Section 7: Procurement Management

Procurement Management Plan

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The Procurement Management Planaddresses the processes to acquire services or products from outside of CDOT.

Project Delivery Plan

1. Risk Management

2. Roles & Responsibilities

3. Scope Management

4. Cost Management

5. Schedule Management

6. Change Management

7. Procurement Management

8. Communications Management

9. Quality Management

10. Transition to Construction Plan

Procurement Management Plan

This topic covers the following:

• Learning Objectives

• Why does the PDP include a Procurement Management Plan?

• Example of a Procurement Management Plan

• What is the PM’s Role in Procurement Management?

• What is in a Procurement Management Plan?

• Class Discussion

• Summary

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Learning Objectives

Participants will:

• Recognize the value and purpose of a Procurement Management Plan

• Be able to complete a Procurement Management Plan

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Why Include a Procurement Management Plan?

Procurement Management involves developing a strategy to ensure that the right resources are available to the project when they are needed

• Anticipate procurement lead time to avoid delays to the project

• Plan for sufficient schedule and budget to cover the required services

• Assign responsibilities for managing and tracking contracts and task orders

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Example Procurement Management Plan

This project will be constructed using a design-bid-build contract. Survey, structural design and roadway design resources are needed to support this project as listed in the Procurement Matrix below.

Procurement Matrix

Project: State Hwy Wildlife/Safety Imp PCN: 22222Project Manager:

Jill Jones

Resident Engineer:

Megan Miller

Type of Service

Need to

commence

work by:

Type of

Contract

Estimated

Lead Time

Contract

Manager

Estimated

Cost

Contract Begin

& End Dates

Total

Contract

Value

Structure Design 06-01-2018

HQ

Structural

NPS

4 weeks

Bridgette

Doe$70,000

Ground Survey 03-01-2018

R1 Gen

Engineering

NPS

4 weeks Tran Sit $40,000

Preliminary & Final

Design05-01-2018 PS RFP 3 months

Dee Zine$500,000

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Example Task Order Tracker

Task Order Tracker

Project: State Hwy

Wildlife/Safety ImpPCN: 22222 Project Manager: Jill

Jones

Resident Engineer: Megan Miller

Type of ServiceCMS # T.O.

Amount

Spent to

Date

DBE

Goal

DBE %-age to-

date on T.O.

T.O. End

Date

Notes

Structure

Design17-HA3-XX-222 $73,222 $ 5,621

12% 11.2% 04/23/2018

Ground Survey 17-HA3-XX-777 $39,462 $ 38,941 8% 8.4% 12/15/2017 TO has been closed

Prelim/Final

Design17-HA3-XX-999 $531,459 $ 213,115

15%12.2%

09/28/2019

What is the PM’s Role in Procurement Management?

Develop a Procurement Management Plan that provides the right level of support.

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Award and manage Task Orders/Contracts as appropriate.

Monitor and Control Contracts and Task Orders

Closeout contracts. Archive procurement documents.

Discuss procurement needs.

What is in a Procurement Management Plan?

There are three steps to creating a Procurement Management

Plan:

1. Determine the type of construction contract

2. Determine the external resources needed

3. Develop the Procurement Plan

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What is in a Procurement Management Plan?

1.Determine the type of construction contract

The type of contract that will be used for construction has a significant influence on the quantity and type of resources needed to complete the pre-construction phase.

• Design-Bid-Build (100% of design will be completed prior to Ad)

• Design-Build (10 to 30% of design will be completed prior to Ad)

• CMGC (typically up to 30% of design will be completed prior to Ad)

– Sometimes more than 30% complete

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A Few Words about Innovative Contracts. . .

Why should you consider an innovative contract?

• Risks can be transferred to the party best able to manage them

• Overall project delivery schedule can be expedited

• Encourages creativity in design and construction

• Encourages aggressive pricing and cost-effective solutions

• Provides a mechanism for incentivizing project goals or objectives

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CDOT Design-Build Manual, Figure 1-1

The Project Delivery Selection Matrix:https://www.codot.gov/business/designsupport/innovative-contracting-and-design-build/pdsm/project-delivery-selection-approach-blank-form/view

2. Determine the external resources that your project team needs to complete the project

Can you think of some ways that CDOT uses consultants?

• To supplement resources

— Meet deadlines

— Not enough internal staff

• To access specialized expertise

— Tunnel design

— Environmental Studies, EAs, EISs, PELs

• To provide construction management/inspection services

• Site Investigations such as Pot-holing and Utility Locates

• Long lead procurements such as Mast Arms/Signal Poles

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What is in a Procurement Management Plan?

And, determine the type of contract -Project Specific or NPS/Task Orders?

• Project Specific Contracts

– Required when the need is >$500,000

– The PM/RE will usually serve as the contract monitor

• NPS/Task Orders

– Total project needs <$500,000

– PM/RE or Specialty Unit Manager will serve as

the contract monitor

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What is in a Procurement Management Plan?

Who is the Contract Monitor?

• Specialty groups may have access to an existing NPS contract:

– Specialty Manager issue/manage Task Order

– Project funds will be needed to pay for the services

• If the PM is on the hook to acquire resources, RE/PM will usually serve as the Contract or Task Order Monitor

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What is in a Procurement Management Plan?

3. Develop your Procurement Plan, including :

– Description of goods and/or services to be procured

– Date when services are needed

– Type(s) of contract(s) (PS or TO)

– Lead time for procurement activities

– Estimated cost

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What is in a Procurement Management Plan?

Note: More detailed information on the procurement process is covered in TETP courses, Work-Hour Estimation and Work-

Hour: Scope of Work (eLearning).

Class Discussion

You are assigned a project that will require a new storm sewer system. The Region hydraulics engineer informs you that there are inadequate resources to do the design in-house.

• Who would like to list some general steps you might take as the PM?

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Questions/Discussion

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