Project Management Gaafar 2007 / 1

Procurement Management*

Dr. L. K. Gaafar

*This Presentation is Based on information from the PMBOK Guide 2000 and www.augsburg.edu/ppages/schwalbe.

Project Management Gaafar 2007 / 2

Procurement

Is the process by which an organization is supplied with the goods and services that it needs to achieve its objectives.

Procurement mainly depends on the production process which determines the quantity and the scheduling of the supplies.

Project Management Gaafar 2007 / 3

Project Procurement Management Processes

Procurement planning: determining what to procure and when

Solicitation planning: documenting product requirements and identifying potential sources

Solicitation: obtaining quotations, bids, offers, or proposals as appropriate

Source selection: choosing from among potential vendors Contract administration: managing the relationship with

the vendor Contract close-out: completion and settlement of the

contract

Project Management Gaafar 2007 / 4

Project Management Gaafar 2007 / 5

Project Management Gaafar 2007 / 6

Figure 11-1. Project Procurement Management Processes and Key Outputs

Project Management Gaafar 2007 / 7

Statement of Work (SOW) Template

I. Scope of Work: Describe the work to be done to detail. Specify the hardware andsoftware involved and the exact nature of the work.

II. Location of Work: Describe where the work must be performed. Specify thelocation of hardware and software and where the people must perform the work

III. Period of Performance: Specify when the work is expected to start and end,working hours, number of hours that can be billed per week, where the work mustbe performed, and related schedule information.

IV. Deliverables Schedule: List specific deliverables, describe them in detail, andspecify when they are due.

V. Applicable Standards: Specify any company or industry-specific standards thatare relevant to performing the work.

VI. Acceptance Criteria: Describe how the buyer organization will determine if thework is acceptable.

VII. Special Requirements: Specify any special requirements such as hardware orsoftware certifications, minimum degree or experience level of personnel, travelrequirements, and so on.