Develop a decision matrix, select a contract for your turnaround project, and provide a rationale and a statement of work (SOW) for the turnaround project.
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 select an organization of your own choosing. 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, with the most appropriate contract type being selected. Contracts are legal agreements that bind both parties to specific deliverable, 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 assessment.
For this assessment, 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 for Project Revive LLC, your final task will be to create the statement of work (SOW) that describes the expectations for the new employee orientation product the third-party vendor will provide. Note: the various resources needed for this assessment are linked below.
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.
You are the project manager.
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 statement of work (SOW) describing the product or service to be supplied by a third-party vendor.
- The statement of work 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.
- You may wish to use this optional Statement of Work Template [DOC] to complete this task.
- 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:
- Roles and responsibilities.
- Product and deliverables schedule.
- Deliverables and costs.
- Change control.
- Acceptance management.
- Quality standards.
- Performance data.
- Work location.
- Period of performance.
- Contract to be used.
Use the software of your choice to develop the deliverables for this assessment.
This assessment has two deliverables:
- Develop a decision matrix, select a contract for your turnaround project, and provide a rationale.
- Create a statement of work (SOW) for the turnaround project.
- References: There is no set number of references required for this assessment. Use scholarly or academic sources where applicable.
- Microsoft Project is not required for this assessment. This assessment 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.
By successfully completing this assessment, 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.