Importance of Project Procurement in Government Contracts

Importance of Project Procurement in Government Contracts

Adam L. Gayton

Project Procurement Management/INF336

Instructor Lori Deere

April 30, 2012

Thesis

Project procurement management used in the Government contracting field is a highly sophisticated and important aspect in acquisitions. The Government uses every detailed bit of information and knowledge that is available to them to try to make all the correct decisions. “Before proceeding with a project, a client has to choose an appropriate procurement option that facilitates an effective project organization in general and a thorough risk management process in particular. By identifying three procurement variables that have a major influence on risk management: project delivery method, form of payment, and use of collaboration or partnering arrangements, the effect of each variable is studied” (Osipova, E., Vol 29). Project procurement helps ensure every dollar that can be saved within a contract while maintaining a quality product is the main end goal that is reached.

Purchasing and supply management is the highest of importance in the Government procurement world. From an article called “What is supply chain management,” Handfield (2011), described supply management as:

The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. Supply chain management, then, is the active management of supply chain activities to...