Hello
I need 300 to 500 words to answer the question below
Scenario
Will Fence owns a 70-acre large timber and Christmas tree farm. The Christmas farm gets busy in August and September when Will identifies and flags the trees suitable for the Christmas season. Starting in October, the flagged trees will be cut, baled, and trucked to the storage yard where they will stay until shipped. The storage yard is situated in an area that offers shade and protection from the wind to maintain the freshness of the tree. The trees are stacked with the tops locked together to keep the sun and wind away from them. Will has just purchased an additional 40 acres and will need to expand his storage yard by 40,000 square feet. The budget for this expansion is $55,000. Will has hired your team to design a process to contract resources to expand the storage yard.
Question
· Explanation of how the contract resources procurement process that was described will assist Will in negotiating the best purchase
Running head: PROCUREMENT CONTRACTING PROCESS ANALYSIS 1
PROCUREMENT CONTRACTING PROCESS ANALYSIS 5
Procurement Contracting Process Analysis
Jeffrey Green, Clint Tandy, Sheila Hill, Donna Johnson, Marcus Singleton
Team Paper
CPMGT/302
Dr. Daryoush Tehranchi
April 23, 2018
Procurement Contracting Process Analysis
A procurement contract is a formal agreement with a business entity to secure particular goods and services which comply with the procurement policies. Will Fence has a budget of $50,000, and therefore the most effective procurement contract type to be used would be a fixed price contract more specifically, the Firm Fixed Price Contract.
Explaining Processes from Start to Closure
To start the procurement process which will lead into the contract process for the tree farm, first the team will need to assign a purchasing agent. The purchasing agent role is to watch over the process of gathering the contracts for procurement and make sure that they are being validated, the correct price, have suitable needs for the project, and then make sure that the contracts are closed. To begin, the purchasing agent will have a inspection sheet of vendors to review, during this interview process the purchasing agent will ask the vendors a series of questions on: how much does the services cost, a portfolio of these vendors or companies past projects, what is the warranty period or refund process. The purchasing agent will then sign on contracts to these vendors, and consistently monitor funds that are being spent, in congruent to the work that is being established. While monitoring, the purchasing agent will make sure to function any change order request, this is to check to see if there were any mistakes made in the contracts, either by the project team or by the vendor. Negotiating different deals for the farm, will be a monumental task, there are several protocols put into place to make sure that all deliveries are met upon, in a graceful timespan. Once the procurement and contract process come to a close, the purchasing agent will review any last minute changes that need to be made, or to make sure that the expectations or met for the keyholder. Initially there will be several audits, after the overall review of the procurement process of the project, double checking the pass and fail mechanisms that might have been put in place for several vendors. Finally, there will be an overall compliance survey and payment confirmation/termination for the vendors, to make sure the work and job was done right, in order to get paid.
Procurement Process
Negotiating the Best Price.
The first step to successfully negotiating a contract is to have a plan. The plan procurement process enables the buyer (Will) the ability to negotiate associated costs yet still receive high levels of service. The plan procurement process involves creating a project management plan. The project management plan identifies key inputs such make-or-buy analysis and market research. Make-or-buy inputs identify resources that can be made by the project team and includes processes necessary to purchase or acquire services and resources from outside the project team. Market research explores the industry and the specific capabilities of potential vendors and helps identify market capabilities. By knowing exactly what resources you already have on hand will significantly impact the negotiation agreements between the buyer and seller. In addition, the project management plan is based off of analysis requirement for the project and consulting documents such as the project schedule and the risk register. By having this information readily available the seller is able to provide detailed information to buyers about the scope of the project. The plan procurement process also addresses the various types of contracts. Fixed price-contracts are best when the scope of the project is clearly defined and typically have more risk for the seller. Cost-reimbursable contracts are best when the scope is unclear or subject to change therefore the buyer assumes more of the risk. T&M contracts are often used when a precise statement of work cannot be quickly created therefore both the seller and the buyer equally shares associated risks. By the seller knowing which contract type is feasible for their particular project it will also help with negotiating the best purchase price of resources.
Plan Efficiency. This plan is likely the best that can be implemented with regards to pricing and scheduling. Acquiring the fence post at cost will enable the lowest possible price per post while still obtaining posts that should last a considerable time in the expected weather conditions. While longer lasting, more durable posts could be sought after, this would in all likelihood put a strain on the budget if not exceed it outright. Securing the plot of land through an outside agency will also be a boon in the future due to tax exemptions that the client will be applicable for via this route. The results achieved with the proposed plan presented here will enable the client to extend the area of productivity for the goods produced in a timely manner and well within the budget, including a safety margin of fifteen percent. Workers will be needed as well, and the expected method of recruiting them will also serve the intent of purpose on the part of the client. To this end, it is clear to the team that this is an optimal plan and is the best that can be provided with the budget provided.
The role of risk management. The purpose of risk management in a procurement process is continuous. Risk management in a procurement process is essential since it helps organizations to run the purchasing and supply operations successfully. A procurement process may fail because of the associated procurement risks. Quality and delivery risks, fraud and costs are among the risks associated with the procurement process. For instance, if Will gives the contractors $50,000 for completion and designing of the tree firm and the contractors fail to deliver quality work, then that can be perceived as a potential procurement risk. The risk treatment options that are commonly used to prevent future threats are; avoidance, transfer reduction as well as acceptance of the procurement risk. Supplier and compliance risks can also be associated with procurement process risks. The procurement and the contract process are prone to risk therefore understanding the process will go a long way in minimizing the associated risks.
Improving the Process. There are many different aspects of the procurement process that has been suggested to Will Fence, but there are a few key points that he should take into consideration during the process. When the scope of work has been established and incorporated into a statement of work that has all the work task that will need to be completed, then the procurement is complete.
The scheduling of the procurement process is another crucial aspect because we do not want to conflict schedules with Wills’ business operations. August and September are the busy seasons for the company, and the program should begin at the end of his active season and finish at the start of the next working season. Since a majority of the work will be done during the winter and spring months, the weather will be significant when it comes to the deliverables. Before the procurement plan can be completed, the work that has been done needs to be monitored for the quality of the work and if the work and tasks were done on schedule.
References:
Graham Crawshaw (2017). Supply Management. The top six challenges facing procurement. Retrieved from
https://www.cips.org/supply-management/opinion/2017/september/the-top-six-challenges-facing-procurement-/
accessed on 20 April 2018
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Cengage Learning.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Achiever Papers is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Dissertation Writing Service Works
First, you will need to complete an order form. It's not difficult but, if anything is unclear, you may always chat with us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download