Project Procurement Management

Project Procurement Management: Running Case

Directions: Complete the two tasks associated with project procurement management. Put all your work on one word document. Separate your tasks by headings and/or page inserts.

Remember… turn your work in on a word document as ONE attachment for grading.

NOTE: This is the final installment of the running case started in week three. Tasks based on this case are explained following the case study. We have explored 9 knowledge areas of project integration management, scope, time, cost, quality, human resource, communications, risk, and finally procurement management.

Project Procurement Management: Case Study

Senior management at Manage Your Health, Inc. (MYH) decided that it would be best to outsource employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also wants to outsource the incentive program designed to motivate employees to use the system and improve their health. MYH feels that the right outside company could get people excited about the system and provide a good incentive program. As part of the seller selection process, MYH will require interviews and samples of similar work to be presented to a review team. Recall that MYH has more than 20,000 full-time employees and more than 5,000 part-time employees. Assume that the work would involve several instructor-led training sessions, developing a training video that employees could view from the company’s intranet site, developing a training manual for the courses that anyone can download from the intranet site, developing an incentive program for using the system and improving health, creating surveys to assess the training and incentive programs, and developing monthly presentations and reports on the work completed. The initial contract would last one year, with annual renewal options.

Assignment – Project Procurement Management: 2 Tasks

Suppose that your team has discussed management’s request. You agree that it makes sense to have another organization manage the incentive program for this new application, but you do not think it makes sense to outsource the training. Your company has extensive experience doing internal training. You also know that your staff will have to support the system, so you want to develop the training to minimize future support calls.

  1. Write a one-page memo to senior management stating why you think the training should be done in-house.
  2. Assume that the source selection criteria for evaluating proposals are as follows:
    • Management approach, 15%
    • Technical approach, 15%
    • Past performance, 20%
    • Price, 20%
    • Interview results and samples, 30%

Using weighted scoring model template as a guide, create a spreadsheet that could be used to enter ratings and calculate scores for each criterion and total weighted scores for three proposals. Enter scores for Proposal 1 as 80, 90, 70, 90, and 80, respectively. Enter scores for Proposal 2 as 90, 50, 95, 80, and 95. Enter scores for Proposal 3 as 60, 90, 90, 80, and 65. Add a paragraph to the spreadsheet that summarizes the results and your recommendation.

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