Procurement Management Plan

Introduction

This Procurement Management Plan sets the procurement framework for CAR up gradation project. It
will serve as a guide for managing the procurements 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 also included.

Objectives

The organization has a plan to upgrade the existing CAR.

The up gradation requires (XXXXX) which is a special electronic component.

The organization has a plan to go for outsourcing, which is the outcome of decision tree analysis and
interest of stakeholder.

Roles and Responsibilities

SL. No Name Contact Roles Responsibilities

Project Sponsor Approve Procurement
Management Plan
Approve vendor selection
Approve all contracts prior to
award
Approve any procurement
action in excess of $50,000
Project manager Provide oversight for all
procurement actions
Approve procurement actions
under $50,000
Develop procurement
requirements
Manage vendor selection
process
Measure vendor performance
Closing out vendor contracts
Contracting Assist procurement actions by
Department submitting requests for
Director proposal (RFPs) to identified
vendors
Develop vendor contract
Assist in measuring vendor
performance
Consultant/ SME Assist in vendor identification
(Subject Matter and selection
Expert) Assist in development of
procurement requirements
Project team Assist in development of
procurement requirements
Assist in evaluating vendors
Constraints and Assumptions

This section outlines the process through which vendors will be identified and selected to fulfill the
procurement requirements for the electronic component.

Vendor Identification and Selection

This section outlines the process through which vendors will be identified and selected to fulfill the
procurement requirements for the electronic component.

The project team will identify vendors based on which existing and new vendors are able to meet the
procurement requirements outlined above.

Once potential vendors are identified, the project manager will work with the Contracting Manager to
develop RFPs to distribute to vendors to bid on.

Once the contracting group receives all vendor proposals, the Contracting Manager, Project
Manager/Team, consultant/ SME expert, and Project Sponsor will meet to evaluate proposals. Refer
source selection criteria for the selection criteria.

Once the vendor(s) has/have been selected and approved by the Project Sponsor, the Project
Manager will work with the Contracting Department Director, or designated representative, to draft
and finalize the necessary contract(s) with the vendor(s). Refer Seller Agreements for detailed
Information

Once all contracts/ Agreement are complete, the Project Manager will begin the vendor management
phase of the procurement process.

Vendor Management

Delivery Mode and Procurement Phases

The design of the electronic component will be provided. The supplier initially has to manufacture a
batch of 10 for the inspection on manufacturing process and repeatability. The next batch should
contain 100 numbers among samples are identified and tested. Once the above two batches are
accepted and approved, supplier has to manufacture and deliver 500 parts per month.

Contract Type

Since the design for the component is provided, The Company is expecting the contract to be a fixed
bit project. The supplier has to quote the cost per component or part.

Requirements

The design for the electronic part (XXXXX) will be provided. The component has to be manufactured
in xxxxxx process. The supplier has to show his compliance to the manufacturing process as per
ISO9100. The component has to be produced based on EN code xxxxx.

The drawings required for the manufacturing will be provided in 2D AUTOCAD software format. Refer
bill of material for the material information, accuracy requirements.