Process: Plan Procurement Management
Process Group: Planning
Knowledge Area: Project Procurement Management
Purpose
The Plan Procurement Management process involves documenting project purchasing decisions and defining the procurement approach. It determines what to procure, how and when to procure it, and the type of contract or agreement that best supports project success.
Inputs
- Project Charter – Provides high-level needs, constraints, and assumptions that may affect procurement.
- Business Documents – Business case and benefits management plan inform the need for external sourcing.
- Project Management Plan – Especially scope, schedule, and cost baselines that shape procurement timing and strategy.
- Project Documents – Includes risk register, requirements documentation, stakeholder register, and resource requirements.
- Enterprise Environmental Factors (EEFs) – Market conditions, legal restrictions, supplier availability, and local practices.
- Organizational Process Assets (OPAs) – Procurement templates, standard contract types, and lessons learned from past procurements.
Tools and Techniques
- Expert Judgment – Used to develop procurement strategies, evaluate market options, and select contract types.
- Data Gathering – Includes market research and benchmarking to inform sourcing decisions.
- Data Analysis – Make-or-buy analysis to determine whether to source externally or internally.
- Source Selection Analysis – Evaluates how bids or proposals will be rated and scored.
- Meetings – With internal stakeholders to define procurement scope, timelines, and risk-sharing models.
Outputs
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Procurement Management Plan – Outlines:
- Procurement processes and roles
- Types of contracts and legal considerations
- Procurement metrics and performance tracking
- Coordination with project schedule and budget
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Procurement Strategy – Specifies delivery methods, contract types (e.g., fixed-price, cost-reimbursable, T&M), and procurement phases.
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Bid Documents – Request for Information (RFI), Request for Proposal (RFP), or Request for Quotation (RFQ) prepared for suppliers.
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Source Selection Criteria – Predefined standards for evaluating supplier responses.
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Make-or-Buy Decisions – Documented rationale and criteria for procurement choices.
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Independent Cost Estimates – Benchmarked estimates to validate vendor proposals.
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Project Document Updates – Revisions to the risk register, assumptions log, stakeholder register, and requirements documentation.
Role in the Process Group and Knowledge Area
- As part of the Planning Process Group, Plan Procurement Management sets the groundwork for effective vendor and contract management.
- In Project Procurement Management, it ensures that procurements align with project goals, constraints, and timelines.
Why It Matters
- Clarifies Buy vs. Build Decisions – Helps determine when external procurement is needed and justified.
- Establishes Clear Expectations – Ensures procurement activities align with legal, technical, and schedule needs.
- Enables Fair and Efficient Sourcing – Creates structured processes for vendor evaluation and selection.
- Reduces Risk – Allocates responsibility appropriately through well-planned contracts and strategies.