Procurement management

Procurement management comprises of;

  • Plan procurements
  • Conduct procurements
  • Control procurements
Tools and techniques
  • Market research
  • Make or buy analysis
  • Source selection analysis
    • Least cost
    • Qualifications only
    • Quality based highest technical proposal score
    • Quality and Cost based
    • Sole source
    • Fixed budget
  • Pre-approved seller lists
  • Procurement policies, procedures and guidelines
  • Contract types
    • Fixed price contracts
      • Firm Fixed Price (FFP)
      • Fixed Price Incentive Fee (FPIF)
      • Fixed Price with Economic Price Adjustment (FPEPA)
    • Cost reimbursable contracts
      • Cost Plus Fixed Fee (CPFF)
      • Cost Plus Incentive Fee (CPIF)
      • Cost Plus Award Fee (CPAF)
      • Time & Material Contracts (T&M)
        • Also known as Time & Means
    • Purchase order
  • Bidder conference
  • Data analysis
  • Contract change control system
  • Claims administration
  • Performance reviews
  • Earned Value Analysis (EVA)
  • Trend analysis (EAC)
  • Inspection
  • Audits
Artifacts
  • Procurement management plan
    • Procurement process to be followed for the project
    • Procurement schedule
    • Procurement metrics to be used to manage projects
    • Roles and responsibilities with respect to procurement
    • Constraints and assumptions
    • Legal jurisdiction
    • Currency
    • Need for independent estimates
    • Risk management related to procurements
    • Pre-qualified sellers
  • Procurement strategy
    • Design, Build (DB)
    • Design, Bid, Build (DBB)
    • Design, Build and Operate (DBO)
    • Build, Operate and Transfer (BOT)
    • Build, Own, Operate and Transfer (BOOT)
    • Others
    • Contract payment types
    • Phased procurements
  • Bid documents
    • Request for Information (RFI)
    • Request for Quotation (RFQ)
    • Request for Proposal (RFP)
    • Request for Bid (RFB)
    • SoW (Statement Of Work)
    • TOR (Terms of Reference)
  • Procurement statement of work
  • Source selection criteria
  • Make or buy decisions
  • Independent cost estimates
  • Selected sellers
  • Agreements
    • Mutually binding
    • Procurement statement of work
    • Schedule, milestones
    • Performance reporting
    • Payment terms & pricing
    • Inspection
    • Quality
    • Acceptance criteria
    • Warranty
    • Future product support
    • Incentives and penalties
    • Insurance and performance bonds
    • Subordinate sub-contractor approvals
    • General terms and conditions
    • Change handling
    • Termination clause
    • Dispute resolution mechanisms
References
  • PMBOK V6 Pages 459 – 501