Course instructor: Dr.

Nyaberi
HEPL 3106: PROCUREMENT & CONTRACTING PROCESS

1.0 PURPOSE
To enable the student acquire sound understanding of the contracting process
2.0 COURSE OBJECTIVES
a) At the end of the course the leaner will be able to:
b) Describe the procurement process of planning, preparing, awarding and monitoring the
contract.
c) Assess the main roles in procurement, services needed, tender preparation, competition
and fairness.
d) Describe the international procurement good practice and principles.
3.0 COURSE DESCRIPTION
 Defining and initiating the contract:
 Planning the procurement:
 Goals and objectives of the procurement,
 Potential service providers, Contract duration,
 Procurement approach,
 Payment approach, Scope of services required,
 Contract monitoring and evaluation,
 Tender format, Tender evaluation, Procurement schedule, Cost estimate.
 Finalizing and monitoring the contract:
 primary procurement roles- The technical role:
 The procurement role itself:
 The financial role:
4.0 TEACHING METHODOLOGIES
Lectures, Case Studies, Seminars, critiques, and Term Papers.
5.0 INSTRUCTIONAL MATERIALS/EQUIPMENT
Texts, audio and video DVD’s, computer software, case studies
6.0 COURSE ASSESSMENT
Coursework 40%
Final Written Examination 60%
Total 100 %
7.0 COURSE TEXTBOOKS
Garrett, G. A., 2007, “World Class Contracting, 4th Edition”, CCH Incorporated, Chicago, IL.
Beth, E., Bertók, J. and Vergez, C., 2007, ‘Integrity in Public Procurement: Good Practice from
A to Z’, Organisation for Economic Cooperation and Development, Paris
www.transparency.org/content/
Aronie, Jonathan S., John W. Chierichella (2006). multiple award schedule
contracting.Philadelphia, PA: Xlibris.
8.0 REFERENCE TEXTBOOKS
Cibinic, Jr., John, Ralph C. Nash, Jr., and James F. Nagle (2006).Administration of government
contracts, 4th ed. Chicago: CCH Incorporated.
Cibinic, Jr., John and Ralph C. Nash, Jr (2004).Cost-reimbursement contracting, 3rd ed.
Chicago: CCH Incorporated,
Cibinic, Jr., John., and Ralph C. Nash, Jr (1998). Formation of government contracts, 3rd ed.
Chicago: CCH Incorporated.
9.0 COURSE JOURNALS
Journal of contract management
Journal of contract law
Journal of health care contracting
10.0 REFERENCE JOURNALS
Contract and commercial law e journals
International Journal of Public Sector Management- Emerald
Building and Construction Law Journal

Defining and initiating the contract

To define a contract, is to explain what a contract is. Contracts are the foundational elements not
just of every business, but if human cooperation and society. A contract is an agreement (oral or
written) that enable parties (individuals or businesses), businesses, and society to come together
and collaborate towards their specific desires and needs. They are official agreements that are
enforceable by law. In other words, a contract is a legal obligation.
Businesses rely on contracts to establish the foundation of their professional relationships while
also supplying the agreed-upon procedures that govern those relationships. With a contract, the
parties involved establish how they will work together and how each party’s duties and
responsibilities will be enforced.

Contract Definition

A contract is an agreement, either written or spoken, between two or more parties that creates a
legal obligation.
The terms of a contract are enforceable by law, with clearly defined penalties and remedies
should the contract be breached. A breach of contract is a failure, without legal excuse, to
perform any parts of the contract.
A contract is created when there is an offer, consideration, and acceptance between two or more
parties.

Required Elements for a Contract

A contract must contain six essential elements in order to be enforceable:

  Offer. A promise by one party to another that they will or will not perform a specific
action in the future. Example: I will pay you $3,500 for the purchase of your vehicle.
 Acceptance. Usually mirrors the terms of the offer—an expression, through words or
deeds, that both parties agree to the terms of the contract.
 Awareness. Proof both parties clearly understand and agree to “the basic substance of the
contract.”
 Consideration. Entails something of value promised in exchange for the actions (or non-
actions) defined in the offer, the most common of which is payment for goods delivered
distinguishes a contract from a gift because it removes the voluntary nature of the
act/non-act by requiring something of value in exchange for the promise.
 Capacity. Each signatory to the contract has demonstrated the “legal capacity” to
understand what they are signing.
 Legality. All contracts are subject to the laws of the jurisdiction under which they
operate.

Different Types of Contracts

Contracts are everywhere. You are probably using one or more contracts in your everyday life
and do not even realize it. Following are some types of contracts used in our everyday lives.

 Your lease agreement or mortgage

 Terms and conditions of your credit card
 Employment contracts
 Rental car company contracts
 Service contract when you sign up for a service
 Cellphone contract

Contracts are at the heart of every service that you perform or receive. Contracts govern so many
facets of life, from individual actions to the actions of a multinational company. Yet though their
impact is profound, contracts often operate “under the radar” quietly managing all manner of
business and personal relationships. As an individual, there are contracts associated with a
variety of day-to-day activities and responsibilities.
In business, the three most common types of contracts are:
  Sales Contract . Facilitate sales transactions and customer engagement.
 Nondisclosure Agreement (NDA) . Protect organizations key assets, reputation and
business data.
 Services Agreement . Optimize and manage business relationships with consultants,
contractors and other third-party actors.

Examples of Contracts

Listed below are examples of contracts.

 Bill of Sale. A bill of sale clearly outlines the basics of a sales agreement, such as the
involved parties, the agreed upon price, and the terms of the deal. This type of contract
will also prove the legal owner’s identity.
 Promissory Note. A promissory note is the legal version of an IOU and allows someone
to borrow money from another person or business entity . The promissory note exists to
keep a record of the loan and all its requirements, including penalties, interest, and terms
of repayment.
 Employment Agreement. An employment agreement sets the terms of employment,
with details such as termination causes, bonus structure, and compensation.
 Licensing Agreement. A licensing agreement allows an inventor to make money on their
creation or idea by allowing another person or business to use the idea. The licensing
agreement will include details about any restrictions on reproducing the product, which is
especially useful if you hold legal protection on your intellectual property, but you need
help from someone else to produce the item and make money. The agreement may
include details about exclusivity and payment terms as well.

PLANNING THE PROCUREMENT

A procurement plan -- also called a procurement management plan -- is a document that is used
to manage the process of finding and selecting a vendor. The plan justifies the need for an
external supplier and explains how the process of finding a supplier will be performed -- from
identifying the project requirements to closing the contract.
The goal of a procurement plan is to increase the efficiency, effectiveness and transparency of
the procurement process. The document specifically describes how products or services will be
acquired and how vendors will be managed during the project. It includes information such as
the types of contracts that will be used, the planned delivery or implementation dates for the
contracted products or services, the types of metrics that will be used to evaluate the vendor's
performance and an explanation of how the procurement process will be performed.

Creating a procurement plan helps an organization avoid surprises and last-minute

considerations. The document helps leaders decide what to buy, when to buy it and what sources
to purchase from. A procurement plan also allows project planners to determine if their
expectations and requirements are realistic and can be completed in the proposed project
timeline.

Many organizations use procurement software to automate and accelerate the procurement
processes and optimize their workflow.

What is included in a procurement plan?

Procurement plans can be created for specific technical requirements and projects or for multiple
requirements related to different systems. While the details will vary, successful procurement
plans will include the following components:

 Identification of the type of contract that will be used in the deal.

 An explanation of the metrics that will be used to judge the supplier's performance.

 Planned delivery or implementation dates for the products or services that are being
provided.

 Identification of the organizational standards that must be complied with.

 The number of suppliers that will be involved and an explanation of how they will be
managed.

 An explanation of how acquiring the new products or services will affect the constraints and
limitations of the project plan.
 An alignment of lead times with the project schedule.

 If known, identification of all vendors who have been prequalified for the project.

How to write a procurement plan.

Follow these steps to create an effective procurement plan:

Explain the procurement process. This section of the procurement plan provides an overview
of the steps that must be taken to acquire products or services from a supplier, as well as an
explanation of what must be done to manage the process.

Identify roles and responsibilities. This section of the procurement plan identifies the different
people working on the project and all stakeholders who will be affected by the project. The
different roles involved in the procurement process include:

 Project managers who monitor the process and control the budget, schedule and project risks.

 Technical managers who create the statement of work (SOW) and oversee the technical
requirements of the vendors.

 Contract managers who provide advice and documentation related to the project's contract
requirements.

 C-Level executives who provide contractual advice and make decisions related to the
contracts. C-Level execs are also responsible for reviewing and approving the final contract
agreements. (chief executives)

 Lawyers who help with the creation of the contracts and provide advice for any related legal
requirements.

Identify the procurement needs and requirements. The first section of the procurement plan
describes the products or services the organization is looking to acquire and offers an explanation
and justification for why the products or services must be bought from an external supplier
instead of internally sourced.
Define the project timeline. This section proposes a timeline for the project and describes the
timeframe in which the products or services are needed. Including this section helps project
teams better understand when the procurement process should be started and when it needs to be
completed by.

Define change approval processes. This section describes the organization's change
management processes -- specifically, how changes can be made to the procurement process and
documentation. The section includes an explanation of how to ensure the changes are necessary,
understood and approved by all appropriate people.

Identify vendor management techniques. This section of the procurement plan explains the
techniques that will be used to manage vendors once they have signed the contract. The goal of
this section is to ensure vendors fulfill their side of the deal and provide the organization with the
products or services they've requested at the quality they expect. Vendor management techniques
include:

 Detailing vendor selection criteria based on cost and risk analysis

 Creating a SOW that outlines the project timeline, deadlines and compliance requirements

 Using key performance indicators (KPIs) to measure the product or service quality

 Conducting regular project meetings

 Requiring the vendor to provide the project owner with regular project updates

Define relevant legal jurisdiction. All legal requirements for the project should be identified to
ensure the company and vendor comply with the laws. The legal requirements should also be
clearly identified to ensure all stakeholders are aware of them and do not violate the legislation.

Identify payment methods. This section identifies the different payment methods and
currencies that will be used and accepted during the procurement process. If payments are to be
made periodically -- such as monthly or annually -- then the terms for these payments must be
detailed to ensure there is no conflict between the organization and vendor regarding how much
money is owed.
Explain risk management processes. Working with an external supplier introduces new risks to
a project that would not be relevant if the project was internally sourced. This section of the
procurement plan details the risk profile of the project, including:

 Risk tolerance

 Risk probability

 Risk severity

 Types of contracts used must be clear

 Policies and procedures outlined in the contracts should be open

 Review and approval processes for requirements

The statement of work is an essential element of an organization's risk management processes.

The SOW defines the necessary project activities, deliverables and timelines that the vendor
must follow to fulfill their half of the deal. Providing vendors with a SOW reduces risk by
ensuring the supplier knows exactly what is expected of them and when it is expected by.

Identify project constraints and limitations. This section of the procurement plan explains all
the constraints and limitations that the project team and vendor must deal with. This can include:

 Scheduling limitations

 Legal compliance

 Budget restrictions

 External stakeholders

 Geographic restrictions

 Security requirements

 Standards and specifications

Benefits of procurement planning
Procurement plans provide many benefits to organizations that are looking to acquire new
products or services from external suppliers. Most notable is the document's help with the
management of the procurement process. Other benefits include:

 Procurement planning increases the transparency and predictability of the procurement

process.

 It helps organizations collect similar requirements under one contract, as well as divide
complex requirements into multiple contract packages to maximize cost savings.

 It allows organizations to determine any additional staffing needs upfront, including external
assistance that might be necessary to set up the products or services.

 Procurement plans allow organizations to compare real-world performance with the planned
project activities and timeline and alert departments to adjust processes that are off track.

 Procurement planning provides an opportunity for all stakeholders to meet and discuss the
requirements they feel are needed.

 It allows organizations to estimate how much time will be required to complete the
procurement process and close contracts.

PROCUREMENT OBJECTIVES AND KPI’S

1: Support Operational Requirements
• Understand business requirements
• Buy products and services
– At the right price
– From the right source
– At the right specification that meets users’ needs
– In the right quantity
– For delivery at the right time
– To the right customer
2: Manage the Procurement Process and the Supply Base Efficiently and Effectively
To manage the procurement process and supply base efficiently and effectively, procurement
must follow the following key steps:
• Identify opportunities where the procurement team adds true value:
– Evaluation and selection of suppliers based on sound ethical norms and standards
a) All purchases must go through the approved procurement processes
b) Engineering and other functional inputs are part of this process
c) Contractual agreements will be done with the involvement of Procurement
d) Increased use of sourcing teams

– Review of specifications or scope of work

a) Review the requirements for the material or service being provided
b) If possible, suggest alternative standardized materials that can save the organization money
c) Periodic review of categories can allow greater leveraging of requirements

– Purchasing will act as the primary contact with the supplier

a) Manage the supply base, identification and mitigation of risks
b) Identify new potential suppliers and develop relationships
c) Improvement and development of non-competitive existing suppliers
d) Determine the method of awarding contracts
e) Support local business (local procurement) and consider social responsibilities wherever
possible without compromising objective 1

• Manage internal operations

– Management of procurement staff
– Development and maintenance of policies and processes
– Introducing and leveraging appropriate technology and systems
– Defining procurement strategy and structure
– Provide procurement leadership to the organization
– Provide professional training and growth opportunities for employees

3: Develop strong relationships with other groups within the organization

– Continued liaison with internal customers to achieve greater understanding of requirements and
integration
– Timely, pro-active communication with internal customers
– Sharing of information i.e. market trends, price, quality, delivery, forecast and demand
– Highlighting achievement
4: Support organizational Goals and Objective
– Develop purchasing strategies that support organizational strategies:
a) Monitor supply markets and trends i.e. material price increases, shortages, changes in supply
and
interpret the impact these trends will have on the organization
b) Identify the critical materials and services required to support the company strategies in
KPA’s particularly during new project development
c) Support the organization’s need for a diverse and globally competitive supply base
d) Develop supply options and contingency plans that support company plans
e) Quality reporting as required and continued improved communication
f) Develop KPI’s for Procurement personnel which will support the objectives and organizational
goals

Procurement Key Performance Indicators:

1) Inventory
– Monitor spend on Stock, Direct Charge and Service spend, monthly
– Major Reagents and Consumables based on 80/20 Pareto principle – Stock on Hand cover 2-3
month on average; Purchase prices against Budget; Monitoring of the Market Trends
– Percentage of Stock Inventory covered by BPA (small value; high turnover items)
– 95% service level for normal stock and 100% service level for Critical, Insurance, major
consumables and reagents

2) Supplier performance
– Price Structure, Discount, Payment terms based on 80/20 Pareto principle
– Lead time monitoring
– Deficiency report
3) Buyer Performance
– Saving (monthly) by assigned category
– RFQ/PR processing; actual vs. target (2 weeks for regular; 1-3 work days for Urgent)
– Spend/Number of PO/Number of Items by Buyer

4) International/Local Spend Analysis

– Target to increase the local spend
– Newspaper advertisement

PROCUREMENT STRATEGY/APPROACH.

In an increasingly competitive market, a procurement strategy is used to pay close attention to

the operational performance of a business. Establishing one allows businesses to identify areas
that are often overlooked in order to reduce costs.

Here is a complete guide to what a procurement strategy is and how to develop one in 8 steps.

What is a procurement strategy?

Definition
In business, the term procurement refers to the act of acquiring or purchasing services or goods
on a large scale.

A procurement strategy details how a business should deal with its procurement process. This
provides an overview of all of the steps that are involved in procurement and can be used as a
roadmap for the way a business conducts its procurement activity.

A procurement strategy framework helps businesses choose:

 suppliers,
 products or services,
 methods and procedures that are going to be used during exchanges with suppliers.
An effective procurement strategy should include:
  a strategy statement: these are the objectives of your strategy,
 the desired results: these are the deliverables you expect,
 a timeframe: these are deadlines that you must meet,
 a tactical plan: this explains how your strategy will be implemented,
 key performance indicators: these are business metrics that are used to evaluate the
procurement process,
 dedicated tools: these are the tools that can be used to study the internal and external
environment of your business in order to set up a relevant procurement strategy.
Types of procurement strategies
Since most companies purchase or acquire goods or services from suppliers, here are a few types
of procurement strategies that are commonly found in business:

 risk management
 supplier optimization
 green purchasing
 vendor development
 global sourcing
Procurement strategy matrix
The Kraljic Matrix is a popular method used when setting up a procurement strategy. It is used
to classify and analyze the purchasing portfolio of a company.

According to Peter Kraljic, a purchasing strategy depends on two key factors:

 The strategic importance of purchasing: volume of expenditure, Total Cost of Ownership

(TCO), profitability, differentiation and value-added for the company and the sales process.

 The complexity of the supply market: monopoly or oligopoly, entry barriers,

technological evolution, logistics cost or complexity etc.
This principle is illustrated with a chart that can be used to prioritize purchases and sort them
into four main categories.
 Non-critical items
 Leverage items
  Bottleneck items
 Strategic item

HOW TO DEVELOP A PROCUREMENT STRATEGY?

Here are eight steps that you should implement when developing your procurement strategy.
Please keep in mind that these steps should be adapted to your procedures. And, you should
implement additional actions or sub-steps according to your needs.

1. analyze expenditure
When setting up a procurement strategy, the first step that you should consider is analyzing your
current expenditure. This will provide you with insight into your current spending habits in order
to identify areas that are often overlooked and where you can cut costs.

Moreover, this information will serve as the foundation of your procurement strategy and will
allow you to have a clear idea of what you should expect from your future supplier.

2. Identify needs
Next, one or more members of your company (e.g. the procurement team)
must identify and formulate a need for products or services.

This need must be analysed and confronted with the requirements of your procurement process.
This a key factor that you must consider when choosing suppliers in order to guarantee cost
savings.

3. Study the market

Once you have identified your needs, you must now have an overview of current market
conditions with an external analysis.

To study the market efficiently, here are a few methodologies that you can choose from:

 Porter’s five forces can be used to understand the competitiveness of your business
environment and identify your strategy's potential profitability,
  a PESTEL analysis helps you to identify the main external opportunities and threats in
your market,
 a SWOT analysis combines external and internal analysis to summarize your Strengths,
Weaknesses, Opportunities and Threats.
However, you must keep in mind that market conditions may change frequently depending on
the type of industry you are in. Therefore, it is recommended to make sure that the information
that you collect is frequently updated and stays up-to-date over time.

4. Set realistic objectives

Now that you have identified your needs and completed an external analysis of your market, the
next step is to set your objectives.

The information that you have collected in the previous steps will allow you to identify the
needs of your procurement strategy which can then be ranked according to their level of
importance.

5. Implement procurement guidelines

Once you have studied your market and set your objectives, you must now create a list of
practices that you can implement to improve your current procurement process, i.e procedures
for selecting, contracting, and monitoring consultants/vendors required for projects.

It is recommended to review your current procurement guidelines and adapt it to the current
needs of your business that you have identified in the previous steps.

If you start a new procurement guideline from scratch, there is a chance that you miss out on
some key aspects that can be overlooked.

Ideally, procurement guidelines are used by everyone involved in the procurement process, as it
lists solutions to possible challenges.
6. Use a dedicated tool
A procurement process involves multiple steps that must be followed with precision in order to
avoid mistakes that could result in delays or late payments. This can be a difficult task to manage
as it is time-consuming.

However, with a dedicated tool, (an enterprise management software) you will be able
to improve employee productivity and reduce errors by eliminating manual data entry and
associated inefficiencies.

This can save employees time, reduce errors and lower costs by channeling purchases to
approved suppliers and pre-negotiated contracts.

7. Set up and execute the procurement strategy

The following step is used to identify the desired goals of your procurement strategy and the
strategies that will be used to achieve them.

It is recommended to use SMART goals when setting up your procurement strategy:

 Specific,
 Measurable,
 Attainable,
 Relevant,
 Time-based.
Then, once you have implemented your procurement strategy, you will be able to spend more
time focusing on how you can improve supplier relationship and the strategic part of
procurement instead of focusing on administrative tasks that may take up a lot of time.

8. Tailor the strategy to your needs

Once you have created and implemented your procurement strategy, the final step is
to track and measure its progress and identify areas that could be improved in the future. This
will require the participation of other departments that are involved in the process such as HR,
production, administration, sales or finance for example.
The contract procurement process refers to a series of steps and procedures undertaken by a
business or an organization when purchasing products and services. Procurement is a crucial
function as it helps organizations acquire the resources (products, goods, services, etc.) they need
to operate fluidly.
The contract procurement process starts when the manager identifies a business need to be
fulfilled or satisfied and ends when the contract is signed. Responsible management of public
funds and organizational resources can be achieved when services and products are procured
effectively.
But why precisely is contract procurement considered a critical aspect in the survival and
sustainability of any organization or business? Well, let’s take a look:

Importance of Contract Procurement

Your business can manage supplier relationships better with a strategic and structured
procurement process in place. Better supplier relationships lead to more value and a higher
quality of service. With a contract procurement process in place, you’ll have a streamlined model
of ordering, receiving goods, assessing invoices, and paying for items and services.
Ideally, you’ll be able to use the same set of processes when purchasing products and services
for your business. This will, in turn, enable you to resolve issues quickly when they occur. The
goals of a successful procurement management process include:
  Identification of appropriate products and services
 Creation and issuance of purchase orders
 Ensuring timely delivery
 Approving payments
 Establishing and meeting milestones in supplier contracts
 Resolving issues with product delivery
 Communicating issues with the management team
 Reviewing contract fulfilments
Designing the contract procurement process is the next phase after identifying the significance of
a procurement process. Usually, several steps are captured in an effective procurement process.
Identifying Requirements for Services and Goods
The procurement cycle kick-starts when a business unit inside an organization identifies a
specific need that needs to be fulfilled. So, the products or services needed to satisfy this need
are outsourced from an external vendor. For instance, the marketing department may require
banners, stationery, and computers to kick-start a new marketing campaign. So, the contract
procurement process starts by consolidating the requirements needed to fulfill the needs of an
organization.
Identification and Evaluation of Suppliers
Once the business units identify their product or service requirements, they design a list of
potential vendors who may supply the products. The process of supplier selection involves a
simple web search or using RFIs, RFQs, and RFPs.
The objective of the supplier selection is to identify suitable suppliers. The evaluation metrics for
relevant suppliers and vendors may capture pricing, industrial reputation, quality of service,
warranty, guarantees, and recognitions. The supplier selection process is over when the supplier
who offers the best price and maximum value earns the contract.
Negotiating the Contract Terms
The contract process officially begins after selecting a relevant supplier to satisfy the needs of an
organization. Contracting is a crucial aspect of the procurement process for stimulating buyer-
vendor collaborations and maximum value creation. This contract procurement step involves
evaluating critical factors like the terms and conditions, the scope of work, pricing structure, and
delivery timelines. Detailed negotiation and analysis of contracts provide opportunities for
dynamic cost savings and discounts.

Releasing the Purchase Requisition and Purchase Order

Once the organization finalizes its negotiations with the supplier and settles the scores, the next
step is to create a purchase requisition. A purchase requisition captures the description of goods,
services, supplier information, quality, quantity, pricing, approval workflow, and supplier
information. Once the purchase requisition is received and approved, the finance department
releases the purchase order to the vendor (or supplier), documenting information like payment
terms, PO numbers, supplier information, and payment terms.
Invoicing and Payment
The supplier sends an invoice documenting the price of requested goods and services. Once the
organization receives the products or services and matches them to ascertain quality and
quantity, payment is released pre or post-delivery. Depending on the contract terms, payment can
be delivered before or after services are rendered.
Auditing Delivery
The supplier delivers goods and services depending on the contract terms. However, on receipt,
companies must audit products and services to ensure that the supplier has met relevant
benchmarks like quality expectations.
Maintaining Invoices
As a best practice, it’s crucial to record all invoices to track spending and assess expenditure
categories in an organization. Maintaining invoices also helps with future audit trails.
Contract Procurement Process in a Public Set-up
Public procurement may have additional steps and may usually comprise contract management
or contract administration. In private organizations, contract procurement ends when the contract
is awarded and the invoice is settled. However, contract administration or contract management
is an entirely different phase. Despite this distinction, contract administration (or management) is
just as crucial as procurement as it strongly influences and impacts supplier relationships.
Steps involved in public procurement include:
 Identification of product and service requirements
 Selecting a method of procurement
  Doing strategic planning
 Assessing and processing requisitions
 Publicizing solicitation papers and documentation
 Visiting relevant sites
 Conducting pre-bid proposal meetings
 Processing and assessing bids
 Award recommendations
 Negotiating contracts
 Awarding and signing contracts

A Given a project situation, discuss and document the six phases of the procurement cycle
and the impact that procurement has on the overall project.
B Given a project situation, analyze those factors that are important when firms need to
qualify and select suppliers for a project requirement.
C Given a project situation for a major contract, examine the key factors, including risk
factors that affect buyer/supplier decisions concerning contract pricing and the selection of
the proper contract type.
D. Given a procurement situation for a major contract, analyze the application of e-
Procurement and other types of supplier bidding models available.

E. Given a situation to solicit a bid proposal, evaluate technical, management,

commercial and ethical requirements, and then prepare a RFP.

F. Given the receipt of a proposal or competitive proposals for a major contract,

determine the key factors used when negotiating an agreement or evaluating competitive
proposals and establish a negotiating strategy.

G. Given a project situation, analyze and select effective contract management techniques
to control contract cost, schedule and performance factors; as well as manage contract
changes, contract claims and contract close out.
H. Given a claim on a major contract, analyze the role of commercial terms and
conditions, the uniform commercial code (UCC) and applicable government regulations on
the outcome