Planning

Procurement strategy

The procurement strategy is a project document that describes information about specific procurements. Typical information includes:

  • Delivery methods
  • Contract types
  • Procurement phases

The procurement strategy can receive information from:

  • Project charter
  • Stakeholder register
  • Project roadmap
  • Requirements documentation
  • Requirements traceability matrix
  • Scope baseline
  • Milestone list
  • Project schedule
  • Resource management plan
  • Resource requirements

It provides information to:

  • Project schedule
  • Project budget
  • Quality management plan
  • Risk register

The procurement strategy is an output from process 12.1 Plan Procurement Management in the PMBOK® Guide – Sixth Edition. It is developed once for each procurement when needed.

 

Tailoring tips

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

  • For a project that will be done using internal resources only, you do not need a procurement plan.
  • For projects with few procurements consider combining this form with the procurement management plan.
  • For simple purchases, or for purchases where you have worked with a vendor successfully for a length of time, you may not need a formal procurement strategy; rather you would record the information in a statement of work (SOW) that would be part of the contract.
  • Work with the contracting or legal department to ensure compliance with organizational purchasing policies.

 

Alignment

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

  • Project charter
  • Project roadmap
  • Requirements documentation
  • Requirements traceability matrix
  • Schedule management plan
  • Cost management plan
  • Resource management plan
  • Procurement management plan
Document element Description  
Delivery methods Professional services Describe how the contractor will work with the buyer; for example, in a joint venture, as a representative, with or without subcontract- ing allowed.
  Construction services Describe the limitations of delivery, such as design build, design bid build, etc.
Contract types

Describe the contract type, fixed, incentive, or award fees. Include the criteria associated with the fees. Common contract types include:

Fixed Price:

FFP – Firm Fixed Price

FPIF – Fixed Price with Incentive Fee

FP-EPA – Fixed Price with Economic Price Adjustment

cost reimbursable:

CPFF – Cost Plus Fixed Fee CPIF – Cost Plus Incentive Fee CPAF – Cost Plus Award Fee

time and Materials (T&M)

 Procurement phases   List the procurement phases, milestones, criteria to advance to the next phase, and tests or evaluations for each phase. Include any knowledge transfer requirements.