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This session is sponsored by the Federal Acquisition Institute. The primary organization providing knowledge and support to the federal civilian acquisition workforce. For more information about FAI, please visit our website at www.fai.gov.

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Presentation Transcript
slide1

This session is sponsored by the

Federal Acquisition Institute

The primary organization providing knowledge and support to the federal civilian acquisition workforce.

For more information about FAI, please visit

our website at www.fai.gov

procurement management and its role in project execution

Procurement Management and its role in Project Execution

GSA Training Conference

and Expo 2010

Michael Bevis

Competency and Certification Manager

Federal Acquisition Institute

what s the point
Transparency

Alignment

Line of Sight

What’s the Point?
slide4

Procurement Management Plan Components

      • Types of contracts to be used
      • Roles and Responsibilities
      • Standardized documents/procedures
      • Contract management
      • Project procurement integration
      • Constraints and assumptions
      • Make or buy decision management
      • Procurement risk management plan
      • Contractor communications plan
      • Contractor identification
      • Procurement performance metrics
the purposes of acquisitions contracts
Transfer/Acquisition of Capacity

Risk Allocation

Competence

Market

Price

Combinations

The Purposes of Acquisitions/Contracts
the critical success factors gido clements 2009
Clearly Defined Need

Cost Benefit Analysis

Well Understood Selection Process

Well Rounded Committee

A Good RFP

The Critical Success Factors(Gido & Clements 2009)
the contract administration cycle
Change Management

Specification Interpretation

Adherence to Quality

Warranty Enforcement

Subcontractor Management

Production Surveillance

Waivers

Contract Breach

Dispute Resolution

Project Termination

Payment Schedules

Project Closeout

The Contract Administration Cycle
slide9
What is Risk?
  • Risk involves the notion of uncertainty
  • Risk contains potential threats & opportunities

Threat

Opportunity

(Kerzner 2003)

Risk

slide10
Risk Management Strategies:

Strategies for Negative Risks or Threats

  • Avoidance
  • Transfer
  • Mitigate

Strategies for Positive Risks or Opportunities

  • Exploit
  • Share
  • Enhance

Strategies for Both Threats and Opportunities

  • Acceptance
  • Contingent Response Strategy
slide11
Example: Market Price Volatility and Pricing Structure/Contract Type Selection

Always, the contract type should be selected for

  • appropriate distribution of project risk between the buyer & seller and;
  • providing a seller incentive for efficient and economical work performance
simplified price volatility risk allocation contract type kerzner 2003
Simplified Price Volatility Risk Allocation – Contract Type(Kerzner 2003)

100%

0%

FFP

Government

Risk

Contractor

Risk

Incentives

COST

100%

0%

the critical success factors revisited
Clearly Defined Need

Cost Benefit Analysis

A Good RFP

Common Understanding of Administration Process

The Critical Success Factors Revisited
what s the point1
Transparency

Alignment

Line of Sight

What’s the Point?
slide15

Procurement Management Plan Components

      • Types of contracts to be used
      • Roles and Responsibilities
      • Standardized documents/procedures
      • Contract management
      • Project procurement integration
      • Constraints and assumptions
      • Make or buy decision management
      • Procurement risk management plan
      • Contractor communications plan
      • Contractor identification
      • Procurement performance metrics
slide16

Thank You

For your Commitment,

For your Professionalism,

For your Presence,

For your CHOICE Service.

procurement management and its role in project execution1

Procurement Management and its role in Project Execution

GSA Training Conference

and Expo 2010

Michael Bevis

Competency and Certification Manager

Federal Acquisition Institute

slide18

This session is sponsored by the

Federal Acquisition Institute

The primary organization providing knowledge and support to the federal civilian acquisition workforce.

For more information about FAI, please visit

our website at www.fai.gov

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