The Procurement Management Plan defines the procurement context for a project. The plan provides direction to manage procurement throughout the life of the project and is revised as acquisition needs change. The plan recognizes and describes the products and/or services to be acquired, the types of contracts to be used to support the project, the contract approval process. Finally, provides guidelines how to disposition and defines decision criteria.

The Procurement Management Plan is prepared during the Planning Process Phase of your project. The proposed audience is the project manager, project team, project sponsor, and any key stakeholders whose support is needed to carry out the plan.

The following tool serves as a sample and guide to producing your Procurement Management Plan deliverable along with instructions and descriptions to guide you in understanding how to complete it.

Tool style conventions are as follows:

Style	Convention
Normal text	Designates placeholder text that can be used for your project
[Instructional text in brackets]	Designates text that is to be replaced/edited/deleted
Example text in italics	Designates text that might be replaced/edited/deleted

As you use this sample / tool, please remember to delete all instructional text (including this section) and update the following items, as applicable:

· title page

· table of contents

· headers

· footers

Introduction

Project Approach

[Describe the general project approach including all deliverables that apply to managing procurements. Specify what are the deliverables, general approach, activities and sequence required for this project. You expected to use the Project Charter for the project presented to you as input, section 5: Project Approach.]

[This section should identify the list of processes, activities and tasks that will be defined and implemented to manage procurements. The following activities are examples:

· Procurement Statement of Work

· Capture Procurement Requirements

· Verify Procurement Requirements

· Make or Buy Analysis

· Create Procurement Documents

· Manage Change

· Update Procurement Documents

· Conduct or Perform Procurements

· Control Procurements

· Communications

· Close Procurements

[The sample table below represents a way to identify and document the various workflows and activities for capturing procurement requirements.]

Procurement Management Deliverable	Target Completion Date(s)	Participant Roles	Name Responsible Stakeholder
Procurement Management Plan	xx/xx/xxxx	Project Manager	Place name here
Procurement Strategy	xx/xx/xxxx	Project Sponsor IT Sponsor Project Manager	Place name here Place name here
Request for Proposal	xx/xx/xxxx	Procurement Manager / or Contract Manager Project Manager	Place name here Place name here
Source Selection Criteria	xx/xx/xxxx	Project Sponsor IT Sponsor Project Manager	Place name here Place name here Place name here

Roles and Responsibilities

[Describe who, and in what role, is going to be accountable for the execution the various activities described in the Plan and the relationship of all involved. You expected to use the Project Charter for the project presented to you as input, section 4: Roles and Responsibilities.]

Name	Role	Responsibility
Place name here	Project Sponsors	· Identifies the Project Manager (PM) · Assists the PM to identify members of the Planning Team. · Provides input into the Procurement Management Plan, Request for Proposal. · Signs off on the Project Charter. · Provides overall business leadership to ensure the procurement requirements are met.
Place name here	Project Manager	· Writes all elements of the Project Charter with input from appropriate Stakeholders, but primarily the Project Sponsor, the Business Owner(s), and the IT Sponsor. · Obtains sign-off on Project Charter from IT Sponsor and Project Sponsor. · Documents the Procurement Management Plan, Procurement Strategy, and Source Selection Criteria. · Ensures the overall Procurement Management effort is being executed in accordance with the Plan. · Ensures there are sufficient resources to execute this Plan and that the Procurement Management activities are being performed in a timely manner.
Place name here	Procurement Manager and/or Contract Manager	· Reports to the Project Manager · Overall responsibility for managing processes and activities outlined in the Procurement Management Plan. · Responsible for the overall Procurement Management effort and the Procurement repository containing the Procurement documents. · Ensures the Procurement process is organized, managed, and controlled and that any and all issues are identified and resolved in a timely manner in order to minimize rework. · Contributes to the development of Procurement documents. · Documents the Request for Proposal
Place name here	Procurement Analyst(s) and/or Acquisition Specialist	· Assists the Project Manager and Procurement Manager in capturing, verifying, and communicating project procurement requirements. · Assists to document the Request for Proposal.
[Insert Name]	IT Sponsor	· Provides input to the Project Manager regarding the Request for Proposal & the Source Selection criteria. · Together with the Project Sponsor, sign off on the Project Charter.

Procurement Management Processes

[Define the Procurement Management Processes. You are expected to identify and document the necessary steps, activities, and responsibilities for procurement during the entire project lifecycle. The Project Manager must guarantee the plan facilitates project success and does not become an overwhelming task and impact the project.]

Procurement Scope

[Specifically, define what items will be procured and under what conditions or provide a reference to documentation containing the information. You expected to use the provided Project Charter to inform the Procurement Scope section. This information is provided to you already in the Project Charter, Section 6.]

Procurement Risk and Risk Management

[Identify any potential risks associated with procurements for the project. Depending on factors such as contract type, products or services being acquired, supplier performance history, and other project risk factors from scope, schedule and budget, potential procurement risks may require more detailed planning and mitigation strategies. Describe how procurement risks will be managed. This may involve specific staff in managing procurement risk or obtaining approval on mitigation steps from the Project Sponsor or organizational leadership. You expected to use the course textbook, Project Management, by Kerzner. Chapter 19, Section 19.8: Contract Type Vs. Risk.]

Example:

To ensure project success, potential procurement risks must be managed. There are specific procurement risks which must be considered, such as:

· Unrealistic vendor schedule and cost expectations

· Possible conflicts with current contracts

· Configuration management for upgrades and improvement of already purchased technology

· Potential delays in the procurement process

· Potential shipping delays

· Potential final product does not meet specified requirements

Procurement Document Preparation

[Describe what procurement documents will be prepared, including your required Requests for Proposal (RFP). The preparation of these documents will require the participation of program staff and legal staff to make sure that there is agreement on requirements, contract terms, and evaluation criteria. You expected to use the PMBOK 6th, Section 12.1, Bid Documents.]

[You are expected to include the roles for the preparation of the procurement vehicle so that it includes all the required elements. This requires the scheduling of project team members and staff from the sponsoring entity to participate in the drafting and review of the content of these documents.]

[The sample table below represents a way to identify and document the required procurement documents required, and the participants.]

Procurement Document

Participant Roles

Name of Reasonable Stakeholder

Request for Proposal (RFP)

Project Manager

Procurement Manager

Procurement Analyst

Place name here

Procurement Assumptions

[Describe any constraints and assumptions which are considered as part of the project’s procurement management process. Constraint and assumption examples may be related to scope, schedule, cost, resources, technology and/or supplier performance. Every effort should be made to identify constraints and assumptions as early as possible. You expected to use the provided Project Charter to inform the Procurement Assumptions section. This information is provided to you already in the Project Charter, Section 7.]

Example:

Several project constraints exist that must be considered as part of the project’s Procurement Management Plan. These constraints will be included in the RFP and communicated to all vendors in order to determine their ability to operate within these constraints. These constraints apply to several areas which include:

Schedule

Cost

Scope

Resources

Technology