Conduct Procurement

CONDUCT PROCUREMENT
Conduct Procurement is the process of 

• obtaining seller responses, 
• selecting a seller 
• awarding a contract
• implementation of the Contract/Agreement for delivery

The key benefit of this process is that it selects a qualified seller and implements the legal agreement for delivery. The end results of the process are the established agreements including formal contracts. This process is performed periodically throughout the project as needed. 

A contract is a mutually binding agreement that 

obligates the seller to provide the specified products, services, or results; 

obligates the buyer to compensate the seller; 

and represents a legal relationship that is subject to remedy in the courts. 

The major components in an agreement document will vary, and may include but are not limited to:

- Procurement statement of work or major deliverables;

- Schedule, milestones, or date by which a schedule is required;

- Performance reporting;

- Pricing and payment terms;

- Inspection, quality, and acceptance criteria;

- Warranty and future product support;

- Incentives and penalties;

- Insurance and performance bonds;

- Subordinate subcontractor approvals;

- General terms and conditions;

- Change request handling; and

- Termination clause and alternative dispute resolution mechanisms.