SPARE (Procurement Process) PMEP_SPA
Strategic Procurement Automated RFP Evaluation
This tool is focused on managing the strategic procurement process in support of implementation planning. It manages details behind RFP stages as PRISM tracks the stages as single deliverables. Strategic procurement reflects the methodology to make sure the requirements for the product as well as the proposal / bidding process are clearly defined as well as validated. It also provides an audit trail of due diligence and fair competition that protects against any potential vendor objections to the selection of a competitor proposal that could delay projects. SPARE incorporates detailed scoring and financial analysis processing of competitive proposals.
Strategic Procurement is becoming a major competency for project managers implementing packaged software solutions or incorporating prefabricated components in a construction project. This course will step you through the process of formalizing the specifications in a Request For Proposal that suppliers can respond to with competitive bids. It also shows when to avoid the RFP and pursue an RFQ (Request For Quotation) to lock in the price of commoditized components, for example. The core capability here is the competitive bid evaluation and value analysis process, not just to perform due diligence on what to purchase, but also to create an audit-trail of due process and transparency with respect to the purchase recommendations. Commitments made by vendors can be locked in for project tracking using one of the methods described previously.
Strategic procurement is about getting the best value solution to fill a business need. It is also about contract negotiation that is out of scope for this guide. We do not get involved with legal advice. We focus on the manner in which we can encourage vendors to deal with requirements so that they offer the best choice selection if the underlying process is adhered to, while other experts focus on terms and conditions that are highly specific to a specific client organization. It is a solid process for establishing an audit-trail of objectivity in the selection process, and you will see why it typically takes (on average) 6 months to complete a major procurement.
An RFP depends on specific requirements that dictate what functionality the vendor can propose, and on what terms. Collecting the information is a critical first step to assess if there is enough to pursue the vendors to propose a viable solution. A first step may be a Request For Information to see what is available as well as to determine the candidate vendors who may be interested in an opportunity to bid on the requirements. If there are choices available it is important to establish a solid process for selecting the best option. Once that requirements framework is in place we can convert the details into an RFP format, using a template as appended to this document. For consistency we will have general information to qualify the vendor, and specific information to evaluate and score the vendor proposal. A key step is to make sure that the RFP matches the evaluation process, before you ask the vendors to propose a solution. If you cannot assess if a proposed solution meets or exceeds expectations then you need to firm up the wording of what you are asking for.
Typically the vendors have 3 – 4 weeks to respond to the proposal that is aimed at explaining how their solution is the most cost-effective solution for the specific client situation. Every vendor will use a different strategy depending on how they think the competition will respond. To evaluate the responses we go back to the requirements framework in an Excel™ format this time to facilitate the scoring process. We look at all the references provided by the vendor to demonstrate their ability to meet or exceed our requirements. When the scored evaluations are consolidated and processed in SPARE it becomes clear what the relative rankings are for different vendors. This leads to a recommendation that then leads to a procurement process to formally negotiate the product or service purchase.
Only when the contracts are in place can we implement that solution. At first this may be the “proof of concept” (POC) stage that verifies the “vanilla” use of the product, before the in-house adaptations are made to make things work within the in-house infrastructure. The production installation could be a separate sub-project in scope that then adapts the product to meet the specific needs of in-house users. If the vendor is involved with this process of adaptation it will usually be as part of an added services agreement (as opposed to the “POC”). The time between the procurement recommendation and when we have a product (or service) installed for general use may take a significant time to complete, so it is important to project manage this initiative.
Learning Formats PMAP_SPA
This course is currently available in a classroom setting (public or company private) with approximately 30 contact hours (5 days).
PDF – Certificate Of Completion
Each course offers a certificate of completion that identifies the course, the student, and a brief description of the course. To receive a certificate the student must have attended at least 80% of the course sessions. This personalized certificate is forwarded to the student by Email.
PDF – Course Notebook
Each course includes a notebook in PDF format that provides the minimum knowledge the student must master in order to obtain the certificate. In the notebook you will find references to other study materials. Students receive the notebook by Email when their registration is confirmed.
PDF – Program Overview
An overview of this study program can be downloaded from the website by right-clicking on the program link on the enquiry page.
PDF – Current Training Schedule
A list of upcoming training sessions can be downloaded from the website by right-clicking on the schedule link on the enquiry page.
Registration – Service Providers
To register for any training course please look on the enquiry link page of your service provider (from where you accessed this website). On the page you will find a registration request form where you can order the course that you are interested in. The availability dates will be provided to you, along with payment instructions if you decide to go ahead.
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