The Complete PMO

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The Complete PMO

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1. The Complete PMO Chapter 19 - Vendor/Contractor Relationships

3. Vendor/Contractor Relationships Vendors and contractors bring specialized skill, knowledge, and capability to technical project work, as well as provide products/services that support of projects through established contracts/agreements.

4. PMO Vendor/Contractor Relationship Management Responsibility The PMO provides oversight of vendor/contractor performance management to maximize their value on projects and optimize their use within the PM environment. Identify/qualify vendors/contractors who add value to project efforts. Develop guidance for managing vendor/contractor participation on projects. Develop guidance for managing vendor/contractor contracts within the relevant organization.

6. Vendor/Contractor Relationship Activities across the PMO Continuum The PMO establishes processes to qualify vendor/contractor candidates, make them a project resource, and manage their performance. Project Office – Direct responsibility for managing vendor/contractor project performance using established guidance for oversight actions. Mid-range PMO – Develops processes to acquire/manage vendor/contractor participation on projects, prescribe vendor/contractor roles/responsibilities, prepare guidance for project managers to oversee vendors/contractors, and examine opportunities for closer vendor/contractor relationships that offer distinct business advantages. Center of Excellence – Examines/analyzes business results of vendor/contractor participation.

8. Manage Vendor/Contractor Relationships

9. Identify Vendor/Contractor Needs The PMO collaborates with project managers to determine the vendor/contractor support needed within the PM environment. Vendor/contractor partnerships – A formal business relationship to facilitate the mutual pursuit and achievement of common business objectives. Vendor/contractor affiliations – A formal business relationship to enable pre-qualified vendors/contractors to be identified and positioned for use on projects relative to the appropriateness of their products/services. Project-specific relationships – A formal business relationship established to obtain vendor/contractor participation on one or more specific projects. Service provider relationships – A formal/informal business relationship for a pre-qualified service provider with available services for projects. Supplier relationships – A business relationship for providers of products, supplies, and equipment needed for projects. Food service and meal providers.

10. Manage Vendor/Contractor Information The PMO initiates the acquisition/management of vendor/contractor information as a basis for establishing preferred vendor/contractor relationships. Vendor/contractor presence – Vendors/contractors that exist in the market place and their contributing capabilities for projects efforts. Vendor/contractor qualification. Vendor/contractor performance. Vendor/contractor business profile. Vendor/contractor relationship history. Vendor/contractor business fit.

11. Prescribe Vendor/Contractor Participation The PMO establishes processes for how to use vendors/contractors on projects within the PM environment. Vendor/contractor sourcing responsibility – Determines if it is a clearinghouse for vendor/contractor acquisition or just as a vendor/contractor information resource. Vendor/contractor oversight responsibility - Determine PMO involvement in managing vendor/contractor participation. Vendor/contractor project affiliation – Determines the approach to vendor/contractor management on projects relative to the type of vendor/contractor. Vendor/contractor PM responsibility – Establishes common activities/expectations for vendor/contractor participation in PM activities. Vendor/contractor technical performance responsibility – Establishes guidance for vendor/contractor use of acceptable technical performance standards and technical competency requirements to apply to vendor/contractor efforts within the PM environment. Vendor/contractor business management responsibility – Establishes guidance for vendor/contractor business activity management.

12. Manage Vendor/Contractor Acquisition

13. Identify/Qualify Vendors/Contractors The PMO establishes processes to identify and qualify vendors/contractors according to established business relationships. Identify vendor/contractor requirements. Perform make-or-buy analysis. Qualify vendors and contractors. Technical capability. Staff experience. Familiarity with vendor/contractor products/services. Vendor/contractor familiarity with the organization. Geographic location and coverage. Previous similar jobs completed. Financial stability and bonding capacity. Determine pricing arrangements. Develop independent cost estimates. Create vendor/contractor plan.

14. Solicit Vendor/Contractor Proposals The PMO establishes guidance for preparing vendor/contractor solicitation, manage their distribution, and review responses toward selecting a qualified vendor/contractor. Prepare internal requisition material. Determine type of solicitation. Prepare solicitation. Scope of work. Technical requirements. Schedule. Proposal format requirements. Terms and conditions. Subcontract type. Evaluation criteria. Specify optional proposal actions. Distribute the solicitation and manage vendor/contractor responses. Evaluate vendor/contractor responses. Conduct vendor/contractor negotiations. Select vendor/contractor. Debriefing.

15. Prepare Vendor/Contractor Contracts The PMO establishes processes to prepare vendor/contractor contracts in the relevant organization. Verify contract documents. Obtain vendor/contractor contract approvals. Book the contract. Transfer vendor/contractor responsibility to project managers.

16. Manage Vendor/Contractor Performance

17. Administer Vendor/Contractor Contracts The PMO administers vendor/contractor contracts to ensure the fulfillment of the contractual obligations by all parties. Verify vendor/contractor contract booking. Organize vendor/contractor contract files. Establish procedures for contract claims and dispute resolution. Establish procedures to solve issues/problems. Establish communication guidance. Monitor vendor/contractor performance. Manage vendor/contractor relations. Conduct meetings with vendor/contractor representatives. Manage vendor/contractor contract changes. Monitor vendor/contractor contract compliance. Manage acceptance of vendor/contractor deliverables. Manage vendor/contractor payments. Following are several types of payments. Review and close out vendor/contractor contract. Manage vendor/contractor resource departures. Prepare a post-project vendor/contractor performance report.

18. Monitor Vendor/Contractor Performance The PMO facilitates project manager oversight for vendor/contractor performance management. Price variation analysis. Deliverable performance analysis. Contract add-on/extension analysis – Identifies particular vendors/contractors having a recurring needs to request/negotiate work extensions. Billing practices analysis. Management retention analysis. Customer satisfaction analysis. Project manager oversight analysis. Business/investment posture.

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