PROJECT MANAGEMENT

Procurement Management

Procurement Management

Includes the processes necessary to purchase or

acquire products, services, or results needed from
outside the project team

Procurement Management

12.1 Plan Procurement Management

Is the process of documenting project procurement

decisions, specifying the approach, and identifying
potential sellers

Determines whether to acquire outside support, and

if so, what to acquire, how to acquire it, how much is
needed, and when to acquire it

12.1 Plan Procurement Management

Make-or-Buy Analysis

Constraints may influence make-or-buy decisions

Budget
Direct

costs as well as indirect costs

Resources available capabilities

Available contract types are also considered during

the buy analysis
Fixed-price

contracts
Cost-reimbursable contracts
Time and Material Contracts (T&M)

Procurement Management Plan

Can include guidance for:

Types

of contracts to be used
Risk management issues
Independent estimates and evaluation criteria
Standardized procurement documents
Managing multiple suppliers
Coordinating procurement
Handling the long lead times to purchase
Handling the make-or-buy decisions

12.2 Conduct Procurements

Is the process of obtaining seller responses, selecting

a seller, and awarding a contract
Provides alignment of internal and external
stakeholder expectations through established
agreements

12.2 Conduct Procurements

Agreements

A procurement agreement includes:

Statement of work or deliverables

Schedule baseline
Performance reporting
Period of performance
Roles and responsibilities
Sellers place of performance
Pricing
Payment terms
Place of delivery
Inspection and acceptance criteria
Warranty
Product support
Etc

12.3 Control Procurements

Is the process of managing procurement

relationships, monitoring contract performance, and
making changes and corrections to contracts as
appropriate
Ensures that both the sellers and buyers
performance meets procurement requirements
according to the terms of the legal agreement

12.3 Control Procurements

Tools & Techniques

Contract Change Control System

Paperwork,

tracking systems, dispute resolution

procedures, and approval levels

Procurement Performance Reviews

Structured

Inspections and Audits

Work

review of the sellers progress

performance data and reports

Payment Systems
After

certification of satisfactory work by an

authorized person on the project team

Tools & Techniques

Claims Administration
Claims

are documented, processed, monitored, and

managed throughout the contract life cycle, usually in
accordance with the terms of the contract

Records Management System

Is

used by the project manager to manage contract and

procurement documentation and records

12.4 Close Procurements

Is the process of completing each procurement

Documents agreements and related documentation

for future reference

12.4 Close Procurements

Tools & Techniques

Procurement Audits
Is

a structured review of the procurement process

originating from the Plan Procurement Management
process through Control Procurements

Procurement Negotiations
Settlement

of all outstanding issues, claims, and disputes

by negotiation is a primary goal
Dispute resolution by mediation or arbitration
When all else fails, litigation in the courts