Evolution of the Owner’s Role in Program Management – Activity: Procurement

Evolution of the Owner’s Role in Program Management – Activity: Procurement (#12 in the series Evolution of the Owner’s Role in Program Management)
By Robert Prieto

Traditional Owner Role:

Owner’s procurement responsibilities encompass development of contract packages, applicable terms and conditions, advertising and conduct of solicitation processes, bid evaluation, negotiation and issuance of contracts. Contract change processes typically require additional procurement support in the evaluation of contractor requests for financial or other contract modifications.

Owner Role Under Program Management:

• Owner’s procurement responsibilities will be limited to development of very select, major contract packages. Owner will work with Program Manager to develop standard program terms and conditions.
• Owner would approve procurements over threshold values with other procurement authority traditionally delegated to the Program Manager. Direct procurement by the Program Manager on his own commercial paper and with the Program Manager’s standard terms and conditions augmented by special provisions Owner may require may be utilized as part of transitioning the majority of procurement efforts to the Program Manager.
• Owner’s activities under program management transition to a strengthened audit and oversight role with respect to activities undertaken by the Program Manager.

Program Manager’s Role Under Program Management:

Program Manager will lead all procurement activities within the scope he is responsible for except as otherwise reserved by the Owner. Approval and authority to execute contracts on the Owner’s behalf may be delegated up to a threshold level directly to the Program Manager.

Robert Prieto, Senior Vice President

Robert Prieto is senior vice president for Fluor, where he leads strategy for Fluor’s Industrial and Infrastructure group. Mr. Prieto focuses on the development and delivery of large, complex projects worldwide.

Prior to joining Fluor, Bob served as chairman of Parsons Brinckerhoff Inc. As head of PB’s board of directors, he was responsible for overseeing management performance, establishing top-level policies, and ensuring the firm’s continued long term success.

He is a member of the executive committee of the National Center for Asia-Pacific Economic Cooperation, a member of the board of directors of the Business Council on International Understanding, a member of the board of the Civil Engineering Forum for Innovation, and co-founder and member of the board of the Disaster Resource Network. He currently serves on the National Research Council’s committee framing the challenges on Critical Infrastructure Systems. Until 2006 he served as one of three U.S. presidential appointees to the Asia Pacific Economic Cooperation (APEC) Business Advisory Council (ABAC) and served as chairman of the Engineering and Construction Governors of The World Economic Forum and co-chair of the infrastructure task force formed after September 11th by the New York City Chamber of Commerce. He is also a member of the board of trustees of Polytechnic University of New York, and was previously selected as alumni of the year by its New York Chapter.

He has had an executive sponsorship role in the World Trade Center Transportation Hub; West Coast Rail Modernization; Train Protection and Warning System; Level 3 Communications Long Haul Network and Superconducting Super Collider.

Prieto holds a master of science in nuclear engineering from Polytechnic University of New York and a bachelor of science in nuclear engineering from New York University.

Fluor Corporation (NYSE: FLR) provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance and project management. Headquartered in Irving, Texas, Fluor is a FORTUNE 500 company with revenues of $14.1 billion in 2006. For more information, visit www.fluor.com.