2.1.3.9P Create Procurement Management Plan

(2.1.3.9P.P1)

The Procurement Management Plan describes how items will be procured during the project and the approach you will use to managing vendors on the project. Specific areas to describe include:

  • Procurement process. This section provides a brief overview of the process requirements necessary to manage procurement of the identified needs. This process should include:

    • Initiating a request

    • Development of requirements (technical, timing, quality, constraints)

    • Request approval

    • Purchasing authority

    • Bid / proposal review

    •  Contract management responsibility

    • Contract closure requirements

    • Procurement process flowchart

  • Roles and responsibilities. This section describes the various roles on the project that have some connection to procurement. This section should describe who can request outside resources, who can approve the requests, any secondary approvers, etc.

  • Identified procurement needs. This section details the material, products or services identified for outside procurement.  Each listed item should include a justification statement explaining why this should be an outside purchase if there is the possibility of inside sourcing (make vs. buy decision). There could be many factors that go into a decision to make or buy a product or service.

  • Timing. This section will describe the timeframe that resources are needed. This will provide a better sense for when the procurement process needs to be started for each item.

  • Costs. Make-or-buy analysis should consider both the direct as well as the indirect costs of a prospective procurement. In this context, the indirect costs of buying an item from the outside can also include the cost of managing and monitoring the purchasing process.

  • Vendor processes. Describe the processes that the vendors should use for timesheet approval, invoice processing, contract renegotiation, status reporting, scope change requests, etc.