The Processes of Project Procurement
Derrick A. Gardner
University of Maryland University College
March 1, 2015
Project procurement management is an overall process that identifies and acquires the necessary products and services to successful support the development or the ongoing work of a project. Typically, it is the project managers responsibility to oversee the entire procurement process. However, in some instances, the company or organization may seek another person to carryout these responsibilities.
According to the PMBOK (2013), there are four processes to project procurement management:
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These instances typically occur when the developer and/or project manager has no previous experience with developing projects that share similarities. Upon reviewing to the The Springfield Interchange Construction case study, it is suggested that VDOT had never developed large scaled projects, and only had experience with successfully executing projects with budgets under $50 million USD (Shear, 2002).
Project managers of The Springfield Interchange Improvement Project allowed the construction phase to begin before the funding was approved. According to the Shear (2002) article, the United States Congress had increased federal spending for the state of Virginia. However, the state was obligated to spend their corresponding funds first. This eventually led to scheduling problems for The Springfield Interchange Improvement Project, because while they state did receive an increase in funding—the department officials waited too long to approve the monies for the project and later weren’t sure if they had enough funding to support it (Shear, 2002).
It is evident that the project managers of the Springfield Interchange Improvement Project did not properly utilize the plan procurement process and their techniques. Risk management was not properly performed during the initial stages of the project. Therefore, causing a series of issues—which affected the overall quality of the project’s inception phase. Had the project managers properly identified these risks, the negative impact surrounding the project’s schedule and cost could have been reduced and/or eliminated.
According to the PMBOK (2013), Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. During this phase, buyers are responsible for evaluating bids or proposals from the sellers, and then selecting a seller to carry out the duties.
Project managers of the Springfield Interchange Improvement Project did well with contract commencement. While they didn’t do well with administering the funds—with no prior experience with developing large projects, they were fully aware that additional expertise and experience would be required to successfully carry out the duties to develop this project. Therefore, project managers outsourced the heavy construction and decision-making to larger organizations (Shear, 2002).
According to the PMBOK (2013), Administer Procurements is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as needed. During this phase, project managers are responsible for monitoring the project’s performance against their initial requirements. Additionally, project managers should utilize the administer procure process and their techniques support the project’s ongoing operations (PMI, 2013, Section 12.3).
While project’s performance was a struggle during the initial phase of the...