CONPRO Week 3 Discussion Question

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  • 8/22/2019 CONPRO Week 3 Discussion Question

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    Understanding that project managers, with the support of the project team, develop a projects procurementmanagement plan always within the context of the organizations procurement framework of policies andprocedures, the procurement strategy should originate from and support the long-term needs of theorganization, as the organization reacts to internal and external factors such as technology, procurement trendsand supply issues (University of Liverpool/Laureate Online Education, 2013).

    Having said that, the process to generate and review requirements and specifications for procurement that Iwould follow for an organization with non-critical and leverage purchases (i.e. numerous suppliers, substitutesare accessible, and market keeps prices competitive), should be based on a strategic-driven sourcing method(Cavinato, Flynn and Kaufmann, 2006). Therefore, a strategic-driven planning process would evaluate thecurrent and future supply needs of the organization, which is done by using a SWOT (strengths, weaknesses,opportunities, and threats) analysis; hence, requirements and specifications generated would effectively addressthe type of resources required for each particular area of the organization (Sollish et al., 2011). Nonetheless,this is a dynamic process, which should be seen as an evolutionary process involving close and continuousliaison between the internal customer or user, and the procurement staff; and continuous input from the differentprojects should be done in the form of a specification or SOW (Tanel, 2009).

    Finally, as part of a procurement specification, the information gathered must be clear and unambiguous, andshould allow for the requirement to be defined in terms of outputs and outcomes, allowing for innovativeproposals, but also helps to keep the door open for the possibility of change (Office of Government Commerce,2010, p.3). Moreover, specifications set limits and thereby eliminate or restrict items that are outside theboundaries drawn; and constitute the heart of a contract document that will govern the supplier of requiredgoods or services in the performance of the contract as well as the basis for judging compliance (Virginia

    Information Technologies Agency, 2008, p.1). To this objective, Carter (2010) suggests that the informationgathering must be guided by three types of specifications: commercial specifications (what standards of qualityfor materials and procedures should be used), design specifications (how the product should be made or aservice should be provided), and performance specifications (the specific performance required, but not amethod for achieving such performance).

    Reference List

    Cavinato, J.L., Flynn, A.E. & Kaufmann, R.G. (eds.) (2006) Supply Management Handbook. University ofLiverpool Catalogue [Online]. Available from:http://site.ebrary.com/lib/liverpool/docDetail.action?docID=10155019 (Accessed: 21 June 2013).

    Carter, S. (2010) Procurement Process - The Three Types of Procurement Specification [Online]. Available

    from: http://ezinearticles.com/?Procurement-Process---The-Three-Types-of-Procurement-Specification&id=4492946

    Office of Government Commerce (2010) Contract Management in Long Term or Complex Projects: KeyCommercial Principles to Help Ensure Value for Money[Online]. Available from:http://clients.squareeye.net/uploads/east2010/Contract_Management_in_Complex_Procurement(1).pdf(Accessed: 21 June 2013).

    Sollish, F., Semanik, J., Morris, P.W.G. (ed.) & Pinto, J.K. (ed.) (2011) Planning and Administering ProjectContracts and Procurement. Laureate Education, Inc., custom ed. Hoboken: John Wiley & Sons.

    Tanel, T. (2009) The Art of Planning and Writing Specifications & Requirements [Online]. Available from:http://www.ism.ws/files/Pubs/Proceedings/2010ProcCI-Tanel.pdf (Accessed: 21 June 2013).

    University of Liverpool/Laureate Online Education (2013) Week 3: Procurement management: part 1 [Online].Available from: University of Liverpool/Laureate Online Education VLE (Accessed: 21 June 2013).

    Virginia Information Technologies Agency (2008) IT Procurement Policy Manual: Buy IT [Online]. Available from:http://www.vita.virginia.gov/uploadedfiles/VITA_Main_Public/unmanaged/scm/procurement_manual/chapter_08_-_ng_partnership/SCM_Chapter08.pdf (Accessed: 21 June 2013).