Understanding and Handling Questions on Conduct Procurements

What is Conduct Procurements: Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. The key benefit of this process is to select a qualified seller who is capable of providing the products, services, or results that meet the procurement requirements.
Why is it Important: Conducting Procurements is vital because it helps to acquire necessary goods and services from outside the project team that are essential for successful project realization. It ensures selection of the right resources following a fair and transparent process, thereby contributing to the project's success.
How it works: Conduct Procurements process follows a series of steps:
1. Prepare procurement documents: Documents such as Request for Proposal (RFP), Invitation for Bid (IFB), Request for Information (RFI) are prepared and shared with potential vendors.
2. Release procurement documents: These documents are sent to potential sellers.
3. Conduct bidders conference: A meeting is held to clarify any issues regarding the procurement.
4. Receive and evaluate proposals: Received proposals or bids are evaluated based on certain pre-determined criteria.
5. Select seller: A seller is chosen who best meets the project needs.
6. Close procurement: Contractual obligations are duly fulfilled, and the procurement is formally closed.
Exam Tips: Answering Questions on Conduct Procurements: When attempting PMP exam questions related to Conduct Procurements, remember the following tips:
• Understand PMBOK's perspective: PMBOK guide focuses on selecting a qualified seller who can fulfill the procurement requirements.
• Use procurement documents appropriately: Questions may test your knowledge about different types of procurement documents and their uses.
• Evaluate bids objectively: Ensure you understand the procedures for bid evaluation and selection.
• Consider ethical aspects: PMI enforces stringent ethical guidelines, which includes fair treatment of all possibly involved parties in procurement process.