Tools and Techniques for Conducting Procurements

The conduct procurements process is the process of obtaining and reviewing seller proposals, selecting a seller (or sellers), and awarding contracts to the selected sellers.

In this article, we will review the various tools and techniques that can be used by the project team in the conduct procurements process. The following list highlights some of the more commonly used tools and techniques:

Advertising

Advertising alerts potential sellers of the project and the organization’s intent to receive proposals. Some government agencies may require a public advertising or online posting of project contract opportunities.

Bidder Conferences

Bidder conferences (also called vendor conferences, pre-bid conferences or contractor conferences) are meetings between the buyer and potential sellers to review the project, the terms and conditions, and any special considerations. These meetings benefit both the buyer and the prospective sellers. The buyer benefits by guiding the sellers to provide compatible and higher-quality proposals. The sellers benefit by receiving answers to questions about the project. ??These meetings also ensure that no bidders receive preferential treatment.

Data Analysis

Data analysis and proposal review techniques are typically defined in the planning process. These techniques are used by the project team to analyze and rank proposals from prospective sellers. Proposals are evaluated to ensure they comply with the bid documents, the source selection criteria, and the statement of work (SOW). When evaluating multiple sellers, the project team may use the selection criteria to determine a short list of the candidate sellers. The team will perform a more in-depth analysis of the sellers on the short list.

Expert Judgment

The project manager and the project team may depend on various experts to assist in the proposal evaluation and selection process. Some of these experts include but are not limited to:

• Procurement experts to assist in the procurement process.
• Financial experts to assist in the financial evaluation of potential seller proposals.
• Legal experts to assist in the contracting process.
• Technical and subject matter experts.
• Supply chain experts.
• Compliance experts.
• Negotiation experts.

Communication Skills

Communication skills are necessary to communicate the needs of the project and to negotiate the terms of the contract. Per PMI?, “procurement negotiation clarifies the structure, rights, and obligations of the parties and other terms of the purchases so that mutual agreement can be reached before signing a contract.” Ideally, the contract negotiation will be led by a member of the team with the authority to sign the contract. Communication skills also include conflict management as conflict can occur throughout the procurement process.

Leadership Skills

The project manager must lead the team and the experts through the process of conducting procurements. This may also require leading the team and experts through the process of making key decisions that will affect the project and the selected sellers. Project managers will also lead the various meetings with the project team, various experts, management, and prospective vendors.

Summary

The conduct procurements process is key to ensuring that an objective analysis is used to select the best fit for the work and the organization. The tools and techniques for this process help the project team make the best objective selection.

Eddie Merla, PMP

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