Another question, please suggest correct answer

Discussion in 'PMP' started by Purva Garg, Aug 2, 2016.

  1. Purva Garg

    Purva Garg Active Member
    Alumni

    Joined:
    Apr 14, 2016
    Messages:
    31
    Likes Received:
    0
    You are the Project Manager of a large system integration project and you are looking for a subcontractor to do certain parts of the work. Your boss comes up with a recommendation for a vendor who has worked on many successful projects with your company. What should be your primary concern in such a scenario?
    1) Does working with this vendor violate any of the company laws?
    2) Is the vendor costlier than other vendors?
    3) Is the vendor qualified to do such Work?
    4) The contract Terms and Conditions

    I will go with C, but the suggested correct answer is A. Why?
     
    #1
  2. Rajan Sood

    Rajan Sood Rajan
    Alumni

    Joined:
    Nov 12, 2015
    Messages:
    27
    Likes Received:
    2
    For these kind of Vendor related questions, the challenge is always about Vendor's qualification to perform the required project work. So point 3 seems to be the correct choice.

    There is no reason to doubt about company laws violation. Just because my boss has recommended any Vendor (that too who has worked with the company on many successful projects), doesn't mean it's a doubtful situation.

    Not sure why A is the right answer.
     
    #2
  3. Purva Garg

    Purva Garg Active Member
    Alumni

    Joined:
    Apr 14, 2016
    Messages:
    31
    Likes Received:
    0
    Thanks for your inputs Rajan.
    I feel exactly the same. Let's see if someone from the trainers can help us with this.
     
    #3
  4. tim jerome

    tim jerome Well-Known Member
    Trainer

    Joined:
    May 15, 2015
    Messages:
    2,192
    Likes Received:
    688
    This is a sticky situation. I'm going to be studying both the PMBOK and the Code of Ethics for a while, just because of this. However, I do know some items:

    • You state there is no reason to doubt company laws are adhered to. I don't think we're talking about trusting the boss, but does trust take more importance than confirming this project is not at risk? What is my concern - will my boss reprimand me for confirming this? I have been in this position before, by the way (a boss saying, "You don't need to check..."). How do you think it turned out? Sigh - the life of the PM is often a lonely one. And guess what the company's legal department would tell me to do...
    • Is there any sequence, or priority in these answers? If I were to be selecting a vendor, I'd validate that they were within laws / requirements, then see how they compete with price and capability, and finally terms & conditions. I would not negotiate terms & conditions until the vendor was selected.
    I'll leave you with this, but please check the code of ethics and and professional responsibility; you'll find it at the end of the handbook - page 40 of 45.

    Thanks, I'll continue to work on this question...
     
    #4
  5. Sreidhar D(1820)

    Sreidhar D(1820) Well-Known Member
    Alumni

    Joined:
    Sep 28, 2012
    Messages:
    185
    Likes Received:
    264
    My view is:
    In such a situation, Keeping in view PMI's emphasis on Ethics, the immediate concern for any PM should be option A.
    The other choices pertain to Qualifying conditions[like Price, technical etc] while A concerns Eligibility for vendors' participation in the Procurement process itself.
     
    #5
  6. Mustafa Tambawalla

    Mustafa Tambawalla New Member

    Joined:
    Jul 12, 2016
    Messages:
    1
    Likes Received:
    0
    Hi Purva,

    The rationale for option A being the correct answer is - it is the very 1st step in the decision making where the project manager has to evaluate whether dealing with 3rd party vendor is against the company laws as it involves PI data being shared with the vendor. Once this evaluation is done, then the project manager can further look at other options. Hope this clarifies.
     
    #6
  7. kinar25

    kinar25 Member
    Alumni

    Joined:
    Mar 23, 2016
    Messages:
    7
    Likes Received:
    2
    Well, I will quote from whatever scenarios I have understood with PMP and PMI so far.

    For starters, for ANY vendor management stuff, points 2, 3 and 4 are always done. Lets say for your bid, you receive three proposals from three different firms.

    As a PM, I am going to start with the analysis of whether the vendor is capable of doing what I need and whether the pricing is at the standard market rates. Terms and conditions, if not already quoted, will come in.

    But once any one puts a though in my brain, saying ok a particular vendor is recommended, it totally falls apart from my purview. As a project manager, I should not take a favorable stand towards any vendor, even if its a Boss. Even before starting with 2, 3 or 4, I need to make sure, I do not violate anything because the reference has not come to me via the straight path.

    Also, if you look closely at the question, the refferal has come via the Boss. The question, in no way cares to explain the role. Are they talking about a different contracts department, which manages the contracts for the entire company? In this case A might not be applicable. But no. Thats not the point.

    From what I have understood, unless its specifically mentioned that there is a contracts department which handles all the procurement processes, its ALWAYS the PM who FORMALLY sets out request for quotation and invitation to bid. And its entirely as his discretion and responsibility what vendor is chosen and that is documented throughly too.

    Oh and btw, even a contracts department would never SUGGEST vendors to PM. They will seal the deal and be done.

    Hope this explains the reason why A was chosen.

    Thanks,
    Kinar Mehta
     
    #7

Share This Page