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This lesson discusses how to conduct procurements. This is the process of gathering seller responses (bids), selecting the seller and finally, awarding the contract. [toggle_content title="Transcript"] The next area under procurement is in executing which is conduct procurements. This process is a process of gathering several responses also known as bids, selecting sellers and awarding contracts. The process creates selected sellers, agreements, resource counters, and change requests. The inputs are procurement management plan, procurement documents, seller selection criteria, seller proposal, project documents, make or buy decisions and project statement at work. The tools that are used are bidder conference, proposal evaluation techniques, independent estimates, expert judgements, advertising, procurement negotiations and analytical techniques. Let us look at these outputs. You're going to get selective sellers out of this, which if we are gathering this information from other vendors, you want to have wh. You are selected sellers are the ones who you are going to award these contracts to. Agreements are also called contracts. Agreements are going to these selected sellers. Resource counters...they are going to be updated to let you know when resources are available and how it's going to affect the project. Change requests are changes that may come out of it if these vendors can meet the requirements. Anytime you are executing change requests is common output, or wherever there's a variance. The inputs are procurement management plan, which is the baseline and the guidance on how to do this process, procurements documents. This selection criteria, this is going to let the buyer to know what's the criteria to go with these vendors. It is going to provide the guidelines for that. Proposals are the sellers who are submitting their proposals to you to choose from. Project documents is going to give you criteria for making these selections, make a buyer decisions which if you remember earlier is the formula to figure out. Does not make sense to make these or buy what is usually based on dollar amounts. The other input is project statement at work which is letting you know what needs to be performed. Tools, bidder conferences, those are used to allow potential bidders to ask questions. If you sent out a request for proposal, some things might not be clear, there might be areas within it that allows the vendors to ask questions, proposal evaluation techniques which is analyzing the proposals that are coming in to see which one you want to go with. Which could be wherever criteria that you made whether its time, cost, scope, uniqueness. Then, independent estimates are trying to figure out the cost from all of these vendors...is that the best cost, is everybody bidding high? Or they are bidding too low? It's a way of judging their proposals. Its comparing apples to apples. Expert judgement is having the experience knowing how to make these assessments. Advertising...you might want to have as many vendors as possible to make it competitive to give the best price. Procurement negotiations is negotiating what the vendor is trying to come up with the contract and analytical techniques which is assessing the proposal. [/toggle_content]