The purpose of procurement definition is to describe, in specific terms, what items will be procured and under what conditions. Sometimes items which must be procured for a project can be made internally by an organization. Additionally, procurement deadlines are usually affected by the project schedule and are needed by certain times to ensure timely project completion. This section is where these items must be listed.
Procurement Management Objectives
This Procurement Management Plan sets the procurement framework for this project. It will serve as a guide for managing procurement throughout the life of the project and will be updated as acquisition needs change. This plan identifies and defines the items to be procured, the types of contracts to be used in support of this project, the contract approval process, and decision criteria. The importance of coordinating procurement activities, establishing firm contract deliverables, and metrics in measuring procurement activities is included. Other items included in the procurement management plan include: procurement risks and procurement risk management considerations; how costs will be determined; how standard procurement documentation will be used; and procurement constraints.
Procurement Management Approach
The Procurement Management Plan should be defined enough to clearly identify the necessary steps and responsibilities for procurement from the beginning to the end of a project. The project manager must ensure that the plan facilitates the successful completion of the project and does not become an overwhelming task in itself to manage. The project manager will work with the project team, contracts/purchasing department, and other key players to manage the procurement activities. The Project Manager will provide oversight and management for all procurement activities under this project. The Project Manager will work with the project team to identify all items to be procured for the successful completion of the project. The Project Management Office (PMO) will then review the procurement list prior to submitting it to the contracts and purchasing department. The contracts and purchasing department will review the procurement items, determine whether it is advantageous to make or buy the items, and begin the vendor selection, purchasing and the contracting process
Procurement Management Purpose
The purpose of the Procurement Management Plan is to define the procurement requirements for the project and how it will be managed from developing procurement documentation through contract closure. The Procurement Management Plan defines the following: * Items to be procured with justification statements and timelines * Type of contract to be used
* Risks associated with procurement management
* How procurement risks will be mitigated through contract performance metrics, insurance, or other means * Determining costs and if/how they’re used as evaluation criteria * Any standardized procurement templates or documents to be used * How multiple suppliers will be managed if applicable
* Contract approval process
* Decision criteria
* Establishing contract deliverables and deadlines
* How procurement and contracts are coordinated with project scope, budget, and schedule * Any constraints pertaining to procurement
* Direction to sellers on baseline requirements such as contract schedules and work breakdown structures (WBSs) * Vendor Management
* Identification of any prequalified sellers if applicable * Performance metrics for procurement activities
Items to be procured with justification statements and timelines
The following procurement items and/or services have been determined to be essential for project completion and success. The following list of items/services, justification, and timeline are pending PMO review for submission to the contracts...