You need to define the procurement requirements framework for the project. Learn more @ http://www.demandmetric.com/content/procurement-management-plan

1. Procurement Management Plan
Purpose
Use this template to define the procurement requirements framework for the project. This
plan will serve as a guide for managing procurement throughout the life of the project and
will be updated, as acquisition needs change.
How to Use this Template
Complete the following sections with your project team:
 Items to be procured
 Information Gathering
 Contracts
 Competitive Bids
 Approval Process
 Evaluation criteria
 Deliverables
 Deadlines
 Vendor Management
 Metrics
 Activities
 Sponsor Acceptance

2. Title Page
Procurement Management Plan
[Project Name]
Effective Date:
Document Owner:
Version:
Version Date Revision / Description Author:
Approval:
Approver Title:
Approval Date:

3. Table of Contents Page
1. General Information 4
2. Items to be procured 5
3. Information Gathering 6
4. Contracts 6
5. Competitive Bids 7
6. Approval Process 8
7. Evaluation Criteria 8
8. Vendor Management 9
9. Metrics 10
10. Sponsor Acceptance 10

4. 1. General Information
Project Title Project ABC
Project Sponsor VP of Sales & Marketing
Director, Marketing
Project Manager
(Email) janedoe@abc-company.com; (Phone) +1 (555) 555-5555
Marketing Manager
Director of IT
Project Team Members Director of Sales
Customer Service Manager
Other
Purchasing Department Contact #1
Purchasing Department Contracts Department Contact #1
Legal Department Contact #1
Project Start Date December 1, 2013
The Project Manager will provide oversight and management by
working with the project team to identify all items to be procured for
the successful completion of the project.
The Project Management Office (PMO) will then review the
Process procurement list prior to submitting it to the contracts and purchasing
department. The contracts and purchasing department will review the
procurement items, determine whether it is advantageous to make or
buy the items, and begin the vendor selection, purchasing and the
contracting process.

5. 2. Items to be procured
The purpose of this section is to describe what items will be procured and under what
conditions. The following list of items are pending PMO review for submission to the
contracts and purchasing department:
Item Justification Approval Authority Needed By
Widget A Needed for project. Jane Doe October 1, 2013
Needed for project.
Widget B Conduct Build vs. Buy Jim Doe November 1, 2013
analysis
Needed for project.
Widget C Internal resources lack Jane Doe December 1, 2013
skills required.
In addition to the above list of procurement items, the following individuals are authorized
to approve purchases for the project team:
Name Title Email Phone
Jane Doe Project Manager jane@company.com (555) 555-5551
Todd Smith Vice President todd@company.com (555) 555-5552

6. 3. Information Gathering
If you don’t have an established relationship with the suppliers that you need, you will
need to find suppliers who can satisfy the requirements outlined in section 2 (above).
Create a short list of potential suppliers and enter their information in the chart below:
Supplier Contact Name Pricing Info Contact
Company XYZ Tim Smith tim@xyz.com (555) 555-5553
Company DEF Greg Johnson greg@def.com (555) 555-5554
Company ABC Valerie McLeod val@abc.com (555) 555-5555
4. Contracts
The purpose of this section is to describe the type of contract to be used so the contracts
and purchasing department can proceed accordingly.
There are many different types of contracts. A few of which include:
 Firm Price Contacts (FFP, FPIF, FP-EPA)
 Cost-Reimbursable Contracts (CPFF, CPIF, CPAF)
 Time & Management Contracts

7. Specify the type of procurement contract to be used here. The project team will work with
the contracts and purchasing department to define the item types, quantities, services and
required delivery dates.
5. Competitive Bids
Solicit bids from competing vendors in order to procure the items within the required time
frame and at a reasonable cost. Bids can be open (bids are opened in full view of all who
wish to witness the bidding process) or closed (sealed bids are opened by authorized
personnel). The purchasing and contracts department will send out solicitations to outside
vendors by openly advertising the following information:
 Scope (Determine what items or services will require procurement)
 Specifications
 Terms and Conditions
 Evaluation Criteria
You may also request proposals and compare service providers with the help of Demand
Metric’s RFP and Vendor Selection tools. Click here to learn more.

8. 6. Approval Process
In this section, you will define the process through which contracts will be approved. If
necessary, customize the steps below according to your approval process and identify any
key stakeholders that are involved in the decision-making.
1. The Contract Review Board consists of representatives from the project team,
purchasing and contracts department, finance, and the PMO.
2. The contract review board will meet to determine which contract will be accepted.
7. Evaluation Criteria
The purpose of this section is to define the criteria used by the contract review board. The
criteria for the selection and award of procurement contracts under this project will be
based on the following decision criteria:
 Ability of the vendor to provide all items by the required delivery date
 Product Quality
 Cost analysis
 Past Performance
 Comparison of outsourced cost versus in-sourcing
o Use Demand Metric’s Build vs. Buy Matrix

9. The aforementioned criteria will be measured by the contract review board and the Project
Manager. The decision will be made based on these criteria as well as available resources.
8. Vendor Management
In this section, you will need to identify people and the activities that will be taken to
ensure that the selected vendor(s) provide(s) all of the products/services that are specified
in the contract and that the appropriate levels of quality are maintained.
In most cases, it is the project manager’s responsibility to manage vendors. However,
depending on the scope of the project, you might also want to include other key
stakeholders including members of the project team and the purchasing & contracts
department.
Other important activities in the vendor management process that you should identify the
ownership of include, but are not limited to:
1. Ensuring the timely delivery of products
2. Reviewing quality test findings
3. Ensuring product compliance with specifications
4. Modifying requirements when necessary

10. 9. Metrics
Metrics may be used to ensure the project stays on schedule regarding procurement
activities. They may also be used to compile data on the performance of various vendors
in order to assist with future procurement activities’ vendor selection criteria. A few metrics
that you should consider include: quality, delivery, quality, costs, time, and efficiency.
Use Demand Metric’s Supplier and Vendor Evaluation to determine an overall supplier
score and to ensure that your expectations are aligned with your suppliers. In addition to
rating each supplier, keep track of past-performance in an Excel spreadsheet to aid in the
selection process for future procurement activities.
10. Sponsor Acceptance
Approved by the Project Sponsor:
_________________________________________________________ Date: ___________________________
<Project Sponsor>
_________________________________________________________
<Project Sponsor Title>