PMP - Procurement Management review

• - Fixed Price or Lump Sum
• - Cost Reimbursable
• - Time and Material

• Cost Plus Fixed Fee (CPFF)
• Cost Plus Incentive Fee (CPIF)
• Cost Plus Award Fee (CPAF)

CPFF poses a greater risk for the buyer

• Fixed Price Economic Price Adjustment
• Fixed Price Incentive Fee (FPIF)
• Firm Fixed Price (FFP)

FFP poses the greatest risk to the seller

• 1. Deadline
• 2. Good-cop / Bad-cop
• 3. Fait Accompli
• 4. Missing Man
• 5. Limited Authority
• 6. Delay
• 7. Personal Insults
• 8. Fair and reasonable

Unilateral: is essentially a purchase order for standardized routine items. Vendors often accept the orders automatically without even signing them in advance

• Bilateral: can be initiated one of three ways
• - IFB - Appropriate for routine items where the buyer's objective is simply to get the best possible price

- RFQ - used for purchase of low monetary value commodity items.

- RFP - used for complex, non-standard items of relatively high monetary value

• As an output from plan procurements, these criteria are used to rate or score proposals. The criteria may be objective or subjective and can include
• - Price
• - Life Cycle Cost
• - Understanding of Need
• - Technical Capability
• - Management approach
• - Financial Stability
• - Previous performance record