CMGT 528 Project Delivery Methods and Procurement
Procuring products and services by way of subcontracting is an essential part of an engineering manager's responsibilities and a key element of project and/or product success. This course examines the procurement planning and management process in its entirety: From the initiation of the need, a request-for-proposal, or the make/buy decision to contract completion/close-out and turnover. It presents the fundamental concepts and techniques found in the four-step procurement process guide of the PM Book of Knowledge: 1) The Procurement Planning Process, 2) the Procurement Executing Process, 3) Procurement Monitoring and Controlling, and 4) Closing the Procurement Process. Students working through case studies and exercises, gain an in-depth understanding of project evaluation, planning, financing, contracting, negotiation, and procurement execution, including emerging methods, principles and practices in infrastructure project procurement, including Public-Private Partnerships (P3s) and integrated project delivery (IPD). Concepts and strategies for external source selection, make or buy decisions, contract selection, risk assessment, negotiation and administration, as well as the challenges that can arise during the life cycle of a contract, while being socially-responsible in the procurement process, and the aspects of procurement unique to engineering management are examined. The course explores strategies and effective techniques for controlling quality and cost, while measuring the performance of major contractors and suppliers via a balanced procurement scorecard. The basic techniques of free cash flow, discounted cash flow, and equity cash flow, and real options analysis are presented.