Project Procurement Management Plan Template www.ProjectManagementDocs.

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TABLE OF CONTENTS
Introduction......................................................................................................................................2 Procurement Management Approach..............................................................................................2 Procurement Definition....................................................................................................................2 Type of Contract to be Used............................................................................................................3 Contract Approva Process..............................................................................................................3 Decision Criteria..............................................................................................................................! "endor Management........................................................................................................................! Performance Metrics for Procurement Activities............................................................................# $ponsor Acceptance ........................................................................................................................%

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for this pro(ect.ProjectManagementDocs. )ith the pro(ect team to identify a items to be procured for the successfu comp etion of the pro(ect. P OC! EMENT MANA"EMENT APP OAC# The Procurement Management P an shou d be defined enough to c ear y identify the necessary steps and responsibi ities for procurement from the beginning to the end of a pro(ect. The pro(ect manager must ensure that the p an faci itates the successfu comp etion of the pro(ect and does not become an over)he ming tas. The Procurement Management P an defines the fo o)ing* • Items to be procured )ith (ustification statements and time ines • Type of contract to be used • Contract approva process • Decision criteria • +stab ishing contract de iverab es and dead ines • "endor Management • Performance metrics for procurement activities This Procurement Management P an sets the procurement frame)or. The Pro(ect Manager )i provide oversight and management for a procurement activities under this pro(ect. The importance of coordinating procurement activities. It )i serve as a guide for managing procurement throughout the ife of the pro(ect and )i be updated as ac'uisition needs change. The pro(ect manager )i )or.com INT OD!CTION The purpose of the Procurement Management P an is to define the procurement re'uirements for the pro(ect and ho) it )i be managed from deve oping procurement documentation through contract c osure.and begin the vendor se ectionpurchasing and the contracting process.Project Procurement Management Plan Template www.e or buy the items.purchasing department.and the conditions must be set.and other . Any important technica information shou d a so be inc uded. in itse f to manage. This p an identifies and defines the items to be procured.in specific terms.)hat items )i be procured and under )hat conditions. P OC! EMENT DEFINITION The purpose of procurement definition is to describe.(ustified.ey p ayers to manage the procurement activities.the types of contracts to be used in support of this pro(ect. The contracts and purchasing department )i revie) the procurement itemsdetermine )hether it is advantageous to ma.procurement dead ines are usua y affected by the pro(ect schedu e and are needed by certain times to ensure time y pro(ect comp etion.and metrics in measuring procurement activities is inc uded. The Pro(ect Manager )i )or. This section is )here these items must be isted. 2 .estab ishing firm contract de iverab es. Individua s may a so be isted )ith authority to approve purchases in addition to or in the absence of the pro(ect manager.contracts. Additiona y. The Pro(ect Management /ffice 0PM/1 )i then revie) the procurement ist prior to submitting it to the contracts and purchasing department. )ith the pro(ect team.the contract approva process.and decision criteria. $ometimes items )hich must be procured for a pro(ect can be made interna y by an organi2ation.

3 . & $eptember 2::.e this item 4eeded 5y 3& 3u y 2::.services and re'uired de ivery dates. Typica y arge purchases fo o) an estab ished bidding process and fo o) a forma se ection and approva process. In addition to the above ist of procurement items. A items and services to be procured for this pro(ect )i be so icited under firm>fi8ed price contracts. The pro(ect team )i )or. purchasing it 4eeded for transferring data to ne) operating system6 )e do not ma. There are many different types of contracts i. This section shou d c ear y identify the ru es for a procurements )ithin your organi2ation. The fo o)ing ist of items. This process may vary great y from company to company but it is important to define the process )ithin your organi2ation and )ho is invo ved in the decision>ma. A )e defined product may be a firm>fi8ed price )hi e a product )hich )i re'uire a research and deve opment effort may be a T?M contract.ProjectManagementDocs. )ith the contracts and purchasing department to define the item types.Project Procurement Management Plan Template www.'uantities.com The fo o)ing procurement items and.(ustification.and others. &# August 2::. Different procurement items may a so re'uire different contract types.e this item but do not . $ma er purchases can be ess forma and can be approved by the Pro(ect or Program Manager.cost>reimbursab e.e firm>fi8ed price.time and materia s 0T?M1. CONT ACT APP O%AL P OCESS The purpose of this section is to define the process through )hich contracts must be approved.no) the cost comparison vs.and time ine are pending PM/ revie) for submission to the contracts and purchasing department* Item.services.or services have been determined to be essentia for pro(ect comp etion and success.ing.$ervice Item A6 37 8 97 too Item 56 !7 8 <7 too Item C 3ustification 4eeded for manufacturing )idget type &6 )e do not ma. The contracts and purchasing department )i then so icit bids from various vendors in order to procure the items )ithin the re'uired time frame and at a reasonab e cost under the firm fi8ed price contract once the vendor is se ected.e this item 4eeded for bui ding too type 26 )e ma.the fo o)ing individua s are authori2ed to approve purchases for the pro(ect team* Name 3ohn $mith 3ane Doe 5ob 3ones ole Pro(ect Manager =ead +ngineer Design Technician T$PE OF CONT ACT TO BE !SED The purpose of this section is to describe the type of contract to be used so the contracts and purchasing department can proceed according y.

purchases greater than @8-888 must be approved by the Contract Aevie) 5oard. Purchases ess than @8-888 on y re'uire the approva of the Pro(ect Manager6 )hereas. /nce cost ana yses are comp ete and the ist of items and services to be procured e8terna y is fina i2ed. The meetings can be in person or by te econference.finance.the purchasing and contracts department )i send out so icitations to outside vendors. ! .or his. %ENDO MANA"EMENT The purpose of this section is to describe the ro es and actions the pro(ect team and purchasing and contracts department )i ta.and the PM/. This )i be determined by conducting a cost ana ysis on products or services )hich can be provided interna y and compared )ith purchase prices from vendors. The purpose of these meetings )i be to revie) a documented specifications for each product as )e as to revie) the 'ua ity test findings.these criteria may vary bet)een organi2ations but must be defined as part of the Procurement Management P an. y )ith the contract and purchasing department and each vendor to discuss the progress for each procured item. Bor these arger purchase the contract revie) board )i meet to determine )hich contract )i be accepted. Again. The criteria for the se ection and a)ard of procurement contracts under this pro(ect )i be based on the fo o)ing decision criteria* > Abi ity of the vendor to provide a items by the re'uired de ivery date > Cua ity > > > > Cost +8pected de ivery date Comparison of outsourced cost versus in>sourcing Past performance These criteria )i be measured by the contracts revie) board and. The u timate decision )i be made based on these criteria as )e as avai ab e resources.Project Procurement Management Plan Template www. The Contract Aevie) 5oard consists of representatives from the pro(ect team. /nce so icitations are comp ete and proposa s have been received by a vendors the approva process begins. The Pro(ect Manager is u timate y responsib e for managing vendors.her designee )i meet )ee. DECISION C ITE IA The purpose of this section is to define the criteria used by the contract revie) board to decide on )hat contract0s1 to a)ard. The first step of this process is to conduct a revie) of a vendor proposa s to determine )hich meet the criteria estab ished by the pro(ect team and the purchasing and contracts department.or the Pro(ect Manager.purchasing and contracts department. It a so serves as an opportunity to as. In order to ensure the time y de ivery and high 'ua ity of products from vendors the Pro(ect Manager.e to ensure that the se ected vendors provide a of the products.services agreed upon and that the appropriate eve s of 'ua ity are maintained.com The first step in the contract approva process is to determine )hat items or services )i re'uire procurement from outside vendors. This forum )i provide an opportunity to revie) each itemDs deve opment or the service provided in order to ensure it comp ies )ith the re'uirements estab ished in the pro(ect specifications.ProjectManagementDocs.

These metrics may be used to ensure the pro(ect stays on schedu e regarding procurement activities.Project Procurement Management Plan Template www. y basis unti a items are de ivered and are determined to be acceptab e.actua va ues )i be noted in order to bui d a past>performance data base for se ecting vendors for future procurement activities. +ach metric is rated on a &>3 sca e as indicated be o)* "endor Product Cua ity "endor F& "endor F2 & G Unsatisfactory 2 G Acceptab e 3 > +8ceptiona In addition to rating each vendor. /n Documentation Deve opment Deve opment Cost Transactiona Time Cua ity Costs Time per +fficiency De ivery Unit # . They may a so be used to compi e data on the performance of various vendors in order to assist )ith future procurement activitiesD vendor se ection criteria. PE FO MANCE MET ICS FO P OC! EMENT ACTI%ITIES This section describes the metrics to be used for procurement activities associated )ith the pro(ect. The Pro(ect Manager )i be responsib e for schedu ing this meeting on a )ee.com 'uestions or modify contracts or re'uirements ahead of time in order to prevent de ays in de ivery and schedu e. Ehi e the purchasing and contracts department has their o)n interna metrics for procurementthe fo o)ing metrics are estab ished for vendor performance for this pro(ectDs procurement activities.ProjectManagementDocs.

Project Procurement Management Plan Template www.com % .ProjectManagementDocs.Pro(ectManagementDocs.com SPONSO ACCEPTANCE Approved by the Pro(ect $ponsor* HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH IPro(ect $ponsorJ IPro(ect $ponsor Tit eJ Date*HHHHHHHHHHHHHHHHHHHH This free Pro(ect Procurement Management P an Temp ate is brought to you by ))).

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