SCM420 Colorado Technical Procurement and Acquisitions Management Discussion Unit 1 – Discussion Board 2 Primary Task Response: Within the Discussion Boar

SCM420 Colorado Technical Procurement and Acquisitions Management Discussion Unit 1 – Discussion Board 2 Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. In this course, you will be creating a procurement plan for a commercial (private) or government (public) organization of your choice. Click here to open and download a detailed description of the Procurement Plan Project for this course.(provided) Click here to open and download the template for this project.(provided) Each week during this course, you will build upon this document to create your plan. Library Research Assignment Select and research an organization that will be the subject of the Procurement Plan Project that you will be working on during this course. Provide the following: An introduction and description of your choice organization, characterizing it as either a government (public) or a commercial (private) entity A breakdown of the procurement process for this kind of organization An analysis of how the procurement process for your organization differs from its commercial or government counterpart Use at least 2 articles from the LIBRARY to complete this assignment. Unit 2 – Discussion Board Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas. Request methods such as requests for information (RFIs), requests for quotation (RFQs), and requests for proposal (RFPs) are used to obtain pertinent information from potential suppliers. Based on the organization you have selected, respond to the following questions: What types of material or services will your organization purchase from outside suppliers? What are the differences between RFIs, RFQs, and RFPs? Which request type (RFI, RFQ, or RFP) would be used for your organization? Explain why you chose this request type. Unit 2 – Discussion Board
Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following
questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your
classmates. Be substantive and clear, and use examples to reinforce your ideas.
Request methods such as requests for information (RFIs), requests for quotation (RFQs), and requests for proposal
(RFPs) are used to obtain pertinent information from potential suppliers. Based on the organization you have
selected, respond to the following questions:
•
•
•
•
What types of material or services will your organization purchase from outside suppliers?
What are the differences between RFIs, RFQs, and RFPs?
Which request type (RFI, RFQ, or RFP) would be used for your organization?
Explain why you chose this request type.
Learning Materials
Identifying the Supplier
The proposal process can be found in both governmental and commercial procurement. Proposals
include the requests for proposals (RFPs) and the requests for quotations (RFQs). Requests for
information (RFIs) are related and are used to obtain information from potential suppliers.
Suppliers are the organizations and individuals who supply materials and services to the buying
organization. The terms vendors, contractors, and sellers can be used to describe the same group.
The use of these terms may be based on industry standards.
The supplier selection process can be made through several methods, such as conducting Internet
searches, using suppliers from previous relationships, and getting help from business partners or
other operational units within the organization.
Depending on the type of product or service desired by the purchasing organization, an Internet
search may be appropriate to find potential suppliers. Some resources list Internet sites and other
business reference sites to find potential suppliers of products and services (Tufts University, 2015).
The search for many commercial software products can be found with general Internet searches.
Organizations may also have a database of vendors, suppliers, and contractors and can review the
products and services offered by these vendors to determine if the vendors could provide the new
product or service. Many vendor management policies within organizations also contain information
about the vendors related to past performance and overall relationship. Using an internal database
of suppliers could decrease the time to obtain the product or service but could also limit the
organization to one or two suppliers. Other suppliers not in the database may be able to provide
better materials and services.
The search for potential suppliers can be reduced by asking business partners and other operational
units within the organization about suppliers they have used for the same product or service being
sought. These business partners and operational units may be able to provide specific information
related to vendors they have used. In larger organizations without a centralized vendor management
system, operational units may have the flexibility to contract with various suppliers. Another unit
could be working with an appropriate vendor for the needed product or service. Combining contracts
with the same suppler could result in cost efficiencies.
Reference
Tufts University. (2015). Guidelines on purchasing practices. Retrieved from
http://finance.tufts.edu/purchasing/1-guidelines-on-purchasing-practices/
Federal Regulations and Negotiations
According to the Defense Procurement and Acquisition Policy (2010), there must be particular
conditions present of the four in relation to the sealed bidding process; otherwise, the contracting
officer (CO) will award the contract on the competitive negotiation basis. Negotiation provides the
bidder the ability to present certain specific information to the CO. Negotiation provides the CO with
more leeway to award the contract to a bidder. During the evaluation of the proposal, the CO may
consider past experience as a factor for determination, rather than cost. Oftentimes, a CO may
award a contract based on the technical approach that the bidder presented.
The process begins with a request for proposals (RFP), before negotiations. After publication of an
RFP, interested bidders submit a formal proposition (Defense Procurement and Acquisition Policy,
2010). The process of proposal evaluation includes a detailed analysis of the bidder’s proposed
qualities based upon the specifications of the RFP. The usual process will involve the CO
scrutinizing (FAR, n.d., 15.305):
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The cost or price of the bid
The history of prior work or performance in other similar contracts
The procedure for or method of fulfilling the contract
Any other specific factors outlined in the RFP
In the meantime, the CO and a negotiation team may ask specific information from the bidders, thus
clarifying any unclear areas in the proposal presented (FAR, n.d., 15.306).
The CO has the option to award the contract, ending any further discussion or negotiation. If the CO
decides to engage in further discussions, a listing of bidders that are in a “competitive range” will be
contacted for further clarification (Integrated Acquisition Environment, n.d.). The competitive range
includes only those bidders with the most attractive-rated bids (FAR, n.d., 15.306). To avoid any
bias, the CO may communicate with all of the prospective awardees to determine the highly rated
competitive range. Once the competitive range is established, the CO will let the bidders know that
they did not make the final list. The discussions will resume with the remaining bidders and the CO
(Integrated Acquisition Environment, n.d.).
The key focus of the continuing discussions with the CO is to determine the best candidate to award
the contract. Value based on the specific deliverables in the technical component of the proposal will
be a major evaluation factor (FAR, n.d., 15.306). During the discussions, the CO will present the
areas of weaknesses or flaws in the proposal in relation to the needs of the agency. The goal of the
discussion is to provide an opportunity for the bidder to have a chance to enhance the “proposal’s
potential for award” (FAR, n.d., 15.306). The CO is required to be as unbiased as possible so that
there is no favor. Additionally, the CO may not reveal any information on the proposals, and he or
she may not provide any cost information of one proposal over another.
The negotiation committee or the CO may remove a proposal that was in the initial competitive
range round. The committee has the right to have the remaining proposal revised based on the
specifics of the RFP. When the discussions end, the CO or the committee will request a final edit of
the required changes from each of the remaining proposals that remain in the competitive range.
The CO or the committee will carefully scrutinize the final proposals in accordance with the agency’s
procedures for RFP evaluation. The awardee will be the proposal that provides the best value to the
government. The written award decision prepared by the CO should include the full breakdown that
the committee reviewed by section. This prepared decision will include the substantiation for the
selected proposal, including the areas that add value to the agency. The CO or the committee has
the right to award a bidder based on what is best for the government.
References
Defense procurement and acquisition policy. (2010, November 2). Retrieved from
http://www.acq.osd.mil/dpap/ccap/cc/jcchb/Contingency%20Model/Contract%20Actions/DF_f
iles/df_listing.html
FAR. (n.d.) Retrieved from the Federal Acquisition Regulation Site Web site:
http://farsite.hill.af.mil/vffara.htm
Integrated Acquisition Environment. (n.d.). Subpart 15.3: Source Selection. Retrieved from the
Integrated Acquisition Environment Web site: https://www.acquisition.gov/far/0118/html/Subpart_15_3.html
The Bid and Proposal Process
The bid and proposal processes that are used during supply chain procurement activities involve the
methods used to solicit bids and proposals from prospective suppliers. Prior to getting to these
stages in the procurement plan, organizational stakeholders should have determined the
organizational needs (the materials or services to be purchased) and possibly discussed the
potential suppliers that could submit bids and proposals.
Bids and proposals are part of the same set of processes. Organizations may choose to use only a
bid process, only a proposal process, or a combination of the two. Bids use invitation for bid (IFB),
while proposals include a request for proposal (RFP) and a request for quotation (RFQ). Some
authors, however, contend that the RFQ is part of a formal competitive bid process that is used in
governmental procurement activities.
The bidding process is usually found in governmental procurement. The proposal process can be
found in both governmental and commercial procurement. Proposals include the requests for
proposals (RFPs) and the requests for quotations (RFQs). Requests for information (RFIs) are
related and are used to obtain information from potential suppliers.
Request for Information (RFI)
This is a document that is provided to potential suppliers that contains a solicitation to provide the
buying organization with a product or service. According to Borwick (2014), RFIs are used when
organizations are not sure if they want to purchase products or services or if they may not know
exactly what they want in terms of products or services (Borwick, 2014). For example, an
organization may be considering the replacement of laptops for its salesforce. The organization
could send out RFIs to computer wholesalers and retailers to find out what types of laptops are
available for sale. The RFIs may provide information on a variety of laptops and similar computing
devices such as PC and Mac laptops, and laptop or tablet hybrids. Based on the information
contained in the completed RFIs, organizations may decide to move to a different laptop style than
what is currently used, or they may opt to wait for upcoming models.
Request for Proposal (RFP)
This document is more specific than an RFI in that it defines the requirements for a product or
service, and it solicits responses from potential suppliers on how they would meet the requirements
(Borwick, 2014). Organizations that send out RFPs are usually ready to purchase the designated
product or service. The completed RFPs from potential suppliers would describe the ways in which
the respective suppliers could meet the requirements for the organization. The actual product or
service may vary by supplier, but it should meet the needs of the purchasing organization. RFPs are
used in situations where the product or service is defined and several suppliers offer the product or
service. Reasons to use RFPs include the following (Purchasing & Procurement Center, n.d):
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The organization intends to purchase certain products or services and is notifying potential
suppliers.
The organization obtains formal submissions from selected suppliers to compare proposals.
The organization wants to exhibit a fair and formal process that does not favor any certain
supplier.
Request for Quotation or Quote (RFQ)
An RFQ is a document that is similar to an RFP, but the material or service to be procured is well
defined (Borwick, 2014; Purchasing & Procurement Center, n.d.). The information that would be
discussed in detail in an RFP is not needed for an RFQ. An RFQ should include technical
specifications and any organizational requirements. RFQs can follow RFPs, or they can be used in
conjunction with RFIs.
Invitation to Bid (ITB) or Invitation for Bid (IFB)
An ITB or IFB is a solicitation for bidding on contract awards for products and services. These are
sometimes called sealed bids, and the invitations are normally placed in a public forum to invite
prospective suppliers to place their bids for the chosen product or service (Florida International
University, n.d.).
References
Borwick, J. (2014, January 16). Terms defined: RFPs, RFQs, RFIs, purchase orders, invoices, and
payment terms. Retrieved from the HEIT Management Web site:
http://www.heitmanagement.com/blog/2014/01/terms-defined-rfps-rfqs-rfis-purchase-ordersinvoices-and-net-30/
Florida International University. (n.d.). Invitation to bid (ITB). Retrieved from
http://finance.fiu.edu/purchasing/PDFs/ITB.pdf
Purchasing & Procurement Center. (n.d.). Choosing RFI RFP RFQ as a sourcing tool. Retrieved
from http://www.purchasing-procurement-center.com/rfi-rfp-rfq.html
SCM420: Procurement and Acquisition
Organization Name
Student Name
Date
2
Table of Contents
Organizational Overview …………………………………………………………………………………………. 3
Materials Purchased …………………………………………………………………………………………………. 4
Bid and Proposal Documents ………………………………………………………………………………….. 5
Contract Types ………………………………………………………………………………………………………….. 6
Third-Party Logistics (3PLs) ……………………………………………………………………………………. 7
Supplier Relationship Management ……………………………………………………………………….. 8
Contract Closeout ……………………………………………………………………………………………………… 9
Maintaining Supplier Performance ……………………………………………………………………….. 10
Memo to Procurement Officer ………………………………………………………………………………. 11
References ……………………………………………………………………………………………………………….. 12
3
Organizational Overview
Unit 1
This section includes a description of the organization, including the type of organization
(governmental or commercial) and its primary industry or level of government.
4
Materials Purchased
Unit 1
This section should contain a description of the types of materials or services purchased for
the organization.
5
Bid and Proposal Documents
Unit 2
This section will contain a discussion of the specific bid and proposal documents used in the
procurement activities within your chosen organization.
6
Contract Types
Unit 3
This section will include the contract types used for procurement activities within your
chosen organization.
7
Third-Party Logistics (3PLs)
Unit 4
This section will contain a discussion of third-party logistics (3PLs). You will define 3PLs and
discuss the use of 3PLs in your organization. If your organization does not use third-party
logistics, describe the reasons why.
8
Supplier Relationship Management
Unit 4
This section will contain a description of the supplier relationship management activities that
your organization uses.
9
Contract Closeout
Unit 5
This section will contain a description of how your organization ensures the products or
services procured meet expectations. You will also discuss how you will finalize payments to
suppliers.
10
Maintaining Supplier Performance
Unit 5
This section will discuss supplier performance metrics and the use of supplier audits to
maintain supplier performance during the contracting period.
11
Memo to Procurement Officer
To:
Procurement Officer
From:
Student Name
Date:
Month, Day Year
Subject:
Procurement Plan
Justify using this procurement plan in a memo to the procurement officer at your chosen
organization. As part of the justification, describe how the plan aligns with the
organizational strategy or mission. This will be completed in Unit 5.
12
References
Johnson, P. F., & Flynn, A. E. (2014). Purchasing and supply management (15th ed.). New
York, NY: McGraw-Hill.
Unit 1 – Discussion Board 2
Primary Task Response: Within the Discussion Board area, write 400–600 words that respond to the following
questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your
classmates. Be substantive and clear, and use examples to reinforce your ideas.
In this course, you will be creating a procurement plan for a commercial (private) or government (public)
organization of your choice.
•
•
Click here to open and download a detailed description of the Procurement Plan Project for this
course.(provided)
Click here to open and download the template for this project.(provided)
Each week during this course, you will build upon this document to create your plan.
Library Research Assignment
Select and research an organization that will be the subject of the Procurement Plan Project that you will be
working on during this course. Provide the following:
•
•
•
An introduction and description of your choice organization, characterizing it as either a government
(public) or a commercial (private) entity
A breakdown of the procurement process for this kind of organization
An analysis of how the procurement process for your organization differs from its commercial or
government counterpart
Use at least 2 articles from the LIBRARY to complete this assignment.
Learning Materials
Project Procurement Management
The majority of projects involve the acquisition of products or services as an integral part of the
project scope and objective. This might consist of purchasing a single software package for
implementation throughout an organization, or it could entail a highly complex series of integrated
acquisitions of expert contractors, multiple software components, and facility acquisition. Knowing
how to effectively manage such acquisitions is critical to project success. The knowledge area of
project management that encompasses these techniques and processes is known as project
procurement management.
In the simplest view, project procurement is essentially conducted by a buyer and a seller. The
buyer, also known as the prime contractor, client, purchaser, or acquiring organization, has a
requirement for a product or service that is provided by the seller (known as the vendor, contractor,
supplier, or service provider). In virtually all cases, the vendor is considered external to the project
team (the buyer). The complexity and legal ramifications of contracts require a specific project
management knowledge base in procurement management. The phases of procurement
management consist of planning, contracting, selection, administration, and closure.
Project Procurement Management Phases
The planning phase identifies the requirements of the buyer for a particular product or service. What
does the project require to complete the identified scope objective? In addition to environmental
issues such as marketplace factors, budget, and organization considerations, the procurement
manager will focus on the type of contract that will be used. There are three fundamental types of
contracts:
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Fixed-price or lump sum: This determines a total lump sum to be paid for a well-defined
product or service.
•
Cost-reimbursable contracts: These are a payment for actual costs plus a fee (for
seller’s profit).
•
Time and material: This is a hybrid of fixed-price and cost-reimbursable, containing
elements of both fixed-price and cost-reimbursable contracts.
Additionally, there are three types of cost-reimbursable contracts:
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Cost-Plus-Fee: The seller is paid allowable costs plus a percentage fee based on that
cost. The fee varies with the actual cost.
Cost-Plus-Fixed-Fee: The seller is paid allowable costs plus a predetermined fixed fee.
Cost-Plus-Incentive-Fee: The seller is paid allowable costs plus one or more incentive
fees tie…
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