Supply Chain

Procurement Management Plan

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Jason Shields

09/20/15

MAN 4583

Prof Steffen

Introduction

The Procurement Management Plan will set the purchasing structure for the project to guide it during the life of the project and will be updated as purchasing needs change. This plan will identify and define the items to be procured, the types of contracts to be used in support of this project, the contract approval process, and decision criteria. The plan will establish contract deliverables, how costs will be determined, type of contract, procurement constraints and risks, and risk management considerations.

Procurement Statement of work

This portion of the plan shows what the procurement process will entail. The first step is to get a list of dependable contractors to select from. Next, we will narrow it down to four of these contractors to choose from. After that we will select the best valued contractor available to build or new location. The lead time of each contractor is critical to the success of the project. The project’s scope will be used as a guide to make sure that this procurement plan stays on task. This will help us plan all of the requirements that will be needed for the procurement.

Procurement Documents

The procurement documents will ensure that both the contractor and the company both know what is expected of the contractor. “A contract is a formal agreement between two parties wherein one party (the contractor) obligates itself to perform a service and the other party (the client) obligates itself to do something in return, usually in the form of a payment to the contractor” (Gary & Larson). Anything not in the procurement document cannot be done by the contractor. Also, everything that is in the procurement document must be accomplished by the contractor. We will also have certain stipulations that we need to meet listed in the document. This will be a standard construction document. Another document with all...