Scope statement, work breakdown structure (WBS), WBS dictionary

Any budget constraints may be a factor in the make/buy decision All relevant costs, whether direct or indirect, should be considered When considering outsourcing, the analysis should include the actual direct costs paid to purchase the product, as well as the indirect costs incurred during the purchase process. The type of contract must be determined to determine how the buyer and seller share risks. The risks each bears depends on the specific contract payments.

(1) Each procurement statement of work is derived from the project scope baseline.

(2) The procurement statement of work describes sufficient detail to allow prospective sellers to determine their ability to provide the products, results, or services required by the buyer.

(3) The information in the procurement statement of work includes specifications, expected quantity and quality levels, performance data, performance deadlines, work location and other requirements.

Program invitation

Invitation for quotation

Solicitation of submissions from suppliers, invitation to bid, notice of bidding, invitation to negotiate, initial request for proposals from contractors

Also called an award meeting, contractor meeting, supplier meeting, pre-bid meeting or bid meeting, a meeting with potential suppliers prior to preparation of a proposal.

Used to ensure that all potential suppliers have a clear, shared understanding of the purpose of the procurement

At bidder meetings, all potential suppliers should be treated equally to ensure a good tender outcome.

For complex procurements, proposals from various potential sellers can be evaluated according to a formal proposal review process. The proposal evaluation committee will make their selection and submit it to management for approval before the contract is awarded.

Procurement organizations are able to produce independent estimates of their costs to check quotes in seller proposals

Expand through advertisements in general publications such as newspapers, professional publications, or related websites.

Most government agencies require public advertising of government contracts.

Define requirements in a reasonable way so that the seller can create value for the project through the offer

After the seller is selected, and before both parties sign the contract, procurement negotiations can clarify both parties' understanding of the contract structure and requirements and allow both parties to reach an agreement. The final version of the contract text should reflect all agreements reached.

The procurement negotiation process is marked by the signing of documents by the buyer and the seller, and the final contract is generally the result of bargaining between the seller and the buyer.

The project manager is not the contract negotiator. During contract negotiations, the project management team can be present and, if needed, provide clarification on the technical, quality and management requirements of the project.

Procurement management plan, progress baseline, cost baseline

Correspondence, payment plans and requests, seller performance evaluation documents

The purpose is to identify the successes and failures of this procurement so that other projects within the buyer's organization can learn from them

The buyer gives the seller formal written notice that the contract has been completed.

Procurement files, deliverable acceptance, lessons learned documents