CMM and Project Management - Procurement Management

p>This Key Process Area (KPA) is called Softwareat scheduled intervals (e.g. once a week) to review
Subcontract Management by CMM/CMMI but it alignsthe status of the subcontractor's project. This
with the Procurement Management knowledge areaactivity goes on to specify that deviations from the
of the PMBOK®. The objective is to selectplan are addressed and that conflicts are addressed.
vendors who are best able to meet the projectsCorrective actions are part of the subcontractor PM's
needs in terms of work, product, and budget. Keep inresponsibilities. Deviations not addressed by that PM
mind that while the PMBOK® paints Procurementwould result in conflict and conflicts are resolved by
Management activities with a broad brush in order tothe Claims Administration tool described in Administer
cover all industries, CMM/CMMI are only interested inProcurements. The best way of meeting these
activities that pertain to software subcontractors, orneeds is to ensure that the subcontractor's PM
software vendors. The Procurement Managementmanages your project in accordance with project
plan must cover any procurement. As with the othermanagement best practices (which call for corrective
KPAs, Software Subcontract Management isaction to be taken when results deviate from the
organized into goals, commitments, abilities, activities,plan). You also should ensure that the PM maintains
measurements, and verifications.an action register or issue log to capture any issues
Goalsyou have with the project.
The 4 goals of this KPA are:8. Periodic technical reviews are held with the
subcontractor. This activity verifies that the product
1. Qualified software subcontractors are selected bybeing produced meets your needs and any quality
the project manager. This goal is supported in full bytargets set for it. This activity is described in the
the Conduct Procurements process.Administer Procurements process as Inspections and
2. The customer and subcontractor agree to theirAudits. Interpret this to mean reviews of Functional
commitments to each other. The contract for theSpecifications and Detail Design Documents produced
delivery of goods and/or services for consideration isby the subcontractor where the requirements
the agreement. The contract (procurement contractcaptured in your Business Requirements Document
award) is the output of the conduct procurementsare translated into functions, and code.
process.9. Formal reviews of the subcontractor's work
3. The customer and subcontractor maintain ongoingproducts are conducted at selected milestones.
communications. There is nothing in the ProcurementThese formal reviews are what I refer to as Gate
Management processes which specifically addressesReview meetings conducted at key milestones
this goal; however the scheduling of regular reviewthroughout the project. The subcontractor may have
meetings, such as performance reviews will meet thistheir own Gate Review meetings with you as a key
goal.stakeholder, or your Gate Review meetings may be
4. The customer tracks the software subcontractor'ssufficient on their own. In either case the deliverables
results against commitments. Work performanceplanned for the completed sub-project phase should
information, performance reports, and performancebe reviewed for completeness and plans, resources,
reviews are all inputs of the administer procurementsrisks, etc. of the upcoming sub-project phase should
process and serve to track results againstalso be reviewed.
commitments. Commitment to Perform10. The customer's Software Quality Assurance
There are 2 commitments: that the project follows agroup (SQA) monitors the subcontractor's SQA
written organizational policy for managing theactivities according to a documented procedure. This
software subcontractor and that a subcontractis beyond the scope of your project, unless your
manager is designated to be responsible forproject is also implementing an SQA group and
establishing and managing the software contract. Theprocesses. Your project can contribute to the activity
policy is the responsibility of the organizationby ensuring that the contract, SOW, and your Quality
subcontracting the work and you, or someone youManagement plan specify the SQA activities required
assign to the role, is the subcontract manager. Yourof the subcontractor and performing audits to ensure
Procurement Management plan is not anthose activities are done.
organizational policy but will take the place of one for11. Your Configuration Management group monitors
the project you are managing.the configuration activities of the subcontractor. The
Ability to PerformSOW used to define the subcontractor's
You will demonstrate an ability to perform theresponsibilities should include CM activities and these
activities called for by your plan by assigningshould also be captured in the subcontractor's project
adequate resources and funding to the job ofplans. Reviews and audits need to include verification
selecting and managing the subcontractor. You arethat the subcontractor performs their CM activities
the first resource assigned to the project and anyas per their plans.
organizational policies, standards, vendor lists, and12. You should conduct acceptance testing of the
your Procurement Management plan are alsosubcontractor's deliverables according to a
resources. Any managers or other individuals that youdocumented procedure. Inspections of deliverables
assign to the work of selecting or managing thesuch as specifications, designs, and code should be
subcontractor must be adequately trained in thatgoverned by the Administer Procurements process in
work and given orientation on the technical aspectsyour plan. These should include testing of the
of the contract. Your Human Resources Managementsoftware (User Acceptance Testing).
plan will describe how this is done. Resources13. The subcontractor's performance is evaluated
assigned to your project by outside organizationsperiodically and the evaluation reviewed with the
such as a Procurement group should be trained bysubcontractor. This is described in the Tools &
that group.Techniques section of the Administer Procurements
Activities Performedprocess (Procurement Performance Reviews).
Measurement and Analysis
1. Define and plan the work according to theThere is only one measurement: measurements are
documented procedure and the subcontracted worktaken and used to determine the status of the
is described in a Statement of Work (SOW), which isProcurement Management activities. These
derived from the project SOW. The documentedmeasurements are taken as part of the oversight of
procedure in this case will be your Procurementthe project management activities of the overall
Management plan. The detailed activities include makeproject. They will be provided for in your project
or buy decisions, and choosing vendor selectionplans.
criteria. The SOW should also be reviewed and agreeVerifying Implementation
to by resources working on subcontractor selectionYour Procurement Management activities should be
and management.reviewed with senior management periodically. This
2. Select the subcontractor based on their ability tocan happen at Gate Review meetings and/or at
perform the work in accordance with a documentedSteering Committee meetings, and meetings with
procedure. This is the Conduct Procurements processyour sponsor. If you are managing a project and
described in your Procurement Management plan.have a project manager reporting to you on a
3. The contract between the customer and thesoftware sub-project, you need to meet with them
subcontractor is used to manage the subcontract.periodically to review their procurement management
This activity includes the specification of the workactivities. This could be part of the agenda for
products the subcontractor must deliver, criteria theyweekly status review meetings, or require meetings
must meet, how changes will be made, acceptancespecifically for the purpose. Finally, the SQA group
criteria, and how subcontractor performance will bemust review and/or audit the tools and activities
monitored. This is all standard stuff covered off inused for Procurement Management. This will only be
the Conduct Procurements and Administerpossible if your organization has an SQA group.
Procurements processes.Without an SQA group, your organization may have
4. The customer reviews and approves the softwarea PMO or PMC in which case that group would be
subcontractor's development plan. This will be aresponsible for oversight of all areas of project
deliverable covered in the SOW and the approvalmanagement, including procurement management,
process and conditions for approval will also beand would conduct project audits.
described there.There is very little that a project manager who
5. The subcontractor's plan is used to track theadheres to the project management best practices
subcontractor's activities. The tracking should be donedescribed in the PMBOK® would or could to do to
at status review meetings you conduct with themeet the criteria for the Software Subcontract
subcontractor's project manager.Management KPA. The one thing outside of the
6. Changes to the subcontractor's SOW and contractinfluence of the project manager is the establishment
are decided upon according to a documentedof a Software Quality Assurance group. This group is
procedure. This procedure will be the Contractalso essential to the Software Quality Assurance
Change Control System described in the AdministerKPA. There is no better way that I know of to
Procurements process.demonstrate a grasp of project management best
7. The customer conducts periodic statuspractices than certification as a Project Management
coordination reviews with the subcontractor'sProfessional (PMP®). Project managers who meet
management. These are called ProcurementPMI®'s criteria can attain the certification by taking
Performance Reviews by the PMBOK® and area PMP® course or similar PMP® exam preparation
part of the Administer Procurements process. Thesetraining and then writing the certification exam.
should be spelled out in the SOW and should be held