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Final Project

Essra bilgic

Assignment #5 Final Project.
PJM 6800 Project Procurement and Solicitation.

April 17, 2021.

Questions:

Using the information presented in Chapter 3 of the textbook and the attached template, develop a procurement management plan for the following project.  You have been assigned as the procurement professional that will do the strategic procurement for the construction of a new Employee Wellness Center for XYZ Company.  The new building will house a primary care facility that will be staffed with physicians and nurses, gym/sauna facilities, and a day care for the employee’s children.  The project will be procured as a Design/Build delivery.  Therefore, you only need RFP to select the seller for this contract. In addition, you must use and re-submit the Gantt Chart schedule that you developed as part of Assignment 2 along with your procurement management plan. 
When using the template, please be advised that fonts shown in blue are instructions for the completion of each section of the template.

ANSWERS:

Let us explain first what is a RFP .

 
RFP stands for request for proposal . This is a business document issued by an agency or an organization . It asks proposals from potential suppliers for the procurement of goods or services or goods & services .
 
Now here in this case the project will be procured as design/build both so it is a case of buying services as well as goods .

XYZ Company
RFP for the design and construction of a new Employee Wellness Center
Issued on 10.03.2020
Due by 4.30 PM 10.04.2020
Introduction
XYZ Company is requesting you organization to submit a proposal for designing and building the new Employee Wellness Centre for the company . The new building will house a primary care facility that will be staffed with physicians and nurses, gym/sauna facilities, and a day care for the employee’s children.  The project will be procured as a Design/Build delivery.
The proposals will not be accepted after the time lines specified in the “Instructions for Submission ” section . All proposals submitted after the submission time and date will not be considered .
 

Project Delivery

The project will be constructed using the Design Build Format described in the RFQ (Request for quote ) document . The pre-construction and construction phase services will be specified in the formal agreement / contract which will be entered into with the selected supplier . This contract will also contain the specific and unique aspects of this project .
 

Project Budget

Project Budget is fixed at 5 million USD . Under no circumstance the project can go beyond this budget limit . The onus is on the bidders to offer a minimum price with out compromising in any way the quality & deliver aspects.
 

Project Delivery Clause and penalty

The project has to be delivered by 10.07.2020 . Delays will attract a penalty of 0.1% of the total cost agreed per day . So for example if the cost is USD 5 million, per day delay cost will be USD 5000 .
 

Financial Disclosures

Financial Disclosures includes last three years audited balance sheets and profit & loss statements for last three years . Only those bids will be considered where the bidders have achieved a growth in operating income of 10% each year during the last 3 years . So those who do not comply to this need not bid for the project .
 

Attachments

The initial information , RFQ & the design criteria package can be viewed at company’s website where a pre registration will be required .

Instructions for Submission

All the bids must be submitted in a sealed envelope titling offer for new Employee Wellness Centre and should have the name , address , contact person’s name & contact details at the bottom .
Bids must be submitted by 4.30 pm on 10.04.2020 at
XYZ Company
( Detailed address of the company )
 

Project Selection Criteria

1. Project Team Organization (5%) : Here the bidder has to notify the details of its key team members which includes their education details & experience credentials .
 
2. Understanding of Project Objectives (30%) : Here the bidder needs to demonstrate what he understands about the key objectives of the project including safety & risks aspects . How he or she will approach the project and value add ons he will provide .
 
3. Price Proposal (30%) : Here the bidder needs to transparently convey the cost related to pre construction site fee , design fee , due diligence fee etc .
 
4. Project Implementation (30%) : Here the bidder needs to clearly specify what parts of the project the bidder will do himself or herself and what parts he or she will outsource . For outsourcing the procedure has to be outlined like the number of bidders they will engage . Whether the bidders self perform or outsource any work they need to get minimum three quotes for all outsourcing of work , procurement of material and procurement on rent of any equipment .
 
5 . Additional Project Consideration (5%) : Here the bidder has to submit the details of their achievements in last 3 years and work place diversity rules adopted by their organization.

Pre Proposal Meeting and Site Visit

All the bidders will visit the site on 01.04.2020 . Will pose their questions if any on the same date in a format issued by XYZ Company . The answers will be submitted by XYZ by 02.04.2020 to individual bidder .
 

Presentations & Interview

This phase will be followed by presentation and interview phase where every bidder will present a 10 minute presentation . Post this there will be face to face discussions between the XYZ selection panel and the bidder’s team .
Important Times & Dates are :
10 AM -12 PM – 10.03.2020 : RFP issue date
10 AM – 12 PM – 01.04.2020 : Site Visits , Pre proposal Project Meeting & Questions
2 PM – 4 PM 02.04.2020 : Answers to the questions of bidders
Before 4.30 PM – 10.04.2020 : Bid Submissions

*please see attached “Gantt chart” in Microsoft Excel.

Procurement Management Plan

New Employee Wellness Center

XYZ Company

(Street Address)

(City, State Zip Code)

April 17, 2021.

Revision History

Name

Date

Reason for Changes

Version

Table of Contents

1.0 Purpose

2

2.0 Procurement Roles and Responsibilities

2

3.0 Procurement Requirements

3

4.0 Vendor Identification and Selection

3

5.0 Vendor Management

4

6.0 Contract Requirements

4

7.0 Approvals

4

1.0 Purpose
Many projects require items or services that cannot be provided from within the organization. In these cases, it is necessary for the project team to procure the necessary items or services required to successfully complete the project. This section should provide a high-level explanation of purpose of the Procurement Management Plan. Generally, the purpose of the Procurement Management Plan is to define what items will be procured for the project and how vendors will be identified, selected, and managed. Additionally, the plan should outline roles and responsibilities relating to procurement as well as any contract requirements which must be met.

The purpose of the Procurement Management Plan is to define procurement parameters for the Software Upgrade Project in order to ensure its successful completion. Procurement is a deliberate process which involves many internal departments as well as external vendors. This Procurement Management Plan has been created to provide a framework in which all procurement actions will be managed across all of the organizations involved.

2.0 Procurement Roles and Responsibilities
This section describes the roles and responsibilities of all key project personnel as they relate to procurement actions. These roles must be clear to prevent any gaps or overlap in project procurement actions. Additionally, roles and responsibilities help establish accountability throughout the project’s lifecycle.

To facilitate effective procurement management, the following roles and responsibilities have been established for all procurement actions for the Software Upgrade Program:

Role

Responsibilities

Project Sponsor

· Approve Procurement Management Plan
· Approve vendor selection
· Approve all contracts prior to award
· Approve any procurement action in excess of $50,000

Project manager

· Provide oversight for all procurement actions
· Approve procurement actions under $50,000
· Develop procurement requirements
· Manage vendor selection process
· Measure vendor performance
· Closing out vendor contracts

Contracting Department Director

· Assist procurement actions by submitting requests for proposal (RFPs) to identified vendors
· Develop vendor contract
· Assist in measuring vendor performance

Information Technology (IT) Director

· Assist in vendor identification and selection
· Assist in development of procurement requirements

Project team

· Assist in development of procurement requirements
· Assist in evaluating vendors

3.0 Procurement Requirements
This section should list the items that need to be procured for the project to succeed. In addition to describing what the item is, this list should also provide a justification or an explanation of what deliverable the item supports, as well as the date the item is required by to meet the project schedule.

There are several items which must be procured in order to successfully complete the Software Upgrade Project. The following list has been created to indicate the necessary items, the deliverable each item supports, and the date the item is required to meet the deliverable in accordance with the project schedule:

Procurement Need

Deliverable(s) Supported

Required Delivery Date

2 Omega Workstations

Complete IT Lab testing configuration

07/15/2010

Software Version 4.0 package with 65 licenses

Complete Lab testing of software integration and Install software upgrade on all workstations

09/01/2010

Expo Router

Complete LAN upgrade to host new software

09/01/2010

4.0 Vendor Identification and Selection
This section should discuss the process by which vendors are identified and selected to fulfill procurement requirements. There may be one or more vendors that an organization prefers to work with based on past experience. There may be new vendors who offer better products more applicable to the project. However, it is necessary to define this identification and selection process to ensure consistency throughout the project lifecycle for all procurement actions.

This section outlines the process through which vendors will be identified and selected to fulfill the procurement requirements for the Software Upgrade Project. The project team will identify vendors based on which existing and new vendors are able to meet the procurement requirements outlined above. Once potential vendors are identified, the project manager will work with the Contracting Manager to develop RFPs to distribute to vendors to bid on.

Once the contracting group receives all vendor proposals, the Contracting Manager, Project Manager/Team, IT Director, and Project Sponsor will meet to evaluate proposals. The group will use the following selection criteria to make their vendor selection:
· Vendor most capable of meeting required delivery dates for procurement requirements
· Past performance of the vendor (if applicable)
· Cost of procurement items
· Quality assurance measures

Once the vendor(s) has/have been selected and approved by the Project Sponsor, the Project Manager will work with the Contracting Department Director, or designated representative, to draft and finalize the necessary contract(s) with the vendor(s). Once all contracts are complete, the Project Manager will begin the vendor management phase of the procurement process.

5.0 Vendor Management
Vendor management is a very important, though often overlooked portion of the procurement management process. The ability of a vendor to meet procurement and contract requirements may weigh heavily in the organization’s decision to conduct business with them in the future. A vendor which has repeatedly met requirements in a timely manner and with a fair price may retain the business of an organization for many years. Conversely, vendors which miss deadlines and fail to meet requirements may no longer be considered in future procurement activities. It is inherent to the organization to work with the vendor in managing the delivery and fulfillment of their requirements in order to ensure the successful completion of the project.

The Project Manager is responsible for vendor management and will work with the Contracting Department Director to oversee vendor performance for the Software Upgrade Project. The Project Manager will measure the ongoing performance of each selected vendor as it applies to the requirements stated in their respective contracts. In order to ensure acceptable vendor performance, service level agreements (SLAs) will be included in the contracts which must be met by the vendors. SLAs for vendor performance include:
· Delivery of item(s) on or before date as agreed upon in the contract
· Delivery of item(s) at or below cost as agreed upon in the contract
· Acceptable performance/quality of item as agreed upon in the contract

Failure of a vendor to adhere to these SLAs will result in the Contracting Department submitting a formal dispute as appropriate.

6.0 Contract Requirements
It is important to specify the type(s) of contract(s) to be used for a project’s procurement actions. This section describes the contract type to be used and provides any other necessary detail regarding the contract process for the project’s procurement requirements.

All contracts associated with the Software Upgrade Project will be firm-fixed price. The Contracting Department Director is responsible for ensuring that each contract complies with internal corporate guidelines and policies. The Project Manager is responsible for ensuring all SLAs and performance criteria and expectations are clearly listed in the contract(s) prior to award. The Project Sponsor will review and approve all contracts prior to award.

7.0 Approvals
All project and management plans must have the approval of the Project Sponsor and Project Manager. The signatures of these individuals indicate their acknowledgement and understanding of the Procurement Management Plan.
The signatures of the people below indicate an understanding in the purpose and content of this document by those signing it. By signing this document you agree to this as the formal Procurement Management Plan for the Software Upgrade Project.

Approver Name

Title

Signature

Date

Doe, J.

Project Sponsor

Smith, J.

Project Manager

9