Process ID

ACQ.3

Process name

Contract Agreement

Process purpose

The purpose of Contract Agreement Process is to negotiate and approve a contract/agreement with the supplier.

Process outcomes

As a result of successful implementation of this process:

1) a contract/agreement is negotiated, reviewed, approved and awarded to the supplier(s);

2) the contract/agreement clearly and unambiguously specifies the expectations, responsibilities, work products/deliverables and liabilities of both the supplier(s) and the acquirer;

3) mechanisms for monitoring the capability and performance of the supplier(s) and for mitigation of identified risks are reviewed and considered for inclusion in the contract conditions; and

4) proposers/tenderers are notified of the result of proposal/tender selection.

Base practices

ACQ.3.BP1: Negotiate the contract/agreement. Negotiate all relevant aspects of the contract/agreement with the supplier. [OUTCOME 1]

NOTE 1: Relevant aspects of the procurement may include

 system requirements

 acceptance criteria and evaluation criteria

 linkage between payment and successful completion of acceptance testing

 process requirements, process interfaces and joint processes.

ACQ.3.BP2: Specify rights and duties. Unambiguously specify the expectations, responsibilities, work products/deliverables and liabilities of the parties in the contract/agreement. [OUTCOME 2]

ACQ.3.BP3: Review contract/agreement for supplier capability monitoring. Review and consider a mechanism for monitoring the capability and performance of the supplier for inclusion in the contract/agreement conditions. [OUTCOME 3]

ACQ.3.BP4: Review contract/agreement for risk mitigation actions. Review and consider a mechanism for the mitigation of identified risk for inclusion in the contract/agreement conditions. [OUTCOME 3]

ACQ.3.BP5: Approve contract/agreement. The contract/agreement is approved by relevant stakeholders. [OUTCOME 1]

ACQ.3.BP6: Award contract/agreement. The contract/agreement is awarded to the successful proposer/tenderer. [OUTCOME 1]

ACQ.3.BP7: Communicate result to tenderers. Notify the result of the proposal/tender selection to proposers/tenders. After contract award inform all tenderers of the decision. [OUTCOME 4]

Output work products

02-00 Contract → [OUTCOME 1, 2, 3]

02-01 Commitment/agreement → [OUTCOME 1]

13-04 Communication record → [OUTCOME 4] 13-05 Contract review record → [OUTCOME 1] 13-09 Meeting support record → [OUTCOME 1]

Process ID

ACQ.4

Process name

Supplier Monitoring

Process purpose

The purpose of the Supplier Monitoring Process is to track and assess the performance of the supplier against agreed requirements.

Process outcomes

As a result of successful implementation of this process:

1) joint activities, as agreed between the customer and the supplier, are performed as needed;

2) all information, agreed upon for exchange, is communicated regularly between the supplier and customer;

3) performance of the supplier is monitored against the agreements; and

4) changes to the agreement, if needed, are negotiated between the customer and the supplier and documented in the agreement.

Base practices

ACQ.4.BP1: Agree on and maintain joint processes, joint interfaces, and information to be exchanged. Establish and maintain an agreement on information to be exchanged and on joint processes and joint interfaces, responsibilities, type and frequency of joint activities, communications, meetings, status reports and reviews. [OUTCOME 1, 2, 4]

NOTE1: Joint processes and interfaces usually include project management, requirements management, change management, configuration management, problem resolution, quality assurance and customer acceptance.

NOTE 2: Joint activities to be performed should be mutually agreed between the customer and the supplier.

NOTE 3: The term customer in this process refers to the assessed party. The term supplier refers to the supplier of the assessed party.

ACQ.4.BP2: Exchange all agreed information. Use the defined joint interfaces between customer and supplier for the exchange of all agreed information. [OUTCOME 1, 2, 3]

NOTE 4: Agreed information should include all relevant work products.

ACQ.4.BP3: Review technical development with the supplier. Review development with the supplier on the agreed regular basis, covering technical aspects, problems and risks and also track open items to closure. [OUTCOME 1, 3, 4]

ACQ.4.BP4: Review progress of the supplier. Review progress of the supplier regarding schedule, quality, and cost on the agreed regular basis. Track open items to closure and perform risk mitigation activities. [OUTCOME 1, 3, 4]

ACQ.4.BP5: Act to correct deviations. Take action when agreed objectives are not achieved to correct deviations from the agreed project plans and to prevent reoccurrence of problems identified. Negotiate changes to objectives and document them in the agreements. [OUTCOME 4]

Output work products

02-01 Commitment/agreement → [OUTCOME 4]

13-01 Acceptance record → [OUTCOME 3]

13-04 Communication record → [OUTCOME 1, 2] 13-09 Meeting support record → [OUTCOME 1] 13-14 Progress status record → [OUTCOME 2] 13-16 Change request → [OUTCOME 4]

13-19 Review record → [OUTCOME 2] 14-02 Corrective action register → [OUTCOME 4] 15-01 Analysis report → [OUTCOME 3]

Process ID

ACQ.11

Process name

Technical Requirements

Process purpose

The purpose of the Technical Requirements Process is to establish the technical requirements of the acquisition. This involves the elicitation of functional and non-functional requirements that consider the deployment life cycle of the products so as to establish a technical requirement baseline.

Process outcomes

As a result of successful implementation of this process:

1) the technical requirements, including environment effect evaluation, safety and security requirements where appropriate, are defined and developed to match needs and expectations;

2) the current and evolving acquisition needs are gathered and defined;

3) the requirements and potential solutions are communicated to all affected groups;

4) a mechanism is established to incorporate changed or new requirements into the established baseline;

5) a mechanism for identifying and managing the impact of changing technology to the technical requirements is defined; and

6) the requirements include compliance with relevant standards, including environment effect evaluation, safety and security standards where appropriate.

Base practices

ACQ.11.BP1: Elicit needs. Elicit the needs of all relevant user groups.

[Outcome 1]

ACQ.11.BP2: Define technical requirements. Define and develop the technical requirements and potential solutions (where relevant), including environment effect evaluation, safety and security, performance, supportability requirements to match the needs and expectations of the relevant user groups. [OUTCOME 1]

NOTE 1: This may include

 the categorization, prioritization and indication of requirements

 the indication of mandatory requirements

 classification of requirements into functional areas

 using defined end user types to describe the functional requirements within an organization

ACQ.11.BP3: Identify acquisition needs. Gather and define the current and evolving acquisition needs. [OUTCOME 2]

ACQ.11.BP4: Ensure consistency. Ensure consistency of the technical requirements with the defined acquisition needs. [OUTCOME 2]

ACQ.11.BP5: Identify affected groups. Identify all groups to which the technical requirements and potential solutions should be communicated. [OUTCOME 3]

ACQ.11.BP6: Communicate to affected groups. Communicate the technical requirements and potential solutions to all affected groups. [OUTCOME 3]

NOTE 2: To ensure a better understanding:

 the requirements might be specified in business terms

 simulation and exploratory prototyping techniques might be used

ACQ.11.BP7: Establish a change mechanism. Establish a mechanism to incorporate changed or new technical requirements into the established baseline. [OUTCOME 4]

NOTE 3: This may include analyzing, structuring and prioritizing technical requirements according to their importance to the business.

ACQ.11.BP8: Track impact of changing technology. Define a mechanism for identifying and managing the impact of changing technology to the technical requirements and integrate the resulting consequences into the technical requirements. [OUTCOME 5]

ACQ.11.BP9: Identify constraints and standards. Identify constraints and standards applicable to the technical requirements (e.g. open systems standards). [OUTCOME 6]

ACQ.11.BP10: Ensure compliance of stated requirements. Ensure that the technical requirements include compliance with identified relevant standards, including environment effect evaluation, safety and security standards where appropriate. [OUTCOME 6]

Output work products

08-28 Change management plan 08-51 Technology monitoring plan

→

→

[Outcome 4]

[Outcome 5]

13-04 Communication record

→

[Outcome 3]

13-17 Customer request

→

[Outcome 1]

13-21 Change control record

→

[Outcome 2]

13-24 Validation results

→

[Outcome 6]

14-01 Change history

→

[Outcome 2]

14-02 Corrective action register

→

[Outcome 2]

14-50 Stakeholder groups list

→

[Outcome 1]

17-00 Requirement specification

→

[Outcome 6]

17-03 Customer requirements

→

[Outcome 6]

Process ID

ACQ.12

Process name

Legal and Administrative Requirements

Process purpose

The purpose of the Legal and Administrative Requirements Process is to define the awarding aspects – expectations, liabilities, legal and other issues and which comply with national and international laws of contract.

Process outcomes

As a result of successful implementation of this process:

1) a contractual approach is defined which is compliant with relevant national, international and regulatory laws, guidance and policies;

2) an agreement, (contractual) terms and conditions are defined to describe how the supplier will meet the needs and expectations;

3) acceptance criteria and mechanisms for handling of breaches to the fulfillment of contract are established;

4) the rights of the acquirer to assume, modify or evaluate, directly or indirectly Intellectual Property Rights are established;

5) warranties and service level agreements are provided for where applicable;

6) provision for the suppliers to deliver other requirements (e.g. quality plan, escrow arrangements etc.) is defined; and

7) recognized criteria for proprietary, regulatory and other product liabilities issues are established.

Base practices

ACQ.12.BP1: Identify relevant regulations. Identify relevant national, international and regulatory laws, guidance and policies. [OUTCOME 1]

ACQ.12.BP2: Consider relevant regulations. Consider identified relevant laws, guidance and policy when defining a contractual approach. [OUTCOME 2]

ACQ.12.BP3: Agree on (contractual) terms and conditions.

[Outcome 2]

NOTE 1: This may include

 responsibilities of the purchaser and supplier; and the basis for payments

 responsibility for maintenance and upgrades

 a separate maintenance or support agreement

 kind of payment

ACQ.12.BP4: Ensure usage of agreed terms and conditions. Ensure the usage of agreed terms and conditions when describing how the supplier will meet the needs and expectations. [OUTCOME 2]

ACQ.12.BP5: Establish acceptance criteria. [Outcome 3]

ACQ.12.BP6: Establish escalation mechanisms. Establish mechanisms for handling of breaches to the fulfillment of contract. [OUTCOME 3]

NOTE 2: This may include planning of the control of contract changes.

ACQ.12.BP7: Establish management of intellectual property rights. Establish the rights of the acquirer to assume, modify or evaluate, directly or indirectly, Intellectual Property Rights. [OUTCOME 4]

ACQ.12.BP8: Provide for warranties and service level agreements. Provide for warranties and service level agreements where applicable. [OUTCOME 5]

ACQ.12.BP9: Define provision for the suppliers. Define provision for the suppliers to deliver other requirements such as quality plan or escrow arrangements. [OUTCOME 6]

ACQ.12.BP10: Establish criteria for liability issues. Establish recognized criteria for proprietary, regulatory and other product liability issues. [OUTCOME 7]

Output work products

02-00 Contract

02-01 Commitment/agreement

→

→

[Outcome 1-7]

[OUTCOME 2, 4, 5, 6, 7]

10-00 Process description

→

[Outcome 1, 3]

14-02 Corrective action register

→

[Outcome 3]

17-00 Requirement specification

→

[Outcome 1-7]

18-01 Acceptance criteria

→

[Outcome 3]

Process ID

ACQ.13

Process name

Project Requirements

Process purpose

The purpose of the Project Requirements Process is to specify the requirements to ensure the acquisition project is performed with adequate planning, staffing, directing, organizing and control over project tasks and activities.

Process outcomes

As a result of successful implementation of this process:

1) consistency between financial, technical, contractual and project requirements is established;

2) requirements for the organizational, management, controlling, and reporting aspects of a project are defined;

3) requirements for adequate staffing of projects by a competent team (e.g. resources with requisite legal, contractual, technical and project competence) with clear responsibilities and goals are defined;

4) the needs for exchanging information between all affected parties are established;

5) requirements for the completion and acceptance of interim work products and release of payments are established;

6) potential risks are identified;

7) requirements for ownership of interactions and relationships with suppliers are defined;

8) rights for use and distribution of the product by the customer and supplier are defined; and

9) support and maintenance requirements are established.

Base practices

ACQ.13.BP1: Identify relevant groups. Identify relevant parties/stakeholders and experts for financial, technical, contract and project issues. [OUTCOME 1]

ACQ.13.BP2: Communicate with relevant groups. Communicate with the relevant parties regarding the specification of financial, technical, contract and project requirements. [OUTCOME 1]

ACQ.13.BP3: Define organizational requirements. Define requirements for the organizational aspect of the project. [OUTCOME 2]

NOTE 1: Requirements for the organizational aspects refer to the organization of the people on the project e.g. who is responsible etc. at different levels.

ACQ.13.BP4: Define management requirements. Define requirements for the management, controlling and reporting aspects of the project. [OUTCOME 2]

NOTE 2: Requirements for the management, controlling and reporting aspects of the project may be

 the necessity to structure the acquisition process in logical phases

 the use of experience and skills of third parties

 the sketch of a work breakdown structure

 that all documentation conforms to appropriate standards, and should be contractually agreed with the suppliers

 requirements to supplier’s processes, process interfaces and joint processes

ACQ.13.BP5: Identify required competency. Identify required competency (e.g. legal, contractual, technical and project competencies) for key resources. [OUTCOME 3]

ACQ.13.BP6: Define responsibilities and goals. Define responsibilities and goals of the team members. [OUTCOME 3]

ACQ.13.BP7: Identify information needs. Identify information needs of the relevant parties. [OUTCOME 4]

ACQ.13.BP8: Define exchange of information. Consider how exchange of information may be affected. [OUTCOME 4]

NOTE 3: Techniques for supporting the exchange of information may include electronic solutions, face-to-face interactions and decisions about the frequency.

ACQ.13.BP9: Establish criteria for interim work products. Establish requirements for the completion and acceptance of interim work products. [OUTCOME 5]

ACQ.13.BP10: Establish payment requirements. Establish requirements for the release of payments. [OUTCOME 5]

NOTE 4: This may include for example the decision to link the major proportion of the supplier’s payment to successful completion of the

acceptance test, the definition of supplier performance criteria and ways to measure, test and link them to the payment schedule or the decision that payments be made on agreed results.

ACQ.13.BP11: Identify risks. Identify risks associated with project life cycle and with suppliers. [OUTCOME 6]

NOTE 5: Potential risk areas are for example stakeholder (customer, user, and sponsor), product (uncertainty, complexity), processes (acquisition, management, support, and organization), resources (human, financial, time, infrastructure), context (corporate context, project context, regulatory context, location) or supplier (process maturity, resources, experience).

ACQ.13.BP12: Communicate risks. Assure that all identified risks are communicated to the relevant parties. [OUTCOME 6]

ACQ.13.BP13: Define ownership of relationships. Define requirements for ownership of interactions and relationships with suppliers. [OUTCOME 7]

NOTE 6: This may include for example who has the lead on which type of interaction, who maintains an open-issue-list, who are the contact persons for management, technical and contractual issues, the frequency and type of interaction, to whom the relevant information is distributed.

ACQ.13.BP14: Define rights for use and distribution. Define rights for use and distribution of the product by the customer and supplier. [OUTCOME 8]

NOTE 7: This may include unrestricted right of product use or delivery of source code trial installation for "sale or return".

ACQ.13.BP15: Establish support and maintenance requirements.

[Outcome 9]

NOTE 8: This may include for example training requirements, the decision if support and maintenance should be conducted in-house or by a third party or the establishment of service level agreements.

Output work products

02-00 Contract → [OUTCOME 1-9]

13-19 Review record → [OUTCOME 1] 13-20 Risk action request → [OUTCOME 6] 17-00 Requirement specification → [OUTCOME 1-9]

Process ID

ACQ.14

Process name

Request for Proposals

Process purpose

The purpose of the Request for Proposals Process is to prepare and issue the necessary acquisition requirements. The documentation will include, but not be limited to, the contract, project, finance and technical requirements to be provided for use in the Call For Proposals (CFP) / Invitation To Tender (ITT).

Process outcomes

As a result of successful implementation of this process:

1) rules are defined for proposal/tender invitation and evaluation which comply with the acquisition policy and strategy;

2) the baseline technical and non-technical requirements are assembled to accompany the CFP / ITT;

3) the agreement (contractual) terms of reference and conditions for CFP / ITT are established;

4) the financial terms of reference for costs and payments for CFP / ITT are defined;

5) the project terms of reference for CFP / ITT are defined;

6) the technical terms of reference for CFP / ITT are defined; and

7) a CFP / ITT is prepared and issued in accordance with acquisition policies and which complies with relevant national, international and regulatory laws, requirements, and policies.

Base practices

ACQ.14.BP1: Define rules for CFP / ITT. Define rules for proposal/tender invitation and evaluation which comply with the acquisition policy and strategy. [OUTCOME 1]

NOTE 1: Examples are:

 a rule that a multiphase tendering process should be used (reasonable when uncertainty is high)

 pre-planned interactions with suppliers

 a rule that the supplier will be informed about the evaluation criteria

 a rule that a timetable should be stipulated to allow suppliers specified times to respond to the call for tender

 a rule prescribing to use a two stage evaluation process (reduce a long list of suppliers to a short list of suppliers who are invited to tender)

ACQ.14.BP2: Assemble requirements. Assemble the baseline technical and non-technical requirements to accompany the CFP / ITT. [OUTCOME 2]

NOTE 2: The goal is to provide the supplier with an in-depth understanding of your business to enable him to offer the specified solution.

ACQ.14.BP3: Establish terms and conditions for CFP / ITT. Establish the agreement (contractual) terms of reference and conditions for CFP / ITT. [OUTCOME 3]

ACQ.14.BP4: Define financial terms. Define the financial terms of reference for costs and payments for CFP / ITT. [OUTCOME 4]

ACQ.14.BP5: Define project terms. Define the project terms of reference for CFP / ITT. [OUTCOME 5]

NOTE 3: The overall purpose of this is to communicate the documented business requirements of the acquisition to the suppliers.

ACQ.14.BP6: Define technical terms. Define the technical terms of reference for CFP / ITT. [OUTCOME 6]

ACQ.14.BP7: Identify relevant regulations. Identify international and regulatory laws, requirements and policies which are relevant for CFP preparation. [OUTCOME 7]

ACQ.14.BP8: Prepare and issue a CFP / ITT. Prepare and issue a CFP

/ ITT in accordance with acquisition policies, which complies with relevant national, international and regulatory laws, requirements and policies. [OUTCOME 7]

Output work products

02-01 Commitment/agreement → [OUTCOME 3]

12-01 Request for proposal → [OUTCOME 7]

17-00 Requirement specification → [OUTCOME 2, 4, 5, 6]

19-11 Validation strategy → [OUTCOME 1]

Process ID

ACQ.15

Process name

Supplier Qualification

Process purpose

The purpose of the Supplier Qualification Process is to evaluate and determine if the potential supplier(s) have the required qualification for entering the proposal/tender evaluation process. In this process, the technical background, quality system, servicing, user support capabilities etc. will be evaluated.

Process outcomes

As a result of successful implementation of this process:

1) criteria are established for qualifying suppliers;

2) supplier capability determination is performed as necessary;

3) the suppliers which possess required qualification are short-listed for tender solution(s) evaluation;

4) any shortfalls in capability are identified and evaluated; and

5) any corrective action required by the acquirer is evaluated and performed.

Base practices

ACQ.15.BP1: Establish qualification criteria. Establish criteria for qualifying suppliers. [OUTCOME 1]

NOTE 1: This could include

 technical background of the supplier

 quality system on the supplier side

 servicing

 user support capabilities

ACQ15.BP2: Evaluate supplier. Perform supplier capability determination as necessary. [OUTCOME 2]

NOTE 2: It is often required that the supplier should have an ISO 9001 and/or an ISO 16949 certificate.

NOTE 3: Establish the specific target levels against which the supplier’s capability will be measured.

ACQ.15.BP3: Short-list suppliers with required qualification. Short-list the suppliers for tender solution(s) evaluation which possess required qualification. [OUTCOME 3]

ACQ.15.BP4: Evaluate any shortfalls. Identify and evaluate any shortfalls. [OUTCOME 4]

NOTE 4: This may include developing a method for evaluating risk related to the supplier or the proposed solution.

ACQ.15.BP5: Perform corrective actions. Evaluate and perform corrective action required by the acquirer. [OUTCOME 5]

Output work products

14-02 Corrective action register → [OUTCOME 5] 14-05 Preferred suppliers register → [OUTCOME 3] 15-16 Improvement opportunity → [OUTCOME 4] 15-21 Supplier evaluation report → [OUTCOME 2] 18-50 Supplier qualification criteria → [OUTCOME 1]