PMBOK Chapter 12 Project Procurement Management
Project Procurement Management • The processes necessary to purchase or acquire products, services, or results needed from outside the project team. • The Organization can be either the buyer or seller of the products, services, or results of a project.
Mapping the Processes Process Group PM Knowledge Area
12.1 Plan Procurement • The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers. • It identifies project needs best be or must be, met by acquiring from outside the organization • It identifies what to acquire ? How ? How much is needed? When to acquire • The whole process through closing should be done for each acquired item
12.1 Plan Procurement: Inputs • Scope Baseline • Scope statement • WBS • WBS Dictionary • Requirements Documentation • Teaming Agreement • Risk Register • Risk-Related Contract Decisions. • Activity Resource Requirements • Project Schedule • Activity Cost Estimates • Cost Performance Baseline • Enterprise Environmental Factors • Organizational Process Assets
12.1 Plan Procurement: Tools & techniques • Make-or-Buy Analysis • Expert Judgment • Contract Types • Fixed-Price contracts • Firm Fixed Price Contracts (FFP) • Fixed Price Incentive Fee Contracts (FPIF) • Fixed Price with Economic Price Adjustment Contracts (FP-EPA) • Cost-reimbursable contracts • Cost Plus Fixed Fee Contracts (CPFF) • Cost Plus Incentive Fee Contracts (CPIF) • Cost Plus Award Fee Contracts (CPAF) • Time and Material Contracts (T&M)
12.1 Plan Procurement: Outputs • Procurement Management Plan • Procurement Statements of Work • Make-or-Buy Decisions • Procurement Documents • Source Selection Criteria • Understanding of need • Overall or life-cycle cost • Technical capability • Risk • Management Approach • Technical Approach • Warranty • Financial Capacity • Production Capacity and Interest • Business Size and Type • Past performance of seller • References • IP Rights • Change Requests
12.2 Conduct Procurement • The process of obtaining seller responses, selecting a seller, and awarding a contract.
12.2 Conduct Procurement: Inputs • Project management Plan • Procurement Documents • Source Selection Criteria • Qualified Seller List • Seller Proposals • Project Documents • Make-or-Buy Decisions • Teaming Agreements • Organizational Process Assets
12.2 Conduct Procurement: Tools& Techniques • Bidder Conferences • Proposal Evaluation Techniques • Independent Estimates • Expert Judgment • Advertising • Internet Search • Procurement Negotiations
12.2 Conduct Procurement: Outputs • Selected Sellers • Procurement Contract Award • Statement of work or deliverables, schedule, roles, responsibilities, pricing, payment terms, acceptance criteria and inspection. Warranty • Insurance and performance pond, incentives, penalties, fees, change request handling and termination and alternative dispute resolution (ADR) • Resource Calendars • Change Requests • Project Management Plan Updates • Project Document Updates.
12.3 Administer Procurement • The process of managing procurement relationships, monitoring contract performance and making changes and corrections needed
12.3 Administer Procurement Inputs • Procurement Documents • Project Management Plan • Contract • Performance Reports • Approved Change Requests • Work Performance Information
12.3 Administer Procurement: Tools and Techniques • Contract Change Control System • Procurement Performance Reviews • Inspections and Audits • Performance Reporting • Payment Systems • Claims Administration • Records management System
12.3 Administer Procurement Outputs • Procurement Documentation • Organizational Process Assets Updates • Correspondence • Payment schedules and requests • Sellers performance evaluation documentation • Change Requests • Project management Plan Updates • Procurement management plan • Baseline schedule
12.4 Close Procurements • The process of completing each project procurement. It supports the close project or Phase process, since it involves verification that all work and deliverables were acceptable.
12.4 Close Procurements: Inputs • Project Management Plan • Procurement Documentation • All documents should be collected, indexed, and filed.
12.4 Close Procurements: Tools and Techniques • Procurement Audits • Negotiated Settlements • Records Management System
12.4 Close Procurements: Outputs • Closed Procurements • Organizational Process Assets Updates • Procurement file • Deliverable acceptance • Lessons learned documentation