Here’s the Best Template for Drafting a Procurement Management Plan

Want the best template for drafting a Procurement Management Plan?  This guide includes it. Besides offering a well-considered Procurement Management Plan template, this guide provides a reputable source for numerous other project management templates, and several good practice tips. It offers everything you need to begin planning procurement management.

What is a Procurement Management Plan?

A Procurement Management Plan is a subsidiary management plan. It is a part of the Project Management Plan. It identifies the processes for acquiring goods and services from outside the performing organization.

What is the Purpose of a Procurement Management Plan?

The purpose of the Procurement Management Plan is to document the approved approach for conducting and controlling procurements. Specifically, it establishes the procurement approach, identifies potential sellers, and specifies the processes for obtaining seller responses. It prescribes seller selection and award processes, and establishes the guidelines for monitoring contract performance, managing the procurement relationships, implementing changes and corrections to the procurement contract, and closing out the procurement contracts.

What are the Project Procurement Management Processes?

The procurement management processes are:

1. plan procurement management,
2. conduct procurements, and
3. control procurements.

How Do I Create a Project Procurement Management Plan?

You create a project Procurement Management Plan by implementing the following 9 steps:

1. Secure a well-considered Procurement Management Plan template
2. Identify roles and responsibilities, as they pertain to procurement management
3. Document the procurement needs
4. Specify the procurement approach
5. Identify potential sellers
6. Define the processes for conducting procurements
7. Specify the processes for controlling procurements
8. Identify assumptions, issues, and risks as they pertain to procurement management
9. Obtain Plan approval

Step 1. Secure the Best  Template for Drafting a Procurement Management Plan.

Begin by selecting the right tool for job. Specifically, secure the best template for drafting a Procurement Management Plan. The best template aligns with commonly recognized good practices in project management. Further, it works with your Project Management Plan template and your other subsidiary management plan templates. By working with well-considered templates that are designed to fit together, you are positioned to avoid gaps in project planning.

(At the bottom this post, you will find links to a collection of well-considered Project Management templates and the best template for drafting a Procurement Management Plan. They are all designed to work together.)

Step 2. Identify Roles and Define Responsibilities.

The best template provides for identifying the roles and defining the responsibilities of those who will perform procurement management activities. As you begin planning, involve project team members, other project stakeholders, and the project sponsor. By involving others, you may receive additional insight and more buy-in for the project.

Step 3. Document the Procurement Needs.

The Procurement Statement of Work must be drafted before the procurement needs can be identified. For this reason, you will document and include the Procurement Statement of Work. 

Thereafter, review the Procurement Statement of Work and generate a list of the required goods and services. After reviewing that list, document all procurement decisions regarding the procurement needs.

Step 4. Specify the Procurement Approach.

Once the procurement needs are identified, you must specify the procurement approach for each procured good or service. For example, identify whether procured goods will be leased or purchased. Identify whether each good or service must be procured from a pre-approved vendor. Regarding each good or service, specify whether a solicitation will be issued to receive competitive responses.

Also, identify the person(s) with contract authority. Identify those authorized on behalf of the performing organization to approve and execute contracts and solicitation documents.

Included the procurement contract requirements. For example, specify the required due date, performance location, inspection and review processes, and so forth.

Provide dates regarding the procurement schedule. If procurement will be by solicitation, include the dates that the pre-solicitation and solicitation will be released. If relevant, include the date of the bidder conference. Identify when questions are due, the solicitation due date, the award date, and the date by which performance must begin.

Step 5. Identify Potential Sellers.

If your organization maintains a list of approved vendors, identify the relevant vendors in the Procurement Management Plan. Include any other project or organizational requirements that pertain to identifying potential sellers.

Step 6. Define the Processes for Conducting Procurements.

Next, you will define the processes for conducting procurements. For example, if the project will procure by solicitation, identify whether a bidder’s conference be held. If so, identify who will perform what task. 

Also, specify requirements regarding bidder questions and the approach for obtaining bidder responses. Describe requirements regarding vendor presentations, negotiation, and contract award.

Step 7. Specify the Processes for Controlling Procurements.

Once the vendor is selected and tendering performance, the procured goods, services, and the procurement relationship must be managed. Regarding the vendor relationship, identify who will assist the vendor in receiving answers and gaining access to spaces or systems. Identify who will perform vendor evaluations and specify the criteria that will be used to evaluate the vendor.

Concerning the receipt of procured goods, identify the policies or procedures for receiving goods. Identify the inspection and acceptance criteria. Describe the rejection process. Specify any insurance, transportation, and storage requirements concerning the goods. Describe how and where audits and inspections will be performed. Identify those who will conduct the audits and inspections.

For both services and goods, describe the processes to request change and corrections. Document the work performance information that must be reported. 

Anticipate potential problems. Specify how claims will be processed and identify what laws will govern.

For the end of the vendor’s performance, define the process for closing out the vendor contracts. Identify all documentation that must be received? Describe whether the vendor must provide training. Identify all acceptance criteria. Specify the requirements regarding final vendor payment.

Step 8. Identify Assumptions, Issues, and Risks. 

As you plan procurement management, you may identify assumptions, issues, and risks. Document them as you identify them. Later, record or transfer them to the appropriate locations. (E.g., risk management plan)

Step 9. Obtain Plan Approval.

Usually, the Project Sponsor formally approves the Procurement Management Plan. Our template includes a section to obtain the Approver’s signature. 

Which Project Documents Should be Included in a Procurement Management Plan?

Once the Procurement Management Plan is approved, it cannot be changed without submitting to the change request process. Where project documents are included in the Plan, they too become approved. So, include those project documents that will be used while managing procurements. For example, consider including the following forms or templates:

1. Independent Cost Estimates
2. List of Pre-Qualified Sellers
3. Procurement Requirements
4. Procurement Statement of Work
5. Source Selection Criteria
6. Vendor Evaluation Form

What is the Best Template for Drafting a Procurement Management Plan?

The best template for drafting a Procurement Management Plan is one that aligns with widely recognized good practices in project management. It is also designed to work with your Project Management Plan and each of its’ subsidiary management plans.

 “The Practitioner’s Book of Project Management Templates” is an e-book that will guide you in implementing good practices in project management. It contains 86 editable templates that are designed to work together toward development of a comprehensive Project Management Plan. In it, you will find what we think is the best template for drafting a Procurement Management Plan. It also includes templates for the six project documents listed immediately above.

Start Planning Now

Ready to begin procurement management? Download our e-book and get started. It includes the Procurement Management Plan template, numerous other subsidiary management plan templates, project document templates, and a comprehensive Project Management Plan template. It has the templates you need for effective project management.

Need the Procurement Management Plan template only. We included that link, too.

About the Author

Kimberlin R. Wildman, JD, PMP is a former attorney, a PMP certified project manager, a federal proposal manager, and the founder of MyPM. She has two decades of experience interviewing subject matter experts, spotting opportunities, and leading projects to successful closures. Author Bio