Conduct Procurements
Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract.
Explanation
Conduct Procurements bridges the gap between procurement planning and actual contract execution. During this process, the project team sends bid documents to potential sellers, receives proposals or bids, applies source selection criteria to evaluate responses, and negotiates with one or more sellers before awarding a contract.
Key tools and techniques include advertising to broaden the pool of potential sellers, bidder conferences to ensure all prospective sellers have a clear understanding of the procurement requirements, proposal evaluation techniques, and negotiation. In some organizations, a separate procurement or purchasing department handles this process.
The primary outputs are selected sellers, agreements (contracts), change requests, and updates to the project management plan and project documents. The contract becomes the legally binding agreement that governs the buyer-seller relationship for the duration of the procurement.
Key Points
- •Belongs to the Executing process group
- •Involves obtaining proposals, evaluating sellers, and awarding contracts
- •Uses bidder conferences and proposal evaluation techniques
- •Produces agreements (contracts) and selected sellers as outputs
Exam Tip
Conduct Procurements is in the Executing process group. A common exam trap is confusing it with Plan Procurement Management (Planning) or Control Procurements (Monitoring & Controlling).
Frequently Asked Questions
Related Topics
Plan Procurement Management
Plan Procurement Management is the process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.
Source Selection Criteria
Source selection criteria are the standards and factors used to evaluate and rank seller proposals during the procurement process.
Bid Documents
Bid documents are formal documents issued by the buyer to prospective sellers to solicit proposals, bids, or quotations for the goods or services needed by the project.
Procurement Negotiations
Procurement negotiations are discussions between the buyer and seller aimed at reaching a mutually acceptable agreement on all terms and conditions of the contract before signing.
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