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12 - PROJECT PROCUREMENT MANAGEMENT

list of software products that have restrictions not explicitly stated in their commercial agreements. The
licensing strategy should address four questions:

○ Who needs to use the product, to modify it, and to what extent?
○ What restrictions apply to accessing the supplied software by computer workstations and
central processing units?

○ What restrictions apply to transferring and/or sharing the supplied software to other parts of the
acquirer’s organization?

○ Are there plans to incorporate the supplied software into the acquirer’s products?
The acquiring project or organization should be aware of the license terms and conditions for open-source software.
For example, some widely used open-source licenses require that any product developed using the software will be
freely open source as well, or may be free for personal use but chargeable for commercial use. Such open-source license
terms may be undesirable when the acquirer intends to own the derived software and to sell it as part of a product.

Terms and conditions should include the type of contract, payment schedule, and expected period of performance.
Since the acquired product or service needs to arrive in time for the overall project schedule, the software project manager
should understand and account for the schedule risk associated with delivery of custom-built (bespoke) software by
allowing a significant margin in the time for acquired software to be integrated with project-developed software.

12.1.2.1 Make-or-Buy Analysis

See Section 12.1.2.1 of the PMBOK Guide.
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12.1.2.2 Expert Judgment

See Section 12.1.2.2 of the PMBOK Guide.
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12.1.2.3 Market Research

See Section 12.1.2.3 of the PMBOK Guide.
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12.1.2.4 Meetings

See Section 12.1.2.4 of the PMBOK Guide.
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12.1.3 Plan Procurement Management: Outputs

The outputs in Section 12.1.3 of the PMBOK Guide are applicable outputs for planning software procurement
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management, as indicated below.

Once the decision is made to procure software or service, the organization needs a procurement strategy.
Depending on the scope and criticality of the procurement, a formal plan and schedule milestones may be developed.

220 ©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition
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