Procurement Management

For the PMP you have to assume that you are the buyer.
The inputs to the procurement management process are enterprise environment factors, organization process assets, contract manager assigned, project scope statement, WBS and WBS dictionary, risk register, resources, schedule, cost estimates and cost baseline for the project.

The six sequential procurement processes are:
Plan purchases and acquisitions - What goods and services do we need for this project?)

• Make or buy analysis
• Contract type selection - There are three types of contracts
• Cost Reimbursable (CR) (best for seller)
  
• Cost Plus Fee (CPF) or Cost Plus Percentage of Cost (CPPC) (dangerous for buyer)
  
• Cost Plus Fixed Fee (CPFF)
• Cost Plus Incentive Fee (CPIF)
• Cost Plus Award Fee (CPAF)
  
• Time and Material
• Fixed Price (best for buyer, more work for buyer)
  
• Fixed Price Incentive Fee (FPIF)
• Fixed Price Economic Adjustment (FPEPA)
  

The contract SOW describes what work is to be completed under the contract. The types of contract SOW are performance, functional and design.

Plan contracting
Procurement Documents may take one of the following forms:

• Request for proposal - CR - Performance or functional
  
• Invitation for bid - FP - Design
  
• Request for quotation - T&M - Any
  

Request seller responses - get the procurement documents into the hands of the sellers, answering the sellers' questions and the sellers preparing the proposals

Select sellers - receive and review the proposals from sellers and select one.

Contract administration - assure that the performance of both parties to the contract meets contractual requirements.

Contract closure - Finish up all the loose ends of the contract.

R01C12-71