Project Procurement Management What is Project Procurement Management

Project Procurement Management

What is Project Procurement Management? • Project procurement management includes the processes to purchase or acquire the products, services, or result needed from outside the project team to perform the work. • Involving contracts that are legal documents between a buyer and a seller. • Processes including : – – – Plan purchases and acquisitions Plan contracting Request seller responses Select seller Contract administration Contract closure

Plan Contracting • • • Documenting products, services, and results requirements and identifying potential sellers Preparing the documents needed to support the Request Seller Responses and Select Seller process Common names for different types of procurement documents include invitation for bid, request for proposal, request for quotation, tender notice, invitation for negotiation, and contractor initial response

Plan Purchases and Acquisitions • • • Determining what to purchase or acquire and determining when and how Including to review the risks involved in each make-or-buy decision; it also includes reviewing the type of contract planned to be used with respect to mitigating risks and transferring risks to the seller The procurement management plan describes how the procurement processes will be managed from developing procurement documentation through contract closure

Request Seller Responses • • Obtaining information, quotations, bids, offers, or proposals from prospective sellers on how project requirements can be met Proposals are seller-prepared documents that describe the seller’s ability and willingness to provide the requested products, services, or results described in the procurement documentation

Select Seller • • • Reviewing offers, choosing among potential sellers, and negotiating a written contract with each seller Receiving bids or proposals and applies evaluation criteria, as applicable, to select one or more sellers who are both qualified and acceptable as a seller A contract is awarded to each selected seller, can be in the form of a complex document or a simple purchase order and mutually binding legal agreement that obligates the seller to provide the specified products, services, or results, and obligates the buyer to pay the seller

Contract Types Cost Reimbursable Contract Lump Sump Contract

Contract Administration • Managing the contract and relationship between the buyer and seller, reviewing and documenting how a seller is performing or has performed to establish required corrective actions and provide a basis for future relationships with the seller, managing contract-related changes and when appropriate, managing the contractual relationship with the outside buyer of the project

Contract Closure • • Completing and setting each contract, including the resolution of any open items, and closing each contract applicable to the project or a project phase Closed contracts including : – Contract file – Deliverable acceptance – Lessons learned documentation

Project Procurement Management Processes

Total Review Project Management Process Groups Requested changes, Work Performance Information, Implemented Changes Project Charter Preliminary Project Scope Statement Administrative Closure Procedure, Contract Closure Procedure Project Management Plan Executing Initiating Closing Planning Monitoring and Controlling Project Status, Project Progress, Project Forecasting, Recommended Changes, Approved Deliverables