5.0 CONTRACT WORK SCOPES As noted in prior Cost Containment Reports, NSPML's procurement process continues to play a key role in managing OM&G levels as follows: • At the outset of its larger procurements (typically work scopes greater than $25,000), NSPML develops a Contracting Strategy that aims to clearly identify the work scope, budget, and the risks in relation to safety, environment, schedule, and cost such that potential for unexpected cost or scope variances are minimized and ensure that the value achieved for the cost is quantified. • Through its request for proposal processes (RFP), NSPML typically seeks multiple proposals for significant work scopes, with local content where appropriate. • NSPML completes a formal review of all new agreements, scope of work documents, and other contract provisions to ensure that the rights, obligations, and risks associated with the work are clearly identified and appropriately allocated between the parties. This practice ensures that NSPML has the necessary means to mitigate potential cost escalation and respond to unforeseen circumstances or events in a prescribed manner where possible. • In completing its Contracting Strategies, NSPML accounts for lessons learned from similar work scopes completed in prior years, aiming to reduce the costs associated with uncertainties and risk premiums where possible by better defining scope or expectations. • Contracting Strategies are approved by the appropriate team leads with sufficient experience (and/or support from external expertise) to govern the scope. The approval
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5.0 CONTRACT WORK SCOPES As noted in prior Cost Containment Reports, NSPML's procurement process continues to play a key role in managing OM&G levels as follows: • At the outset of its larger procurements (typically work scopes greater tha...
AI summary NSPML's procurement process is designed to manage OM&G levels by developing Contracting Strategies for large work scopes, seeking multiple proposals, reviewing contracts, learning from past projects, and ensuring proper approval and compliance.