Project Procurement Management

Definition
1. Procurement means acquiring goods and services from an outside source
2. The term procurement is mostly used in government
3. Many private companies use the terms purchasing and outsourcing
4. Offshoring means to outsource to other countries
Deciding whether to outsource, what to outsource, and how to outsource
Companies outsource to achieve the following:
1. Access skills and technologies
2. Reduce both fixed and recurrent costs
3. Allow the client organization to focus on its core business
4. Provide flexibility
5. Increase accountability
4 main processes
1. 1. Planning procurement management
  1. involves deciding whether to procure, how to procure, what to procure, how much to procure, and when to procure
  2. Inputs needed
    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
      1. types of contracts
        Fixed price (lump sum)
        Cost reimbursable
        time & material
  3. Tools and techniques
    1. Make-or-Buy Analysis
    2. Expert Judgment
    3. Market Research
  4. output
    1. Procurement Management Plan
      1. Guidelines for types of contract to be used in different situations
      2. Standard procurement documents or templates to be used, if applicable
      3. Guidelines for creating contract work breakdown structures, statements of work, and other procurement documents
      4. Roles and responsibilities of the project team and related departments, such as the purchasing or legal department
      5. Guidelines for using independent estimates to evaluate sellers
      6. Suggestions for managing multiple providers
      7. Processes for coordinating procurement decisions with other project areas, such as scheduling and performance reporting
      8. Constraints and assumptions related to purchases and acquisitions
      9. Lead times for purchases and acquisitions
      10. Risk mitigation strategies for purchases and acquisitions, such as insurance contracts and bonds
      11. Guidelines for identifying prequalified sellers and organizational lists of preferred sellers
      12. Procurement metrics to assist in evaluating sellers and managing contracts
    2. Statement of Work
    3. Procurement Documents
2. 2. Conducting procurements
  1. involves obtaining seller responses, selecting sellers, and awarding contracts.
3. 3. Controlling procurements
  1. involves managing relationships with sellers, monitoring contract performance, and making changes as needed
  2. Both the project manager and key team members should be involved in writing and administering the contract
4. 4. Closing procurements
  1. involves completion and settlement of each contract, including resolution of any open items
  2. tools and techniques
    1. procurement audits
    2. negotiated settlements
    3. records management systems

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Project Procurement Management

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	Creado por farzanajeffri hace más de 8 años