DTMB-Procurement Contract List Explained - State of Michigan 2025

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Various types of procurement contracts, including fixed-price, cost-plus, time and materials and lump-sum contracts, are chosen based on project characteristics and cost predictability.
Contract Connect is State of Michigan Procurements primary website.
The 5 Ps of procurement are Power, People, Processes, Planning, and Prevention. Power refers to the influence and authority of the procurement team, while People represent the human resources executing the strategy.
What is included in a procurement contract? Receipt, inspecting, and acceptance. Upon receipt of supplies made by the seller, the inventory needs to be inspected to ensure it meets the specifications agreed upon. Contract termination. Financial management and payment. Performance securities. Contract completion and closeout.
In large, complex contracts the document could include the following: Introduction. Scope of the requirement. Background to the requirement. Detailed description of the functional requirements, classified as essential, optional, and desirable. Description of the performance requirements including input and output details.

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A procurement contract is a legally binding agreement between a purchaser (your company) and a supplier (your vendor). It describes what goods or services are expected to be provided by the vendor, specifications such as delivery dates or quality control requirements, and payment terms.

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