Just because it’s small and easy to overlook doesn’t mean the procurement process isn’t something you need to know about in the PMP exam. In fact, it can be one of the most important processes you encounter during the test if you don’t know how to manage it properly and procure goods and services effectively.
After you have developed your project and are ready to do procurement, it’s time for you to conduct procurement. There is a process behind conducting procurement that you need to know before deciding who will be part of your team and what they need from you so that it can help you score higher on your exam.
Conduct procurements process is a part of executing process group and procurement management knowledge area.
This process includes 3 steps: obtaining seller responses, selecting a seller and awarding a contract. Each step has its own way of getting procurement done so it’s important that you know how to conduct procurement.
Obtaining seller responses involves sending out Request for Proposal (RFP) which allows sellers to bid on your project and submit their response. Usually, there are conditions provided such as responding within a certain time frame, submitting all required documents, providing samples, and attending site visits. Some companies may want proposal only while others may want proposal and vendors to attend site visits so make sure you’re aware of what you’re looking for when obtaining seller responses. Once you have received multiple responses from potential sellers, it’s time to select one that can do a good job for your project.
There are different methods used in selecting a seller depending on how many bidders have submitted proposals. A very common method is using best value or best value with modifications. In best value, they would go through each bidder based on specific criteria and rank them based on their score. The highest-ranked bidder will be awarded a contract while those with lower scores would not be selected. If they wish to award contracts to more than one bidder then they will combine best value with modifications by giving highest score first and then choosing modifications if available.
Awarding a contract means signing a legal agreement between you and your seller who has been selected. After awarding a contract, it’s time to perform procurement itself. This part is where you get things done. For example, you need materials delivered to your office so your team can install them at an offsite location.
Conduct procurement is performed once a winner of the competitive bidding process has been selected by Seller Selection Methodology. During conduct procurement process, procurements are placed and/or purchased through negotiation or competitively via other similar business trade channels such as via a website platform etc., after winning either negotiation price bids or competitive bids offered by various eligible suppliers in several procurement processes.
Inputs to the conduct procurements process;
- Procurement management plan: How to conduct procurements is written here.
- Procurement strategy: The predefined way to conduct procurements,
- Scope management plan: Procurements are conducted in accordance with the scope management plan.
- Communications management plan: The project manager has to use communications management plan during the whole process.
- Requirements management plan: Procurements are a result of requirements. So we need this plan
- Configuration management plan: Change is always a part of procurements.
- Risk management plan
- Requirements documentation
- Procurement statement of work
- Seller proposals
- Bid documents
- Stakeholder register
- Cost baseline
- Risk register
- Project schedule
- Enterprise environmental factors
- Lessons learned register
- Organizational process assets