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Conduct Procurements

The set of activities to solicit and collect bids or proposals from sellers, evaluate them to select a supplier, and finalize and award the contract.

Key Points

  • Involves issuing RFPs/RFQs, answering bidder questions, and receiving proposals or bids.
  • Applies predefined selection criteria and may include bidder conferences, evaluations, and due diligence.
  • Includes negotiations on scope, price, schedule, and terms before deciding on the winning seller.
  • Results in a signed agreement and updates to procurement records and the project management plan as needed.

Example

A project team needs a specialized software component. They publish an RFP, hold a bidder conference, score vendor proposals against technical and cost criteria, negotiate service levels and warranties with the top vendor, and award the contract to the best overall offer.

PMP Example Question

Which action occurs during Conduct Procurements?

  1. Deciding whether to build in-house or buy from a vendor
  2. Evaluating supplier proposals and selecting the winning seller
  3. Monitoring seller performance against the contract
  4. Archiving procurement records after all work is complete

Correct Answer: B — Evaluating proposals and choosing the seller

Explanation: Conduct Procurements focuses on obtaining and assessing seller responses, negotiating, and awarding the contract. Make-or-buy is planning, performance monitoring is control, and archiving occurs at closure.

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