A procurement specialist has been assigned to your project team for the duration of the project. The procurement specialist and the Team Leader have analyzed the project management plan, the project scope and the project work breakdown structure and have proposed to you that procurement (both, inside and outside the SS Telecommunications Company) should be in the following procurement (or contracting) packages:

Architectural building addition design

Site clearance and foundations for, and construction of, the building addition itself.

Finishing of the building (mechanical work- heating, and ventilation; electrical, plumbing, the windows and glazing, the specialized industrial flooring, the painting)

Procurement and delivery of the furniture (desks, shelf, tools and equipment for the production, maintenance and offices)

Procurement, installation and networking of computers Software development for the 2VRAP Phone Hardware design for the 2VRAP Phone

Manufacture of hardware - integrated circuits, chipsets

Procurement of a video camera and other accessories for the 2VRAP Phone Manufacture of casing and associated accessories for the 2VRAP Phone

You understand that for many projects, a number of procurement packages have to be made for goods and services and these, depending on their nature, would require different time periods for (a) preparation of the procurement and then (b) execution and delivery. Normally, the project would have a date by which it should be completed, tested, commissioned, and ready to be put into service. Therefore, the different procurement activities would have to be started in advance to ensure meeting the target completion date. This advance period is referred to as theLead Time.Due

to the nature of the different activities, procurement for each one may need different lead times. Also the nature of the project may dictate interdependencies between activities, that is, some activities may be dependent in part, or totally, on others. Moreover, for economy reasons, some of the procurement items (goods and/or services) may be bundled (grouped or packaged) together and may be bid as a package (with an integrated Contractual Statement of Work).

Task:

Procurement may be a complex and lengthy operation, and it is the purpose of this task to give you an opportunity to practice the decisions to be made in the make-or-buy analysis during a typical procurement planning stage. You, as the Project Manager, are required to consider recommendations made by your procurement specialist and team, and to decide how procurement of these ten activities should be handled (for example, make in-house, by purchase "Commercial-off- the-shelf" (COTS), competitive bidding, sole source procurement, and so forth) and bundled, if at all, to maximize efficiency and cost.

In reaching your decision, you should remember that:

Themoretheactivitiesarebundled(thatis,thegreater thenumberofindividualprocurement items) the less opportunity there is tohave each procured in the most economical manner by a specialized contractor, vendor orsupplier

Themorettheactivitiesarebundledthelesscontrolyou willhaveover theindividual activities

The more the activities are bundled the more the administrative load will be transferred from your staff to the contractors, but there will be a cost associated and expressed in the contractor's prices or fees, in doing so.

The less the activities are bundled the greater the possibility for conflict on deadlines between the various contractors in support of your project.

Summarize your decisions in a table or chart format, and attach it along with the make-or-buy discussion and justification as a section for the Procurement Management plan.

Evaluation Criteria:

List of Procurement Packages (20%) Procurement Package Analysis (50%) Mark or Buy Analysis Chart (20%)

No spelling or grammatical errors (10%)

Total: 100%