Contractor Relationship OPS405

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Contractor Relationship OPS405

  1. 1. Project Management OfficeVendor/ContractorRelationshipsOPS450Ken Hogan
  2. 2. Vendor/Contractor Relationships Vendors and contractors bring specialized skill, knowledge, and capability to technical project work, as well as provide products/services that support of projects through established contracts/agreements.
  3. 3. PMO Vendor/Contractor Relationship Management Responsibility The PMO provides oversight of vendor/contractor performance management to maximize their value on projects and optimize their use within the PM environment. • Identify/qualify vendors/contractors who add value to project efforts. • Develop guidance for managing vendor/contractor participation on projects. • Develop guidance for managing vendor/contractor contracts within the relevant organization.
  4. 4. Vendor/Contractor Relationship Activities Across the PMO ContinuumProject Office Basic PMO Standard PMO Advanced PMO Center of ExcellenceManages Introduces Manages customer Manages Evaluatesvendor/contractor vendor/contractor relationships across vendor/contractor vendor/contractorproject participation management project duration relationships performance • Monitors • Identifies/qualifies • Establishes • Analyzes vendor/contractor preferred vendor/contractor vendors/contractors vendor/contractor business value business/relationship programs information • Develops • Examines vendor/contractor • Develops vendor/contractor • Develops responsibilities vendor/contractor participation and vendor/contractor partnerships effectiveness management • Monitors across guidance vendor/contractor industries performance
  5. 5. Vendor/Contractor Relationship Activities across the PMO Continuum The PMO establishes processes to qualify vendor/contractor candidates, make them a project resource, and manage their performance. • Project Office – Direct responsibility for managing vendor/contractor project performance using established guidance for oversight actions. • Mid-range PMO – Develops processes to acquire/manage vendor/contractor participation on projects, prescribe vendor/contractor roles/responsibilities, prepare guidance for project managers to oversee vendors/contractors, and examine opportunities for closer vendor/contractor relationships that offer distinct business advantages. • Center of Excellence – Examines/analyzes business results of vendor/contractor participation.
  6. 6. Vendor/Contractor Relationship Function ModelManage Manage ManageVendor/Contractor Vendor/Contractor Vendor/Contractor Relationships Acquisition Performance• Identify Vendor/Contractor • Identify/Qualify • Administer Needs Vendors/Contractors Vendor/Contractor Contracts• Manage Vendor/Contractor • Solicit Vendor/Contractor Information Proposals • Monitor Vendor/Contractor• Prescribe Vendor/Contractor • Prepare Performance Participation Vendor/Contractor Contracts
  7. 7. Manage Vendor/Contractor Relationships
  8. 8. Identify Vendor/Contractor Needs The PMO collaborates with project managers to determine the vendor/contractor support needed within the PM environment. • Vendor/contractor partnerships – A formal business relationship to facilitate the mutual pursuit and achievement of common business objectives. • Vendor/contractor affiliations – A formal business relationship to enable pre-qualified vendors/contractors to be identified and positioned for use on projects relative to the appropriateness of their products/services. • Project-specific relationships – A formal business relationship established to obtain vendor/contractor participation on one or more specific projects. • Service provider relationships – A formal/informal business relationship for a pre-qualified service provider with available services for projects. • Supplier relationships – A business relationship for providers of products, supplies, and equipment needed for projects. • Food service and meal providers.
  9. 9. Manage Vendor/Contractor Information The PMO initiates the acquisition/management of vendor/contractor information as a basis for establishing preferred vendor/contractor relationships. • Vendor/contractor presence – Vendors/contractors that exist in the market place and their contributing capabilities for projects efforts. • Vendor/contractor qualification. • Vendor/contractor performance. • Vendor/contractor business profile. • Vendor/contractor relationship history. • Vendor/contractor business fit.
  10. 10. Prescribe Vendor/Contractor Participation The PMO establishes processes for how to use vendors/contractors on projects within the PM environment. • Vendor/contractor sourcing responsibility – Determines if it is a clearinghouse for vendor/contractor acquisition or just as a vendor/contractor information resource. • Vendor/contractor oversight responsibility - Determine PMO involvement in managing vendor/contractor participation. • Vendor/contractor project affiliation – Determines the approach to vendor/contractor management on projects relative to the type of vendor/contractor. • Vendor/contractor PM responsibility – Establishes common activities/expectations for vendor/contractor participation in PM activities. • Vendor/contractor technical performance responsibility – Establishes guidance for vendor/contractor use of acceptable technical performance standards and technical competency requirements to apply to vendor/contractor efforts within the PM environment. • Vendor/contractor business management responsibility – Establishes guidance for vendor/contractor business activity management.
  11. 11. Manage Vendor/Contractor Acquisition
  12. 12. Identify/Qualify Vendors/Contractors The PMO establishes processes to identify and qualify vendors/contractors according to established business relationships. • Identify vendor/contractor requirements. • Perform make-or-buy analysis. • Qualify vendors and contractors. • Technical capability. • Staff experience. • Familiarity with vendor/contractor products/services. • Vendor/contractor familiarity with the organization. • Geographic location and coverage. • Previous similar jobs completed. • Financial stability and bonding capacity. • Determine pricing arrangements. • Develop independent cost estimates. • Create vendor/contractor plan.
  13. 13. Solicit Vendor/Contractor ProposalsThe PMO establishes guidance for preparing vendor/contractor solicitation, manage their distribution, and review responses toward selecting a qualified vendor/contractor.• Prepare internal requisition material.• Determine type of solicitation.• Prepare solicitation. • Scope of work. • Technical requirements. • Schedule. • Proposal format requirements. • Terms and conditions. • Subcontract type. • Evaluation criteria.• Specify optional proposal actions.• Distribute the solicitation and manage vendor/contractor responses.• Evaluate vendor/contractor responses.• Conduct vendor/contractor negotiations.• Select vendor/contractor.• Debriefing.
  14. 14. Prepare Vendor/Contractor Contracts The PMO establishes processes to prepare vendor/contractor contracts in the relevant organization. • Verify contract documents. • Obtain vendor/contractor contract approvals. • Book the contract. • Transfer vendor/contractor responsibility to project managers.
  15. 15. Manage Vendor/Contractor Performance
  16. 16. Administer Vendor/Contractor Contracts The PMO administers vendor/contractor contracts to ensure the fulfillment of the contractual obligations by all parties. • Verify vendor/contractor contract booking. • Organize vendor/contractor contract files. • Establish procedures for contract claims and dispute resolution. • Establish procedures to solve issues/problems. • Establish communication guidance. • Monitor vendor/contractor performance. • Manage vendor/contractor relations. • Conduct meetings with vendor/contractor representatives. • Manage vendor/contractor contract changes. • Monitor vendor/contractor contract compliance. • Manage acceptance of vendor/contractor deliverables. • Manage vendor/contractor payments. Following are several types of payments. • Review and close out vendor/contractor contract. • Manage vendor/contractor resource departures. • Prepare a post-project vendor/contractor performance report.
  17. 17. Monitor Vendor/Contractor Performance The PMO facilitates project manager oversight for vendor/contractor performance management. • Price variation analysis. • Deliverable performance analysis. • Contract add-on/extension analysis – Identifies particular vendors/contractors having a recurring needs to request/negotiate work extensions. • Billing practices analysis. • Management retention analysis. • Customer satisfaction analysis. • Project manager oversight analysis. • Business/investment posture.

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