HKSM

Run the sourcing cycle to obtain bids or proposals, evaluate them against defined criteria, negotiate terms, and award a formal agreement to the selected seller.

Purpose & When to Use

• Secure external goods or services needed to deliver project outcomes.
• Ensure a fair, transparent process that achieves best value and manages risk.
• Used after procurement planning is complete and solicitation documents are ready to release to potential sellers.
• Applies to any external purchase: products, services, or outsourcing.

Mini Flow (How It’s Done)

• Confirm the procurement package: statement of work/specs, evaluation criteria, draft contract, instructions to bidders, and timelines.
• Issue the solicitation (RFI/RFQ/RFP) and advertise or invite qualified sellers per organizational policy.
• Manage bidder Q&A and hold a bidder conference to clarify scope and rules; publish written addenda to all sellers.
• Receive proposals by the deadline; protect confidentiality and verify basic compliance.
• Screen for mandatory requirements and eligibility; document any disqualifications.
• Evaluate proposals using predefined criteria and a scoring model; perform cost realism checks and compare to independent estimates.
• Conduct due diligence: references, capability checks, site visits, demonstrations, or proofs of concept as needed.
• Shortlist and negotiate with the top-ranked seller(s) on scope, price, schedule, risks, and commercial terms within policy limits.
• Select the seller, obtain internal approvals, issue the notice of award, and execute the agreement or purchase order.
• Handover to contract administration: kickoff with the seller, align on deliverables and reporting, and update plans, risks, and records.

Quality & Acceptance Checklist

• Procurement documents are complete and consistent: scope, requirements, acceptance criteria, schedule, and draft contract.
• Selection criteria and weighting are clear, approved, and disclosed to sellers.
• All clarifications are shared with all bidders to maintain fairness and a common understanding.
• Proposals are compliant and comparable; assumptions and exclusions are logged and addressed.
• Evaluation scoring, justifications, and conflict-of-interest declarations are recorded.
• Cost realism and independent estimate checks are completed; anomalies are investigated.
• Due diligence on seller capability, capacity, financial stability, and past performance is completed.
• Negotiation objectives, concessions, and walk-away points are defined and approved.
• Contract terms cover scope, milestones, pricing and payment, service levels, warranties, IP, confidentiality, change control, disputes, termination, insurance, and performance security where needed.
• Risk allocation is explicit, and key risks have mitigation or contractual protections.
• Approvals are obtained from legal, procurement, finance, and sponsors as required.
• Post-award handover and kick-off are scheduled, and all records are stored per policy.

Common Mistakes & Exam Traps

• Selecting the lowest price instead of best overall value and fit for requirements.
• Changing scope mid-solicitation without issuing an addendum and giving all bidders equal time to respond.
• Providing private clarifications to one bidder instead of communicating to all sellers.
• Skipping cost realism or independent estimates, leading to unrealistic low bids and future change requests.
• Not involving legal or procurement and bypassing organizational policies or approval gates.
• Negotiating before evaluation criteria are applied or negotiating with multiple sellers when policy requires sequential negotiation.
• Awarding without checking seller capacity, references, and financial stability.
• Confusing processes: planning criteria belongs to procurement planning, awarding and signing occur in conduct procurement, and performance oversight belongs to control procurements.
• Failing to update schedule, budget, and risk register after award and before work starts.
• Allowing late or incomplete bids to proceed without documenting exceptions per policy.

PMP Example Question

Your team issued an RFP for a complex service. You received several proposals with different assumptions, and many vendors are asking similar clarification questions. What should you do next to ensure a fair comparison?

1. Request best-and-final offers from all vendors within three days.
2. Hold a bidder conference and issue consolidated clarifications to all sellers.
3. Disqualify any proposal that lists assumptions and select the lowest price.
4. Rewrite the scope and award to the incumbent to save time.

Correct Answer: B — Hold a bidder conference and issue consolidated clarifications to all sellers.

Explanation: In conduct procurement, use bidder conferences and written addenda to give all sellers the same information, maintaining fairness and enabling comparable proposals.