Procurement management process flow

Procurement management follows a sequence of four processes. The flow with inputs and outputs is shown below.

Sketch

 +------------------+   Procurement mgmt plan, SOW,
 | 1. PLAN          |   bid documents, criteria
 | PROCUREMENT      |-----------------+
 +------------------+                 v
 +------------------+   Selected sellers, contract
 | 2. CONDUCT       |-----------------+
 | PROCUREMENTS     |                 v
 +------------------+   Performance info, changes,
 | 3. CONTROL       |   payments
 | PROCUREMENTS     |-----------------+
 +------------------+                 v
 +------------------+   Closed contracts, archive
 | 4. CLOSE         |
 | PROCUREMENTS     |
 +------------------+

Explanation

1. Plan procurement management
   • Identify needs not met by the team; make-or-buy analysis; market research.
   • Choose contract type (fixed price, cost-plus, time and materials).
   • Prepare procurement SOW, procurement documents (RFP, RFQ, IFB) and source selection criteria.
   • Output: procurement management plan, SOW, make-or-buy decisions.
2. Conduct procurements
   • Advertise, hold bidder conferences, receive proposals.
   • Evaluate using criteria (price, technical approach, experience); negotiate.
   • Select seller and award the contract.
   • Output: selected sellers, agreements, resource calendars.
3. Control procurements
   • Administer contract: monitor seller performance, inspections and audits, process payments and changes, resolve claims.
   • Output: performance information, change requests, updates.
4. Close procurements
   • Verify all work done and accepted, finalise claims, settle payments, archive documents, collect lessons learned.
   • Output: closed procurements, updated OPA.

Summary table

Processes overlap with other knowledge areas such as scope, cost and risk.