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Ppm Project Procurement Management by ademolapmpreg: 12:03pm On Mar 12, 2021
Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. Procurement generally involves making buying decisions under conditions of scarcity. If sound data is available, it is good practice to make use of economic analysis methods such as …• Includes the processes required to acquire goods and services from outside the performing
organization to fulfill project scope requirements
• The procurement management processes are:
◦ Plan Procurements
◦ Conduct Procurements
◦ Administer Procurements
◦ Close Procurements
Please refer to figure 12-1, PMBOK® Guide Fourth Edition, page 314. This provides an overview
of the processes in Project Procurement Management.
© 2021 PMstudy.com. All rights reserved • Project Procurement Management has several terms and concepts, which need to be studied
and properly understood to perform well in the PMP exam.
• Please carefully study the terms and concepts explained in this section (also in the “Terms and
Concepts” module of our study materials) to fare well in the PMP exam.Identifies which project needs can be best met by acquiring products and services from
outside the project organization, versus those that can be accomplished by the project team
• Involves consideration of whether to procure, how to procure, what to procure, how much to
procure, and when to procure
© 2021 PMstudy.com. All rights reserved • Describes how the remaining procurement processes (from developing procurement
documents through contract closure) will be managed and includes:
◦ Types of contracts to be used
◦ Persons who prepare independent estimates and when
◦ Actions taken by the procurement department and the project team
◦ Sources of standardized procurement documents
◦ Methods to manage multiple providers
◦ Ways to coordinate procurements with the other aspects of the project• Involves receipt of bids or proposals from the sellers and application of the evaluation criteria
to select a seller
• Tools and Techniques used are:
◦ Bidder conferences
◦ Proposal evaluation techniques
◦ Independent estimates
◦ Expert judgment
◦ Advertising
◦ Internet research
◦ Procurement negotiations
• Important outputs are:
◦ Procurement contract award
◦ Selected sellers
© 2021 PMstudy.coEnsures that the seller’s performance meets procurement requirements
• Includes application of appropriate project management processes to the contractual
relationship(s) and integration of the outputs from these processes into the overall
management of the project
• Important Tools and Techniques
◦ Contract change control system
◦ Monitoring performance (performance reporting, procurement performance reviews,
inspections, and audits)
◦ Managing payments (payment systems, claims administration, and records management
system)
• Outputs
◦ Procurement documentation
◦ Change requests
◦ Updates to project management plan and organizational process assets
© 2021 PMstudy.com. All rights reserved 15Close Procurements
• Verifies that all work and deliverables from the contract are acceptable
• Early termination of the contract is a special case of procurement closure
• Tools and Techniques used are:
◦ Procurement audits
◦ Negotiated settlements
◦ Records management system
• Outputs are:
◦ Closed procurements
◦ Organizational process assets updates
© 2021 PMstudy.com. All rights reserved

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