Procurement Management PlanPurposeUse this template to define the procurement requirements framework for the project. Thisplan will serve as a guide for managing procurement throughout the life of the project andwill be updated, as acquisition needs change.How to Use this TemplateComplete the following sections with your project team: Items to be procured Information Gathering Contracts Competitive Bids Approval Process Evaluation criteria Deliverables Deadlines Vendor Management Metrics Activities Sponsor Acceptance
Title Page Procurement Management Plan [Project Name]Effective Date:Document Owner:Version:Version Date Revision / Description Author:Approval:Approver Title:Approval Date:
Table of Contents Page1. General Information 42. Items to be procured 53. Information Gathering 64. Contracts 65. Competitive Bids 76. Approval Process 87. Evaluation Criteria 88. Vendor Management 99. Metrics 1010. Sponsor Acceptance 10
1. General InformationProject Title Project ABCProject Sponsor VP of Sales & Marketing Director, MarketingProject Manager (Email) firstname.lastname@example.org; (Phone) +1 (555) 555-5555 Marketing Manager Director of ITProject Team Members Director of Sales Customer Service Manager Other Purchasing Department Contact #1Purchasing Department Contracts Department Contact #1 Legal Department Contact #1Project Start Date December 1, 2013 The Project Manager will provide oversight and management by working with the project team to identify all items to be procured for the successful completion of the project. The Project Management Office (PMO) will then review theProcess procurement list prior to submitting it to the contracts and purchasing department. The contracts and purchasing department will review the procurement items, determine whether it is advantageous to make or buy the items, and begin the vendor selection, purchasing and the contracting process.
2. Items to be procuredThe purpose of this section is to describe what items will be procured and under whatconditions. The following list of items are pending PMO review for submission to thecontracts and purchasing department: Item Justification Approval Authority Needed By Widget A Needed for project. Jane Doe October 1, 2013 Needed for project. Widget B Conduct Build vs. Buy Jim Doe November 1, 2013 analysis Needed for project. Widget C Internal resources lack Jane Doe December 1, 2013 skills required.In addition to the above list of procurement items, the following individuals are authorizedto approve purchases for the project team: Name Title Email Phone Jane Doe Project Manager email@example.com (555) 555-5551 Todd Smith Vice President firstname.lastname@example.org (555) 555-5552
3. Information GatheringIf you don’t have an established relationship with the suppliers that you need, you willneed to find suppliers who can satisfy the requirements outlined in section 2 (above).Create a short list of potential suppliers and enter their information in the chart below: Supplier Contact Name Pricing Info Contact Company XYZ Tim Smith email@example.com (555) 555-5553 Company DEF Greg Johnson firstname.lastname@example.org (555) 555-5554 Company ABC Valerie McLeod email@example.com (555) 555-55554. ContractsThe purpose of this section is to describe the type of contract to be used so the contractsand purchasing department can proceed accordingly.There are many different types of contracts. A few of which include: Firm Price Contacts (FFP, FPIF, FP-EPA) Cost-Reimbursable Contracts (CPFF, CPIF, CPAF) Time & Management Contracts
Specify the type of procurement contract to be used here. The project team will work withthe contracts and purchasing department to define the item types, quantities, services andrequired delivery dates.5. Competitive BidsSolicit bids from competing vendors in order to procure the items within the required timeframe and at a reasonable cost. Bids can be open (bids are opened in full view of all whowish to witness the bidding process) or closed (sealed bids are opened by authorizedpersonnel). The purchasing and contracts department will send out solicitations to outsidevendors by openly advertising the following information: Scope (Determine what items or services will require procurement) Specifications Terms and Conditions Evaluation CriteriaYou may also request proposals and compare service providers with the help of DemandMetric’s RFP and Vendor Selection tools. Click here to learn more.
6. Approval ProcessIn this section, you will define the process through which contracts will be approved. Ifnecessary, customize the steps below according to your approval process and identify anykey stakeholders that are involved in the decision-making. 1. The Contract Review Board consists of representatives from the project team, purchasing and contracts department, finance, and the PMO. 2. The contract review board will meet to determine which contract will be accepted.7. Evaluation CriteriaThe purpose of this section is to define the criteria used by the contract review board. Thecriteria for the selection and award of procurement contracts under this project will bebased on the following decision criteria: Ability of the vendor to provide all items by the required delivery date Product Quality Cost analysis Past Performance Comparison of outsourced cost versus in-sourcing o Use Demand Metric’s Build vs. Buy Matrix
The aforementioned criteria will be measured by the contract review board and the ProjectManager. The decision will be made based on these criteria as well as available resources.8. Vendor ManagementIn this section, you will need to identify people and the activities that will be taken toensure that the selected vendor(s) provide(s) all of the products/services that are specifiedin the contract and that the appropriate levels of quality are maintained.In most cases, it is the project manager’s responsibility to manage vendors. However,depending on the scope of the project, you might also want to include other keystakeholders including members of the project team and the purchasing & contractsdepartment.Other important activities in the vendor management process that you should identify theownership of include, but are not limited to: 1. Ensuring the timely delivery of products 2. Reviewing quality test findings 3. Ensuring product compliance with specifications 4. Modifying requirements when necessary
9. MetricsMetrics may be used to ensure the project stays on schedule regarding procurementactivities. They may also be used to compile data on the performance of various vendorsin order to assist with future procurement activities’ vendor selection criteria. A few metricsthat you should consider include: quality, delivery, quality, costs, time, and efficiency.Use Demand Metric’s Supplier and Vendor Evaluation to determine an overall supplierscore and to ensure that your expectations are aligned with your suppliers. In addition torating each supplier, keep track of past-performance in an Excel spreadsheet to aid in theselection process for future procurement activities.10. Sponsor AcceptanceApproved by the Project Sponsor:_________________________________________________________ Date: ___________________________<Project Sponsor>_________________________________________________________<Project Sponsor Title>