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 |
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Pre-Award Phase |
Award Phase |
Post-Award Phase |
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Requirement Cycle |
Requisition Cycle |
Solicitation cycle |
Award Cycle |
Contractual Cycle |
Cost Estimating
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Cost Uncertainty Analysis Cost Analysis Risk Analysis Contractot Cost Estimate |
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Milestones Info/Comm Performance 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 |