Procurement management Assignment Example | Topics and Well Written Essays - 500 words

Procurement management - Assignment Example Other concerns in this step include the determination of what to procure, how much to procure and finally, when to do the procurement. In the same process, the project manager and the procurement management team decide on the question of make-or buy the items required for the project accomplishment. Identification of the type of the contract- once a need has been ascertained to obtain the items and materials from an outside source, the procurement team, will embark on deciding on which type of contract to sign with the prospective bidders. Very key in this process is to question the risk management strategies with different bidders. The prospective suppliers must be comprehensively engaged on this concern to explore any possibilities of risk occurrence, and the risk mitigation strategies that are in place to cushion the firm from the impacts. It is upon such establishment that such contract types as the cost plus fixed fee or cost plus the incentive fee will be agreed upon (Project Management Institute-PMBOK 2008). The third stage is to develop the standardized procurement documentation. These documents are drafted and reviewed every now and again depending on the circumstances at any given stage of the project implementation. Such important procurement documentation include the standard forms, the quotation proposal, the Invitation For Bid (IFB), the Request For Quote (RFQ) and other form templates used in the process created specifically for the procurement processes. The Procurement Management Plan- in the plan, the project manager puts in place the roles and responsibilities of the project team and that of the organization. Notably, creation of understanding among or between the project team members and the organization is necessary at this point. This is because such arrangements, more often than not, create the conflict of interests, duplication of responsibilities and the completion for resources by the members of the