Conduct Procurements Output - Selected sellers and Contract

Submitted by venu on Thu, 09/20/2012 - 16:55

Hello,

 

Here is a quick question about the Outputs from Conduct  Procurements process.

On Page 329 of PMBOK guide , Conduct Procurements process shows Selected sellers as an output whereas the diagram below shows Contract as an output. 

Can somebody please clarify on this one.

 

Thanks,

Venu.

 

 

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anand_kl

Fri, 09/21/2012 - 04:37

Hi Venu,


Which diagram are you referring? 


Output of Conduct procurements includes - Selected sellers and Procurement Contract Award.


What is your exact doubt?  From my import of your question, in PMBOK it is clearly stated that:


Selected sellers are those whom the organization or the procurement department in the organization has selected based on their bid evaluation and who have negotiated and agreed upon the draft Contract.


Once the draft contract is approved, it is awarded to Selected sellers and thus it becomes the Final Contract. Final contract or "Contract" is the one which binds the seller and the buyer with a legal relationship.


In other words:


In conduct procurement you do process of evaluation (based on source selection criteria and other methods) to select the sellers. And hence "selected seller" is one of the outputs of Conduct procurements


Also you use techniques like Negotiations (on deliverables, schedule, terms and conditions, pricing ..etc) to finalize the contract. Hence Contract or "Procurement contract award " is another output of Conduct procurements.


Hope this helps.


Regards,


Anand KL,PMP


 


 


 

venu

Fri, 09/21/2012 - 21:27

Hi Anand,

                    Thank you for the information.  I am referring to Figure 12-4 . Conduct Procurements: Inputs, Tools & Techniques, and Outputs  and Figure 12-5 Conduct Procurements Data Flow diagram on page 329.

The Outputs in Figure 12-4 are listed as

1. Selected Sellers,  2. Procurement Contract award,  3. Resource Calendars, 4. Change Reqeusts, 5. Project Management Plan updates and 6. Project Document updates

Whereas the outputs shown in Figure 12-5 , Outbound Arrows in  Data Flow Diagam are

1. Contract   ----> shown as input to Administer Procurements Process

2. Procurement Contract Award ----->  Seller Proposals

3. Resource Calendars -----> Input to Estimate Activity Resources, Estimate Activity Durations, Develop Schedule, Determine Budget, Develop Project Team

4. Change Requests ----> Input to Perform Integrated Change Control

5. Project Management Plan Updates ---> Input to Develop Project Management Plan

6. Project Document Updates  ---> Project Documents

Only differences between Figure 12-4 and 12-5 outputs are Selected Sellers  and Contract  , every thing else match.  

Just trying to compare between Selected Sellers and Contract.  Hope this makes the point clear.

 

Thanks,

Venu.

 

 

 

 

sspawar

Sat, 09/22/2012 - 07:39

Contracts (involves) = Selected Sellers + Procurement Contract Awards

it so simple

 

Read Ist line of PCA  = 12.2.3.2

hope your all perception will come in order.

 

 

Your concept  - PCA  -----> goes to SP is wrong

venu

Sat, 09/22/2012 - 14:54

Thank you for the information.  I agree PCA ------> goes to Seller Proposals is wrong.    It was a typo.  The Conduct Procurements Data Flow Diagram shows Procurement Contract Award pointing to Sellers not Seller Proposals. 

In 12.3.1.3,  Administer Procurements : Inputs - Contract , it points to refer to Section 12.2.3.2  which is PCA.

Figure 12-5 Conduct Procurements Data Flow Diagram shows

Contract (Dark Arrow)  as an output of 12.2 Conduct Procurements Process and also as an Input to 12.3 Administer Procurements which is perfect.

As I mentioned already,  the same diagram shows PCA (Light Dotted Arrow) - Output of Conduct Procurements Pointing to Sellers.  

Don't know if it makes sense to show both Contract (Dark Arrow) and PCA (Light Arrow) as outputs of Conduct Procurements in the 12-5 Data Flow diagram because both Contract and PCA are referring to one another.

The PCA(Light Arrow) should be replaced with Selected Sellers and should point to Sellers.

Please correct me if I am wrong.

 

Thanks,

Venu.

 

sspawar

Sat, 09/22/2012 - 19:04

see  a real world example


I ssue a cheque to you (with your name)


but you can not do anything lonely with this cheque


untill and unless this cheque will go to  bank and will be processed there.


So there is one cheque issued on the name of you but it was gone to bank for processing


like this


A "contract" or "procurement contract award" goes to sellers (selected sellers - awardees) on his/her name but will also go and to be administered in Administer procurement.


SELLERS is here means selectedd sellers, (only SELLERS single word  is written here  in summation of selected (awardees ) sellers + sellers submitting proposals)


-------------------------


One thing more you are again at wrong concept that "selected seller will go to seller" --- it means a Reciever venu will go to an empty third person.


-----------------------------

venu

Sat, 09/22/2012 - 21:54

Thank you for the clarification.

 

Venu.