PROJECT PROCUREMENT MANAGEMENT

PROJECT PROCUREMENT MANAGEMENT

1. Includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team.

   • This processes involve agreements like contracts between the buyer and seller.
     • A procurement contract includes terms and conditions, and may incorporate other items that the buyer specifies as to what the seller is to perform or provide.

2. Plan Procurement Management

   • Is the process of documenting project decisions, specifying the approach, and identifying potential sellers.
     • Inputs
       • 1. Project management plan 2. Requirements documentation 3. Risk register 4. Activity resource requirements 5. Project schedule 6. Activity cost estimates 7. Stakeholder register 8. Enterprise environmental factors 9. Organizational process assets
     • Tools & Techniques
       • 1. Make-or-buy analysis 2. Expert judgment 3. Market research 4.Meetings
     • Outputs
       • 1. Procurement management plan 2. Procurement statement of work 3. Procurement documents 4. Source selection criteria 5. Make-or-buy decisions 6. Change requests 7. Project documents updates
   • The key benefit is that it determines whether to acquire outside support, and if so, what to acquire, how to, how much is needed, and when to acquire it.

3. Conduct Procurements

   • Is the process of obtaining seller responses, selecting, a seller, and awarding a contract.

4. Control Procurements

   • Is the process of managing procurement relationships, monitoring contract performance, and making changes and corrections as appropiate.

5. Close Procurements

   • Is the process of completing each project procurement.

6. A complex project may involve managing multiple contracts or subcontracts simultaneously or in sequence.

   • Depending on the application area, the seller may be identified as a contractor, subcontractor, vendor, service provider or supplier.