PGMT 530 92 Spring 2020 Procurement Management Plan Scenario

Pgmt 530 92spring 2020procurement Management Plan Scenario

Prepare a procurement management plan to describe how you will plan, administer, monitor and control, and close the various contracts required for a project to develop a mobile application for mobile pay services to purchase fuel at gasoline pumps. The plan should be broad enough to facilitate any needed contracts, address known requirements, and include provisions for initiating new contracts for unforeseen subcontractor needs.

Paper For Above instruction

The procurement management plan for the mobile payment application project is a comprehensive strategy designed to ensure the effective acquisition of all necessary goods and services essential for the project's successful execution. This plan oversees the entire procurement lifecycle, from initial planning through contract closure, emphasizing risk management, contract types, vendor oversight, and performance metrics. Given the project’s scope, which involves integrating external programming services and procuring an on-pump interface from subcontractors, the plan emphasizes flexibility to accommodate unforeseen procurement needs.

Introduction:

The primary purpose of this procurement management plan is to establish a structured approach to procure the various technical components necessary for developing a mobile fuel payment application. The project involves procuring external programming expertise, hardware manufacturing, and interface development from subcontractors. Key risks include vendor reliability, scope creep, schedule delays, and technological compatibility. The plan adopts risk mitigation strategies such as thorough vendor evaluation, clear contractual obligations, and contingency planning. Assumptions include the availability of qualified vendors and the project's flexible scope to adjust to unforeseen procurement needs. Constraints such as project deadlines, budget limits, and resource availability are acknowledged.

Procurement Management Approach:

This approach delineates roles and responsibilities across the procurement process. As project manager, I will oversee procurement activities, working closely with the contract administration team, technical leads, and procurement specialists. Responsibilities include defining procurement items, preparing solicitations, evaluating bids, and managing contract performance. The procurement process begins with identifying requirements, developing procurement documents, soliciting vendors, evaluating bids, and awarding contracts. Regular communication and coordination with suppliers and internal teams will ensure alignment of project timelines and quality standards.

Procurement Definition:

The items to be procured include external programming support for app development, manufacturing of the on-pump interface device, and technical support services. The client requires these items to meet project deadlines to ensure timely deployment. For example:

• Custom coding for mobile pay functionalities - needed by Month 4 of the project.
• Manufacturing of the pump interface device - needed by Month 6.
• Ongoing technical support and troubleshooting - throughout the project lifecycle.

Approvals for purchases will be authorized by the project manager in conjunction with senior technical leads. The designated approvers include:

• Jane Smith, IT Procurement Officer
• Michael Johnson, Technical Lead

Type of Contract to be Used:

The project will utilize a mix of contract types based on the procurement items. Fixed-price contracts will be used for hardware manufacturing to secure cost certainty. Time and materials (T&M) contracts are appropriate for software development and technical support to allow flexibility as project scope evolves. For example, hardware manufacturing will be under firm-fixed price agreements, while software development may be structured as T&M contracts to accommodate iterative development. The process for defining contract scope involves technical specifications, delivery schedules, and performance standards, with bids solicited through requests for proposals (RFPs). Contract lengths align with project milestones, ensuring deliverables are met within the project timeline.

Procurement Risks:

Identified risks include potential vendor delays, scope mismatches, quality issues, and technological incompatibility. For instance, reliance on a single hardware supplier poses a risk if the vendor cannot meet production deadlines. Variability in vendor responses or unforeseen technical challenges could impact project timelines and budgets.

Procurement Risk Management:

To manage these risks, the plan incorporates rigorous vendor evaluation during the selection process, including previous performance assessments and financial stability reviews. Contract terms will include penalty clauses for delays and quality standards. Regular progress reviews and milestone evaluations will monitor vendor performance. Contingency plans involve pre-qualified backup vendors and flexible procurement strategies to adapt to changing circumstances. Procurement personnel involved include the procurement officer and technical team members who will be responsible for ongoing risk assessment and mitigation activities, with management approval sought for significant risk mitigation steps.

Cost Determination:

Cost estimates will be derived from vendor proposals responding to RFQs and RFPs. Vendors will be required to break down costs by task, hours, and deliverables. The evaluation process will consider cost realism and compatibility with budget constraints. Any incomplete or ambiguous cost data will trigger clarification requests or renegotiations to ensure accurate budgeting. Cost control measures, such as fixed prices where feasible and performance-based incentives, will help maintain budget integrity.

Standardized Procurement Documentation:

Standard documents include purchase orders, service agreements, non-disclosure agreements, and contractual templates for fixed-price and T&M contracts. The procurement department will manage and store these documents securely, facilitating traceability and compliance. Approved documents will be maintained in the organization's electronic contract management system, accessible to authorized personnel.

Procurement Constraints:

Constraints affecting procurement include project schedule pressures, budget limits, scope boundaries, and resource availability. These constraints will be explicitly communicated in RFPs and negotiated terms to ensure vendors understand expectations. Procurement activities will align with these constraints, with adjustments made through scope management and schedule revisions if necessary, always maintaining transparency with stakeholders.

Contract Approval Process:

Contract approval follows organizational policies. Larger contracts exceeding $50,000 will require formal review and approval by senior management and legal departments, including bidding and approval records. Smaller purchases, under this threshold, will be approved directly by the project manager. The process involves review of bid evaluations, contractual terms, and risk assessments before final authorization.

Decision Criteria:

Vendor selection will be based on criteria such as cost, technical capability, vendor experience, quality assurance, delivery schedule, and support services. The decision-making process will employ weighted scoring, with input from technical, procurement, and project teams to select the most suitable vendors, balancing cost-effectiveness and quality.

Vendor Management:

Effective vendor management will involve regular meetings, progress updates, and performance reviews at key milestones. Vendor performance will be monitored against agreed-upon metrics such as delivery timeliness, quality standards, and responsiveness. Any issues will be addressed promptly through escalation procedures and corrective actions to maintain project integrity.

Performance Metrics for Procurement Activities:

Key metrics include time adherence to procurement schedules, bid evaluation turnaround times, vendor quality ratings, and cost variance analysis. Vendors will be rated weekly based on predefined criteria, with scores influencing future procurement decisions. Data collected will contribute to continuous improvement in procurement strategies and vendor relationship management.

References

• Coulson, R. (2017). Project procurement management: A guide for project managers. Wiley.
• PMI. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 6th edition. Project Management Institute.
• Schooner, M. (2010). Procurement management: The complete guide. Springer.
• Walker, D., & Rowlinson, S. (2012). Procurement Systems: A Guide to Best Practice. Wiley.
• Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling, and Controlling. Wiley.
• Gaddis, T. (2018). Effective Contract Negotiations. Routledge.
• Clarke, J., & Randal, J. (2016). Managing Contracts for Procurement. Palgrave Macmillan.
• Turner, J. R. (2014). Handbook of Project-Based Management. McGraw-Hill Education.
• Amey, D. (2019). Strategic Procurement: A Structured Approach. Kogan Page.
• Hedley, B. (2020). Risk Management in Procurement. Routledge.