The procurement cycle reflects. The procurement activities from the decision to purchase of the materials and services through the payment of bills and closing procurement contracts. The procurement Plan After the decision has been reached to purchase goods or services ,The procurement team develop a plan that includes the following:- Selecting the appropriate relationship and contract approaches for each type of purchased goods and outsource services . Prepare RFQs and RFPs and evaluating partnership opportunities. Evaluating RFQs ,RFPs and partnership . Awarding and assigning contracts Managing quality , timely performance and contract changes. Closing contracts. Selecting The Contract Approach The technical team develop the description of the work that will be outsources from the information , the project management teams answer the following questions: Is the require work , materials commodity , customized products or services or unique skills or relationship? What type of relationship is needed, the suppliers, vendors and partnership? How should the the suppliers, vendors and partnership be approached: RFQ, RFP or personal contact.? How well known the scope of the work? What are the risk and which party to assume the types of the risk? Does the procurement of the services or goods affect the activities on the project schedules, critical path and how much float is their on those activities? How important is it to be sure of the cost in advanced ? A key a factors selecting contractors in the procurement is to know which party to take the risk and what risk will be transfer to the contractors and insurance company. Soliciting Bids A solicitation is the process of requesting a price and information from the bidders. The solicitation usually takes the form of either request for quote (RFQ) or a request for proposal (RFP). Partnership are pursued and established on the case by case basis by the project manager. Qualifying Bidders The potential bidders are people or organization capable of providing materials or performing the required work or services or goods for the projects. On smaller less project the parent company typically has list of suppliers, vendors and partners that have successfully provided services and goods and the eligible bidders are placed on the bidders list and provided with the schedule of when work on the project will be bid and the bidding requirements and financial stability. The potential suppliers must have financial stability to be included in the bidders lists and provides the financial statements as below for D & B company: D & B company propitiatory ranking and predictive credit worthiness scores Public filings , including suits,liens, judgements, and UCC filing standard financial disclosure document that conform to uniform commercial code. Comprehensive payment histories Including D&B paydex score . Company financial statements and histories. Request for Quote focuses on prices and the type of materials,and services is well defined and can be obtained from several source and the bidders can meet the project quality and schedule requirement usually win the contracts by quoting the lowest price. Request for Proposal Request for Proposal account for the price but focuses on meeting the project quality and schedule requirements . The process of developing the proposal in response (RFP ) is very expensive for the bidders and the project teams should not release the request for proposal (RFP) to the organization that is not eligible win the contract. Evaluating the Bids. Evaluation of the Bids in response to (RFP) for the commodities items and services is granted to the lowest prices will win the contracts and the total lowest cost is included in the price of goods and services for any shipping ,delivery cost and warranties of services and additional value added to the services or project. Awarding the Contract. After the project team has selected the bidders that will provide materials and goods and validated all the conditions for the contracts award the contracts by signing the agreement. The procurement plan includes determine the categories of materials or services , choosing the type of contractual relationship, soliciting bids , selecting bidders managing the work and closing the contract. The decisions made when selecting the type of contract is based on whether the materials can be provided by supplier, vendors and partners . On How well defined is the work, how the risk will be shared, the important of the task to the schedule and the need for certainty of the cost. The Companies that bids on the contract are evaluated on the past performance and current financial status. RPQ and RFPs are send to the companies.RFQ are evaluated on price and RFP are evaluated on price and methods. Long lead time items are identified and monitored. Items that are critical to the schedule or delayed are assigned to an expediters. The logistic of handling delivery, storage, and transportation are determined that is warehouse or stores. The work and materials are inspected for quality.