Project Procurement Management Plan

SAJE Solutions
Project Team Six 10/9/2013

This document is a procurement management plan. A procurement strategy is derived. A deliverable has been chosen to be outsourced to a different company. With that, the project team will choose candidates for outsourcing, illustrate a template for comparing each alternative, and discuss the intentions on managing this outsourcing relationship.

Project Procurement Management Plan

Project:
Aircraft Rental Database

Team Name:
SAJE Solutions

Members: Description:
This project for Husky Air involves developing an Aircraft Rental Database. This new system will replace a manual paper-based system. The project itself will involve many working parts to achieve value to the Husky Air Organization. Many deliverables will help keep those associated with the project (customers, employees, pilots, project team, etc) on the same page.

Measurable Organizational Value (MOV):

The Husky Air Rental Database will track all rentals. In doing so, we are focusing mainly on making Husky Air a much more efficient company by reducing order processing time by as much as 90%. Using the system will improve effectiveness and increase profits within the company.

Procurement Strategy:
Based on the Deliverable Structure Chart (DSC), there are a few deliverables that we could potentially outsource to other companies. Most of the deliverables however, will be developed in house by our project team. At the beginning of the project we start by creating the Business Case, Project Charter, and the Project Plan using the requirements defined by Husky Air. These documents will not be outsourced to an outside company. Instead, our project team will handle the creation of these deliverables. We will be outsourcing the design, construction, and testing areas of the DSC. This means that an outside company will produce the physical, as well as, the logical design of Husky Airs network. The company that will design the network will also be doing all of the testing on the network. Once the network is in place, we can start building our SQL database on top of this network. The physical and logical design of the SQL server will be developed in house to keep the information of the clients safer. The construction, testing, implementation of the SQL server will also be done in house. This means that we will build and test the HA Rental System within our
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company. Training employees how to use the new system will also be handled by our company. After the system is implemented we will move into the closing phase of the project, which will all be done by SAJE Solutions. This is the part where we will acquire all of the data recorded from the tests performed on the SQL server and the network infrastructure. Once the data is all in one spot, we create a final report of the project and show it to Husky Air. If the project is acceptable, then a formal acceptance letter will be created and the project will be in the hands of Husky Air.

Outsourcing Strategy:
As discussed earlier, we will be outsourcing the network design, implementation, and testing deliverables of the project. There are many network specialist companies to choose from. Listed below are three ideal network specialist candidates. Sentinel Technologies is one of the leading IT services and solutions providers in the United States. The company is based in Downers Grove, Illinois located approximately 45 minutes from Husky Air. Service solutions offered from Sentinel regard Application Development, networking needs, and support. Many large companies outsource subsections of IT to Sentinel Technologies. More information about Sentinel can be reached at http://www.sentinel.com/default.asp. Reliance Global Communications (RGC) is an IT services and solutions company based in India. RGC offers solutions such as WAN management, connectivity, wholesale services, and Business solutions. Global companies typically use Reliance for their services. More information about RGC can be reached at http://www.relianceglobalcom.com/index.asp. Ciena is a network specialist company based in Hanover, Maryland. Ciena provides a range of networking solutions such as networking encryption, cloud networking, and packet networking. Their wide range of services is available online at http://www.ciena.com/solutions/?navi=top.

Outsourcing Selection Criteria:

Criterion Financial ROI Payback Alignment with Strategic objectives Organizational Likelihood of achieving Projects MOV SAJE Solutions Weight Sentinel Reliance Ciena Solutions % % % % Page 2

Project Procurement Management Plan

Location Availability of skilled team members Maintainability Time to develop Risk Customer Satisfaction % % % % % % 100%

Project

External Total Score

Figure 6.1 Scoring model template Provides a method of comparing alternatives when selecting an outsourcing partner based on four main criterions: financial, organizational, project, and external. The higher scores for risk imply a higher return potential. Weight and scores will be added once they are calculated.

Managing the Outsourcing Relationship:

In order for this relationship to be successful, each party should discuss short and long-term goals and expectations. It may be beneficial for some outsourcing relationships to be short-term, while others more long-term. One way of managing the outsourcing relationship is to establish governance. Governance should be sufficiently clear and detailed to avoid uncertainty, yet flexible enough to allow for quick, innovative responses to issues and changes that may occur during the life of the contract. In this governance we will identify the types of issues and changes that may arise during the relationship; design a governance model that describes each role required for governance; set procedures for handling issues and changes; and create a process for escalation if initial steps are unsuccessful. We will design and document appropriate governance prior to entering the contract builds the relationship. We will also make a schedule established for meetings where the agenda items will include performance metrics and issues, improvement recommendations, relationship issues, contract issues, and upcoming changes for both sides. Along with this we will develop a way to evaluate and repair the relationship if any issues between the parties occur. Another way to manage the outsourcing relationship is to develop incentives. These incentives will be based on the quality and value of the transaction should be established. Next we will develop a management team, who will be in charge of effectively communicating with all departments and will be in charge of negotiating solutions feasible for both parties. Finally we will develop an exit plan that allows the client a means to switch vendors or restore the outsourced activities later in the project. Not all outsourcing relationships work well indefinitely, despite the parties best intentions and efforts. We will prepare a well-defined contingency plan early in the relationship and update this plan periodically. The outsourcing relationship will be centered on a well-defined Service Level Agreement and Contract between Husky Air, Global Technology Solutions and the outsourcing company. First a
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Request for Proposal will be requested, evaluated and eventually the company and method selected. Then the contract will be negotiated, and the division of work and infrastructure agreed upon. Any changes or deviation from the agreed upon contract should be dealt with using the Service Level Agreement and with the approval of the Project Manager. Any matters not covered in the Service Level Agreement will be decided by GTS and Husky Air.

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