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 review of the sellers progress

Inspections and Audits

Work 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