Procurement Management Plan is a component of the program or project management plan that defines how goods and services will be acquired from external sources. It outlines procurement procedures, roles and responsibilities, contract types, evaluation criteria, and risk considerations related to third-party vendors or suppliers.
This plan ensures procurement activities align with the overall project objectives and organizational policies.
Key Characteristics
- Defines Procurement Strategy – Identifies make-or-buy decisions and sourcing methods
- Establishes Process Controls – Specifies procurement workflows, templates, and approval paths
- Includes Contracting Guidance – Outlines preferred contract types and terms
- Aligns with Risk Management – Addresses supplier risks and mitigation approaches
Example Scenarios
- A project team uses the plan to outline steps for bidding and awarding a construction subcontract
- The plan specifies evaluation criteria for selecting cloud service providers
- It documents legal review processes for all third-party contracts
Why Procurement Management Plan Matters
- Improves Acquisition Consistency – Standardizes how goods and services are procured
- Reduces Risk – Ensures supplier risks are identified and managed proactively
- Enhances Governance – Establishes compliance with internal and external requirements
- Supports Cost Control – Aligns procurement decisions with budget constraints and value goals
See also: Project Management Plan, Procurement Strategy, Contract Management, Risk Management Plan, Stakeholder Engagement Plan.