12-Project Procurement Management-2019!06!13 13-23-21
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PMP PREP PREPARA ARATION TION COUR COURSE SE 6th ItION
BY: SAYED MOHSEN, PMP, PMI -RMP, PMI-SP
www.pm-tricks.com
+966554665714
/Sayed Mohsen PMP
/ PMP TRICKS
Chapter 1 2 Project Management Procurement PMBOK-6th Page 459 to 501
Lecture 09 : Project Procurement Management Contents
0
Introduction
1
Plan Procurement Management ( P l a n n i n g )
2
Conduct Procurements
( E x e c u t i n g )
3
Control Procurements
( M.C )
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®
Lecture 09 : Project Procurement Management 0 Introduction
• The project manager does not have to be a trained expert in procurement management laws and regulations but should be familiar enough with the procuremen procurementt process to make intelligent decisions regarding contracts and contractual relationships. • The project manager is typically not authorized to sign legal agreements binding the organization; this is reserved for those who have the authority to do so. contracting, or procurement • For smaller organizations or startup companies and those without a purchasing, contracting, department, the project manager may assume the purchasing authority role to negotiate and sign contracts directly (decentralized purchasing). organizations tions,, the actual procurement and contracting functions will be carried out by a • For more mature organiza separate department with the specific role to purchase, negotiate, and sign contracts (centralized purchasing).
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®
Lecture 09 : Project Procurement Management 0 Introduction
• The seller may be identified as a contractor, subcontractor subcontractor,, vendor, vendor, service servic e provider provider,, or supplier. .در ا ا أو م اا أوئا أو ا اا ول ا ا ول أو ا ا أأ ئا ا
• The buyer may be called a client, customer, prime contractor, contractor, acquiring organization, organizat ion, service se rvice requestor, requestor, or purchaser
ئ .ي شا أو ا اا اء أو ئا ا س سؤ اا ل أوو ا ا أو ئ ا ن أو ا ا أو ااي اس شا ا ئ اا ول ا
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
ا اء ا ثث • Documenting project procurement decisions. وع ت ااارا
•
ا اء ا
Specifying Speci fying the approach. approach.
• Identifying potential sellers.
اائ اا
✓ Determines whether to acquire goods and services from outside the project and, if so, what to acquire as well as
how and when to acquire it.
ج ار خ ت ا وو ل ا ا ي اا ه ن اذ و وع ا او ئا ا ل اا س ن س إذا د ✓ . ل اا وو
BY: EL-Sayed Mohsen , PMP®, PMI- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
BY: EL Sayed Mohsen , PMP , PMI RMP
Project Procurement Management ( 1 ) Plan Plan Proc urement Management Management
Input
Tools & Techniques
1. Project Charter 2. Business documents 3. Project management plan 4. Project documents 5. Enterprise environmental factors
1. Expert judgment 2. Data Gathering 3. Data Analysis 4. Source selection analysis
6. Organizational process assets
5. Meetings
Outputs
1. Procurement management plan 2. Procurement strategy 3. Bid documents 4. Procurement Procurement statements of w ork 5. Source Source selection cr iteria 6. Make Make or buy decision s 7. Independent Independent co st estimates 8. Change requests 9. Project Project docum ents updates 10. Organizational Organizational proc ess assets updates
BY: EL Sayed Mohsen , PMP , PMI RMP
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inputs : ❑
❑
Project management plan ➢
Scope management plan
➢
Qualit Qua lit y manage management ment pl an
➢
Resource management plan
➢
Scope baseline
Project documents ➢
Milestone list
➢
Project team assignments.
➢
Requir Re quir eme ements nts docum entation
➢
Resour ce requirements Resour ➢ Risk register
BY: ELEL-Sayed Mohsen , PMP , PMI PMI-- RMP
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inputs :
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inputs :
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inputs :
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inputs :
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inpu In puts ts : ❑
Organizational Process Assets
Contra tract ct Ty Types pes Con 1- Fi Fixxed Pr Pric ice e (F (FP) P) 2- Cost-reimbursable contracts 3- Time and material contracts (T&M).
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inpu In puts ts : ❑
Organizational Process Assets
Contra tract ct Ty Types pes Con Fixxed Pr Pric ice e (F (FP) P) 1- Fi 1.1 Fi Firm rm Fi Fixe xed d Pr Price ice (F (FFP FP): ):
د لل اال لل
mostt com common mon use used d con contra tract ct typ type. e. ✓ The mos
✓ It is favored by mo most st buying or orga gani niza zati tion onss be beca caus use e th the e pr pric ice e fo forr go good odss is se sett at th the e outset outset..
Buyer yer ha hass lit little tle ris risk k, pr prov ovid ides es he ha hass a co comp mple lete te de defi fine ned d sc scop ope. e. ✓ Bu
1.2 Fix Fixed ed Pri Price ce Inc Incent entiv ive e Fee (FP (FPIF): IF):
ا ال لل
✓ Financial incentives tied to achieving agreed-upon metrics such financial incentives are related to cost,
schedule, or technical performance of the seller. ✓
Ex:: for ev Ex ever eryy mo mont nth h ea earl rlyy, $1 $15, 5,00 000 0 wi will ll be pa paid id to th the e se sell ller er..
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Inpu In puts ts : ❑ Organizational Process Assets
Contract Contra ct Typ Types es Fixe xed d Pr Pric ice e (F (FP) P) 1- Fi 1.3 Fixed price with economic price adjustments adju stments (FPEPA) (FPEPA)..
ادي لل ط ا ال لل
✓
Used whenever the seller ’s performance period spans a considerable period of years. years.
✓
Special provision allowing for predef predefined ined final adjustments to the contract price due to changed conditions, such as inflation changes or cost increases (or decreases) for specific commodities.
ة م كك ة للائل ء د ة ف ا ع لل ذه م س س
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
Contra Con tract ct Typ Types es لل د دس د
Cost-reim -reimburs bursable able cont contracts racts 2- Cost
2.1 Co Cost st pl plus us fi fixe xed d fe fee e (C (CPF PFF) F).. ثث إإ
✓
The seller is reimbursed for all allowable costs for performing the contract work and
✓ Receives a fixed-fee payment calculated as a percentage of the initial estimated project costs.
إإ 2.2 Co Cost st pl plus us in incen centi tive ve fee (C (CPI PIF) F).. ي
✓ The seller is reimbursed for all allowable costs for performing the contract work and ✓
receives a predetermined incentive fee based on achieving certain performance objectives as set forth in the contract.
✓
If the final costs are less or greater than the original estimated estimated costs, then both the buyer and seller share costs based upon aprenegotiated cost-sharing formula.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
Contract Contra ct Ty Types pes 2- Cost-r Cost-reimbursable eimbursable contr contracts acts 2.3 Co Cost st pl plus us aw awar ard d fee (C (CP PAF) AF).. ✓
ة إإ اا
The seller is reimbursed for all legitimate costs, but the majority of the fee fee is earned based on the satisfaction of certain broad subjective performance criteria that are defined and incorporated into the contract.
✓ The determination of fee is based solely on the subjective determination of seller performance by the buyer.
ئا اء ا د ي ش اا ا اا ء د اا
✓ Not subject to appeals.
إ
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
Contr Co ntract act Typ Types es Time me an and d ma matter eria iall co con ntr trac acts ts (T (T&M &M). ). 3- Ti
د لل وز زل
✓
(also called time and means) ئ س ااو اا د أ ف أ
✓
a hybrid type of contractual arrangement with aspects of both cost-reimbursable and fixed-price contracts. contracts.
✓
are often used for staff augmentation, acquisition of experts, and any outside support when a precise
statement of work cannot be quickly prescribed.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management TT ❑
➢
Data Gathering
لل ثا Mark Mar ket res resear earch ch ق ✓
Includes examination of industry and specific seller capability capability..es. اائا ات ا ر وو ع اا ات ر اا
❑ Data Analysis
➢ Make-or-buy analysis ✓
Used to determine whether work or deliverables can best be accomplished by the project team or should be purchased from outside sources. sources.
organization’s current resource allocation and their skills and abilities. • The organization’ • The need for specialized expertise. decision . • Evaluating the risks involved with each make-or-buy decision.
Lecture 09 : Project Procurement Management 01 Plan Procurement Management TT ❑ Source Selection Analysis
در ل ل را خ خ
Commonly used selection methods include the following:
1- Lea Least st c ost. ✓ ✓
appropriate for for procurements of a standard or routine nature. Where well-establish well-established ed practices and standards exist and from which a specific and well-defined well-defined outcome is expected.
2- Qualifications only. ✓ Applies
when the time and cost of a full selection sel ection process would not make sense because the
value of the procurement is relatively small ✓
The buyer establishes a short list and selects the bidder with the best credibility credibility,, qualifications qualifications,, experience,, expertise experience expertise,, areas of specialization, specialization, and references references..
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management TT
❑
در ل ل را خ خ
Source Selection Analysis
3- Quality-based/highe Quality-based/highest st technical proposal score ✓
The seller who submitted the highest-ranked technical proposal is selected
ررد أأ ئا ا ا ا م ي اا ئ اا ر خ خ ا ض ا ا
4- Quality and cost-based ✓
When risk and/or uncertainty uncertainty are greater greater for the project, project, quality should be a key element when when
رر ئ اا اا ن أن وع أ م اا وو ة ا ا ن أ دة ئ اا
compared to cost.
5- Sole sourc e ✓
.
ح ح ل ر ل ل
The buyer asks asks a specific seller seller to prepare technical technical and financial proposals, which which are then negotiated. Since there is no competition, competition, this method is acceptable only when properly justified and should be viewed as an exception exception..
ب س س ا ان ه د وو م اظ و .ضو ا او وو ضو. ء ادسإ اإدر ا ئ ي ش اا س ا و و را ن
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management TT
❑
Source Selection Analysis
6- Fixed budget ✓
. اببل
ل ل
در ل ل را خ خ
The fixed-budget method requires disclosing the available budget to invited sellers in the RFP and selecting the highest-ranking technical proposal within the budget. budget .
رد أأ ئا ا ا ا ر خ خاو ض اا ئ اا اا اا ح ا ا ا اد او ر ض ا ا
✓
Because sellers are subject to a cost constraint, they will adapt the scope and quality of their offer to that budget.
✓
The buyer buyer should should therefore ensure that the budget is compatible with the SOW and that the seller seller will will be able to perform the tasks within the budget. budget.
✓
This method is appropriate only when the SOW is precisely defined, no changes are anticipated, and the budget is fixed and cannot be exceeded.
. هزو و ثث اا
ااو ات ءا إإ و ن اا د ئ ب س س ا ا ه وو
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs ❑ PROCUREMENT MANAGEMENT PLAN
✓
ا ا س ب اس ا ا ؤه اا ئاا ئئ اا ش ش ا اا Timetable of key procurement activities. ت ش ا لو
✓
Stakeholder roles and responsibilities related to procurement, including authority and constraints of the
✓
Prequalified sellers, if any, to be used.
project team when the performing organization has a procurement department.
ا د و ش ةرادإ ة اا س سؤ اا ى ن وع ا و ش ش ا اا ت اا و ؤو وو ار و د أ وا تش
✓
Constraints and assumptions that could affect planned procurements.
ت ااشا ا ؤث ا ت اا ا ااو د اا
✓
How procurement will be coordinated with other project aspects, such as project schedule development and control processes.
ا ااو وع ا اا ت وو ى خ ا وع ا اا ت ش اا ا لو
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs ❑
Procurement Strategy
The objective of the procurement strategy is to:✓
Determine the project delivery method.
ا ب س وع ا سأ
✓
The type of legally binding agreement
م ا ا ق ع اا
✓
How the procurement will advance through the procurement phases
ت شا ا اا ت شم اا
Delivery methods ❖ Contract payment types ❖
❖
. ق اا
.د ا ا ادع سا أأ
Procurement phases •
Sequencing
• •
Criteria for moving from phase to phase
Performance Perf ormance indicator indicatorss
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs
ء اا ئ ثو
❑ BID DOCUMENTS
Bid d do docu cume ment ntss ar are e us used ed to so solic licit it pr prop opos osal alss fr from om pr pros ospe pect ctiv ive e se selle llers rs ➢ Bi ➢ Request for information (RFI). .ت
ئا ا ت ا او ئ ل اا ت ا ا اا إ كه ن ه ت ا ا م
س ا ض ➢ Request for quotation (RFQ). .ر س
اا ل ت ا ا ا اا إ كه ن ه ر س س ا ض م ا ار اا و و تا ن ا ئ ئ ا ا .
➢ Request for proposal (RFP).
.ض
ا ئ ث اا ا اا وو وع ا ش د وو ض اا م س سر ا ش هه. ئا د اودرو ا ااو ى اا ر ر تش اا و و ا
✓
”
“
The buyer structures procurement documents to facilitate an accurate and complete response from each prospective seller and to facilitate easy evaluation of the responses
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs ❑ BID DOCUMENTS
ء اا ئ ثو
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs ❑ Procurement Statement of Work
اتشال اصل لل انب
➢
Developed from the project scope baseline and defines only that portion of the project scope that is to be included within the related contract.
➢
Describes thethe procurement of providing products. item in sufficient detail to allow prospective sellers to determine if they are capable
➢ SOW can include specifications, quantity desired, quality levels , performance reporting ❑
Source Selection Criteria:
✓
✓
Capability and capacity. Product cost and life cycle cost. Delivery dates. Technical expertise and approach. Specific relevant experience.
✓ ✓
Key staff ’s qualifications, availability, and competence. Financial stability of the firm. سا س سؤ ر ااا س
✓ ✓ ✓
ا ا ة واار اا ة ة اارود وو اا اا ار ب س س او ة اا ا ا دة ذات اا ة اا ا ا
✓
ةراد ا ة خ
Management experience.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Management experience
Capability and capacity
Key staff ’s qualifica qualifications, tions, availability, and competence;
Financial stability of the firm
Specific relevant experience;
09 01 08 07
Elements of Source Selection Criteria
06
Product cost and life cycle cost
02 03
Delivery dates
04 05
Suitability of the knowledge transfer program
T echnical expertis e and approach
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management Outputs
ء ل م لل ت ر
❑
Make-OR-Buy Decisions
➢
A make-or-buy analysis results in a decision as to whether particular work can best be accomplished by the project team or needs to be purchased from outside sources. sources.
❑ Independent Cost Estimates ➢
لل الللل ت
For large procurements, the procuring organization may elect to either prepare its own independent estimate or have a cost estimate prepared by an outside profe professional ssional estimator to serve as a benchmark on proposed responses.
Significant differences in cost estimates can be an indication that : ambiguous.. ✓ The procurement SOW was deficient or ambiguous ✓
The prospective sellers either misunderstood or failed to respond fully to the procurement SOW.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 01 Plan Procurement Management
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 02 Conduct Procurements
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 02 Conduct Procurements
ئض ااو ل اا
• Obtaining seller responses
• Selecting a seller
ئ اا ر أأ خ خاو
ااس س و و
• Awarding a contract
✓
Selects a qualified seller and implements the agreement for✓delivery. ا ق ا legal ا ا و و هؤ ئ ر
o f the process are the established agreements including formal contracts. ✓ The end results of .
س س اا د ا ش ش ا ة ار اا ت اا ئئا ائا ✓ ا
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Project Procurement Management ( 2 ) Conduct Procurements
Input
1. Project mangement plan 2. Project documents 3. Procurement documentation 4. Seller proposals 5. Enterprise enviromental factors 6. Organizational process assets
Tools & Techniques
Outputs
1. Expert judgment 2. Advertising 3. Bidder conferences 4. Data Analysis 5. Interpersonal and
1. Selected sellers 2. Agreements 3. Change requests 4. Project management plan updates
team skills
5. Project document updates 6. Organizational Organizational process assets updates
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 02 Conduct Procurements Inputs
ئا ل ضو
Seller ler Pro Propos posals als:: ❑ Sel
• Prepared in response to procuremen procurementt document package . • Used by an evaluation body to select one or more successful bidders (sellers). .
TT •
Advertising
ئ ئ اا ( ئض )ااو ا ا أ أو أ ااو ر خ خ هه س سا مس س
Existing lists of potential sellers often can be expanded by placing advertiseme advertisements nts in generall circulation publications such as : genera
•
Selected newspaper, newspaper, trade publications, publications, or online resources .
ر ر تار ش ة أور اا اا
• Most government jurisdiction require public advertising of government contracts
رظا ا اا د ا ا ا ا ن ا ا م أوا ن ا ا ا اا ت خ خ ا ظ
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 02 Conduct Procurements TT
❑
ضو ا ا تا ؤؤ
Bidder Conferences:
✓ Meetings between the buyer and prospective sellers prior to proposal submittal. ✓
Used to ensure that all prospective bidders have a clear and common understanding of the procurement and no bidders receive preferential treatment.
TT
❑
Data analysis:
Propos Pro posal al Ev Evalu aluati ation on : ✓
Proposals are evaluated to ensure they are complete and respond in full to the bid documents, pprocurement statement of work, source selection criteria.
ت ش ص ن اا و و ء اا ئ ث س واس اا ن ضو اا
.
در ا ا رخ اخ وو
❖
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 02 Conduct Procurements TT INTERPERSONAL AND TEAM SKILLS
Negotiation: ✓
Is a discussion aimed at reaching reaching an agreement agreement..
m utual agreement ✓ Procurement negotiation clarifies the structure, rights, and obligations of the parties so that mutual can be reached prior to signing the contract. ✓
The negotiation should be led by a member of the procurement procurement team that has the authority to sign contracts.
✓ Project manager and other members of the t he project management team may be present during negotiation to
provide assistance as needed.
O ✓
Selected Selec ted Sellers Sellers The selected sellers are those who have been judged to be in a competitive range based on the outcome of the proposal or bid evaluation.
.
ض أو اا اا ء ا ق ا اا اان هور اا ن ئ ئ اا
❖
BY: ELPMI-- RMP® EL-Sayed Mohsen , PMP®, PMI
Lecture 09 : Project Procurement Management 02 Conduct Procurements O
Agreement:
ئا ا ي شام ا وو تا ا ئم اا دد م قا ا ه اا
✓
✓ A contract is a binding legal agreement that obligates the seller to provide the specified products, services, or results,
and obligates the buyer to compensate the seller. seller .
The major components in an agreement document and may include: • •
Procurement statement statement of work or major deliverables; Schedule, milestones.
•
Performance Performa nce reporting;
•
Pricing and payment terms;
• •
General terms and conditions; Incentives and penalties;
•
Insurance and performance bonds;
•
Subordinate subcontractor approval approvals; s;
•
Change request handling;
ئ ئ اا تا ت أو اش صا ا ن اا • أو اا ا اا • ا ول
دا ا رر اا وط ا و اا ا م اا ا او وط ا ا ا ااو اا اا ن اا و و اا اا اا لو ا ا دات اا
•
• • • • • •
تو ا ةد • ااا ااا و ا وا ا
Inspection, quality, and acceptance criteria;
•
Termination clause and alternative dispute resolution mechanisms
اع اا اا ت آآو اا •
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements ت شت اا ةردا إ
• Managing procurement relationships. •
اا
Monitoring contract performance.
• Making changes corrections as appropriate. اا ت وو ا او ات ل ااإدخ • Closing out contracts. د ا ا قإغ
✓ Ensures that both the seller ’s and buyer ’s performance meet the
the terms of the legal agreement. agreement.
.
project’s requirements according to
ت ا ي ش ااو ئء اادا أ أن ✓ ق اا د اا و اء و ا
✓ This process is performed throughout throughout the project as needed.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Project Procurement Management ( 3 ) Control Procurement
Input
1. Project management plan 2. Project Project doc uments 3. Agreements 4. Procurement documentation 5. Change requests 6. Approved Work performance data data 7. Enterprise environmental factors 8. Organiza Organizational tional process assets
Tools & Techniques
1. Expert judgment 2. Claims administration 3. Data Analysis 4. Inspection 5. Audits
Outputs
1. Closed Procurements 2. Work performance Information 3. Procurement documentation updates 4. Changemanagement requests 5. Project plan updates 6. Project Project doc ument updates 7. Organizational Organizational process assets updates
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements INPUTS
Agreements
• Agreements are understandings between parties, including understanding of the duties of each party. The relevant agreements are reviewed reviewed to verify terms and conditions conditions are met.
Procurement documentation
Procurement documentation includes :• Statement of work • Payment information • Contractor work performance information • Plans and drawings.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements INPUTS Approved change requests including the procurement statement statement of • Can include modifications to the terms and conditions of the contract, including work (SOW), pricing, and descriptions of the products. Work performance data
Work performance data contains seller data on project status ssuch uch as:✓
Technical performance.
✓
Activities that have started, are in progress, or have completed.
✓
Costs that have been incurred or committed.
✓
Information on the seller invoices that have been paid.
.دةا ائاا
ا ل ت
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements TT Claims Administration
Requested d changes where buyer and seller cannot reach an agreement on compensation for the ➢ Requeste change or cannot agree that a change has occurred These contested contested changes are called claims.
➢ If the parties themselves do not resolve a claim, it may have to be handled in accordance with
alternative dispute resolution (ADR). ➢ Settlement of all claims and disputes through negotiation is the preferred method.
وا ل ا خ تااا او تا ا ه ب اا س س او
❖
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements TT ❑ Data
Analysis
1- Performance Reviews: ➢
Performance reviews for contracts measure, compare, and analyse quality, resource,
schedule, and cost performance against the agreement. ➢ This includes identifying work packages that are ahead or behind schedule, over or under budget, or have resource or quality issues.
2- Earned Value Analysis (EVA). ➢ Schedule and cost variances along with schedule and cost performance indexes are
calculated to determine the degree of variance from target.
3- Trend Analysis ➢ Trend analysis can develop a forecast estimate at completion (EAC) for cost performance to
see if performance is improving or deteriorating deteriorating..
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements TT
Inspection :
contractor.. ➢ An inspection is a structured review of the work being performed by the contractor ➢ On a construction/engineering/infrastructure project, inspections involve walkthroughs of the site
by both the buyer and the contractor to ensure a mutual understanding of the work in progress.
TT
Audit: ➢ Audits are a structured review of the procurement process. ➢ Resulting audit observations should be brought to the attention of the buyer ’s project
manager and the seller ’s project manager for adjustments to the project, when necessary.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Lecture 09 : Project Procurement Management 03 Control Procurements O Closed Procurements ➢
The buyer, usually through its authorized procurement administrator, administrator, provides the seller with formal written notice that the contract has been completed.
➢ Requirements for formal procurement closure are usually defined in the terms and conditions of the contract
and are included in the procurement management plan. ➢ All deliverables should have been provided on time and meet technical and quality requirements, there should
be no outsta outstandin nding g claims or invoices invoices,, and all final payments should have been made ➢
The project management team should have approved all deliverables prior to closure.
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
PMP Questions & Answers Project Procurement Management
51
BY: ELEL-Sayed Mohsen , PMP®, PMP®, PMI PMI-- RMP®
Q1) A buyer and seller set the rates for junior engineers, senior engineers, architects, and other predefined roles. In what type of contract would this be applicable? A- Fixe Fixed-price d-price with economic economic price adjustment adjustment contr contract act B- Fixe Fixed-price d-price incentiv incentive e contr contract act C- Fix Fixed-pr ed-price ice contr contract act D- Time and and material material contr contract act
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q2) Work Performance Data is an important input to the Control Procurements process. Which of the following is not a component of Procurements Work Performance Data? A- Dat Data a regard regarding ing supplier supplier’’s conformance to quality standards B- Data on complet completed ed deliverab deliverables les C- Data regarding regarding incurred or committed costs costs on each supplier contract contract D- Data on supplier invoices invoices and respective respective payments payments
PMBOK 496
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q3) If you are working working on a project project with constantly constantly changing changing scope, type of contracta would best when hiring an an outsidewhich vendor to complete portionwork of the work? A- Lu Lump mp su sum m B- Cos Cost-re t-reimb imburs ursabl able e C- Tim Time e and and mate material rial D- Fi Fixe xed d pric price e
PMBOK 472
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
T& M contract. During the excava excavation tion activity, you learned Q4) You are building a mile-long bridge on a T&M some telephone cables are crossing c rossing the alignment where you have to construct the bridge. You need to relocate these telephone cables, but there is no provision of such an activity ac tivity in the contract. Further, Further, the relocation of the cables is a costly task, and you need to do a lot of government paperwork, as well. You requested an amendment in the contract, but the buyer rejected it. Despite many efforts, you both could not resolve this issue. What should you do next? A- Terminate the contract following the termination procedures procedures mentioned in the contract. B- File a judicial petition in accordance with the the state state’s law. C- Seek arbitration following the ADR procedures in the contract. contract. D- Relocate the cables at your own expense since the contract does not cover cover this activity.
PMBOK 498
BY: ELEL-Sayed Mohsen Mohsen , PMP®, PMI PMI-- RMP®
Q5) Which of the following is an output of the Conduct Procurements process? A- Ad Adve vert rtis isin ing g B- Sel Select ected ed Sell Seller erss C- Bid Bidder der conf confer erenc ences es D- Exp Expert ert Judg Judgmen mentt
PMBOK 488
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
t he following techniques can help clarify the Q6) Which of the structure, requiremen requirements, ts,between and other terms and of the purchases that mutual agreement a buyer a seller can beso reached prior to signing the contract? AIndependen Indep endent estimates ates B- Ad Adve verti rtisi sing ng t estim C- Bid Bidder der confere conference ncess D- Procu Procureme rement nt negot negotiation iationss
PMBOK 488
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q7) If a project manager believes that a particular subcontract needs to be terminated, which of the following can provide guidance on the contract termination procedure? A- The contract termination termination procedures procedures in the organizational organizational process assets assets B- The termination termination clause of the specific specific subcontract subcontract C- The change control control procedures procedures in the project management management plan D- The contract termination procedures in the project procurements management plan
PMBOK 489
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q8) You recently took over a project as the project manager. This is your first project management assignment. The project sponsor is very supportive and is helping you out in successfully managing the project. Recently, some bad quality deliverables were received on the project, and the project sponsor suggested that you to periodically review the vendor’ vendor ’s progress to deliver project scope and quality, within cost and on schedule, as compared to the contr contract. act. Which of the following statements statements is true in this context? A- The sponsor has asked asked you to carry carry out regular trend trend analysis. B- The sponsor has asked you something something that is not a good project management management practice. C- The sponsor has asked you to carry out regular regular procurement procurement performance reviews. reviews. DThe sponsor is giving you a bigger workload workload so that you can perform better better on the next assignment. PMBOK 498
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q9) During the Conduct Procurements Procurements process, the procuring organization found that there were significant differences in pricing by different sellers. What is the best course of action in such a scenario? A- Award the project to a supplier who is already on the the procuring organization's preferred supplier list. BCancell the procurement Cance procur ement activity.. activity C- Investigate whether the procurement statement of work was defective defective or ambiguous. D- Award the project project to the highest highest bidder. bidder.
PMBOK 479
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q10) A buyer and seller are looking at getting into a long-term relationship spanning 10 years. Both parties would like to be protected from the unstable financial conditions of their country, country, which are beyond their control. What type of contract is appropriate for such a relationship? AFixed Fix edFix Incen Incentiv tive eP)Fee (FPIF) B- Firm FPrice ixed ed Price Pric e (FPP) (FP C- Time & Mater Material ial (T&M) (T&M) D- Fixed Price with Economic Economic Price Adjustment Adjustment Contract Contract (FP-EPA) (FP-EPA)
PMBOK 471
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q12) What similarity exists between a cost-reimbursable contract and a time-and-material time-and-materialss contract? A- The They y are open-e open-ende nded. d. B- The closure closure date date is part part of the the contract. contract. C- They have fixe fixed d bonus bonus rates. rates. D- They can can never never grow grow in in value value
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q13) A seller entered into a contract with a buyer. At the end of the project, the seller was reimbursed for the cost of the project but received a low fee based on certain subjective criteria that were specified in the contract. What type of contract is this likely to be? A- Cost Plus Plus Fixed Fixed Fee (CPFF) (CPFF) contract contract BFixedPlus Pr Incen Incentive tive (FPIF) (FPIF) cont contract ract C- Cost PlPrice usice Ince Incentive ntive FeFee Fee e (CPIF) con contract tract D- Cost Plus Plus Award Award Fee (CPAF) (CPAF) contract contract
PMBOK 472
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q14) The Conduct Procurements process receives bids or proposals and applies criteria to select one or more sellers who are both qualified and acceptable as a seller. seller. Which of the following techniques is not a valid technique for this process? A- Mak Make-or-b e-or-buy uy analy analysis sis B- Proposal Ev Evaluation aluation Techniques PMBOK 482 C- Ad Adve vert rtisi ising ng D- Bidde Bidderr Conf Confere erence nce
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Project Manageme Management nt Professional PMBOK 6 Edition Q15) A project is contracted on a Cost-Plus-Fixed-Fee (CPFF) basis with a fee of 10 percent of estimated costs. The estimated cost is US$50,000. If the project comes in at US$60,000 with no changes in project scope, what would be the total cost of the contract? A- US US$55 $55,00 ,000. 0. B- US US$12 $125,0 5,000. 00. C- US$ US$75, 75,000 000.. D- US$ US$65, 65,000 000..
• Fee is calculated as 10% of 50,000 = (10/100)*50,000 = 5,000 • Total cost of the contract is 60,000 + 5,000 = US$65,000.
+966554665714
/Sayed Mohsen PMP
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Project Manageme Management nt Professional PMBOK 6 Edition Q16) Project manager in Big construction company , Your company wouldYou likeare to a outsource the landscaping works to the subcontractor to complete within Three months, The Budget of the Works is $ 40,000 and the Scope is well defined .This type of contract is: A- Fix Fixeded-pri price ce B- Cos Cost-re t-reimbur imbursable sable C- Tim Time e and mate materia riall D- Cos Costt plus incent incentive ive fee fee
+966554665714
/Sayed Mohsen PMP
/ PMP TRICKS
Q18) After several months of negotiations your organization is almost ready to for signfinal a contract. The contract will span multiple years and allow price adjustments based on changing conditions. The ideal contract type is: A.Firm fixed price B. Fixed price incentive fee C. Fixed price with economic price adjustment D. Time and materials
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q19) As a project manger, manger, you have in your project a vendor delayed in hourly supplying some resources even the a ccounting accounting syste sy stem m by rate. rate . What should you should refer ref er for resolving resolvi ng this issue? A) Procurement documents management plan B) Procurement C) Agreement D) Arbitration
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q20) At the midway of the project, the project sponsor told you that with the project willand terminated. You already signedfor a contract a vendor the vendor already started supplying supplyi ng materials. materials. What should should you do next? next? A) Follow the of close procurement B) Review theprocedures contract terms C) Negotiating with vendor D) Ask the vendor to stop supplying
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q21) At the closing procuremen procurementt ,What is the benefit of collect lessons learned ? A) Update the OPA B) to evaluate customer satisfaction. C) collecting lessons learned D) future procurement
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 22) Your company got a project which needs few vendors to finish the work. One of the vendors before signing asked you to get first a part of payment before he make the first shipping. As a PM you will review: A) Procurement Statement of work B) Contract and agreement. C) Procurement management plan D) Company process and conditions
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 23) During the implementation phase for an IT project. You found the budget of one of supplied software packages became much more than you expected. What should have done to preventt this situation? preven
A) Make or buy decision B) procurement audit. C) Independent Indepe ndent estimate D) inspection and audit
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 24) During the implementation phase, you know that one of the suppliers who is working on your project proj ect has taken another project. As a project manager, what should you do next?
A) Remove the supplier from you project B) Performance review. C) Change management plan D) Procurement review
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 25) You are project manger and you have been finished make or buy analysis and bidder conference & applied source selection criteria for your sellers, what you should have to do next?
A) Selected sellers B) Procurement negotiation C) Sign contract D) Close contract
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 26) You are project manager for a systems integration effort and need to procure the hardware components from external sources. Your subcontracts administrator has told you to prepare a product description and quantity desired which is referenced in a?
A) Procurement statement of work B) Contract scope statement C) Risk register D) Project Charter
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 27) Which of the following that provides expected cost of a procurement by a third party and helps identify significant variations from cost estimates prepared in-house?
A) Bidder Confer Conferences ences B) Independent Indepe ndent Estimates C) Advertising D) Procur Procurement ement Negotiations
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 28) You are working on a project as a project manger . your vendor selection process took more than the anticipated amount of time. However, now every thing is complete and vendor is in board . after few weeks, vendor informs you that few of his resources left and he is i s in short of required team to complete the project . what should you do next ? A) Tell the vendor to continue the work until they find the replacement B) Take a decision as per the contract C) Cancel the contract and select the second best vendor D) Tell the vendor to analyze the impact of this on on the project project
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Q 29) You are in the process of managing procurement relationships; monitoring performance, making changes and corrections as appropriatecontract and it ensures that both the seller’s and buyer’s performance meet the project’s requirements .Which of the following Outputs for this Process ? A) Closed Procurements B) Procurement Management Plan C) Audit D) Agreement
BY: ELEL-Sayed Mohsen , PMP®, PMI PMI-- RMP®
Preparation tion CourseCourse- Earn 35 PDUs- 6th- Ed Edit itio ion n ❖ PMP Prepara ❖11 Exams by knowledge Areas ❖ 5 Exams By Process Groups
Exams ❖ 3- Full Exams ❖ PMP Change management 50 Qs
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