Project Management 406: Implementing and Managing Projects

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LEHIGH U N I V E R S I T Y
College of Education College of Business and
Economics

• Project Management 406 Implementing and Managing
  Projects
• Module 13 Procurement Solicitation Overview

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Agenda

• Overview of Procurement Process
• Understanding the PMBOK Model 12.3 Solicitation
• Advertising and Bidder Conferences
• Solicitation Considerations
• Summary

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Overview of Procurement Cycle
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Procurement Common Principles

• Acquisition of goods and or services
• Complexity can vary greatly
• office supplies
• Proprietary offering consulting, software,
  Turnkey
• Key concept is balancing risk between buyer and
  supplier
• uniqueness of product
• Product/service definition
• Contract type
• Buyer may pursue corporate, project, or
  combination procurement strategy
• Corporate or project policies define specific
  work process but should follow a fairly typical
  cycle

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Procurement Cycle Terminology
Kerzner PMBOK
Requirement Cycle 12.1 Procurement Planning
Requisition Cycle 12.2 Solicitation Planning
Solicitation Cycle 12.3 Solicitation
Award Cycle 12.4 Source Selection
Contract Administration Cycle 12.5 Contract Administration
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PMBOK Model of 12.3 Solicitation
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PMBOK Executing Processes
Core Processes
Facilitating Processes
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12.3 Inputs

• Procurement Documents
• IFB, RFP, RFQ
• Statement of Work
• Describe form of Response
• Required Contractual provisions
• Qualified Sellers lists
• Company standard list
• Project may have to qualify considering
  statement of qualifications, financials,
  references, facility visit, customer visits

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12.3 Outputs

• Proposals
• Supplier documents describing ability to provide
  requested product/service
• Might include presentations or demonstrations

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12.3 Tools and Techniques

• Advertising
• Bidder Conferences

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Advertising and Bidder Conferences
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Advertising

• Most common in Government/Public Projects
• Often sealed bids
• Advertise package available to interested parties
• Provide brief description, timelines, process
• Might advise potential suppliers

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Bidder Conferences

• Contractor or pre-bid conference
• Meeting to clarify meaning of work
• All suppliers maintain equal footing Could
  include site visit/inspection
• May require issuance of additional information

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Solicitation Considerations
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Solicitation Considerations

• Make SOW as specific as possible minimize
  changes
• Include requirements (operational definitions)
• May invite alternate bids
• Ensure clear understanding of risk ownership
• Might request two packages technical and
  commercial
• Rarely find perfect solutions

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Summary

• Reviewed Project Procurement Process
• Understand the PMBOK Model of 12.3 Solicitation
  Process including tools
• Reviewed Advertising and Bidder Conferences
• Discussed solicitation considerations