Procurement Mgmt Processes

Question 1

Plan Procurement

Answer 1

(12.1 PLAN) Project purchasing decisions, identifying potential sellers.

This is where the company decides for components, software or whatever intermediate steps are needed to produce the deliverables, whether the company will make them in-house or whether it will be more cost-effective to have them made by a subcontractor or seller.

Question 2

Conduct Procurements

Answer 2

(12.2 EXEC) Selecting a seller through bids or proposals, awarding a contract.

Here is where the contract is awarded through a bidding or proposal process to the seller that meets the criteria set out in 12.1 Plan Procurements.

Question 3

Administer Procurements

Answer 3

(12.3 M&C) Managing procurement relationships, monitoring contract performance, making changes as needed.

Once the seller has been selected in 12.2 Conduct Procurements, the terms of the contract are fulfilled by the seller and the project manager watches over the relationship with the seller, the performance of the seller with respect to the terms of the contract, and if there are any conflicts, these are resolved.

Question 4

Close Procurements

Answer 4

(12.4 CLOSE) Verification that deliverables are acceptable, formal closure of contract.

This is closely tied to the only other process that is in the Closing Process Group, namely, 4.6 Close Project or Phase under the Integration Management knowledge area. The work that the seller has done and the deliverables that the seller produces to help complete the project are verified as acceptable. This is where the company signs off on the completion of the contract, and brings it to formal closure.