What is a Make-or-Buy Analysis?

Make-or-Buy Analysis:

• is a technique used to determine whether it would be more cost effective to produce a prudct or service in-house or from an outside vendor.
• can significantly impact project time, cost, quality, scope, etc.

Introduction on Plan Purchase and Acquisitions

Plan Purchase and Acquisitions is a critical process that involves acquiring goods and services from outside the organization.

What is a Letter of Intent?

Letter of Intent is:

• normally NOT a contract but simply a letter with legal binding that says the buyer intends to hire the seller.

What is a Non-Disclosure Agreement?

Non-Disclosure Agreement is:

• an agreement between the buyer and any prospective sellers stating what information or document they will hold confidential and control.

What is a Contract?

A contract refers to the entire agreement between both parties (Buyer and Seller).

It includes business terms regarding:

• Payment
• Reporting requirement
• Proposal
• Contract statement of work
• Others

Project Manager's Role in Procurement

The project manager must be involved in the creation of contracts and fulfills the following key roles:

• Understand contract terms and conditions
  
  
• Identify risks and incorporate mitigation and allocation of risks into the contract
  
  
• Fit the schedule for completion of the procurement process into the schedule for the project
  
  
• Be involved during contract negotiation to project relationship with the seller
  
  
• Work with contract manager to manage changes to the contract