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School of Information Technology Bachelor of Information Technology Project Management: CIT3114 Lecture 12: 26/11/2012
Topic: Project Procurement Management
Learning Objectives
To understand the importance of project procurement management and the increasing use of outsourcing for information technology projects
To describe the procurement planning process, procurement planning tools and techniques, types of contracts, and statements of work
To discuss what is involved in solicitation planning and the difference between a request for proposal and a request for quote
To explain what occurs during the solicitation process
To describe the source selection process and different approaches for evaluating proposals or selecting suppliers
To discuss the importance of good contract administration
To describe the contract close-out process
To discuss types of software available to assist in project procurement management
Reasons for outsourcing
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
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
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
Tools techniques in procurement planning
Make-or-buy analysis: determining whether a particular product or service should be made or performed inside the
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