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You are the project manager for an outdoor concert event scheduled for one year from today. You're working on the?

procurement plan for the program that will control the computer software lighting and screen projections during the concert. You've decided to contract with a rofessional services company that specializes in writing custom software programs. You want to minimize the risk to the organization, so you'll opt for which contract type?

A. Fixed price plus incentive

B. Cost plus fixed fee

C. Fixed price

D. Cost plus incentive

Procurement Contract Review Project Management
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Question added by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.
Date Posted: 2017/07/28
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Mohammed Awad
by Mohammed Awad , Regional Supply Chain & Operations Director , Tamakkon Co.

C - Would be your answer for a better and lower risk.

Muhammad Hussain
by Muhammad Hussain , Assistant Engineer Civil , LUAWMS UTHAL BALOCHISTAN

Here's a structured approach to develop the procurement plan for the computer software program needed for the outdoor concert event: Needs Assessment: Identify specific software requirements: Ticketing system Event management software Sound and lighting control programs Communication and coordination tools Vendor Research: Research software vendors or suppliers: Evaluate their offerings, features, and pricing. Consider their reputation, reliability, and support services. Check compatibility with existing systems, if any. Budgeting: Determine the allocated budget for software procurement: Consider the costs of software licenses, installation, and support. Ensure the budget aligns with the event's financial plan. Procurement Strategy: Define the procurement method: Decide between purchasing, leasing, or subscription-based models. Consider negotiating terms and possible discounts. Request for Proposals (RFP) or Quotes: Draft an RFP or RFQ (Request for Proposal/Quote) document: Specify software requirements, expected deliverables, and timelines. Invite potential vendors to submit proposals or quotes. Vendor Evaluation: Evaluate received proposals: Assess compatibility, features, and support services. Review vendor reputation, client feedback, and reliability. Selection and Contracting: Select the most suitable vendor: Negotiate terms, finalize pricing, and contract details. Ensure legal compliance and clarity in service expectations. Implementation and Integration: Coordinate software implementation: Plan installation, testing, and integration with existing systems. Train event staff on software usage and functionalities. Monitoring and Support: Monitor software performance: Address any issues or discrepancies during the event. Establish support channels with the vendor for ongoing assistance. Closure and Evaluation: Review the software's performance post-event: Evaluate its effectiveness, reliability, and user satisfaction. Document lessons learned for future events. This plan ensures a systematic approach to procure, implement, and evaluate the computer software program essential for the success of the outdoor concert event.

Muhammad Farooq
by Muhammad Farooq , QA-QC MANAGER , AL Bawani contracting co.

The correct answer is option C  -------------------

Explanation: Fied-price contracts have the highest risk to the seller and the least amount of risk to the buyer. However, the price the vendor charges for the product or service will compensate for the amount of risk they're taking on.

 

  

 

 

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