SOFTWARE PROJECT MANAGEMENT

SOFTWARE PROJECT MANAGEMENTProject Procurement

ManagementDr. Ahmet TÜMAY, PMP

Procurement ManagementIncludes the processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work.

Includes the contract management and change control processes required to administer contracts or purchase orders issued by authorized project team members.

Includes controlling any contract issued by the buyer and administering contractual obligations placed on the project team by the contract.

Contracts - Aggreements

• Legal documents between a buyer and a seller.

• A contract is a mutually binding agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to provide monetary or other valuable consideration.

• A contract is a legal relationship subject to remedy in the courts. The agreement can be simple or complex, and can reflect the simplicity or complexity of the deliverables.

• Depending upon the application area, contracts can also be called an agreement, subcontract, or purchase order.

Plan Procurement ManagementThe process of documenting project procurement decisions, specifying the approach and identifying the potential sellers (whether to acquire, what to acquire, how to acquire, how much and when)

Plan Procurements• The Plan Procurements process also includes

consideration of potential sellers• The requirements of the project schedule can

significantly influence the strategy during the Plan Procurements process.

• The Plan Procurements process includes consideration of the risks involved with each make-or-buy decision. It also includes reviewing the type of contract planned to be used with respect to avoiding or mitigating risks, sometimes transferring risks to the seller.

Plan Procurements T&T• Make & Buy Analysis• Contract Types

– Fixed Price Contracts• Firm Fixed Price• Fixed Price Incentive Fee• Fixed Price & Economic Price

Adjustments– Cost Reimbursable Contracts

• Cost + Fixed Fee• Cost + Incentive Fee• Cost + Award Fee

– Time & Material Contracts

Plan Procurements Outputs

• Procurement Management Plan• Procurement Statement of Work• Make / Buy Decisions• Procurement Documents• Source Selection Criteria• Change Requests

Conduct Procurements•Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. •team will receive bids or proposals and apply selection criteria to select seller(s) to perform the work.

Control ProcurementsAdminister Procurements is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections to contracts as appropriate.

Both the buyer and the seller will administer the procurement contract for similar purposes. Each must ensure that both parties meet their contractual obligations and that their own legal rights are protected.

Process ensures that the seller’s performance meets procurement requirements and that the buyer performs according to the terms of the legal contract.

Close ProcurementsClose Procurements is the process of completing each project procurement.

It supports the Close Project or Phase process since it involves verification that all work and deliverables were acceptable.

The Close Procurements process also involves administrative activities such as finalizing open claims, updating records to reflect final results and archiving such information for future use.

Early termination of a contract is a special case of procurement closure that can result from a mutual agreement of both parties or for convenience of the buyer if provided for in the contract. The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract

Close Procurements