Procurement Management

The following table emphasizes acquisition management and contract administration as methods for reducing project cost, schedule, and quality risks.

 
Priority
Area
4
Small procurement actions; no significant administrative hurdles; simple requisitions; low procurement risks.
3
Several significant procurement actions; unfamiliar administrative requirements; critical path procurements.
2
Complex procurements and uncertain contracting approaches; procurements central to project success.
1
Numerous and large acquisitions; multiple subcontractors; diverse requirements and administration.
Procurement Planning
Identify all potential acquisition transactions; discuss contracting approach, administrative requirements, and lead-times for each contract action.
Develop list of procurements; identify cost, schedule, type and quality requirements; and performance, specification, administrative, and delivery issues.
Develop structured approach for incorporating procurement management tasks into project plans, schedules, and budgets; include procurement issues in risk assessment and risk management plan.
Identify all contract actions, requirements, dollar estimates, lead times, issues, and risk management actions; obtain sponsor approval for plan; use peer review to verify realism and identify additional risks.
Procurement Process
Identify requirements, costs, and lead-times for procurements; discuss administrative and performance risks.
Document contracting approaches and administrative lead-times; factor administrative preparations into staffing, budgets, and schedules.
Write administrative checklist for procurements; develop structured approach to document requirements and deliverables; pre-qualify suppliers and build vendor working relationships.
Apply PM analysis to budget and schedule for procurement tasks; define requirements, establish contract types, write SOWs, develop selection criteria and establish contract administration.
Procurement Liaison
Contact procurement officials and discuss plans to support project; solicit their requirements and issues; maintain active communications exchange.
Obtain procurement point of contact for project; deliver plans, assumptions, and schedules for review; incorporate comments and recommendations into project plans.
Include procurement staff in review of plans, distribution of project communications, attendence at meetings, and in project team building activities.
Identify dedicated procurement official integral to project team; solicit review and approvals for procurement plans and assumptions.
Contract Administration
Follow-up with contractors to ensure compliance with delivery, performance, and cost requirements; manage changes deliberately and maintain good records.
Track and report contract awards, milestones, and deliverables; establish controls to verify specifications and manage changes.
Establish project files for all contracts, specifications, and deliverables.
Establish project office function to track contract modifications, deliverables (receipt, review, comments, and acceptance), contract correspondence; establish subcontract management role.
Version 1.2
© Copyright 1997, James R. Chapman

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