ACME Development Corporation (ADC), a developer of custom homes and apartment complexes, has decided to standardize its project management practices and processes across its national organization. The goal is to standardize with one single project-scheduling tool and to have the tool installed and be operational within 90 days. To this end, the company is forming a central project management office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the United States) have been able to use whatever scheduling tool they liked, within their budget constraints. They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Because the PMs are located across the United States, a Web-based solution seems likely to be the most successful tool.
As the project manager, you have been charged with implementing the procurement process, and you decide that your first project will be purchasing the scheduling tool for ACME Development Corporation.
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Out of the following Contracts
• Firm fixed price Contracts
• Fixed price with targets Contracts
• Fixed price at cost Contracts
• Time and materials Contracts
• Cost sharing Contracts
• Cost plus Contracts
What kind of contract will you pursue for each of the following purchases related to this project?
• Hiring technicians to install and configure the software for your environment
• Hiring a training entity to teach the student PMs the mechanics of using the new tool
• Buying a new server and software to run the tool and house the project database
• Hiring tool usage experts to transfer knowledge to the student PMs about the use of the tool on the job for the first 60 days after going live
• Planning for the removal and disposal of the scheduling tool software and hardware that are no longer to be used
Assignment Guidelines
In 750-900 words, address the following for each of the 5 bulleted items listed in the assignment description:
Which contract type is the most appropriate for the product or service purchase?
How would you effectively justify your selection to other project managers?
What arguments might they use to debate your selection?
How would you effectively address those arguments?
What risks are associated with the type of contract selected?
Explain exactly how you factored these risks into your selection.
What general purposes and functions does the contract type address?
How does the selected contract meet the project objectives?
Be sure to reference all sources using APA style and in-text citation References.
Assignment Objectives
Incorporate contracting and procurement activities into an overall project plan, schedule and cost structure.
Choose the appropriate contract type for specific project tasks based on project needs and risk assessment.