Why Outsource o reduce both fixed and recurrent costs a To allow the client organization to focus on its core business To access skills and technologies To provide flexibility a To increase accountabilit 2021/2/21
2021/2/21 6 Why Outsource? ◼ To reduce both fixed and recurrent costs ◼ To allow the client organization to focus on its core business ◼ To access skills and technologies ◼ To provide flexibility ◼ To increase accountability
Project Procurement Management Processes Procurement planning: determining what to procure and when Solicitation planning: documenting product requirements and identifying potential sources Solicitation: obtaining quotations, bids, offers, or proposals as appropriate Source selection: choosing from among potential vendors Contract administration: managing the relationship with the vendor Contract close-out: completion and settlement of the contract 2021/2/21 7
2021/2/21 7 Project Procurement Management Processes ◼ Procurement planning: determining what to procure and when ◼ Solicitation planning: documenting product requirements and identifying potential sources ◼ Solicitation: obtaining quotations, bids, offers, or proposals as appropriate ◼ Source selection: choosing from among potential vendors ◼ Contract administration: managing the relationship with the vendor ◼ Contract close-out: completion and settlement of the contract
Project Procurement Management Processes and Key Outputs Procurement SolicitationSolicitation Source Contract Contract Planning Planning Selection Administration Close-out Make Issue Receive Award Complete Formally make-or-buy RFPI proposals contract! substantiall c ose decision amount of contract work 2021/2/21 8
2021/2/21 8 Project Procurement Management Processes and Key Outputs
11.2 Procurement Planning
11.2 Procurement Planning
Procurement Planning Procurement planning involves identifying which project needs can be best met by using products or services outside the organization. It includes deciding whether to procure how to procure what to procure how much to procure Then to procure 2021/2/21 10
2021/2/21 10 Procurement Planning ◼ Procurement planning involves identifying which project needs can be best met by using products or services outside the organization. It includes deciding ◼ whether to procure ◼ how to procure ◼ what to procure ◼ how much to procure ◼ when to procure