Peer Response

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Project Procurement Management


A 200 word paper response to peers work/comments on seller performance in regards to procurement management. must be in APA format with in-text citations and responses.

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Patrick-6.1-Seller Performance According to the PMBOK, both the buyer and the seller should monitor on another, ensuring each “meet their contractual obligations and that their own legal rights are protected” (PMI, 2013, p. 380). There are several tools a buyer can use to monitor the seller during this process. These include contract change control System, procurement performance reviews, inspections/audits, performance reporting and claims administration. Of these, the one I have the most personal experience with is the procurement performance review. One aspect of my job is the development and production of technical manuals for systems. During the development of these, there are several important review points built into the contract. These are typically set at the 35%, the 50%, the 75% and the 100% points of the project, allowing the buyer an opportunity to review and comment on the project. These phases are used to reduce the risk to the buyer (Horine, 2012, p. 250). If we are going in a direction that differs from the buyer’s vision, we can correct course. These milestones are all written in the initial contract, developed by the customer to measure performance (Ferraro, 2012, p. 64). Contract closeout is “the process of verifying that all administrative matters are concluded on a contract that is otherwise physically complete” (Kerzner, 2009, p. 842). As part of the closure process, it is important to conduct a seller performance evaluation. “This is a written record of the seller’s performance against the contract. It will include performance against schedule, requirements, work quality, etc.” (Projex Academy, 2018). Ideally, the evaluations should be standardized to ensure level evaluation between vendors. This should include both negative and positive evaluations and provided as soon as possible to the contractor for comment (GSA, 2018). It is important to realize that “the motivation behind incentives is to align the seller’s objectives with the buyer’s objectives” (Horine, 2012, p. 249). In my opinion, the use of incentives is for more effective than penalties to ensure this alignment takes place. Although the fear of punishment can be a motivational factor, it does not motivate as well as the promise of reward. Research shows that in order for someone to reap a reward in life, they must actively strive and work towards that reward. Conversely, for someone to avoid a punishment or a pitfall, they simply have to stay the planned course (Sharot, 2017). This same principle can be applied to a seller. If the seller wants an incentive to complete the project early, they must assume the risk by putting more people on the project and potentially increasing their own costs. If their proposal was properly prepared, the “stay the course” would complete the project in the required timeline and not earlier. Tony Works Cited Ferraro, J. (2012). Project management for non-project managers. New York, NY: AMACOM. Horine, G. (2012). Absolute beginners guide to project management. Indianapolis, IN: Que. PMI. (2013). The Guide to the Project Management Body of Knowledge (5th ed.). Newtown Square, PA: Project Management Institute, Inc. Projex Academy. (2018). Control Procurements – project management actions. Retrieved from PMP Primer: Sharot, T. (2017, Sep 26). What Motivates Employees More: Rewards or Punishments? Retrieved from Harvard Bussiness Review:
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I agree with the claim that it is of the essence for both the buyer as well as the seller to
monitor one another to ensure that every single agreed upon terms in a con...

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