Establish Supplier Agreements
Agreements with the suppliers are established and maintained.
SP 1.1 Determine Acquisition Type
Determine the type of acquisition for each product or product component to be acquired.
There are many different types of acquisition that can be used to acquire products and product components that will be used by the project.
Examples of types of acquisition include the following:
· Purchasing commercial off-the-shelf (COTS) products
· Obtaining products through a contractual agreement
· Obtaining products from an in-house vendor
· Obtaining products from the customer
· Combining some of the above (e.g., contracting for a modification to a COTS
product or having another part of the business enterprise co-develop products
with an external supplier)
Typical Work Products
1. List of the acquisition types that will be used for all products and product components to be acquired
SP 1.2 Select Suppliers
Select suppliers based on an evaluation of their ability to meet the specified requirements and established criteria.Criteria should be established to address factors that are important to the project.
Examples of factors include the following:
· Geographical location of the supplier
· Supplier’s performance records on similar work
· Engineering capabilities
· Staff and facilities available to perform the work
· Prior experience in similar applications
Typical Work Products
1. List of candidate suppliers
2. Preferred supplier list
3. Rationale for selection of suppliers
4. Advantages and disadvantages of candidate suppliers
5. Evaluation criteria
6. Solicitation materials and requirements
Subpractices
1. Establish and document criteria for evaluating potential suppliers.
2. Identify potential suppliers and distribute solicitation material and requirements to them.
3. Evaluate proposals according to evaluation criteria.
4. Evaluate risks associated with each proposed supplier.
5. Evaluate proposed suppliers' ability to perform the work.
Examples of methods to evaluate the proposed supplier’s ability to perform the work include the following:
· Evaluation of prior experience in similar applications
· Evaluation of prior performance on similar work
· Evaluation of management capabilities
· Capability evaluations
· Evaluation of staff available to perform the work
· Evaluation of available facilities and resources
· Evaluation of the project’s ability to work with the proposed supplier
6. Select the supplier.
SP 1.3 Establish Supplier Agreements
Establish and maintain formal agreements with the supplier.
For Integrated Product and Process Development
When integrated teams are formed, team membership should be negotiated with suppliers and incorporated into the agreement. The agreement should identify any integrated decision making, reporting requirements (business and technical), and trade studies requiring supplier involvement.The supplier efforts should be orchestrated to support the IPPD efforts undertaken by the acquirer. A formal agreement is any legal agreement between the organization (representing the project) and the supplier. This agreement may be a
contract, a license, or a memorandum of agreement.
Typical Work Products
1. Statements of work
2. Contracts
3. Memoranda of agreement
4. Licensing agreement
Subpractices
1. Revise the requirements to be fulfilled by the supplier to reflect negotiations with the supplier when necessary.
2. Document what the project will provide to the supplier.
Include the following:
· Project-furnished facilities
· Documentation
· Services
3. Document the supplier agreement.
The supplier agreement should include a statement of work, a specification, terms and conditions, a list of deliverables, a schedule, a budget, and a defined acceptance process.
This subpractice typically includes the following:
· Establishing the statement of work, specification, terms and conditions, list of deliverables, schedule, budget, and acceptance process
· Identifying who from the project and supplier are responsible and authorized to make changes to the supplier agreement
· Identifying how requirements changes and changes to the supplier agreement are determined, communicated, and addressed
· Identifying standards and procedures that will be followed
· Identifying critical dependencies between the project and the supplier
· Identifying the type and depth of project oversight of the supplier, procedures, and evaluation criteria to be used in monitoring supplier performance
· Identifying the types of reviews that will be conducted with the supplier
· Identifying the supplier’s responsibilities for ongoing maintenance and support of the acquired products
· Identifying warranty, ownership, and usage rights for the acquired products
· Identifying acceptance criteria
4. Ensure all parties to the agreement understand and agree to all requirements before implementing the agreement.
5. Revise the supplier agreement as necessary.
6. Revise the project’s plans and commitments as necessary to reflect the supplier agreement.
