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Evaluating Vendor's Proposals for a Project

At times, a project manager must evaluate proposals from identified vendors and make decisions based on the project budget and schedule. It is essential to determine how the organization will determine the best response to the proposal's individual vendors?

IRTC has asked you to evaluate the customer service add-on the vendor offered while still in negotiations for this project. The add-on will cost $25,000 and take an additional 4 weeks to install. Your manager has asked for your opinion. The project is tracking along according to schedule and budget.

What do you need to consider before saying yes or no? Prepare a memo for your manager outlining how either decision would affect the project and factors that need to be discussed and agreed to by various parties involved in the project.

- What do you need to consider before accepting or denying the vendor proposal?
- How would your decision affect the overall project?
- Consider budget, schedule, and resources.
- What parties would need to be involved in this decision-making process?
- What important factors would need to be discussed and agreed upon by the various parties involved in the project?

You can do this by performing the following steps:
- Develop a project plan that covers all project groups and knowledge areas.
- Develop project plans that integrate project procurement and contracting activities across project groups.
- Separate tasks into sub-tasks, and a work package with stated durations and order of precedence.
Manage project scope throughout the project life cycle.

Solution Preview

To: Manager
From: XYZ
Date: 03rd November, 2012
Subject: Project Plan
Purpose:
The main purpose of this memorandum is to explain the effect of decision making on the project. This memorandum also explains the factors that need to be considered when accepting or denying the vendor offers. This memorandum also includes the budget, schedule and resources. This memorandum also explain the parties that would need to be involved in the decision-making process and the factors that would need to be discussed and agreed upon the various parties involved in the project.

Factors to Consider:
In order to make effective decision making about accepting or rejecting the vendor proposal, the manager would consider several factors such as vendor's background, financial position, relationship with others, technology provided in the project and market position etc. These factors would helpful for the manager to make effective decision making process as well as would also be supported manager to select right vendor for the project (Cohen & Kalbaugh, 2008).

Decision Affect the Overall Project:
Selecting or rejecting the project proposal can affect the project in terms of its effectiveness and value. Whether you accept or deny the vendor's proposal will have an impact on the project speed, position of project, budget, schedule and resources etc. (Levin, 2010). The selection of vendor proposal would increase the cost of the project by $25, 000 and would also increase the time of project by 4 weeks.

Parties to Involve:
In the organization and at the project, there are various parties that need to be involved in the decision making process. With the involvement of these parties, the organization can make an effective and supportive decision for the project. In this, parties involved include project-related stakeholders, project manager, project employees, client representative etc. These parties would helpful for the manager to create effective decision making process and also be supported in selecting the vendor proposal for the project (Larson & Gray, 2006).

Factors Involved in the Project:
In order to complete the project in significant way, there are various factors that would need to be discussed and agreed upon by the different parties. These factors include ...

Solution Summary

The expert evaluates vendor's proposals for a project.

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