This article contains most of the important information you need to know about Conduct Procurements process in order to answer questions related to this topic in the PMP Exam, I recommend you review this type of articles 1 week before your exam date, all information mentioned are based on PMBOK Guide 6th edition and PMP Exam Prep 9th edition for Rita Maclhy’s, ITTO refers to Inputs, Tools & Techniques and outputs.
This process is a part of executing Process group and Procurement Management Knowledge Area with the following ITTO’s
- Project Management Plan ( Scope, Requirements ,Communications , Risk Procurement and Configuration Management Plans , Scope Baseline)
- Project Documents (Requirements Documentation ,Project schedule , Lessons learned Register , Risk Register, Stakeholder Register)
- Seller Proposals
- Procurement Documentation
- Enterprise Environmental Factors
- Organizational Process Assets
Tools & Techniques:
- Expert Judgment
- Bidder Conference
- Data Analysis ( Proposal Evaluation )
- Interpersonal and Team skills ( Negotiation )
- Selected Sellers
- Change Requests’
- Project Management Plan Updates (Scope, Requirements ,Communications , Risk , Quality , Procurement Management Plans , Scope ,Cost and Schedule Baselines )
- Project Document Updates ( Lessons Learned register , Recourses Calander , requirements documentations , Requirements tractability matrix , Risk register , Stakeholder register )
- Involves getting the procurement SOW and other procurement documents to prospective sellers , answering seller questions , having responses and select a seller according to the source selection criteria .
- Major Tools and Techniques :
- Advertising, advertisement may be made to attract sellers.
- Prequalified Seller List, a list contains all qualified sellers for this service created in earlier project, procurement documents may be sent to this list only.
- Bidder Conferences, Mainly this tool is used to maintain integrity of the procurement process , it is a meeting where all sellers participating in the procurement will be invited and contains questions and answers session .
- Seller Proposals ,
- Proposal reviews , All proposals received from invited sellers will be reviewed , evaluated as per the source selection criteria .
- Screening system , Screen out not qualified vendors who do not meet the minimum requirements .
- Weighing system
- Independent estimates, comparing prices with estimates made in house.
- Presentations , Usually used with Cost reimbursable contract type , it is a formal meeting between buyer and seller teams in order to give a chance for the seller to present their proposal .
- Negotiations , Usually they are led by procurement manager while project manager must attend , it aims to obtain a fair and reasonable price and to obtain a good relationship with the seller , it should end by a win-win situation , scope , schedule and price are the key items to negotiate , Contracts are signed once negotiations are done and it is awarded to selected seller , here are some negotiation techniques :
- Personal Insults , not recommended.
- Deadline , “ I should leave in 30 minutes “
- Attacks, force Compliance.
- Good Guy/Bad Guy , one friendly and one aggressive .
- Missing man, “ only the CEO can agree on that “
- Lying , obvious or hidden .
- Limited Authority, I don’t have the authority.
- Fair and reasonable
- Delay, escape in critical moments
- Extreme Demands
- Fait Accompli , Not negotiable