Introduction:

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. You have to pick either Construction or $2$VRAP

Phone Project for your assignments:

I. Construction Project

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

II$.2$VRAP Phone

Software development for the $2$VRAP Phone$$

Hardware design for the $2$VRAP Phone$$

Manufacture of hardware $-$ integrated circuits, chipsets

Procurement of a video camera and other accessories for the $2$VRAP Phone$$

Manufacture of casing and associated accessories for the $2$VRAP 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 the Lead 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 chosen five activities should be handled $($for example, make in$-$house, by purchase "Commercialoff$-$the$-$shelf" $($COTS$),$ competitive bidding, sole source procurement, and so forth$)$ and bundled, if at

all, to maximize efficiency and cost. You can make any assumptions you need and create decision

criteria on your own. In most cases, organizations use mix of financial and other business criteria, like

competency withing organization or a vendor, business reputation, level of quality, availability of

MGT $5086\_$Assignment$\_01\_$Rv$2$

people and facilities to deliver required goods and services, timing of delivery, etc. By all means, you

can make decision using only non$-$financial criteria.

In reaching your decision, you should remember that:

The more the activities are bundled $($that is$,$ the greater the number of individual procurement

items$)$ the less opportunity there is to have each procured in the most economical manner by

a specialized contractor, vendor or supplier

The more the activities are bundled the less control you will have over the individual 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.