6th Edition PMBOK® Guide–Process 12.2 Conduct Procurements: Inputs

The first process in the procurement management knowledge area, process 12.1 Plan Procurements Management, is in the planning process group.   This process, 12.2 Conduct Procurements, is in the executing process group.   The next process, 12.3 Control Procurements, is in the monitoring and controlling process group.   In the last edition of the PMBOK® Guide, there was a separate process for closing procurements.   However, in the current 6th Edition, closing procurements is considered part of 12.3 Control Procurements, and does not have a separate process.

With that preliminary note out of the way, let’s now consider the inputs to the process 12.2 Conduct Procurements.

12.2  Conduct Procurements:  Inputs  Project Management Plan

Of course, the procurement management plan, the output of the last process, is an input to this one.

  • Procurement Management Plan–This contains the activities to be undertaken during the other two processes, including this one of Conduct Procurements.

But there are other components of the overall project management plan that are used as inputs for this process as well, in as far as they involve procurements for the project.   These include:

  • Scope Management Plan–describes how the scope of work performed by sellers will be managed
  • Requirements Management Plan–describe how sellers will manage the requirements they are under agreement to satisfy
  • Communications Management Plan–describes how communications between buyers and sellers will be conducted
  • Risk management plan–describes how risk management activities related to procurements will be structured and performed for the project.  NOTE:  The buyer may decide to sign agreements with more than one seller to mitigate damage caused by relying on a single seller, who may have problems that impact the overall project.
  • Configuration management–just as it is important to control the coordination of changes to the overall project through configuration management, it is also important to include formats and processes for how sellers will provide configuration management in a way that is consistent with the buyer’s approach.
  • Cost baseline–this includes the budget for the procurement as well as the costs associated with the procurement process and sellers.  Project Documents

  • Lessons learned register–lessons learned with regard to conducting procurements will be recorded in the register so that they can be applied to later phases in the project (the Control Procurements process) to improve efficiency.
  • Project schedule–the start and end dates of procurement activities are identified, as well as when contractor deliverables are due.
  • Requirements documentation–technical requirements that the seller is required to satisfy, as well as contractual and legal requirements.
  • Risk register–risk related to the approved sellers are added to the register, including those related to:
    • The seller’s organization
    • The duration of the contract
    • The external environment
    • The project delivery method
    • Type of contracting vehicle chosen (fixed-cost or cost-reimbursable)
    • Final agreed-upon price
  • Stakeholder register–contains the details about the identified stakeholders who are interested in and/or have influence on procurements.  Procurement Documentation

These are outputs of the process 12.1 Plan Procurement Management.

  • Bid documents–These may include the Request for Information (RFI), Request for Proposal (RFP), Request for Quotation (RFP), or other documents sent to sellers so that they can develop a bid response.
  • Procurement statement of work (SOW)–provides sellers with a clearly stated set of goals, requirements, and outcomes from which they can provide a quantifiable response in their bid.
  • Independent cost estimates–provides a reasonableness check against the proposals submitted by bidders.
  • Source selection criteria–describes how the bidder proposals will be evaluated, including evaluation criteria and the weighting system used.  Seller Proposals

These responses to a procurement document package (see paragraph above) form the basic information that will be used to select one or more successful bidders.  The organization may require that the price proposal be submitted separately from the technical proposal.  Enterprise Environmental Factors

The factors outside of control of the organization that may influence this process are:

  • Local laws and regulations regarding procurements (including local sourcing requirements)
  • External economic environment constraining procurement processes, including marketplace conditions.
  • Contract management systems  Organization Process Assets

  • List of preferred sellers that have been pre-qualified.
  • Organizational policies that influence the selection of a seller
  • Specific organizational templates or guidelines that will determine the way agreements are drafted.
  • Financial policies and procedures regarding invoicing and payment processes.

The next post will cover the tools and techniques of this process.



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