The process of a procurement plan follows the five phases for a project as defined by the Project Management Institute (2014): initiating, planning,
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The process of a procurement plan follows the five phases for a project

as defined by the Project Management Institute (2014): initiating, planning, executing, monitoring, and closing. The initiating phase answers three basic questions: What is going to be purchased? Who is involved? What is the budget? Of these three questions, the latter two are relatively straightforward; however, although the first question seems simple, as the saying goes, the devil is in the details.
Imagine someone comes to a procurement officer and says, "We need to purchase a hoverboard." Many questions will probably come to mind. That is because hoverboards have only been seen in the movies, so there will naturally be a lot of questions. In contrast, if someone comes and says, "We need to purchase a refrigerator to use in a first aid station at 15,000 feet on Mount Everest," one may think that is interesting, but it might not raise many questions. Refrigerators are common items and can be purchased from many suppliers, so what else is there to know? Plenty.
First, how will it be transported? There are no roads leading to 15,000 feet on Mount Everest. Will it be pulled on a sled by a snowmobile? Are there limitations on the weight and dimensions (length, width, height)? Does it need special packaging? The cardboard box it comes in from the manufacturer is probably not going to be sufficient. Who will make the shipping crate? Does it need special hooks for handling? What will the voltage be in the first-aid station—U.S. standard 120 volts, or European standard 220 volts, or something else? What will the reliability be operating at this altitude? As it is being used in a first-aid station, will the refrigerator be used to keep medicine cool or for general supplies? Does it need a locking mechanism?
Once it is known what is going to be procured, who is going to be involved, and what the budget is, the procurement project can transition into the planning phase. A number of essential documents need to be written during this phase. These documents mirror those required for any project during the planning phase:

-Statement of Work
-Work Breakdown Structure
-Task List
-Schedule
-Budget (for the procurement, not the item being procured)
-Communications Plan
-Risk PlanEach of these will be discussed in more detail in subsequent modules. For now, it is enough to have a brief understanding of each.
Following the planning phase, the procurement enters the execution phase. As the name states, this is when the plans are executed. Primarily, this consists of issuing a request for proposal (RFP), which is a request by the organization for a commodity or service to potential suppliers, evaluating the proposals submitted, selecting the preferred source, negotiating the final terms and conditions, and finalizing the contract with all required signatures.
While the execution phase is in process, the procurement officer must be performing the tasks of the monitoring phase. The monitoring phase is primarily focused on ensuring the procurement execution remains within the parameters set in the planning phase and that the procurement schedule and budget remain on track. If any identified risks occur, the proper risk response should be performed. And, finally, if changes to any of these constraints or to procurement documents are necessary, they are made with proper review and approvals.
Once the contract has been signed and transferred to contract administration, the procurement project can be closed out. The closeout phase consists of archiving the final versions of all procurement documents and executing a "lessons learned" exercise to capture what went right and what went wrong so that future procurement projects can avoid repeating mistakes and ensure positive activities are repeated or enhanced.
Following the described procurement process provides a solid basis for satisfying the key procurement principles of value, ethics, competition, and transparency. The principle of value for money is satisfied through the selection of the appropriate contract, whether the bid process is competitive or not. Both of these are typically defined in the procurement charter or statement of work (SOW). The SOW forms the largest part of the RFP. The principles of ethics and transparency are achieved through the open process and procurement documentation. A process that requires document reviews and approvals by multiple individuals helps ensure the procurement is ethical and transparent.
The final activity in this module is the selection of the contract type for the chosen procurement case study. The selection should be justified in terms of why the chosen contract type was better at satisfying the procurement principles of value, ethics, competition, and transparency than other contract types. A matrix could be used to effectively communicate this analysis.
Module Three will delve into the details of creating a procurement schedule and budget, as well as identifying source selection criteria and selection tool.
Reference
Project Management Institute (2014). Guide to the project management body of knowledge (5th ed.). Newtown Square, PA: Project Management Institute, Inc.
What part(s) of a procurement management plan do you think have the greatest impact on the success of a procurement and why?

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