Creating Evaluation Criteria

 < Day Day Up > 



Another output of solicitation planning is the evaluation criteria. The evaluation criteria is used to rate and score proposals from the sellers. In some instances, such as a bid or quote, the evaluation criterion is focused just on the price the seller offers. In other instances, such as a proposal, the evaluation criteria can be multiple values: experience, references, certifications, and more.

Updating the Statement of Work

The final outputs of solicitation planning are updates to the Statement of Work. As the project team creates the requirements from the sellers during invitations for bids, request for quotes, or request for proposals, they may discover other needed elements in the SOW. In addition, it is possible the bids, quotes, and proposals may offer alternatives the project team has not considered-and a new SOW is created.

Changes to the SOW should be updated, documented, and recorded to reflect the logic and reason behind the change.

start sidebar
Inside the Exam

Project Procurement Management begins with first determining which facets of the project can best be served through procurement. This decision really focuses on a make-or-buy analysis:

  • Is it more cost effective to make or buy the product or service?

  • Is it more time efficient to make or buy the product or service?

  • Are the resources available within the organization to make the product or service?

If the decision has been made to buy the product or service, then a Statement of Work is needed to detail exactly what product or service the organization is buying. The SOW will be given to potential sellers, so they can prepare their offers in alignment with what is needed by the performing organization.

In order to find the potential sellers, the performing organization issues solicitations. Sellers can be found through a preferred vendor list, advertisements, industry directories, trade organizations, or other methods. The initial communication from the buyer to the seller is a request. Specifically, the seller issues one of the following documents:

  • Request for Proposals Used when there are multiple factors besides price to determine which seller is awarded the contract. The buyer is looking for a solution to a need.

  • Request for Quotations Used when the deciding factor is price.

  • Invitation for Bids Used when the deciding factor is price.

The seller can host a bidder conference to ensure that all sellers have equal opportunity to gain information about the procured work or service and that the information they do get is the same. After the seller conference, the selection process is based on several things:

  • Procurement documents from the sellers

  • Company policies and procedures

  • Screening systems to sift out sellers that do not qualify for the work

  • Weighting system to make an unbiased selection of a seller

Once the seller has been selected, the contract is created between the buyer and seller. This formal, preferably written, agreement between the buyer and seller will define all requirements of both the buyer and seller. The seller's requirements will specify how and when the work will be completed. The buyer's requirements will specify the terms and conditions the seller is expected to maintain. The contract may also include information on dispute resolution, how changes to the contract are to be made, and who are the authorities within the buyer's organization and the seller's organization

Contract administration is the process of ensuring that the seller meets the obligations and requirements specified in the contract. If changes arise in the project that affect the contract, there may be additional negotiation for payments based on the added or removed components of the procured work.

At the completion of the contract, the seller and buyer complete product verification, which is much like administrative closure, to confirm that the seller has met its obligations. Documentation of the procurement experience is created, so the information can be applied to other procurement activities on the current projects and to other projects within the organization.

end sidebar



 < Day Day Up > 



PMP Project Management Professional Study Guide
PMP Project Management Professional Study Guide, Third Edition (Certification Press)
ISBN: 0071626735
EAN: 2147483647
Year: 2004
Pages: 209

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net