Ryerson University
Project Management Certificate
Procurement and Contracts Overview
presented to the
PMI-ISLIG
Operational
Nov 11, 2004
Risk
by
Business
Desmond P. Alvares
Intelligence
Tools
des_alvares@bcs.org.uk
416 258 7178
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Introduction – Who Am I
Continuing Education Division
Ryerson University
Desmond P. Alvares B. Eng., MBA, MBCS CITP, CMA
O
R
B
I
T


Degree in Mechanical Engineering - UK
MBA at Schulich School of Business, York University




Certified Management Accountant - Ontario
Chartered Information Systems Practitioner – UK (2001)
Chartered IT Professional – UK (2004)
19 years Business Intelligence and Knowledge Management in
Canada, UK, US, Switzerland and Caribbean
10 years Investment Banking (Brokerage Houses, Private Banking
and Oil &Gas trading)
6 years Retail Banking (Technology Business Management,
Operational Risk, Electronic Banking and Mortgages, Finance and
Treasury Systems)
3 years Property and Casualty Insurance (Finance and Actuarial
Systems)



 Finance, Accounting and Strategy
Desmond Alvares CKPM 205
Procurement and Contracts
2
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Introduction – PM Background
O
R
B
I
T
•
•
•
•
•
Financial Systems Implementations
Business, Training, Finance and Treasury Projects
Internal and Client Facing Projects
Internal Providers and Integration of Vendor Solution
Introduced and Developed Project Management
Methodology – UBS Private Banking (International
locations base on Swiss framework) and CIBC Retail
(PMP based on the PMI framework)
• Lecturer at Ryerson University – Project Management
Certificate (Construction, IT and Financial Service
students) and Architecture specialization in Project
Management.
Desmond Alvares CKPM 205
Procurement and Contracts
3
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Agenda
O
R
B
I
T
•
•
•
•
•
•
•
•
Continuing Education Division
Ryerson University
Introduction
The Certificate Program at Ryerson
The Procurement Process
Planning
Solicitation
Source Selection
Contract Administration
Close-out
Desmond Alvares CKPM 205
Procurement and Contracts
4
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Other Offerings of Project
Management Courses
• Athabasca University
– Executive MBA in Project Management (on-line and residence)
• Centennial College
O
R
B
I
T
– Project Management Certificate (6 courses)
– Advanced Project Management Certificate (4 courses)
• Durham College
– Intro, Scheduling Software, Statistics
• Humber College
– Project Management Certificate (4 courses, 45hrs)
• University of Toronto
– Project Management Certificate (4 courses, full day)
• York University
– The Graduate Certificate in Project Management (8 courses)
Desmond Alvares CKPM 205
Procurement and Contracts
5
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
The Ryerson Offer (8 Courses)
O
R
B
I
T
• Core Courses
– CKPM202 Fundamentals of Project Management
– CKPM203 Planning and Scheduling
– CKPM205 Procurement and Contracts
– CKPM209 Project Risk and Quality Management
– CKPM210 Project Leadership
– CKPM211 Project Cost Management
• Electives
– CKPM207 Project Management Systems
– CKPM208 Analytical Decision Making
– CCMN114 Short Management Reports
– CCMN432 Technical Communications
– CMHR405 Organizational Behaviour and Interpersonal Skills
– CQMS102 Business Statistics I
Desmond Alvares CKPM 205
Procurement and Contracts
6
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
The Students View
Continuing Education Division
Ryerson University
• 570 surveys distributed to students, 271 returned
• 164 surveys to graduates, 24 returned
O
R
B
I
T
• Students select Ryerson first and then the Certificate Course 75%
(Ryerson Website, Ryerson material)
• 44.6% in Project Manager or Project Coordinator positions
• Experience 80% (> 5 Years), 25.1% (> 15 Years)
• 85% interested in becoming professional in 2 years
• 85.2% using certificate as preparation, but lack work experience
• Graduates (61.9% PMI members, 25% PMP), 75% additional
prep
• Risk, cost and planning / scheduling – more theory than practice
• Interest in PMO, Leadership and Communication
• Common text book required, introduce PMP Preparation
Desmond Alvares CKPM 205
Procurement and Contracts
7
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Definition of the Procurement
Process
• Objectives
O
R
B
I
T
– Technical & Quality
– Schedule
– Cost
Desmond Alvares CKPM 205
Procurement and Contracts
8
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Basic Steps
O
R
B
I
T
Continuing Education Division
Ryerson University
• Define the Goods and Services to be
procured
• Select bidders and Complete Request for
Proposal
• Prepare Bids and Award Contract
• Contract Management
• Close out Contact
Desmond Alvares CKPM 205
Procurement and Contracts
9
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Other Aspects
O
R
B
I
T
•
•
•
•
•
Continuing Education Division
Ryerson University
Role of Project Management
Interfaces with Other Project Processes
Importance of Management
Ethical Practices
Principle Types
– Standard, Material, Equipment & Services
• Definitions of Common Terms
Desmond Alvares CKPM 205
Procurement and Contracts
10
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Organizations for Procurement
• Organization
O
R
B
I
T
–
–
–
–
–
Project Managers responsibility
Procurement department – purchasing & materials
Responsibilities
Staffing – direct and matrix
Procedures
• Requests, Qualified Bidders, RFP, Contact Management
– Management Program
Desmond Alvares CKPM 205
Procurement and Contracts
11
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Procurement Considerations
O
R
B
I
T
–
–
–
–
–
–
–
–
What to Procure?
How much to procure?
When to procure?
Selecting an appropriate method of procurement.
Qualifying suppliers.
Developing a contracting strategy.
Establishing appropriate performance measures.
Documenting the procurement project plan.
Desmond Alvares CKPM 205
Procurement and Contracts
12
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1 Plan Purchase and Acquisition
(Procurement Planning)
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
Contract
Closure
13
12.1 PLAN PURCHASE AND ACQUISITION
Inputs
Project Charter
Tools &
Techniques
Project Scope Statement
Project Management
Plan
Make-or-Buy
Analysis
WBS and Dictionary
Expert Judgment
Environment and
Organization Factors
Contract Types
Organizational Process
Assets
Risk Register
Outputs
Procurement
Management Plan
Contract Statement
of Work
Make or Buy
Decision
Project
Management
Plan (Updates)
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.1 Inputs to Plan Purchase
and Acquisition
• .1 Project Charter
– Business needs
O
R
B
I
T
• .1 Project Scope Statement
– Project needs and strategies
• .2 Project Management Plan
– Overall plan for the project
Desmond Alvares CKPM 205
Procurement and Contracts
15
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.1 Inputs to Plan Purchase
and Acquisition
• .3 Work Breakdown Structure and
Dictionary
O
R
B
I
T
– Relationship of all elements in plan
• .4 Environmental and Organizational
Factors
– What is available in the marketplace?
– Procurement resources available
Desmond Alvares CKPM 205
Procurement and Contracts
16
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.1 Inputs to Plan Purchase
and Acquisition
• .5 Organizational Process Assets
– Informal and formal procurement processes
O
R
B
I
T
• .6 Risk Register
– Risks , categorization and their mitigation
Desmond Alvares CKPM 205
Procurement and Contracts
17
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.2 Tools & Techniques for
Plan Purchase and Acquisition
O
R
B
I
T
• .1 Make-or-buy analysis
• .2 Expert judgment
• .3 Contract type selection
Desmond Alvares CKPM 205
Procurement and Contracts
18
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.2.1 Make or Buy Analysis
• Factors to analyze:
O
R
B
I
T
•
•
•
•
•
•
Cost (direct and indirect - lifecycle costs)
Schedule
Quality
Capability & availability of in-house resources
Supplier skills and abilities
Degree of control needed by the performing
organization
Desmond Alvares CKPM 205
Procurement and Contracts
19
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.2.2 Expert Judgement
O
R
B
I
T
• Other Departments
• Consultants
• Professional and Technical
Associations
• Industry groups
Desmond Alvares CKPM 205
Procurement and Contracts
20
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.1.2.3 Contract Types
• Three broad categories of contract
type:
• Fixed price or lump sum
O
R
B
I
T
– FFP
– FPPI
• Cost reimbursable
– CPFF
– CPPF
– CPIF
• Time and Materials (Unit Price)
Desmond Alvares CKPM 205
Procurement and Contracts
21
Contract Type vs. Risk Allocation
Scope of Work
Information
Very Little
Partial
Complete
Uncertainty
HIGH
MODERATE
LOW
Degree of
Risk
HIGH
MODERATE
LOW
100%
Buyer
0%
0%
Seller
100%
Suggested Risk
Allocation
Contract Types
CPPF
CPPF: Cost + % Fee
CPIF: Cost + Incentive Fee
CPFF: Cost + Fixed Fee
CPIF
CPFF
FPPI
FPPI: Firm Price + Incentive Fee
FFP: Firm Fixed Price
FFP
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.1.3 Outputs from Plan
Purchase and Acquisition
Continuing Education Division
Ryerson University
O
R
B
I
T
•
•
•
•
.1
.2
.3
.4
Procurement management plan
Contract Statement(s) of work
Make-or-Buy Decision
Project Management plan (update)
Desmond Alvares CKPM 205
Procurement and Contracts
23
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.1.3.1 Procurement
Management Plan
Continuing Education Division
Ryerson University
• Defines procurement process
O
R
B
I
T
• Basic requirements
• Products/services list to procure
• Roles and responsibilities
• Budget
• Schedule
• Quality criteria
• Specifications
• Contract Desmond
type Alvares
to be
used
CKPM 205
Procurement and Contracts
24
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
O
R
B
I
T
•
•
•
•
12.1.3.2 Contract Statements of
Work
A narrative description of the product
Clear, concise and as complete as possible
Sufficient detail
Allows prospective sellers to determine
whether they are capable of providing the
product
• Could be revised and refined throughout
the procurement process
Desmond Alvares CKPM 205
Procurement and Contracts
25
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2 Plan Contracting
(Solicitation Planning)
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
Contract
Closure
26
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.2 Plan Contracting
O
R
B
I
T
Continuing Education Division
Ryerson University
• Preparing the documents needed to
support the solicitation process
Desmond Alvares CKPM 205
Procurement and Contracts
27
12.2 PLAN CONTRACTING
Inputs
Procurement
Management Plan
Contract Statements
of Work
Project
Management Plan
Make-or-Buy
Decision
Tools &
Techniques
Outputs
Standard Forms
Procurement
Documents
Expert Judgment
Evaluation
Criteria
Contract
Statement of
Work (Updates)
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2.1 Inputs to Plan
Contracting
O
R
B
I
T
•
•
•
•
.1
.2
.3
.4
Procurement Management Plan
Contract Statement(s) of work
Project Management Plan
Make-or-buy Decision
Desmond Alvares CKPM 205
Procurement and Contracts
29
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2.2 Tools & Techniques for
Plan Contracting
• .1 Standard forms
O
R
B
I
T
– Standard contracts, bid documents
• .2 Expert judgement
Desmond Alvares CKPM 205
Procurement and Contracts
30
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2.3 Outputs from Plan
Contracting
O
R
B
I
T
• .1 Procurement documents
• .2 Evaluation criteria
• .3 Contract Statement of work updates
Desmond Alvares CKPM 205
Procurement and Contracts
31
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2.3.1 Procurement Documents
• Documents used to solicit proposals
from prospective vendors
O
R
B
I
T
• Request for Proposal (RFP), Quote(RFQ)
or Bid (RFB)
• Instructions (e.g. desired form of
response)
• Blank contract form
• Product description or SOW
• Contractual provisions
• Terms and conditions
Desmond Alvares CKPM 205
Procurement and Contracts
32
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.2.3.2 Evaluation Criteria
O
R
B
I
T
• Criteria used to create or score proposals
• Objective vs. subjective
• Weigh the criteria in terms of importance
Desmond Alvares CKPM 205
Procurement and Contracts
33
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.3 Request Seller Responses
(Solicitation)
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
Contract
Closure
34
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.3 Request Seller Responses
O
R
B
I
T
• Obtaining the information (bids and/or
proposals) from the prospective sellers
• Most of the actual effort is done by the
sellers
Desmond Alvares CKPM 205
Procurement and Contracts
35
12.3 REQUEST SELLER RESPONSES
Inputs
Procurement
Documents
Organizational
Process Assets
Tools &
Techniques
Bidders
Conference
Advertising
Outputs
Qualified
Sellers List
Procurement
Document
Package
Proposals
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.3.1 Inputs to Request Seller
Responses
O
R
B
I
T
• .1 Procurement documents
• .2 Organizational Process Assets
Desmond Alvares CKPM 205
Procurement and Contracts
37
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.3.2 Tools & Techniques for
Request Seller Responses
• .1 Bidder conferences
O
R
B
I
T
• Used to ensure that all prospective sellers
have a common understanding of the
procurement
• .2 Advertising
• Used to expand the list of potential sellers
• Sometimes required on public projects
Desmond Alvares CKPM 205
Procurement and Contracts
38
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.3.3 Outputs from Request
Seller Responses
• .1 Qualified seller lists
O
R
B
I
T
• Internally maintained lists
• List developed by the project team
• .2 Procurement Documentation Package
• .3 Proposals
• Seller-prepared documents that describe the
seller’s ability and willingness to provide the
requested product
Desmond Alvares CKPM 205
Procurement and Contracts
39
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.4 Select Sellers
(Source Selection)
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
Contract
Closure
40
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.4 Select Sellers
O
R
B
I
T
Continuing Education Division
Ryerson University
• Receipt of bids or proposals
• Application of the evaluation criteria to
select a provider
• Risk evaluation, lifecycle cost, independent
estimates
• Contract negotiations
• Award the contract
Desmond Alvares CKPM 205
Procurement and Contracts
41
12.4 SELECT SELLERS
Tools &
Techniques
Outputs
Organizational
Process Assets
Weighting
System
Selected
Sellers
Risk Register
Independent
Estimates
Contract
Inputs
Proposals
Evaluation Criteria
Risk-Related
Contractual
Agreements
Qualified sellers List
Procurement
Document Package
Screening
System
Contract
Negotiation
Contract
Management
Plan
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.4.1 Inputs to Select Sellers
Continuing Education Division
Ryerson University
O
R
B
I
T
•
•
•
•
•
•
•
.1
.2
.3
.4
.5
.6
.7
Proposals
Evaluation Criteria
Organizational Process Assets
Risk Register
Risk Related Contractual Agreement
Qualified Sellers List
Procurement Documentation Package
Desmond Alvares CKPM 205
Procurement and Contracts
43
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.4.2 Tools & Techniques for
Select Sellers
Continuing Education Division
Ryerson University
• .1 Weighing system
– Method for quantifying qualitative data
– Minimize the effect of personal prejudice
O
R
B
I
T
• .2 Independent estimates
– Procuring organization may prepare its own
estimates as a check on pricing
• .3 Screening system
– Establishing minimum performance
requirements for evaluation criteria
Desmond Alvares CKPM 205
Procurement and Contracts
44
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.4.2 Tools & Techniques for
Select Sellers
• .4 Contract negotiation
O
R
B
I
T
• Involves clarification and mutual
agreement on the structure and
requirements of the contract
• Final contract to reflect all agreements
reached
• Examples of subjects covered:
responsibilities & authorities, terms and
law, contract financing, price
Desmond Alvares CKPM 205
Procurement and Contracts
45
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.4.3 Outputs from Select
Sellers
• .1 Select Sellers
• .2 Contract
O
R
B
I
T
• Mutual agreement which obligates the seller to
provide the specified product and obligates the buyer
to pay for it.
• Legal relationship subject to remedy in the courts
• Contract =agreement=subcontract=purchase
agreement=memorandum of understanding
• .3 Contract Management Plan
Desmond Alvares CKPM 205
Procurement and Contracts
46
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.5 Contract Administration
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
Contract
Closure
47
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.5 Contract Administration
O
R
B
I
T
• Ensuring that the vendor’s performance
meets contractual requirements
• Application of project management
processes to the contractual relationship
–
–
–
–
–
Project plan execution
Performance reporting
Quality control
Change control
Communication management
Desmond Alvares CKPM 205
Procurement and Contracts
48
12.5 CONTRACT ADMINISTRATION
Inputs
Contract
Approved
Change
Requests
Work
Performance
Information
Selected
Sellers
Tools &
Techniques
Contract Change
Control System
Buyer-Conducted
Performance Reviews
Inspections and Audits
Performance Reporting
Payment System
Claims Administration
Records Management
System
Outputs
Organizational
Process Assets
(updates)
Requested
Changes
Recommended
Corrective
Actions
Contract
Documentation
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.5.1 Inputs to
Contract Administration
Continuing Education Division
Ryerson University
• .1 Contract
• .2 Performance Reports
• Which deliverables completed, not completed
• To what extent quality standards are being met
O
R
B
I
T
• .3 Approved Change requests
• Modifications to the terms of the contract or to the
description of the product or service
• Contested changes where the seller and project
management team cannot agree on compensation for the
change are also called claims, disputes or appeals
• .4 Work Performance Information
• .5 Selected Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
50
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.5.2 Tools & Techniques
for Contract Administration
• .1 Contract change control system
O
R
B
I
T
– the process by which the contract can be
modified
• .2 Buyer-Conducted Performance
Reports
– Information about how effectively the seller
is achieving the contractual objectives
• .3 Inspection and Audits
Desmond Alvares CKPM 205
Procurement and Contracts
51
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.5.2 Tools & Techniques
for Contract Administration
O
R
B
I
T
•
•
•
•
.4
.5
.6
.7
Performance Reporting
Payments System
Claims Administration
Records Management System
Desmond Alvares CKPM 205
Procurement and Contracts
52
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.5.3 Outputs from Contract
Administration
• .1 Organizational Process Assets
(updates)
O
R
B
I
T
– Correspondence
• Written documentation of certain aspects of
buyer/seller communications
– Payment schedule and requests
• .2 Contract changes
• .3 Recommended Corrective Actions
• .4 Contract Desmond
Documentation
Alvares CKPM 205
Procurement and Contracts
53
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.6 Contract Closure
Project Management Book of Knowledge
Chapter 12
Project Procurement Management
O
R
B
I
T
12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
Desmond Alvares CKPM 205
Procurement and Contracts
12.5
Contract
Administration
12.6
Contract
Closure
54
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.6 Contract Close-out
• Product verification
– Was all work completed correctly and
satisfactorily
O
R
B
I
T
• Administrative close-out
– Updating records to reflect final results
– Archiving of information for future use
Desmond Alvares CKPM 205
Procurement and Contracts
55
12.6 CONTRACT CLOSE OUT
Inputs
Tools &
Techniques
Contract
Documentation
Procurement
Audits
Contract
Closure
Procedure
Records
Management
System
Outputs
Organizational
Process Assets
(updates)
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.6.1 Inputs to Contract
Close-out
• .1 Contract documentation
O
R
B
I
T
–
–
–
–
–
–
–
Contract
Supporting schedules
Requested and approved contract changes
Seller-developed technical documentation
Seller performance reports
Financial documents
Results of contract related inspections
• .2 Contract Closure Procedure
Desmond Alvares CKPM 205
Procurement and Contracts
57
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.6.2 Tools & Techniques for
Contract Close-out
• .1 Procurement audits
O
R
B
I
T
– Structured review of the procurement
process
– Identification of successes and failures
• .1 Records Management System
Desmond Alvares CKPM 205
Procurement and Contracts
58
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
12.6.3 Outputs from Contract
Close Out
• .1 Organizational Process Assets
(Updates)
O
R
B
I
T
– Contract File
• Documentation for Archives and Future Use
– Formal acceptance and closure
• Hand over of Project and acceptance by
authorized authority
– Lessons Learned Documentation
• Process improvements recommendations
Desmond Alvares CKPM 205
Procurement and Contracts
59
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Continuing Education Division
Ryerson University
Procurement Management Plan
O
R
B
I
T
• The plan describes how the procurement process, from
solicitation to contract close out, is managed. Included in
this plan are:
• The type(s) of contract(s) used.
• If independent estimates and cost proformas will be done
and who will do them.
• If standard procurement documents will be used, and if so,
who will prepare them.
• Who will manage & coordinate the procurement of these
goods, services or products.
• Authority of the people involved in the process and
defined lines of communication.
Desmond Alvares CKPM 205
Procurement and Contracts
60
CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Procurements and Contract
Overview
Continuing Education Division
Ryerson University
Thank You to PMI - ISLIG
O
R
B
I
T
Any Questions?
Desmond P. Alvares
416 258 7178
des_alvares@bcs.org.uk
Desmond Alvares CKPM 205
Procurement and Contracts
61