PMP Practice: Apply Intervention Strategies

Kavya Subramaniam is managing a pharmaceutical packaging facility expansion for Polite Explosion Studios. The project is following a predictive approach with a 14-month timeline and a $4.2M budget. At the end of month 8, Kavya discovers that a critical vendor — responsible for installing specialized clean room HVAC systems — has filed for bankruptcy protection and ceased operations. The vendor was 40% through their contracted work, and the next milestone (clean room certification readiness) is scheduled for month 10. The procurement team estimates it will take 3-4 weeks to identify and contract a replacement vendor. The facilities director is pressuring Kavya to expedite replacement immediately, while the quality assurance manager insists on a full audit of the incomplete work before any new vendor begins. Kavya has already reviewed the contract and confirmed the termination clause allows the project to reclaim materials and work-in-progress. What should Kavya do to most effectively address this impediment?