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12 - PROJECT PROCUREMENT MANAGEMENT

The seller will typically manage the work as a project if the acquisition is not just for shelf material, goods, or
common products. In such cases:

• The buyer becomes the customer, and is thus a key project stakeholder for the seller.
• The seller’s project management team is concerned with all the processes of project management, not
only with those of this Knowledge Area.
• Terms and conditions of the contract become key inputs to many of the seller’s management processes.
The contract can actually contain the inputs (e.g., major deliverables, key milestones, cost objectives),
or it can limit the project team’s options (e.g., buyer approval of staffing decisions is often required on
design projects).
In this section, it is assumed that the buyer of an item for the project is assigned to the project team and that the
seller is organizationally external to the project team. It is also assumed that a formal contractual relationship will
be developed and exists between the buyer and the seller. However, most of the discussion in this section is equally
applicable to non-contractual work entered into with other units of the project team’s organization.

12.1 Plan Procurement Management

Plan Procurement Management is the process of documenting project procurement decisions, specifying the
approach, and identifying potential sellers. The key benefit of this process is that it determines whether to acquire
outside support, and if so, what to acquire, how to acquire it, how much is needed, and when to acquire it. The
inputs, tools and techniques, and outputs of this process are depicted in Figure 12-2. Figure 12-3 depicts the data
flow diagram of the process.

Inputs Tools & Techniques Outputs
.1 Project management plan .1 Make-or-buy analysis .1 Procurement
.2 Requirements .2 Expert judgment management plan
documentation .3 Market research .2 Procurement statement
.3 Risk register .4 Meetings of work
.4 Activity resource .3 Procurement documents
requirements .4 Source selection criteria
.5 Project schedule .5 Make-or-buy decisions
.6 Activity cost estimates .6 Change requests
.7 Stakeholder register .7 Project documents
.8 Enterprise environmental updates
factors
.9 Organizational process
assets

Figure 12-2. Plan Procurements: Inputs, tools & techniques, and outputs

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