Procurement Management
Final Exam Essays
In the text, it discusses Project Procurement Management. According to, “A Guide to the
Project Procurement Management Body of Knowledge”, (PMBOK Guide), Year 200
edition, Project Procurement includes the process required to acquire goods and services to
attain project scope, from outside the performing organization. Without procurement
management, so many different companies would not be able to have all off the good and
services they need at a decent price as well as good quality.
There are so many things that go in to the purchasing negotiation process. First and
foremost, the company that is being looked at is up to the standards of the procurement
managers. This would also be known as solicitation according to chapter 10 of the text. It
says, “its primary purpose is to obtain viable responses from prospective sellers, sufficient
to satisfy the project’s listing of buy work, the components, subsystems, services, support,
purchases labor, whatever which is supplied from other companies”. After the evaluations
have been made, there are invitations; requests sent out to these prospective sellers. There
is a specific person, who is the assigned project buyer, who has sent these invitations out.
They must also wait for the qualified sellers to respond, in order to get the ball rolling.
This is the only way that one can make sure that they have given every prospective seller a
chance to either accept or decline a pending offer. One must also make sure that they are
doing what is best for the company that they are working for. This could even mean that
they are getting their good and or services from more than one seller.
The next step is what they call the bidder’s conference. This allows the companies to
answer certain questions asked by procurements. And it also allows the prospective sellers
to ask questions. The next step talks about competition, whether or not it’s necessary. This
is because there are times where only one company can provide the good and service that
are required. Then you have to make sure that everything is done ethically. After that
happens. There is cost analysis, price analysis and independent cost estimates. There are
also a number of special issues that could possibly occur. In a nut shell this is where you
begin to negotiate the prices. You have to make sure that you have done the above steps
before getting to his level. When it comes down to actually negotiating a price you want to
