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12 - PROJECT PROCUREMENT MANAGEMENT

12.2 Conduct Procurements

Section 12.2 of the PMBOK Guide indicates that the primary activities in software project procurement include
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providing the procurement package to potential suppliers and communicating with them, receiving and evaluating
offers, making a preliminary selection of one or more suppliers, and negotiating the agreement with the selected
supplier.

For commercially available software packages, price can be the primary determinant, but the lowest proposed
price may not be the lowest cost should the seller prove to be unable to deliver the products, services, or results
in a timely and technically acceptable manner. Evaluations of suppliers should consider the supplier’s project
management practices and organizational stability; the risk of supplier default should be evaluated. One way of
controlling risk is to add a contract provision for placing the source code into escrow, in the event of a contract
dispute or dissolution of the supplier’s organization.

On reviewing the proposals, the acquirer may determine that the best choice for the project may be to modify
the SOO or SOW. Changes between the RFP requirements and the final agreement may be negotiated to support
such considerations as affordability, timely completion of a basic set of delivered software features, provision
of named key personnel who be involved in performance of the work, reduced risk, alignment of the supplier’s
schedule with the project’s master schedule, or additional tasks or functions and future upgrades. Negotiations
may also address topics such as product acceptance, reporting, cost, usage, intellectual property rights, and
data rights.

12.2.1 Conduct Procurements: Inputs

The inputs in Section 12.2.1 of the PMBOK Guide are applicable inputs for conducting software procurements.
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12.2.1.1 Procurement Management Plan

See Section 12.2.1.1 of the PMBOK Guide.
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12.2.1.2 Procurement Documents

See Section 12.2.1.2 of the PMBOK Guide.
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12.2.1.3 Source Selection Criteria

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See Section 12.2.1.3 of the PMBOK Guide.

12.2.1.4 Seller Proposals

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See Section 12.2.1.4 of the PMBOK Guide.

222 ©2013 Project Management Institute. Software Extension to the PMBOK Guide Fifth Edition
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