Select Sellers: Tools and Techniques

• Seller performance evaluation documentation. Seller performance evaluation documentation is prepared by the buyer. Such performance evaluations document the seller’s ability to continue to perform work on the current contract, indicate if the seller can be allowed to perform work on future projects, or rate how well the seller is performing the project work. These documents can form the basis for early termination of the seller’s contract, or determining how contract penalties, fees, or incentives are administered. The results of these performance evaluations can also be included in the appropriate qualified seller lists Section 12.3.3.1. .5 Project Management Plan Updates • Procurement management plan. The procurement management plan Section 12.1.3.1 is updated to reflect any approved change requests that affect procurement management. • Contract management plan. Each contract management plan Section 12.4.3.3 is updated to reflect any approved change requests that affect contract administration.

12.6 Contract Closure

The Contract Closure process supports the Close Project process Section 4.7, since it involves verification that all work and deliverables were acceptable. The Contract Closure process also involves administrative activities, such as updating records to reflect final results and archiving such information for future use. Contract closure addresses each contract applicable to the project or a project phase. In multi-phase projects, the term of a contract may only be applicable to a given phase of the project. In these cases, the Contract Closure process closes the contracts applicable to that phase of the project. Unresolved claims may be subject to litigation after contract closure. The contract terms and conditions can prescribe specific procedures for contract closure. 12 Early termination of a contract is a special case of contract closure, and can result from a mutual agreement of the parties or from the default of one of the parties. The rights and responsibilities of the parties in the event of an early termination are contained in a terminations clause of the contract. Based upon those contract terms and conditions, the buyer may have the right to terminate the whole contract or a portion of the project, for cause or convenience, at any time. However, based upon those contract terms and conditions, the buyer may have to compensate the seller for sellers preparations and for any completed and accepted work related to the terminated part of the contract. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 295 Figure 12-8. Contract Closure: Inputs, Tools Techniques, and Outputs

12.6.1 Contract Closure: Inputs

.1 Procurement Management Plan Described in Section 12.1.3.1 .2 Contract Management Plan Described in Section 12.4.3.3. .3 Contract Documentation Described in Section 12.5.3.1. .4 Contract Closure Procedure Described in Section 4.7.3.2.

12.6.2 Contract Closure: Tools and Techniques

.1 Procurement Audits A procurement audit is a structured review of the procurement process from the Plan Purchases and Acquisitions process Section 12.1 through Contract Administration Section 12.5. The objective of a procurement audit is to identify successes and failures that warrant recognition in the preparation or administration of other procurement contracts on the project, or on other projects within the performing organization. .2 Records Management System Described in Section 12.5. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 296 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA