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    Procurement Life Cycle

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    samer
    The document discusses the procurement management process which includes defining requirements, market research, make or buy analysis, issuing requests for information/quotation/proposal, bidder conferences, proposal evaluation, negotiation, supplier selection, agreement, supplier relationship management, and performance reviews.

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    Procurement Life Cycle

    Uploaded by

    samer
    4 views9 pages
    The document discusses the procurement management process which includes defining requirements, market research, make or buy analysis, issuing requests for information/quotation/proposal, bidder conferences, proposal evaluation, negotiation, supplier selection, agreement, supplier relationship management, and performance reviews.

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    The document discusses the procurement management process which includes defining requirements, market research, make or buy analysis, issuing requests for information/quotation/proposal, bidder conferences, proposal evaluation, negotiation, supplier selection, agreement, supplier relationship management, and performance reviews.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views9 pages

    Procurement Life Cycle

    Uploaded by

    samer
    The document discusses the procurement management process which includes defining requirements, market research, make or buy analysis, issuing requests for information/quotation/proposal, bidder conferences, proposal evaluation, negotiation, supplier selection, agreement, supplier relationship management, and performance reviews.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 9

    Procurement Management

    Procurement is the process of acquiring goods and services from external sources to
    meet the needs of an organization.
    ‫المشتريات هي عملية الحصول على السلع والخدمات من مصادر خارجية لتلبية احتياجات المنظمة‬
    Procurement Life Cycle
    Document Tender
    (Define Market Research Make or Buy
    RFI / RFQ
    Requirement ( Data Base ) analysis
    (SOW))

    Negotiation Proposal Evaluation Proposal Submittal Bidder Conferences

    Supplier
    Performance
    Select Sellers Agreement relationship
    Reviews
    management

    Closed
    Procurements
    • Define Requirement
    • Study Project Document
    1. Drawing
    2. Specification
    3. B.O.Q
    4. Other
    Define Type of contract & Scope & Level Quality required

    • Market Research
    - Data of requirement
    - Cost of requirement
    - Subcontractor work in this material
    • specific them
    • capability

    • Make or Buy analysis


    Benchmark between Make by Project team or Purchased from outside sources

    - Factors to consider in the make or buy decision


    1. The organization’s current resource allocation and their skills and abilities.
    2. The need for specialized expertise.
    3. Evaluating the risks involved with each make-or-buy decision.
    • RFI & RFQ & RFP
    Request for information Request for proposal Request for quotation
    • Bidder Conferences
    - Meetings between owner and prospective contractor prior to clear and understand any data

    • Proposal Submittal
    - Technical & Financial Proposal

    • Proposal Evaluation:
    - Proposals are evaluated to ensure they are complete and respond in full to the bid
    documents, procurement statement of work, source selection criteria.
    - Source selection criteria
    1. Capability and capacity.
    2. Product cost and life cycle cost.
    3. Delivery dates.
    4. Technical expertise and approach.
    5. Specific relevant experience , quality levels , performance reporting
    6. Key staff’s qualifications, availability, and competence.
    7. Financial stability of the firm.
    8. Management experience.
    • Negotiation (Important soft skills)

    o Is a discussion aimed at reaching an agreement


    o Procurement negotiation clarifies the structure, rights, and obligations of the parties so
    that mutual agreement can be reached prior to signing the contract

    • Select Sellers

    o Source selection analysis

    − least cost
    − Qualification only
    − Quality-based/highest technical proposal score
    − Quality and cost-based
    − Sole source
    − Fixed budget (highest-ranking technical proposal within the budget.)
    • Agreement

    • Agreements are understandings between parties, including understanding of the duties of


    each party. The relevant agreements are reviewed to verify terms and conditions are met .

    - The major components in an agreement document and may include:

    • Procurement statement of work or major deliverables


    • Schedule, milestones.
    • Performance reporting
    • Pricing and payment terms
    • General terms and conditions
    • Subordinate subcontractor approvals
    • Change request handling
    • Inspection, quality, and acceptance criteria
    • Termination clause and alternative dispute resolution mechanisms
    • Supplier relationship management
    • Follow performance according to agreement
    • Change request
    - Can include modifications to the terms and conditions of the contract, including the
    procurement statement of work (SOW), pricing, and descriptions of the products.
    • Claims and administration
    - Requested changes where owner and contractor cannot reach an agreement on
    compensation for the change or cannot agree that a change has occurred These contested
    changes are called claims.
    - If the parties themselves do not resolve a claim, it may have to be handled in accordance
    with alternative dispute resolution (ADR).

    • Performance Reviews

    • Closed Procurements
    - As build drawing
    - Snagging testing & commissioning

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