
4. Format:
1. Microsoft Project is not required for this assessment. This assessment has
two parts and two deliverables.
2. Use your choice of MS Word, MS Visio, or MS PowerPoint to develop the
comprehensive analyses.
3. These analyses are professional documents and should therefore follow
the corresponding Academic and Professional Document Guidelines [PDF],
including single-spaced paragraphs.
4. Use APA style and format for references and in-text citations.
By successfully completing this assessment, you will demonstrate your proficiency in the
following course competencies through corresponding scoring guide criteria:
• Competency 2: Apply project procurement tools and techniques to ensure project
success.
o Describe the characteristics of each procurement document and its
appropriate use in the project.
o Select a procurement document and provide a rationale.
o Develop bid solicitation criteria.
o Explain a strategy or approach for soliciting bids.
o Evaluate risks associated with proposal evaluation.
o Apply evaluation criteria to select suppliers
• Competency 4: Communicate effectively in a professional manner consistent with
the standards of project management.
o Develop a plan to mitigate each major risk.
Faculty will use the scoring guide to review your deliverable as if they were your
immediate supervisor. Review the scoring guide prior to developing and submitting your
assessment.