Procurement Management Plan

The procurement management plan describes how the procurement processes will be managed from developing procurement documentation through contract closure. The procurement management plan can include guidance for:

• The types of contracts to be used;

• Whether independent estimates will be used and if they are needed as evaluation criteria;

• Those actions the project management team can take unilaterally, if the performing organization has a proscribed procurement, contracting, or purchasing department;

• Standardized procurement documents, if they are needed;

• Managing multiple suppliers;

• Coordinating procurement with other project aspects, such as scheduling and performance reporting;

• Any constraints and assumptions that could affect planned procurements;

• Handling the required lead times to purchase items from sellers and coordinating them with the project schedule development;

• Handling the make-or-buy decisions and linking them into the Estimate Activity Resource and Develop Schedule processes;

• Setting the scheduled dates in each contract for the contract deliverables and coordinating with the schedule development and control processes;

• Identifying requirements for performance bonds or insurance contracts to mitigate some forms of project risk;

• Establishing the direction to be provided to the sellers on developing and maintaining a work breakdown structure (WBS);

• Establishing the form and format to be used for the procurement/contract statements of work;

• Identifying pre-qualified sellers, if any, to be used; and

• Procurement metrics to be used to manage contracts and evaluate sellers.

A procurement management plan can be formal or informal, can be highly detailed or broadly framed, and is based upon the needs of each project. The procurement management plan is a subsidiary component of the project management plan (Section

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Project Management Made Easy

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