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12. Project Procurement Management


Project procurement management includes the processes required to acquire goods and services from outside the performing organization. For simplicity, goods and services will generally referred to as "product".

Contracting is the process of acquiring the required goods and services so that they will be available, when needed, in the proper quantity and at the right price.

In most cases the structure of the project management system, projectized or matrix, will affect the choice of contracting organization.

The contracting process consists of three phases and five cycles which begin when the project is approved.

The Contracting Process

Pre-Award Phase

Award Phase

Post-Award Phase

Requirement Cycle

Requisition Cycle

Solicitation cycle

Award Cycle

Contractual Cycle

Cost Estimating






Cost Uncertainty Analysis

Cost Analysis

Risk Analysis

Contractot Cost Estimate






Quality Control

Payment Document

Schedule Control

Cost Control

Phase Up/Down

Reallocate resources

Reassign people

Requisition Initiated

Invitation to Bid

Request for Proposal

Request for Quote Released

Completion of Negotiation

Contract Distribution

Contract Retired


Key process areas

12.1 Procurement Planning

12.2 Solicitation Planning

12.3 Solicitation

12.4 Source Selection

12.5 Contract Administration

12.6 Contract Close-out