Procurement means acquiring goods and/or services from an outside source. Outsourcing is important because it reduce both fixed and recurrent costs, allow the client organization to focus on its core business, access skills and technologies, provide flexibility, and increase accountability. There are six main processes of project procurement management such as planning purchases and acquisitions, planning contracting, requesting seller responses, selecting sellers, administering the contract, and closing the contract.
Planning purchases and acquisitions involves determining what to procure, when, and how. There are several tools and techniques to help project managers and their teams in planning purchases and acquisitions, including make-or-buy analysis, expert judgment, and contract types. Outputs of this process include a procurement management plan, contract statement of work, make-or-buy decisions, and requested changes to the project that might result from this process.
Planning contracting involves describing requirements for the products or services desired from the procurement and identifying potential sources or sellers. A Request for Proposal (RFP) is a document used to solicit proposals from prospective suppliers. A Requested for Quote (RFQ) is a document used to solicit quotes or bids from prospective suppliers. Outputs include procurement documents, such as a Request for Proposal (RFP), evaluation criteria, and updates to the contract statement of work.
Requesting seller responses involves obtaining information, quotes, bids, offers, or proposal from sellers, as appropriate. The main outputs of this process include a qualified sellers list, a procurement document package, and proposals.
Selecting sellers involves choosing from among potential suppliers through a process of evaluating potential sellers and negotiating the contract. Outputs include selected sellers, contracts, a contract management plan, resource availability, information, updates to the procurement management plan, and requested changes.
Administering the contract involves managing the relationship with the selected seller. Outputs include contract documentation, requested changes, recommended corrective actions, and updates to organizational process assets and the project management plan.
Closing the contract involves completion and settlement of each contract, including resolution of any open items. Outputs of this process include closed contracts and updates to organizational process assets.
Planning purchases and acquisitions involves determining what to procure, when, and how. There are several tools and techniques to help project managers and their teams in planning purchases and acquisitions, including make-or-buy analysis, expert judgment, and contract types. Outputs of this process include a procurement management plan, contract statement of work, make-or-buy decisions, and requested changes to the project that might result from this process.
Planning contracting involves describing requirements for the products or services desired from the procurement and identifying potential sources or sellers. A Request for Proposal (RFP) is a document used to solicit proposals from prospective suppliers. A Requested for Quote (RFQ) is a document used to solicit quotes or bids from prospective suppliers. Outputs include procurement documents, such as a Request for Proposal (RFP), evaluation criteria, and updates to the contract statement of work.
Requesting seller responses involves obtaining information, quotes, bids, offers, or proposal from sellers, as appropriate. The main outputs of this process include a qualified sellers list, a procurement document package, and proposals.
Selecting sellers involves choosing from among potential suppliers through a process of evaluating potential sellers and negotiating the contract. Outputs include selected sellers, contracts, a contract management plan, resource availability, information, updates to the procurement management plan, and requested changes.
Administering the contract involves managing the relationship with the selected seller. Outputs include contract documentation, requested changes, recommended corrective actions, and updates to organizational process assets and the project management plan.
Closing the contract involves completion and settlement of each contract, including resolution of any open items. Outputs of this process include closed contracts and updates to organizational process assets.
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