Capitulo: 12. PROJECT PROCUREMENT MANAGEMENT Flashcards
What is the process of procurement
management?
Plan Procurement Management
Conduct Procurements
Control Procurements
What are the inputs to the Plan
Procurement Management process?
Project charter
Business documents
Project management plan
Project documents
Project team assignments
Requirements documentation
Resource requirements
Risk register
Stakeholder register
Enterprise environmental factors
Organizational process assets
What are the key outputs of the Plan
Procurement Management process?
Procurement management plan
Procurement strategy
Procurement statement of work
Source selection criteria
Make-or-buy decisions
Bid documents
Independent cost estimates
Change requests
Project document updates
Organizational process assets updates
What are the key outputs of the Conduct
Procurements process?
Selected sellers
Agreements
Change requests
Project management plan updates
Project documents updates
Organizational process assets updates
What are the key outputs of the Control
Procurements process?
Closed procurements
Procurement documentation updates
Work performance information
Change requests
Project management plan updates
Project documents updates
Organizational process assets updates
What is an agreement?
What is a contract?
Agreement: A document or
communication that outlines internal
or external relationships and their
intentions
Contract: A type of written or verbal
agreement, typically created with an
external entity, where there is some
exchange of goods or services for
some type of compensation (usually
monetary); a contract forms the legal
relationship between the entities
What is the difference between
centralized and decentralized
contracting?
Centralized: There is one procurement
department, and the procurement
manager handles procurements for
many projects
Decentralized: There is no procurement
department or procurement manager
assigned, and the project manager may
be responsible for the plan, as well as
conducting and monitoring work on all
procurements
Describe the project managers role in
procurement.
Make sure the contract contains all the
scope of work and project management
requirements
Incorporate mitigation and allocation of
risks into the contract
Be involved during contract negotiations
to protect the relationship with the seller
Protect the integrity of the project and
the ability to get the work done
Understand what contract terms and
conditions mean so you can read and
understand contracts
Work with the procurement department
to manage changes to the contract
What is make-or-buy analysis?
Make-or-buy analysis: Deciding whether
the performing organization should do
the project work itself or outsource some
or all of the work
What is source selection analysis?
Source selection analysis: Determines
the criteria that will be used to select
sellers
What is a procurement management
plan?
A plan that documents how
procurements will be planned, executed,
and controlled
What are the three broad categories of
contracts?
Cost-reimbursable (CR)
Fixed-price (FP)
Time and material (T&M)
What is a fixed-price contract?
There is one set fee for accomplishing all
the work
Who has the cost risk in a cost-
reimbursable contract?
Cost-reimbursable: The risk is borne by
the buyer
What is a purchase order?
A unilateral contract typically used for
buying commodities
Purchase orders become contracts when
the buyer accepts the terms
