UNITY
UNIVERSITY
Department of
Computer Science
SOFTWARE PROJECT
MANAGEMENT
NAME ID
1.Yordanos Kebede UU79338R
2.Yafet Girma UU79286R
3.Teshome Fenta UU79340R
4.Weldeab Bereket UU79122R
5.Mesfin Araya UU80295R
6.Amar Taha UU
Submission Date: 30th Aug. 2022
Submitted To: Mr. Nahom
Project Procurement Management
Project procurement management is the creation and maintenance of relationships with
external resources needed to complete a project.
Importance
Project procurement management is the creation and maintenance of relationships with
external resources needed to complete a project.
Why Outsource?
To reduce both fixed and recurrent costs
To allow the client organization to focus on its core business
To access skills and technologies
To provide flexibility
To increase accountability
Project Procurement Management Processes
Procurement planning: determining what to procure and when.
It involves deciding what to outsource and determining the type of contract.
Makes make-or-buy decision
Solicitation planning: documenting product requirements and identifying potential sources
Solicitation planning is a process involving preparation of documents needed to
support solicitation. The inputs to this process consist of procurement management
plan, statement of work and other planning outputs generated in the previous phase
Solicitation: obtaining quotations, bids, offers, or proposals as appropriate
Solicitation involves obtaining proposals or bids from prospective sellers
Organizations can advertise to procure goods and services in several ways
approaching the preferred vendor
approaching several potential vendors
advertising to anyone interested
Source selection: choosing from among potential vendors
Source selection is a critical phase of the pre-award procurement process. It is often
thought of as making tradeoffs among offerors’ proposals to determine the best value
offer.
Contract administration: managing the relationship with the vendor
Contract administration ensures that the seller’s performance meets contractual
requirements
Contract close-out: completion and settlement of the contract, it includes:
Product verification to determine if all work was completed correctly and satisfactorily
Administrative activities to update records to reflect final results
Archiving information for future use
Collaborative Procurement
Several organizations, even competitors, have found that it makes sense to collaborate on
procurement for some projects.
Procurement Planning Tools and Techniques
1. Expert judgment
Expert judgment is a technique in the project planning process that refers to
making a judgment based on skill, expertise, or specialized knowledge in a
particular area. The expertise can be based on an individual’s training or
educational background, career experience, or knowledge of the
product/market.
2. Data gathering
Market research
The market research phase of the procurement lifecycle is defined as the
process of defining the specific need and determining the most appropriate
acquisition method for procurement.
3. Data analysis
Make-or-buy analysis
Determining whether a particular product or service should be made or
performed inside the organization or purchased from someone else. Often
involves financial analysis.
4. Source selection analysis
Source selection criteria is a set of attributes desired by the buyer which a seller is
required to meet or exceed to be selected for a contract. Under project management,
source selection criteria are often included as part of the procurement documents.
5. Meetings
Meetings are used to determine the strategy for managing and monitoring the
procurement, which is essentially the next two processes of procurement
management.
Monitor and Control Procurements: The process of monitoring contract performance,
managing procurement relationships, making changes and corrections as appropriate,
and closing out contracts.
Procurement contract management
Procurement contract management is the process of managing contracts related to
Procurement and purchases made as a part of legal documentation of forging work
relationships with customers, vendors, or even partners.
Contract/Procurement strategy should first be determined during the project development
phase at a point in time depending on a number of factors. These factors include corporate
needs, environment, degree of scope, time and cost considerations and the quantity and
location of available resources.
Contract administration ensures that the seller’s performance meets contractual requirements.
Contract Change Control
The contract change control system is used to gather, track and communicate all the changes
to the project management contract. Contracts usually come with the provisions to allow
changes or include additional items into the contract.
Types of Contracts
The fixed-price contract: is a legal agreement between the project organization and an entity
(person or company) to provide goods or services to the project at an agreed-on price.
Cost reimbursable Contract: involve payment to the seller for direct and indirect costs
Unit price contracts: require the buyer to pay the seller a predetermined amount per unit of
service. Sometimes, it is also known as Time and Material Contract
Statement of Work (SOW)
The work to be done on each procurement is called procurement statement of work. The
procurement statement of work must be clear, complete and as concise as possible. It should
also describe the work and activities that the seller is required to complete. The activities also
include meetings, reports and communications.
Types of Procurement Statements of Work
Procurement; this conveys what the final product should be able to accomplish.
Functional; this conveys the end purpose or the results than the specific procedures or
approach
A statement of work (SOW), in project management, is a document in which a contracting
officer or chief procurement officer (CPO) specifies the objectives and deliverables for a
particular project or service contract.
