CORPORATE AND PROFESSIONAL TRAINING SERVICES

CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Ryerson University
Continuing Education Division
Introduction – Who Am I
Ryerson University
Project Management Certificate Desmond P. Alvares B. Eng., MBA, MBCS CITP, CMA
• Degree in Mechanical Engineering - UK
Procurement and Contracts Overview • MBA at Schulich School of Business, York University
• Finance, Accounting and Strategy
presented to the • Certified Management Accountant - Ontario
• Chartered Information Systems Practitioner – UK (2001)
BCS Upper Canada
O
• Chartered IT Professional – UK (2004)
Operational Nov 10, 2004
• 19 years Business Intelligence and Knowledge Management in
Canada, UK, US, Switzerland and Caribbean
Risk by
R • 10 years Investment Banking (Brokerage Houses, Private Banking
and Oil &Gas trading)
Business Desmond P. Alvares B • 6 years Retail Banking (Technology Business Management,

Operational Risk, Electronic Banking and Mortgages, Finance and
Treasury Systems)
Intelligence des_alvares@bcs.org.uk I • 3 years Property and Casualty Insurance (Finance and Actuarial
Systems)
416 258 7178
Tools T Desmond Alvares CKPM 205
Procurement and Contracts
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CORPORATE CORPORATE
AND PROFESSIONAL AND PROFESSIONAL
TRAINING SERVICES TRAINING SERVICES
Continuing Education Division Continuing Education Division
Agenda
Ryerson University Ryerson University
Introduction – PM Background
• Introduction
• Financial Systems Implementations
• Business, Training, Finance and Treasury Projects
• The Certificate Program at Ryerson
• Internal and Client Facing Projects • The Procurement Process
• Internal Providers and Integration of Vendor Solution
• Planning
O • Introduced and Developed Project Management
Methodology – UBS Private Banking (International O • Solicitation
locations base on Swiss framework) and CIBC Retail
R (PMP based on the PMI framework) R • Source Selection
• Lecturer at Ryerson University – Project Management
B Certificate (Construction, IT and Financial Service
students) and Architecture specialization in Project
B • Contract Administration
I Management. I • Close-out
T Desmond Alvares CKPM 205
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CORPORATE CORPORATE
Other Offerings of Project The Ryerson Offer (8 Courses)

Management Courses • Core Courses

– CKPM202 Fundamentals of Project Management
• Athabasca University
– CKPM203 Planning and Scheduling
– Executive MBA in Project Management (on-line and residence)
– CKPM205 Procurement and Contracts
• Centennial College
– Project Management Certificate (6 courses) – CKPM209 Project Risk and Quality Management
– Advanced Project Management Certificate (4 courses) – CKPM210 Project Leadership
O • Durham College
– Intro, Scheduling Software, Statistics O – CKPM211 Project Cost Management
• Electives
R R
• Humber College – CKPM207 Project Management Systems
– Project Management Certificate (4 courses, 45hrs)
– CKPM208 Analytical Decision Making
• University of Toronto
B – Project Management Certificate (4 courses, full day)
• York University
B – CCMN114 Short Management Reports
– CCMN432 Technical Communications
I – The Graduate Certificate in Project Management (8 courses)

I – CMHR405 Organizational Behaviour and Interpersonal Skills
– CQMS102 Business Statistics I

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The Students View

Definition of the Procurement

• 570 surveys distributed to students, 271 returned
• 164 surveys to graduates, 24 returned
Process
• Objectives
• Students select Ryerson first and then the Certificate Course 75% – Technical & Quality
(Ryerson Website, Ryerson material)
• 44.6% in Project Manager or Project Coordinator positions – Schedule
O • Experience 80% (> 5 Years), 25.1% (> 15 Years)
• 85% interested in becoming professional in 2 years
O – Cost
R • 85.2% using certificate as preparation, but lack work experience
• Graduates (61.9% PMI members, 25% PMP), 75% additional
R
B prep
• Risk, cost and planning / scheduling – more theory than practice
B
I • Interest in PMO, Leadership and Communication
• Common text book required, introduce PMP Preparation
I
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Basic Steps Other Aspects

• Define the Goods and Services to be • Role of Project Management

procured • Interfaces with Other Project Processes
• Select bidders and Complete Request for • Importance of Management
O Proposal O • Ethical Practices
R • Prepare Bids and Award Contract R • Principle Types
B • Contract Management B – Standard, Material, Equipment & Services
• Close out Contact
I I • Definitions of Common Terms
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CORPORATE CORPORATE
Organizations for Procurement Procurement Considerations

• Organization – What to Procure?
– Project Managers responsibility – How much to procure?
– Procurement department – purchasing & materials
– When to procure?
O –
–
Responsibilities
Staffing – direct and matrix
O – Selecting an appropriate method of procurement.
R – Procedures R – Qualifying suppliers.
• Requests, Qualified Bidders, RFP, Contact Management – Developing a contracting strategy.
B – Management Program B – Establishing appropriate performance measures.
I I – Documenting the procurement project plan.
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CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Ryerson University
12.1 PLAN PURCHASE AND ACQUISITION

12.1 Plan Purchase and Acquisition
(Procurement Planning) Inputs Tools & Outputs
Project Management Book of Knowledge Project Charter
Techniques
Chapter 12 Procurement
Project Scope Statement
Project Procurement Management Make-or-Buy
Management Plan
Project Management
Contract Statement
O Plan Analysis
12.1 12.2 12.3 12.4 12.5
Contract
of Work
Plan Purchase Plan Request Seller Select Contract
Closure WBS and Dictionary Expert Judgment
and Acquisition Contracting Responses Sellers Administration Make or Buy
R Environment and Contract Types

Decision
Organization Factors
Project
B Organizational Process
Assets
Management
Plan (Updates)
I
Risk Register

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CORPORATE CORPORATE
12.1.1 Inputs to Plan Purchase 12.1.1 Inputs to Plan Purchase

and Acquisition and Acquisition
• .1 Project Charter • .3 Work Breakdown Structure and
– Business needs Dictionary
• .1 Project Scope Statement – Relationship of all elements in plan
O – Project needs and strategies O • .4 Environmental and Organizational
R • .2 Project Management Plan R Factors
– What is available in the marketplace?
B – Overall plan for the project B – Procurement resources available
I I
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CORPORATE CORPORATE
12.1.1 Inputs to Plan Purchase 12.1.2 Tools & Techniques for

and Acquisition Plan Purchase and Acquisition
• .5 Organizational Process Assets
– Informal and formal procurement processes
• .6 Risk Register • .1 Make-or-buy analysis
O – Risks , categorization and their mitigation O • .2 Expert judgment
R R • .3 Contract type selection
B B
I I
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CORPORATE CORPORATE
12.1.2.1 Make or Buy Analysis 12.1.2.2 Expert Judgement

• Factors to analyze: • Other Departments
• Cost (direct and indirect - lifecycle costs) • Consultants
• Schedule
• Professional and Technical
O •
•
Quality
Capability & availability of in-house resources
O Associations
R • Supplier skills and abilities R • Industry groups
B • Degree of control needed by the performing
organization B
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AND PROFESSIONAL
TRAINING SERVICES
Ryerson University Contract Type vs. Risk Allocation
12.1.2.3 Contract Types
• Three broad categories of contract Scope of Work
Information
Very Little Partial Complete
type: Uncertainty HIGH MODERATE LOW
• Fixed price or lump sum

Degree of
HIGH LOW
– FFP Risk MODERATE
O – FPPI
Suggested Risk
100% Buyer 0%
R • Cost reimbursable
– CPFF
Allocation
0% Seller
100%
B – CPPF Contract Types CPPF CPIF CPFF FPPI FFP
I – CPIF
• Time and Materials (Unit Price)
CPPF: Cost + % Fee
CPIF: Cost + Incentive Fee
FPPI: Firm Price + Incentive Fee
T
FFP: Firm Fixed Price
Desmond Alvares CKPM 205 21 CPFF: Cost + Fixed Fee
CORPORATE CORPORATE
12.1.3 Outputs from Plan Continuing Education Division

Ryerson University 12.1.3.1 Procurement Continuing Education Division
Ryerson University
Purchase and Acquisition Management Plan

• Defines procurement process
• Basic requirements
• .1 Procurement management plan • Products/services list to procure
• .2 Contract Statement(s) of work
O O • Roles and responsibilities
• .3 Make-or-Buy Decision • Budget
R • .4 Project Management plan (update)
R • Schedule
B B • Quality criteria
I I • Specifications
• Contract Desmond
type Alvares
to be used
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T CKPM 205
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CORPORATE CORPORATE
12.1.3.2 Contract Statements of 12.2 Plan Contracting

Work (Solicitation Planning)
• A narrative description of the product
Project Management Book of Knowledge
• Clear, concise and as complete as possible Chapter 12
Project Procurement Management
• Sufficient detail
O • Allows prospective sellers to determine O 12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
12.5
Contract
Administration
Contract
Closure
R whether they are capable of providing the R

product
B B
• Could be revised and refined throughout
I the procurement process I
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CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.2 Plan Contracting

Ryerson University
12.2 PLAN CONTRACTING
Inputs Tools & Outputs

Techniques
Procurement Procurement
• Preparing the documents needed to Management Plan Standard Forms Documents
support the solicitation process Contract Statements Evaluation
O of Work
Project
Expert Judgment Criteria
Contract
R Management Plan
Make-or-Buy
Statement of
Work (Updates)
B
Decision
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12.2.1 Inputs to Plan 12.2.2 Tools & Techniques for

Contracting Plan Contracting
• .1 Procurement Management Plan • .1 Standard forms
• .2 Contract Statement(s) of work – Standard contracts, bid documents
O • .3 Project Management Plan
O
R • .4 Make-or-buy Decision R • .2 Expert judgement
B B
I I
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12.2.3 Outputs from Plan 12.2.3.1 Procurement Documents

• Documents used to solicit proposals
Contracting
from prospective vendors
• .1 Procurement documents • Request for Proposal (RFP), Quote(RFQ)
or Bid (RFB)
• .2 Evaluation criteria
O • .3 Contract Statement of work updates
O • Instructions (e.g. desired form of
response)
R R • Blank contract form
B B • Product description or SOW
I I • Contractual provisions
• Terms andDesmond
conditions
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CORPORATE CORPORATE
12.2.3.2 Evaluation Criteria

12.3 Request Seller Responses

(Solicitation)
• Criteria used to create or score proposals Chapter 12
Project Procurement Management

• Objective vs. subjective
O • Weigh the criteria in terms of importance
O 12.1
Plan Purchase
12.2
Plan
12.3
Request Seller
12.4
Select
12.5
Contract
Contract
Closure
R R
and Acquisition Contracting Responses Sellers Administration
B B
I I
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CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.3 Request Seller Responses

Ryerson University
12.3 REQUEST SELLER RESPONSES

Techniques
Procurement Qualified
• Obtaining the information (bids and/or Documents
Bidders Sellers List
proposals) from the prospective sellers Organizational Conference Procurement
O • Most of the actual effort is done by the Process Assets
Advertising
Document
Package
R sellers Proposals
B
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CORPORATE CORPORATE
12.3.1 Inputs to Request Seller 12.3.2 Tools & Techniques for

Responses Request Seller Responses
• .1 Bidder conferences
• .1 Procurement documents
• Used to ensure that all prospective sellers
O O have a common understanding of the
procurement
R R • .2 Advertising
B B • Used to expand the list of potential sellers
I I • Sometimes required on public projects

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12.3.3 Outputs from Request 12.4 Select Sellers

Seller Responses (Source Selection)
• .1 Qualified seller lists Chapter 12
• Internally maintained lists Project Procurement Management
O • List developed by the project team

O 12.1
Plan Purchase
12.2
Plan
12.3
Request Seller
12.4
Select
12.5
Contract
Contract
• .2 Procurement Documentation Package and Acquisition Contracting Responses Sellers Administration

Closure
R • .3 Proposals R
B • Seller-prepared documents that describe the
seller’s ability and willingness to provide the
B
I requested product I
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CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
12.4 Select Sellers

Ryerson University
12.4 SELECT SELLERS

• Receipt of bids or proposals Proposals Techniques
• Application of the evaluation criteria to Evaluation Criteria
Organizational Weighting Selected
Sellers
select a provider Process Assets System
O • Risk evaluation, lifecycle cost, independent

Risk Register
Risk-Related
Independent
Estimates
Contract
Contract
R
Contractual
Screening
estimates Agreements
System
Management
Qualified sellers List Plan
• Contract negotiations
B
Contract
Procurement
Document Package Negotiation
• Award the contract

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CORPORATE CORPORATE
12.4.1 Inputs to Select Sellers Continuing Education Division

Ryerson University
12.4.2 Tools & Techniques for

Ryerson University
Select Sellers
• .1 Weighing system
• .1 Proposals – Method for quantifying qualitative data
• .2 Evaluation Criteria – Minimize the effect of personal prejudice
O • .3 Organizational Process Assets O • .2 Independent estimates

– Procuring organization may prepare its own
R • .4 Risk Register
R estimates as a check on pricing
• .5 Risk Related Contractual Agreement
B • .6 Qualified Sellers List B • .3 Screening system
I • .7 Procurement Documentation Package I – Establishing minimum performance
requirements for evaluation criteria
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12.4.2 Tools & Techniques for 12.4.3 Outputs from Select

Select Sellers Sellers
• .4 Contract negotiation • .1 Select Sellers
• Involves clarification and mutual • .2 Contract
agreement on the structure and • Mutual agreement which obligates the seller to
O requirements of the contract O provide the specified product and obligates the buyer
to pay for it.
• Final contract to reflect all agreements
R reached R • Legal relationship subject to remedy in the courts
B • Examples of subjects covered: B • Contract =agreement=subcontract=purchase

agreement=memorandum of understanding
I responsibilities & authorities, terms and
law, contract financing, price
I • .3 Contract Management Plan
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CORPORATE CORPORATE
12.5 Contract Administration

12.5 Contract Administration
• Ensuring that the vendor’s performance
Project Management Book of Knowledge meets contractual requirements
Chapter 12
Project Procurement Management • Application of project management
processes to the contractual relationship
O 12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
12.5
Contract
Administration
Contract
Closure
O – Project plan execution
R R – Performance reporting
B B – Quality control
I I – Change control
– Communication management
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12.5.1 Inputs to AND PROFESSIONAL

TRAINING SERVICES
Ryerson University
12.5 CONTRACT ADMINISTRATION Contract Administration

• .1 Contract
Techniques
• .2 Performance Reports
Organizational
Contract Contract Change Process Assets
• Which deliverables completed, not completed
Approved
Control System (updates) • To what extent quality standards are being met
Buyer-Conducted
Change Performance Reviews Requested • .3 Approved Change requests
Requests
Work
Inspections and Audits
Changes
Recommended
O • Modifications to the terms of the contract or to the
Performance Reporting description of the product or service
Performance
Information
Payment System
Claims Administration
Corrective
Actions R • Contested changes where the seller and project
management team cannot agree on compensation for the
Selected
Sellers
Records Management
System
Contract
Documentation
B change are also called claims, disputes or appeals
I • .4 Work Performance Information

• .5 Selected Sellers
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12.5.2 Tools & Techniques 12.5.2 Tools & Techniques

for Contract Administration for Contract Administration

• .1 Contract change control system • .4 Performance Reporting
– the process by which the contract can be • .5 Payments System
modified
• .6 Claims Administration
O • .2 Buyer-Conducted Performance O • .7 Records Management System
R Reports R
– Information about how effectively the seller
B is achieving the contractual objectives B
I • .3 Inspection and Audits I
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CORPORATE CORPORATE
12.5.3 Outputs from Contract 12.6 Contract Closure

Administration
• .1 Organizational Process Assets Project Management Book of Knowledge
Chapter 12
(updates) Project Procurement Management
– Correspondence
O • Written documentation of certain aspects of O 12.1
Plan Purchase
and Acquisition
12.2
Plan
Contracting
12.3
Request Seller
Responses
12.4
Select
Sellers
12.5
Contract
Administration
12.6
Contract
Closure
R buyer/seller communications
– Payment schedule and requests
R
B • .2 Contract changes B
I • .3 Recommended Corrective Actions I
• .4 Contract Desmond
Documentation
T Alvares CKPM 205
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AND PROFESSIONAL
TRAINING SERVICES
Ryerson University
12.6 Contract Close-out 12.6 CONTRACT CLOSE OUT
• Product verification Inputs Tools & Outputs

Techniques Organizational
– Was all work completed correctly and Process Assets
Contract Procurement
satisfactorily Documentation (updates)
Audits
• Administrative close-out Contract Records
O – Updating records to reflect final results
Closure
Procedure
Management
System
R – Archiving of information for future use
B
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12.6.1 Inputs to Contract 12.6.2 Tools & Techniques for

Close-out Contract Close-out
• .1 Contract documentation
– Contract • .1 Procurement audits
– Supporting schedules – Structured review of the procurement
O – Requested and approved contract changes O process
– Seller- developed technical documentation – Identification of successes and failures
R – Seller performance reports R
• .1 Records Management System
B – Financial documents B
– Results of contract related inspections
I • .2 Contract Closure Procedure
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CORPORATE CORPORATE
12.6.3 Outputs from Contract Procurement Management Plan

Close Out • The plan describes how the procurement process, from
solicitation to contract close out, is managed. Included in
this plan are:
• The type(s) of contract(s) used.
(Updates)
• If independent estimates and cost proformas will be done
– Contract File
O • Documentation for Archives and Future Use O and who will do them.
• If standard procurement documents will be used, and if so,
R – Formal acceptance and closure R who will prepare them.
• Hand over of Project and acceptance by
B authorized authority B • Who will manage & coordinate the procurement of these
goods, services or products.
I – Lessons Learned Documentation
• Process improvements recommendations
I • Authority of the people involved in the process and
defined lines of communication.
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CORPORATE
AND PROFESSIONAL
TRAINING SERVICES
Procurements and Contract

Ryerson University
Overview
Thank You to BCS Upper Canada

Any Questions?
O
R Desmond P. Alvares
B 416 258 7178
I des_alvares@bcs.org.uk

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CORPORATE

Business Desmond P. Alvares B • 6 years Retail Banking (Technology Business Management,

Other Offerings of Project The Ryerson Offer (8 Courses)

Management Courses • Core Courses

I – The Graduate Certificate in Project Management (8 courses)

T Desmond Alvares CKPM 205

The Students View

Definition of the Procurement

Basic Steps Other Aspects

• Define the Goods and Services to be • Role of Project Management

Organizations for Procurement Procurement Considerations

12.1 PLAN PURCHASE AND ACQUISITION

R Environment and Contract Types

T Desmond Alvares CKPM 205

12.1.1 Inputs to Plan Purchase 12.1.1 Inputs to Plan Purchase

12.1.1 Inputs to Plan Purchase 12.1.2 Tools & Techniques for

12.1.2.1 Make or Buy Analysis 12.1.2.2 Expert Judgement

type: Uncertainty HIGH MODERATE LOW

• Fixed price or lump sum

12.1.3 Outputs from Plan Continuing Education Division

Purchase and Acquisition Management Plan

12.1.3.2 Contract Statements of 12.2 Plan Contracting

R whether they are capable of providing the R

12.2 Plan Contracting

12.2 PLAN CONTRACTING

Inputs Tools & Outputs

12.2.1 Inputs to Plan 12.2.2 Tools & Techniques for

12.2.3 Outputs from Plan 12.2.3.1 Procurement Documents

12.2.3.2 Evaluation Criteria

12.3 Request Seller Responses

Project Procurement Management

12.3 Request Seller Responses

12.3 REQUEST SELLER RESPONSES

Inputs Tools & Outputs

12.3.1 Inputs to Request Seller 12.3.2 Tools & Techniques for

T Desmond Alvares CKPM 205

12.3.3 Outputs from Request 12.4 Select Sellers

• Internally maintained lists Project Procurement Management

O • List developed by the project team

• .2 Procurement Documentation Package and Acquisition Contracting Responses Sellers Administration

12.4 Select Sellers

12.4 SELECT SELLERS

Inputs Tools & Outputs

O • Risk evaluation, lifecycle cost, independent

• Award the contract

12.4.1 Inputs to Select Sellers Continuing Education Division

12.4.2 Tools & Techniques for

O • .3 Organizational Process Assets O • .2 Independent estimates

12.4.2 Tools & Techniques for 12.4.3 Outputs from Select

B • Examples of subjects covered: B • Contract =agreement=subcontract=purchase

12.5 Contract Administration

12.5.1 Inputs to AND PROFESSIONAL

12.5 CONTRACT ADMINISTRATION Contract Administration

I • .4 Work Performance Information

12.5.2 Tools & Techniques 12.5.2 Tools & Techniques

for Contract Administration for Contract Administration

12.5.3 Outputs from Contract 12.6 Contract Closure

12.6 Contract Close-out 12.6 CONTRACT CLOSE OUT

• Product verification Inputs Tools & Outputs

12.6.1 Inputs to Contract 12.6.2 Tools & Techniques for

12.6.3 Outputs from Contract Procurement Management Plan

Procurements and Contract