Planning

Procurement management plan

The procurement management plan is a component of the project management plan that describes the activities undertaken during the procurement process. It describes how all aspects of a procurement will be managed. Typical information includes:

  • How procured work will be coordinated and integrated with other project Of specific interest is:
    • Scope
    • Schedule
    • Documentation
    • Risk
  • Timing of procurement activities
  • Contract performance metrics
  • Procurement roles, responsibility, and authority
  • Procurement constraints and assumptions
  • Legal jurisdiction and currency
  • Information on use of independent estimates
  • Risk management concerns, such as need for bonds or insurance
  • Prequalified sellers lists

The procurement management plan can receive information from:

  • Project charter
  • Stakeholder register
  • Scope management plan
  • Requirements documentation
  • Requirements traceability matrix
  • Scope baseline
  • Milestone list
  • Project schedule
  • Quality management plan
  • Resource management plan
  • Resource requirements
  • Risk register
  • Project team assignments

It provides information to:

  • Risk register
  • Stakeholder register

The procurement management plan is an output from process 12.1 Plan Procurement Management in the PMBOK® Guide – Sixth Edition. It is developed once and does not usually change.

 

Tailoring tips

Consider the following tips to help tailor the procurement management plan to meet your needs:

  • For a project that will be done using internal resources only, you do not need a procurement management plan.
  • For a project where materials will be purchased and there is a standing purchase order with a vendor, you will not need a procurement management plan.
  • For projects with a few procurements consider combining this form with the procurement strategy.
  • You may wish to combine the assumptions and constraints for procurements with the assumption log.
  • Work with the contracting or legal department to ensure compliance with organizational purchasing policies.

 

Alignment

The procurement management plan should be aligned and consistent with the following documents:

  • Scope management plan
  • Requirements management plan
  • Scope baseline
  • Schedule management plan
  • Project schedule
  • Cost management plan
  • Cost estimates
  • Project budget
  • Procurement strategy

 

Document element Description  
Procurement integration Scope Define how the contractor's WBS will integrate with the project WBS.
  Schedule Define how the contractor's schedule will integrate with the project schedule, including milestones and long lead items.
  Documentation Describe how contractor documentation will integrate with project documentation.
  Risk Describe how risk identification, analysis, and response will integrate with risk management for the overall project.
  Reporting Define how the contractor's status reports will integrate with the project status report.
  Timing Identify the timetable of key procurement activities. Examples include when the statement of work (SOW) will be complete, when procurement docu- ments will be released, the date proposals are due, and so forth.
Performance metrics Document the metrics that will be used to evaluate the seller's performance.
Roles, responsibilities, and authority Define the roles, responsibilities, and authority level of the project manager, contractor, and procurement department, as well as any other significant stakeholders for the contract.
Assumptions and constraints Record assumptions and constraints related to the procurement activities.
Legal jurisdiction and currency Identify the location that has legal jurisdiction. Identify the currency that will be used for pricing and payment.
Independent estimates Document whether independent cost estimates will be used and if they will be needed for source selection.
Risk management Document requirements for performance bonds or insurance contracts to reduce risk.
Prequalified sellers List any prequalified sellers that will be used.