Buyers, Purchasing Managers, and Project Managers whose duties currently include, or will, in the future, include the purchasing of, or subcontracting for services.

Marketing and Sales Managers who duties include, or will, in the future, include the negotiation of service contracts with clients.

Buyers, Purchasing Managers, Project Managers, Marketing and Sales Managers who wish to increase their professionalism in service purchasing and contracting.


  1. How to locate and identify potential service suppliers
  2. How to prepare effective statements of work for services
  3. How to solicit, evaluate and select service suppliers
  4. How to structure an effective service contract
  5. How to monitor service supplier performance
  6. How to evaluate service supplier performance



At the completion of this course, participants will be able to explain and/or demonstrate: The key differences between purchasing services and purchasing supplies, materials, and equipment.

  • The Performance Based Service Purchasing Process.
  • Recommended solicitation, evaluation, and source selection processes for services.
  • EPurchasing for Services.
  • Labor Laws Affecting Service Purchasing.
  • The purpose of Market Research, the principles of Market Research, methods of Conducting Market Research, obtaining Technical Data, and sources of Market Research Information.
  • How to establish procurement plans and make decisions necessary to purchase services in congruence with organizational objectives and sourcing strategies.
  • How to review purchase requisitions in accordance with organizational requirements and/or budgetary constraints.
  • How to develop/review specifications, statements of work, performance terms, and/or acceptance criteria.
  • How to prepare and/or issue contracts/purchase orders for services (using the appropriate type of contract and appropriate service terms and conditions).
  • How to prepare and solicit competitive bids, quotations, and proposals with pertinent specifications, terms, and conditions.
  • How to evaluate competitive offerings to determine the overall best offer for a service.
  • How and when to conduct price and cost analysis of service supplier bids and proposals.
  • How to prepare for and develop strategies and tactics for service contract negotiations.
  • How to conduct negotiations with potential and/or current service suppliers to obtain maximum value.
  • The contract administration process of service contracts.
  • The contract administration responsibilities of the contract administrator, technical representative, and qualify assurance representative.
  • The process for closing out a service contract.
  • Change terminology.
  • How to process different kinds of service contract changes.
  • The theory of constructive change.
  • The process of writing and exercising renewal options in service contracts.
  • Option pricing methodology.
  • Financial management procedures for the fixed price family of contracts.
  • Payment procedures for the fixed price family of contracts.
  • Financial management procedures for the cost reimbursement family of contracts.
  • Payment procedures for the cost reimbursement family of contracts.
  • Procedures for managing and defending against supplier claims.
  • Procedures for terminating services contracts for convenience and default/cause.
  • Procedures for writing and invoking disputes provisions in service contracts.
  • Some of the background behind service supplier performance evaluations.
  • Why to evaluate service suppliers.
  • The steps in performing service supplier performance evaluation.
  • Several approaches to service supplier performance evaluation.




©COPYRIGHT 1996 - 2018 International Purchasing and Supply Chain Management Institute
For detailed information, contact us at