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.