answer the questions attached
rana900
PR5.docxSingle spaced type written answers of one page each. Restate the question and question number before your narrative, and begin each answer a top a new page.
Answers to each question will be graded on the basis of the level to which the course material is included/addressed, and/or the robustness of arguments in support of the position taken.
Question 08a: What is the difference between a contract scope of work (SOW) and a project work breakdown structure (WBS)? Which elements are common/disparate to each?
The Scope of Work (SOW) for what will be procured
“A description of the product or service to be procured under a contract; a statement of requirements,” (PPM, p.149)
Considered to be the single-most important document in the procurement process!!!!!!
May be the ONLY “official” description of the work.
Question 08b: what is the Truth in Negotiating Act (TINA), why was it enacted, and why is it important to the Federal procurement process?
Question 09a: Should a procurement manager have an understanding of contract law, or should that be left to corporate attorneys? Why or why not?
Question 09b: Select four of the contract negotiations best practices and discuss their relevance/importance to the project procurement process and why?
CONTRACT NEGOTIATIONS BEST PRACTICES:
1. Establish a contract management and negotiation methodology
Every company should have defined, yet flexible, procurement process
2. Establish a List of Preferred / Prequalified Suppliers
Prescreen and/or repeat use of qualified and successful suppliers
3. Take advantage of Electronic Communication and Exchanges of Information
Establish secure and efficient electronic procurement system –it expands competition and data quality
4. Adopt Value Pricing
Seek top down pricing rather than individual component bottom up pricing –focus on customer needs, not internal needs
5. Use Universal Sales Agreements
Establish “Basic Ordering Agreements” (a/k/a: ID-IQ contracts) for consistent commodity procurement
6. Evaluate Risk versus Opportunity / Reward
Consistent and timely evaluation of the Bid/No-Bid, Go/No-Go, and Make/Buy decision(s)
7. Simplify (to Standard) Terms and Conditions
Edit / Simplify Standard Terms and Conditions for applicability to each procurements opportunity. Avoid the unnecessary and complicated!
8. Use Skilled Negotiators and Employ Mock Negotiations
Establish a Corps of Experts , don’t rely on management to have the requisite skills
9. Use Volume Pricing / Discounts
Seek large volume / long term contacts to obtain consistent results
10. Maintain Best Practices / Lessons Learned
Historical data –successful and unsuccessful -generates FUTURE success!
