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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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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

GSA Training Conference

and Expo 2010

Michael Bevis

Competency and Certification Manager

Federal Acquisition Institute


Transparency

Alignment

Line of Sight

What’s the Point?


  • 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


Transfer/Acquisition of Capacity

Risk Allocation

Competence

Market

Price

Combinations

The Purposes of Acquisitions/Contracts


Clearly Defined Need

Cost Benefit Analysis

Well Understood Selection Process

Well Rounded Committee

A Good RFP

The Critical Success Factors(Gido & Clements 2009)


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


What is Risk?

  • Risk involves the notion of uncertainty

  • Risk contains potential threats & opportunities

Threat

Opportunity

(Kerzner 2003)

Risk


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


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)

100%

0%

FFP

Government

Risk

Contractor

Risk

Incentives

COST

100%

0%


Clearly Defined Need

Cost Benefit Analysis

A Good RFP

Common Understanding of Administration Process

The Critical Success Factors Revisited


Transparency

Alignment

Line of Sight

What’s the Point?


  • 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


Thank You

For your Commitment,

For your Professionalism,

For your Presence,

For your CHOICE Service.


Procurement Management and its role in Project Execution

GSA Training Conference

and Expo 2010

Michael Bevis

Competency and Certification Manager

Federal Acquisition Institute


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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