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This session is sponsored by the Federal Acquisition Institute. The primary organization providing knowledge and support to the federal civilian acquisition workforce. For more information about FAI, please visit our website at www.fai.gov.
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This session is sponsored by the Federal Acquisition Institute The primary organization providing knowledge and support to the federal civilian acquisition workforce. For more information about FAI, please visit our website at www.fai.gov
Procurement Management and its role in Project Execution GSA Training Conference and Expo 2010 Michael Bevis Competency and Certification Manager Federal Acquisition Institute
Transparency Alignment Line of Sight What’s the Point?
Procurement Management Plan Components • Types of contracts to be used • Roles and Responsibilities • Standardized documents/procedures • Contract management • Project procurement integration • Constraints and assumptions • Make or buy decision management • Procurement risk management plan • Contractor communications plan • Contractor identification • Procurement performance metrics
Transfer/Acquisition of Capacity Risk Allocation Competence Market Price Combinations The Purposes of Acquisitions/Contracts
Clearly Defined Need Cost Benefit Analysis Well Understood Selection Process Well Rounded Committee A Good RFP The Critical Success Factors(Gido & Clements 2009)
Change Management Specification Interpretation Adherence to Quality Warranty Enforcement Subcontractor Management Production Surveillance Waivers Contract Breach Dispute Resolution Project Termination Payment Schedules Project Closeout The Contract Administration Cycle
What is Risk? • Risk involves the notion of uncertainty • Risk contains potential threats & opportunities Threat Opportunity (Kerzner 2003) Risk
Risk Management Strategies: Strategies for Negative Risks or Threats • Avoidance • Transfer • Mitigate Strategies for Positive Risks or Opportunities • Exploit • Share • Enhance Strategies for Both Threats and Opportunities • Acceptance • Contingent Response Strategy
Example: Market Price Volatility and Pricing Structure/Contract Type Selection Always, the contract type should be selected for • appropriate distribution of project risk between the buyer & seller and; • providing a seller incentive for efficient and economical work performance
Simplified Price Volatility Risk Allocation – Contract Type(Kerzner 2003) 100% 0% FFP Government Risk Contractor Risk Incentives COST 100% 0%
Clearly Defined Need Cost Benefit Analysis A Good RFP Common Understanding of Administration Process The Critical Success Factors Revisited
Transparency Alignment Line of Sight What’s the Point?
Procurement Management Plan Components • Types of contracts to be used • Roles and Responsibilities • Standardized documents/procedures • Contract management • Project procurement integration • Constraints and assumptions • Make or buy decision management • Procurement risk management plan • Contractor communications plan • Contractor identification • Procurement performance metrics
Thank You For your Commitment, For your Professionalism, For your Presence, For your CHOICE Service.
Procurement Management and its role in Project Execution GSA Training Conference and Expo 2010 Michael Bevis Competency and Certification Manager Federal Acquisition Institute
This session is sponsored by the Federal Acquisition Institute The primary organization providing knowledge and support to the federal civilian acquisition workforce. For more information about FAI, please visit our website at www.fai.gov