Procurement Management*
Dr. L. K. Gaafar
*This Presentation is Based on information from the PMBOK Guide 2000 and
www.augsburg.edu/ppages/schwalbe.
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Procurement
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Project Management
Is the process by which an organization is
supplied with the goods and services that it
needs to achieve its objectives.
Procurement mainly depends on the
production process which determines the
quantity and the scheduling of the supplies.
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Project Procurement Management Processes
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Procurement planning: determining what to procure and
when
Solicitation planning: documenting product requirements
and identifying potential sources
Solicitation: obtaining quotations, bids, offers, or
proposals as appropriate
Source selection: choosing from among potential vendors
Contract administration: managing the relationship with
the vendor
Contract close-out: completion and settlement of the
contract
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Figure 11-1. Project Procurement Management
Processes and Key Outputs
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Statement of Work (SOW) Template
I.
S cop e of W ork: D escribe the w o rk to be do ne to detail. S pec ify the hardw are and
so ftw are invo lved and the exact nature o f the w o rk.
II.
L ocation of W ork: D escribe w here the w o rk m u st be perfo rm ed. S pec ify the
lo cat io n o f hardw are and so ftw are and w here the peo ple m ust perfo rm the w o rk
III.
P e riod of P e rfo rm an ce: S pec ify w he n the w o rk is e xpected to start and end,
w o rking ho urs, nu m ber o f ho urs that can be billed per w eek, w here the w ork m ust
be perfo rm ed, and re lated sc hedu le info rm atio n.
IV .
D elive rab le s S ch ed u le: L ist spec ific de livera ble s, describe the m in deta il, a nd
spec ify w he n the y are due.
V.
A p p licab le S tan d ard s: S pec ify a ny co m pa ny o r indu stry-sp ec ific stand ards that
are rele va nt to perfo rm ing the w o rk.
V I.
A ccep tan ce C rite ria: D escribe ho w the bu yer organizat io n w ill determ ine if the
w o rk is acceptable.
V II.
S p ecial R eq u ire m en ts: S pec ify a ny spec ia l requ ire m e nts suc h as hardw are o r
so ftw are certificat io ns, m in im u m d egree o r experie nce le ve l o f perso nne l, trave l
requ ire m e nts, and so o n.
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