answer the question attached

Single 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 10: Explain sole sourcing and why it may be necessary and/or advantageous to limit competition. What are the risks to the procurement process?

“Sole‐source negotiation occurs when there is only one seller that can provide

the needed product or service. Thus, a sole‐source seller has a monopoly in

its market and tremendous leverage with most buyers?” (PPM, p.187)

“Single sourcing is the deliberate choice for one supplier.” (PPM, p.187)

Single‐sourcing occurs when there are multiple sellers for a product or

service, but for DOCUMENTED reasons, a business‐decision is made to limit

the procurement opportunity to only one seller.

 Occurs Most Frequently in the Private‐Sector –Where longstanding and/or

price‐based relationships become preferable

 May Occur in the Public‐Sector (Government) – Requires prior approved

justification and may face challenge/protest from those excluded

Reasons / Requirements for Competitive Procurements

(Per the Federal Competition in Contracting Act “CICA” of 1994)

1. There is only one source available and no other products or services will

fulfill the requirements.

2. Unusual and compelling urgency requires the number of sources to be

limited; however, as many sources as possible must be solicited.

3. A particular award must be main to maintain a critical facility or source

for industrial mobilization or national emergency.

4. A particular source or method is required by treaty or agreement with a

foreign government.

5. A particular source or method is required by statute.

6. National security requires that sources be limited in case where

disclosure of needs would compromise security.

7. Head of the Agency certifies to Congress that noncompetitive procedures

are determined to be necessary in the public interest.

Question 11: What are the ethical considerations surrounding project procurement, and what systems can be put in place to minimize the possibility of ethical lapses within the process?

What is the Purpose of Ethics in the Procurement Process?

To maintain the integrity of the solicitation / procurement / acquisition / contracting process

To present a “level playing field” for all participants in the process

To establish the expected behavior of these leading the procurement process

Ethical Challenges within the Procurement Process

· A Matter of Perception: e.g., Frequent contact with specific participants, Personal relationships extending into the procurement process, Financial interests in seller companies, Improper influence on the decision / outcome

· Overt Acts: e.g., Bribery, gifts, expense reimbursement(s), gratuities, insider information, including those of your spouse and family

The Ethical “Bottom Line”

“. . . buy your own lunches, pay for your own football tickets, save up for your own trip to Italy, etc. It is just not worth the risk of sending out the wrong impression.” (PPM, p.193)

Other Ethical Issues in Business:

· Pay Equality

· Deceptive Accounting Practices

· Conflicts of Interest

· Sexual Harassment

· Discrimination

· Social Media Networking

· Data Privacy

Question 12: Is earned value management a procurement management or project management tool? Explain your answer.

Think EVM, Earned Value Management: The systematic measurement of Planned and Actual Cost measured in terms of: - “value” – the portion of work completed to date, and - “time” – the duration used to do so

The Basics of EVM Planned Value (PV): The approved budget for the work scheduled to be completed by a specified date - Also referred to as the Budgeted Cost of Work Scheduled (BCWS) Earned Value (EV): The approved budget for the work actually completed by the specified date - Also referred to as the Budgeted Cost of Work Performed (BCWP) Actual Cost (AC): The costs actually incurred for the work completed by the specified date - Also referred to as the Actual Cost of Work Performed (ACWP) Schedule Variance (SV): The difference between the amounts budgeted for the work you actually did and for the work you planned to do - Shows how much work is ahead of or behind approved schedule Cost Variance (CV): The difference between the amount budgeted and the amount actually spent for the work performed - Shows by how much work is under or over approved budget

Schedule Performance Index (SPI): The ratio of the approved budget for the work performed to the approved budget for the work planned - Reflects the relative amount the project is ahead of or behind schedule, A/K/A the project’s schedule efficiency, changes each period! Cost Performance Index (CPI): The ratio of the approved budget for work performed to what you actually spent for the work. - Reflects the relative value of work done compared to the amount paid, A/K/A the project’s cost efficiency changes each period! Estimate at Completion (EAC): Current estimate of the total cost of the task/project when finished Estimate to Complete (ETC): Current estimate of the amount of funds required to complete all work still remaining on the task/project