Project Procurement Management is a knowledge area that covers only 4 phases of the entire life cycle of the project. During each phase, certain processes pertaining to this knowledge area take place.

Project Initiation

There are no processes taken place during this phase.

Project Planning

During this phase, there is 1 process taking place: Procurement Planning.

Plan Procurement Management

For each external vendor requirement, a Statement of Work is composed which is known by many names (Terms of Reference, Scope Statement, etc.) but serves as a written statement of what work the contractor will do. Procurement documents normally consist of a Request for Proposal, Invitation to Tender, or the like, with the Statement of Work included as an attachment. Thus it is the guiding document to the project team and the more specific it is, the better the boundaries of each organization’s work is defined. Additionally, the procedures used to solicit proposals and/or bids as well as the decision making criteria are determined at this stage. Potential sellers are identified and preferred vendors might be contacted. All of this information is compiled into a Procurement Management Plan, a subset of the overall Project Management Plan.

Inputs

1. Project charter
2. Business documents
   • Business case
   • Benefits management plan
3. Project management plan
   • Scope management plan
   • Quality management plan
   • Resource management plan
   • Scope baseline
4. Project documents
   • Milestone list
   • Project team assignments
   • Requirements documentation
   • Requirements traceability matrix
   • Resource requirements
   • Risk register
   • Stakeholder register
5. Enterprise environmental factors
6. Organizational process assets

Tools & Techniques

1. Expert judgment
2. Data gathering
   • Market research
3. Data analysis
   • Make-or-buy analysis
4. Source selection analysis
5. Meetings

Outputs

1. Procurement management plan
2. Procurement strategy
3. Bid documents
4. Procurement statement of work
5. Source selection criteria
6. Make-or-buy decisions
7. Independent cost estimates
8. Change requests
9. Project documents updates
   • Lessons learned register
   • Milestone list
   • Requirements documentation
   • Requirements traceability matrix
   • Risk register
   • Stakeholder register
10. Organizational process assets

Project Execution

There is 1 process taken place during this phase: Procurement Management.

Conduct Procurements

Once the procurement needs of the project are identified and procurement procedures are determined, the procurements are executed. Requests for Proposal (RFP’s) or Invitations to Tender are sent out, and responses are analyzed. Selection criteria should be determined in advance. Agreements are signed and the project management plan is updated with the new cost/budget and schedule information obtained from the vendor.

Inputs

1. Procurement management plan
   • Scope management plan
   • Requirements management plan
   • Communications management plan
   • Risk management plan
   • Procurement management plan
   • Configuration management plan
   • Cost baseline
2. Project documents
   • Lessons learned register
   • Project schedule
   • Requirements documentation
   • Risk register
   • Stakeholder register
3. Procurement documentation
4. Seller proposals
5. Enterprise environmental factors
6. Organizational process assets

Tools & Techniques

1. Expert judgment
2. Advertising
3. Bidder conferences
4. Data analysis
   • Proposal evaluation
5. Interpersonal and team skills
   • Negotiation

Outputs

1. Selected sellers
2. Agreements
3. Change requests
4. Project management plan updates
   • Requirements management plan
   • Quality management plan
   • Communications management plan
   • Risk management plan
   • Procurement management plan
   • Scope baseline
   • Schedule baseline
   • Cost baseline
5. Project documents updates
   • Lessons learned register
   • Requirements documentation
   • Requirements traceability matrix
   • Resource calendars
   • Risk register
   • Stakeholder register
6. Organizational process assets

Project Controlling

In this phase, 1 process takes place: Procurement Control.

Control Procurement

Inputs

1. Project management plan
   • Requirements management plan
   • Risk management plan
   • Procurement management plan
   • Change management plan
   • Schedule baseline
2. Project documents
   • Assumption log
   • Lessons learned register
   • Milestone list
   • Quality reports
   • Requirements documentation
   • Requirements traceability matrix
   • Risk register
   • Stakeholder register
3. Agreements
4. Procurement documentation
5. Approved change requests
6. Work performance data
7. Enterprise environmental factors
8. Organizational process assets

Tools & Techniques

1. Expert judgment
2. Claims administration
3. Data analysis
   • Performance reviews
   • Earned value analysis
   • Trend analysis
4. Inspection
5. Audits

Outputs

1. Closed procurements
2. Work performance information
3. Procurement documentation updates
4. Change requests
5. Project management plan updates
   • Risk management plan
   • Procurement management plan
   • Schedule baseline
   • Cost baseline
6. Project documents updates
   • Lessons learned register
   • Resource requirements
   • Requirements traceability matrix
   • Risk register
   • Stakeholder register
7. Organizational process assets updates

Project Closure

There is 1 process taken place during this phase: Contract Closure.

 

Previous Knowledge Are: Project Risk Management

Next Knowledge Area: Project Stakeholder Management

Home: Project Management Resources