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TOPIC: Seller Proposal an input in Conduct Procurement?

Seller Proposal an input in Conduct Procurement? 2 years 3 months ago #4542

  • Oluwafunmilola James
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Hello all,
Please I need clarifications as regards why Seller proposals should be an input in the Conduct procurement process. The PMBOK 5 pg 373 says the seller proposals are 'prepared as a response to procurement document package..' The previous process of planning procurement says we 'identify potential sellers'. Assuming that the execution process is where we 'do the work' as the PM prepcast reminds us, how come these potential sellers are already responding by sending in their proposals when we a\re just about to hold bidders' conference, advertise etc in this conduct procurement process? I need clarifications please.

Seller Proposal an input in Conduct Procurement? 2 years 3 months ago #4563

  • Sven Gruendahl
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Hi there,

I have difficulty to understand your question but really want to help you.
My undestanding of the process in "reality" is that you:
Define what you need to procure with a written "specification" and than the potential sellers may bid on that.
If the specification is complicated and you want the sellers to understand it more clearly you need to organize a bidders' conference.
Next step is that the seller send you proposals and so on...

Now I need to understand what exactly is your point regarding the PMBOK process?

Kind Regards
Sven
Sven Gründahl, PMP, PMI-ACP & Community Moderator

Seller Proposal an input in Conduct Procurement? 2 years 3 months ago #4564

  • Lola
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Hello.Sven,
Many thanks for wanting to help. My question is that seller proposal is a document sent by the seller. Right? Then how come its an input in conduct procurement? Have we sent them procurement documents in any preceeding process before the conduct procurement process to warrant a 'response' from them in the form of seller proposal? I would have guessed it should be an output of the process and not an input since conduct process is where we hold bidders conference in expectation of the sellers' response. I hope you understand my question pls? I really want to understand why the seller proposal which I though was a response from the sellers should be an input when we have just began to conduxt procurement pls. The way it stands, it seems we get proposals from buyers even before we advertise, hold bidders conference etc.. how is this so please?

Seller Proposal an input in Conduct Procurement? 2 years 3 months ago #4573

  • Sven Gruendahl
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Hello,

I give you an example from my job experience and than link it to the PMBOK

The Engineering department started to design aircraft related components in the computer.
They wrote additionally a so called SPEC (specification) to describe the component in more detail.
Once this is finished the first PMBOK process starts. PLAN PROCUREMENT MANAGEMENT (page 358)

The input for this process is the SPEC or in PMBOK called "Requirements documentation" and of course
all known risks from the "risk register" .
From the project management team also the timings "project Schedule" came into this process when this component should be available "on site". Also important to know was who was responsible for handling the component later on, should be recieve reports about transport status..... this was listed in the "Stakeholder register"

Now procurement starts looking in their database or did a market research who can produce + sell this component or invetigate if it was better to produce it "inhouse" --> "Make or buy analysis"
So to answer one of your questions, already here you need at least some information from the seller to conduct your make or buy decision.
After this process you are clear "what you want to buy" and "who are the potential seller" and on what "selection creteria"
you decide later on...

Once this is done the next process kicks in which is "Conduct procurement" and
now I do see your point with this IMPUT but this comes from the iterative nature of the PMBOK processes.
This is really common in the PMBOK processes that you often want to "go back" to processes and refine them
with the latest information you have. The processes are not a "to do list" and I understand that this is difficult and
was also very complicated for me as I studied the first time this "telephone book". :lol:

So, I try to make it clear, once you have green lights for this process you ask the sellers for "real proposals" with costs, delivery dates and so on.
If the SPEC is complex you can organize a "bidder conference" to make all sellers clear what you expect!
Yóu start "conducting" the procurement. If you have the proposals you need them as INPUT in the same process and you go back to decide with the "selection criteria" who makes the race and than set up the contrats.
The figure on page 372 makes the iterative process "a little" bit more clear.

Kind Regards
Sven
Sven Gründahl, PMP, PMI-ACP & Community Moderator
Last Edit: 2 years 3 months ago by Sven Gruendahl.
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