Combining Requirements, Expectations, and Payment

For this discussion, refer to the following:

• Kerzner, H. R. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: Wiley.
  • Chapter 2, “Project Management Growth: Concepts and Definitions,” Section 2.14 (pages 65–66).

Address the relationship among the SOW, quality criteria, and payments:

• Enumerate the ways a project manager can ensure that the SOW accurately and completely details all project requirements.
• Explain why quality and performance characteristics of the goods or services should be tied to payments within the contractual agreement.
• Explain how project gate review meetings can help in this discussion.

DISCUSSION PARTICIPATION SCORING GUIDE

DISCUSSION PARTICIPATION GRADING RUBRIC

Criteria	Non-performance	Basic	Proficient	Distinguished
Apply relevant course concepts, theories, or materials correctly. 25%	Does not explain relevant course concepts, theories, or materials.	Explains relevant course concepts, theories, or materials.	Applies relevant course concepts, theories, or materials correctly.	Analyzes course concepts, theories, or materials correctly, using examples or supporting evidence.
Collaborate with fellow learners, relating the discussion to relevant course concepts. 25%	Does not collaborate with fellow learners.	Collaborates with fellow learners without relating the discussion to the relevant course concepts.	Collaborates with fellow learners, relating the discussion to relevant course concepts.	Collaborates with fellow learners, relating the discussion to relevant course concepts and extending the dialogue.
Apply relevant professional, personal, or other real-world experiences. 25%	Does not contribute professional, personal, or other real-world experiences.	Contributes professional, personal, or other real-world experiences, but contributions lack relevance.	Applies relevant professional, personal, or other real-world experiences.	Applies relevant professional, personal, or other real-world experiences to extend the dialogue.
Support position with applicable knowledge. 25%	Does not establish relevant position.	Establishes relevant position.	Supports position with applicable knowledge.	Validates position with applicable knowledge.

Topic Resources

If you have little or no background in business, you may find the following resources helpful in providing some foundational knowledge on this unit’s topic:

• De Clerck, D., & Demeulemeester, E. (2016). A sequential procurement model for a PPP project pipeline. OR Spectrum, 38(2), 427–457.
• Manley, K., & Chen, L. (2016). The impact of client characteristics on the time and cost performance of collaborative infrastructure projects. Engineering, Construction and Architectural Management, 23(4), 511–532.

If you are interested in learning more about the topics in this unit, the following resources may be helpful:

• Lindstrom, D. L. (2014). Procurement project management success: Achieving a higher level of effectiveness. Plantation, FL: J. Ross Publishing.
• Rendon, R. G. (2015). Benchmarking contract management process maturity: A case study of the US Navy. Benchmarking: An International Journal, 22(7), 1481.
• Lonsdale, C., Hoque, K., Kirkpatrick, I., & Sanderson, J. (2017). Knowing the price of everything? Exploring the impact of increased procurement professional involvement on management consultancy purchasing. Industrial Marketing Management, 65, 157.
• Xu, J., Feng, G., Jiang, W., & Wang, S. (2015). Optimal procurement of long-term contracts in the presence of imperfect spot market. Omega, 52, 42–52.
• Streun, G. (2014). Project quality management in practice. In Dinsmore, P. C., & Cabanis-Brewin, J. (Eds.), The AMA Handbook of Project Management (4th ed.) (pp. 115–120). New York, NY: Amacom Books.

SOW – Completion and Refinement

The statement of work (SOW) is a “narrative description of products, services, or results to be delivered by the project” (Project Management Institute, 2017, p. 724).

• Kerzner, H. R. (2017). Project management: A systems approach to planning, scheduling, and controlling (12th ed.). Hoboken, NJ: Wiley.
  • Section 11.10, “Statement of Work,” pages 361–363.
• Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition and Agile Practice Guide. Newtown Square. PA: 2017
  • Chapter 12, “Project Procurement Management,” pages 459–481
• Sollish, F., & Semanik, J. (2012). The procurement and supply manager’s desk reference (2nd ed.). Hoboken, NJ: Wiley.

For this discussion, explain the implications of incomplete components and risks in a statement of work. Discuss why the SOW needs to be created in the most accurate manner possible, describing the procurement items in sufficient detail. As a project manager, how would you ensure a SOW is as clear, complete, and as concise as possible? In addition, how would you keep track of all the updates and modifications to the SOW? Keep in mind that a SOW can be refined and revised as it moves through solicitation planning and the procurement process.

DISCUSSION PARTICIPATION SCORING GUIDE

DISCUSSION PARTICIPATION GRADING RUBRIC

Criteria	Non-performance	Basic	Proficient	Distinguished
Apply relevant course concepts, theories, or materials correctly. 25%	Does not explain relevant course concepts, theories, or materials.	Explains relevant course concepts, theories, or materials.	Applies relevant course concepts, theories, or materials correctly.	Analyzes course concepts, theories, or materials correctly, using examples or supporting evidence.
Collaborate with fellow learners, relating the discussion to relevant course concepts. 25%	Does not collaborate with fellow learners.	Collaborates with fellow learners without relating the discussion to the relevant course concepts.	Collaborates with fellow learners, relating the discussion to relevant course concepts.	Collaborates with fellow learners, relating the discussion to relevant course concepts and extending the dialogue.
Apply relevant professional, personal, or other real-world experiences. 25%	Does not contribute professional, personal, or other real-world experiences.	Contributes professional, personal, or other real-world experiences, but contributions lack relevance.	Applies relevant professional, personal, or other real-world experiences.	Applies relevant professional, personal, or other real-world experiences to extend the dialogue.
Support position with applicable knowledge. 25%	Does not establish relevant position.	Establishes relevant position.	Supports position with applicable knowledge.	Validates position with applicable knowledge.

Procurement Contracts and Statement of Work

This portfolio work, procurement contract analysis, selection and administration, is based on your selected business or IT project. You may choose to base your assessment on the Revive LLC case study, for the development of a new online employee orientation module, or you may continue to analyze an organization of your choice. Both business and information technology (IT) employees, as well as contractors, will be utilized in this project.

Through the project procurement process, various types of contractual agreements between the seller and buyer should be reviewed and analyzed, and the most appropriate contract type should be selected. Contracts are legal agreements that bind both parties to specific deliverables, time, and costs obligations. There are three types of contracts: fixed-price contracts; cost-reimbursable contracts; and time and material contracts. Each type has advantages and disadvantages. You will find out and decide the best type of contract after considering the circumstances, timing requirements, budget availability, and market conditions that suit your organization.

Contract administration is the process that ensures the supplier or vendor meets the contractual requirements. It is simply a matter of monitoring the performance against the agreed upon plan (contract). It is essential that project managers involve the contracting (legal) and procurement (purchasing) experts in the administration of the contract.

As part of the contract evaluation and selection process, a detailed description of the work required, including (but not limited to) scope, time, and quality, is defined in a document called the statement of work (SOW). The types of SOW documents and their associated components will be evaluated in this unit.

Scenario

For this assignment, choose either Option A or Option B. You do not need to do both. Both options will be graded using the same scoring guide.

Option A: Project Revive LLC Scenario:

At this point in the process, you need to help NearlyFree.com recognize different contract types and make the right selection for the turnaround project. As the consultant of Project Revive LLC, the final task you will complete is to create the statement of work (SOW) that describes the expectations for the new employee orientation product the third-party vendor will provide. NearlyFree.com is a fictitious company and the project documents for NearlyFree.com project scenario are located in course resources area.

Although you have a lot of experience preparing statements of work, NearlyFree.com has not completed this part of the procurement process before. So, as part of your services, you will guide NearlyFree.com through this process. Your task is to help your client recognize the benefits of a good SOW and the risks associated with a poor SOW.

Option B: You may choose a business of your own. It must include (but is not limited to) the following criteria:

• Clearly indicate the title of the project in every assignment.
• You must have access to the following documentation:
  • Scope statement.
  • Final deliverable and product definition.
  • Project work-breakdown structure.
  • Project schedule.
  • Quality plan.
  • Project costs (estimates and actuals).

Your Role

For both Option A or B, you are the project manager.

Requirements

Microsoft Project is the required software tool for this course due to its wide industry acceptance and its use in many project management professional roles. Practice using MS Project in this course helps prepare you for future professional PM roles and responsibilities; please use MS Project for those tasks supported by MS Project. If you have access to other tools such as MS Visio, MS PowerPoint, and MS Word that you believe may still meet the requirements of this course.

Use the PMBOK® Guide as the model for developing the deliverables.

Part 1: Project Contract Analysis

Deliverable: Develop a decision matrix, select a contract for your turnaround project, and provide a rationale

• Develop a decision matrix to determine the best type of contract for the project considering the circumstances, timing requirements, budget availability, market conditions, and availability.
• Select a contract for this project and explain your selection.

Part 2: Statement of Work (SOW) Analysis

Deliverable: Create a statement of work (SOW) for the turnaround project.

Prepare a contract SOW describing the product or service to be supplied by a third-party vendor.

• The SOW is your opportunity to clearly communicate your requirements and expectations. Refer to similar products on the Internet for realistic information to use in your statement of work. An optional template is provided in the resources for this assessment. You may use other formats if the information thoroughly addresses the expectations and requirements of the product or service.

The SOW should address the following aspects related to the product or service to be procured:

• Specifications.
• Approach.
• Scope.
• Roles and responsibilities.
• Product and deliverables schedule.
• Deliverables and costs.
• Change control.
• Acceptance management.
• Quantity.
• Quality standards.
• Performance data.
• Work location.
• Period of performance.
• Contract to be used.

Preparation

Use the software of your choice to develop the deliverables for this assessment.

This assignment has two deliverables:

1. Develop a decision matrix, select a contract for your turnaround project, and provide a rationale.
2. Create a statement of work (SOW) for the turnaround project.

Deliverable Format

• References: There is no set number of references required for this assignment. Use scholarly or academic sources where applicable.
• Format:
  • Microsoft Project is not required for this assignment. This assignment has two parts and two deliverables.
  • Use your choice of MS Word, MS Visio or MS PowerPoint to develop the comprehensive analyses.
  • These analyses are professional documents and should therefore follow the corresponding Academic and Professional Document Guidelines PDF, including single-spaced paragraphs.
  • Use APA style and format for references and in-text citations.

Evaluation

By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:

• Competency 2: Apply project procurement tools and techniques to ensure project success.
  • Develop a matrix to analyze project procurement requirements for selecting a contract.
  • Justify procurement contract selection for the procurement situation.
• Competency 4: Communicate effectively in a professional manner consistent with the standards of project management.
  • Prepare a contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor.

Your course instructor will use the scoring guide to review your deliverable as if they were your immediate supervisor. Review the scoring guide prior to developing and submitting your assignment.

Procurement Contracts and Statement of Work Scoring Guide

CRITERIA	NON-PERFORMANCE	BASIC	PROFICIENT	DISTINGUISHED
Develop a matrix to analyze project procurement requirements for selecting a contract. 34%	Does not develop a matrix to analyze project procurement requirements for selecting a contract.	Develops a matrix to analyze project procurement requirements for selecting a contract; does not include all relevant information.	Develops a matrix to analyze project procurement requirements for selecting a contract.	Develops a matrix to analyze project procurement requirements for selecting a contract, describes requirement characteristics, and based on procurement requirements, recommends appropriate contracts and modifications.
Justify procurement contract selection for the procurement situation. 33%	Does not justify procurement contract selection for the procurement situation.	Selects a contract for the procurement situation, but does not justify it.	Justifies procurement contract selection for the procurement situation.	Justifies procurement contract selection for the procurement situation; identifies strengths, issues, and risks for using the selected contract in the procurement situation
Prepare a contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor. 33%	Does not prepare a contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor.	Prepares an incomplete contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor.	Prepares a contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor.	Prepares a contract statement of work (SOW) describing the product or service to be supplied by a third-party vendor that is clear, complete, concise, and will enable a third-party vendor to determine if they are able to provide the product for service.

Topic Resources

If you have little or no background in project scope management, you may find the following resources helpful in providing some foundational knowledge on this unit’s topic:

• Purchasing & Procurement Center. (n.d.). What is statement of work (SOW)? Retrieved from https://www.purchasing-procurement-center.com/what…

If you are interested in learning more about the topics in this unit, the following resources may be helpful:

• Chung, E. (2017). Statement of work (SOW) vs. project scope statement for PMP . Retrieved from https://edward-designer.com/web/project-statement-…
• Torvinen, H., & Ulkuniemi, P. (2016). End-user engagement within innovative public procurement practices: A case study on public–private partnership procurement. Industrial Marketing Management, 58, 58–68.