Project Procurement Management
Procurement Management Plan
Procurement management plan describes the procurement process are to be carried out. Procurement management plan includes identifying the procurement needs, types of procurement documents to solicit bids from sellers and seller’s responses, authority, roles and responsibilities of the project procurement team, acceptance criteria, and contract closure.
Procurement documentation includes the procurement contract, work performance information, warranties, financial information, inspection and audit results, supporting schedules and approved and unapproved changes.
Source Selection Criteria
Source selection criteria are used to score seller proposals as part of the procurement process. The criteria could be objective. Source selection criteria is generally specified as part of the procurement documents. Examples of source selection criteria include life cycle cost, technical capability of the seller, past performance of sellers, references and intellectual property rights.
Received from sellers in response to a procurement document package, these are used to make selection decisions. Seller proposals will clearly explain about how the seller intends to approach the work, how much they will charge, and other relevant terms and conditions.
Make or Buy Decisions
Make or Buy decision documents the decision taken regarding what project products, services or results will be acquired from outside the project and which ones will be performed internally. It includes justification for the decisions.
Project documents vary according to procurement process is carried out within the project. Project document may be small or large. Project document describes about risk, scope, or the environment within which the project deliverables will need to operate, would be helpful as an input to the conduct procurements process.
Procurement Statement Of Work
Procurement Statement of Work is derived from the project scope statement.WBS and the WBS dictionary and defines the scope of the work for a related procurement contract. In addition to the scope of work, it includes project objectives, specifications for the products or services being procured, project schedule and any other detail needed by the seller to be able to deliver the products or services.
Organizational process assets (OPS)
Organization keeps a database of all the information and records of the previous executed projects and this information are stored in a central repository called Organizational Process Assets. They can be such aspects as:
• Approaches or standards.
Other aspects include:
• project management policies
• safety policies
• performance measurement criteria
• financial controls
• communication requirements
• issue and defect management procedures
• change control procedures
• risk control procedures
• procedures used for authorizing work
• historical information (these should be examined when starting a project)
• lessons learned reports
Conduct Procurement -Inputs