Outputs of Conduct Procurement

April 19, 2010
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Introduction

Conduct procurements process is all about tying up the procurement. That includes finding and selecting a suitable vendor and then finalizing a contract with him to deliver the item in time and with acceptable quality. The outputs that must be generated by the complete process include a range of documents and document updates that ensure all of that above.

Document outputs

The most important document that must come out of a conduct procurement process is the list of sellers who are qualified and are likely to be a prospective supplier. The members of this select list would have cleared the first level evaluation and have been selected for being in the competitive range. They would have completed a negotiation process with the draft contract. This is the contract template that would be used when the contract award is made. Senior management will have to be involved in case of projects that are crucial for an organization and possibly high risk.

The selected seller is given a procurement contract award. This marks the conclusion of the conduct procurement process. A legal document that binds the seller to supply the product, service or a result and the buyer to compensate him to the extent specified in the contract. Some of the essential components that go into a contract include the following items. Actual contracts may have variations. SOW or deliverables, schedule baseline and the durations it will take, seller’s place of performance and the duration of performance, roles and responsibilities, pricing , payment terms and other terms & conditions including the terms & conditions of acceptance, product support, limitations of liabilities, fees & retainers, insurance & bonds, sub contractor approval. These contracts usually include termination clauses and dispute redressal through legal or arbitration procedures or the so called alternate dispute resolution methods.

Resources calendars include documented availability of contracted resources and the times at which these will be available. Change requests may be required due to impacts the procurement schedule may have on the overall project schedules; risks and costs and many other factors. The integrated change management process will have to take care of review, approval and integration into the overall project management plans.

These are the main document outputs of the conduct procurement process. There are a set of updates may be necessary as issues in the procurements, lead times, cost differences, delays, risks and several other factors can give rise implications in the overall project plans. Hence these changes happen and the need for updates to project documents is called for. Major updates include the following.

Document Updates Output

Most important updates that must be documented without exception are the updates that are essential to the project management documents. These updates include cost baseline, schedule baseline, scope baseline and the project management plan. procurement costs have a direct implication on the overall planned costs and thus must be documented if the actual procurement throws up changes in the planned numbers. Schedule baseline, similarly, can get affected as a direct result of variations in the planned schedules of procurement of important items for the project. Scope baseline can change as direct result of some of the make or buy decisions to be made in course of procurement plans and actually conducting the procurements.

Some of other project documents also will need updates. These documents that may require updates include requirements documents, requirements traceability documentation and the risk register. There are several factors in the procurement operations that can impact the requirements documents. Depending on what is available and particularly not available can force changes in the requirements. That is because implications could be that some requirements cannot be met and thus calling for a change in the requirements document. It is easy to see that the requirements traceability document too would need change when there is requirements change. Risks may have come out because of variances in actual procurement from the plan and thus necessitating changes in the risk register.

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