PRM chapter 12

The term procurement is widely used in the government.

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Clients are often able to use economies of scale that may not be available to outsourcing suppliers.

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Work is occasionally outsourced without a formal solicitation.

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The make-or-buy decision is an important organizational milestone that comes after source selection.

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Many organizations use make-or-buy analysis to decide between purchasing or leasing items for a particular project.

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Internal experts should be consulted after procurement planning so as not to interfere with the initial set-up.

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In terms of contracts, a fixed-price incentive contract has the least amount of risk for the buyer.

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Time and material contracts require the buyer to pay the supplier a predetermined amount per unit of service, and the total value of the contract is a function of the quantities needed to complete the work.

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The SOW should not use industry terms, rather it should attempt to phrase itself in easily understood language.

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A SOW should become part of the official contract.

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