Award amount of contract- POVAGRMTHD

Can you explain further what you mean by "award". In terms of contract bidding the award or contract is given to the lowest bid. So if you had Medtronic and St. Jude, for example, bidding for your CRM device/supply contract, you could come up with a potential yearly spend with each vendor based on their proposals and past purchases of CRM devices and supplies. But that yearly spend (award amount?) wouldn't be entered anywhere in PO25. Is that what you mean or am I way off base?

Hi Jona, I am new to the procurement side and using these tables so I am not so sure I can explain this. NYS is requested we provide current value for each contract we have in the Lawson system. According to the analyst, this is the award amount of each contract. So if we have a contract with a vendor A, we need to provide the contract amount.

I spoke with our contracts manager and she agreed with me that this "award amount" you're looking for is not stored in PO25. The contract value is calculated by multiplying the expected yearly volume for each item on the contract by the base amount. And if it's a multi-year contract, multiply that by the number of years. But it's a fluid value really as items may be discontinued or new technology is adopted during the contract period.

Thanks for your efforts, JonA, How do I find the yearly volume? Why can't I just get the base cost for each item and add them all to get the contract amount? And if it's a multi-year contract, multiply that by the number of years.
We have at least 800 active contracts.

That would be fine if you only purchased 1 of each item in a year. It doesn't really give you the true value of the contract. Do you have a contracts department or team? They or perhaps someone in purchasing might already have the information you need. Or know how to get it.

Here's what I'd do if our director asked me for something like this. For those agreements that are currently active and have an effective date going back at least 6 months, I'd take the AMT_ORDERED for each agreement and prorate it for the agreement period. So if the agreement had been active for 8 months and its a 3 year contract and the AMT_ORDERED was $15,000, then I'd estimate the contract value at $67,500: ($15,000 / 8) x 36.

But for agreements that have only been in effect for a short while it's more involved. I wouldn't trust prorating such short term purchases. I'd pull last year's purchase history for the items on the newer agreements and multiply that by the base amount for each item to try to come up with a contract value. If you use participants keep in mind that perhaps not all purchases would be in the calculation. For instance, if company 10 was a participant but companies 20 and 30 were not you would not include any purchase history for companies 20 and 30 in your calculation.

Oh I hear you. Thanks again for your ideas, greatly appreciated!