Procurement Management Plan Assignment

Running head: PROCUREMENT MANAGEMENT PLAN1
Procurement Management Plan- Talent Contest
Name
Institutional Affiliation

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Table of Contents
Introduction......................................................................................................................................2
Procurement Management Approach..............................................................................................3
Procurement Definition...................................................................................................................3
Type of Contract to be Used............................................................................................................4
Procurement Risks...........................................................................................................................4
Procurement Risk Management.......................................................................................................5
Cost Determination..........................................................................................................................5
Standardized Procurement Documentation.....................................................................................5
Procurement Constraints..................................................................................................................6
Contract Approval Process..............................................................................................................6
Decision Criteria..............................................................................................................................7
Vendor Management.......................................................................................................................7
Performance Metrics for Procurement Activities............................................................................7
Sponsor Acceptance.........................................................................................................................8
References........................................................................................................................................9

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Introduction
This procurement management plan outlines the procurement framework for the Talent
Contest. It will help in managing the procurement needs of the project from pre-event activities
on 5th February all the way to the end of the project on 24th July 2018. This plan outlines the
items required for the contest, contracting, procurement risks, risk management, cost
determination, decision making, and performance metrics of the Talent Contest.They include
items such as stage equipment, catering items, marketing equipment, security equipment, and
other resources.
Table 1:
Procurement function roles and responsibilities.
Role Responsibilities
Project Sponsor Approve the initial procurement requirements.
Project Manager Oversee the entire project.
Project Designer Design the project and outline possible
procurement requirements
Project Coordinator Ensure procurement requirements are met
along the project duration of the project.
Contract and Purchasing Team Review procurement items.
Team Leader Receive and request procurement items
suggested by team members in the course of
the project.

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Procurement Management Approach
All procurement management oversight responsibilities for the Talent Contest will be
under the Project Manager. The Project Sponsor, the Project Team Leader, the Scheduler, the
Project Coordinator, and other relevant team members will work closely with the Project
manager to ensure the procurement needs are efficiently met.Procurement requirements for the
Talent Contest include items needed at the beginning of the contest, along the contest, and at the
end of the contest (Snyder & Stackpole, 2013). The Project Sponsor will approve the initial
procurement requirements of the project as identified by the Project Manager and the Project
Designer. The Team Leader and Project Coordinator will be responsible for identifying
procurement needs arising in the course of the project. All suggested items will be carefully
reviewedby the Contracting and Purchasing teamwhich will then determine whether it is efficient
to make or buy the items. After approval by the project manager, they will begin vendor
selection, purchasing and contracting.
Procurement Definition
Procurement items must be carefully selected as per the project timeframe and budget to
ensure the successful completion of the project (Larson & Gray, 2013). Procurement items for
the Talent Contest can only be authorised by either the Project Manager, the Project Designer, or
the Team Leader. The following items and services items outline the procurement needs of the
Talent Contest.
Table 2:
General Items and Services
Item/Service Justification Needed by:

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Equipment and PA system Required to facilitate auditions and other
stage requirements.
24th April 2018
Web page services Needed to facilitate online registration of
participants.
24th April 2018
Waste Management Facilities Needed for the auditorium 24th April 2018
Type of Contract to be Used
The Contracts and Purchasing Team needes various contracts to carry out their tasks.
Contracts applicable to the Talents Contest will be ordered under firm-fixed-price contracts. The
Contracts and Purchasing Team under the oversight and approval of the Project Manager will
review the items/services, their quantities and the deliverable dates. Firm-fixed-price contracts
will be used for PA system and other equipment purchases. Bids will then be placed to different
vendors while considering budget and timeframe constraints.
Procurement Risks
There exists a potential for various risks to occur in the course of a project (Westland,
2006). The Talent contest may face indirect or indirect procurement risks. These risks require the
formulation of risk mitigation strategies and an emergency management plan (Judd, 2012).
Procurement risk includes:
1. The risk of not obtaining permits and approval from the local government on time.
2. The timely availability of equipment necessary for a particular activity.
3. Budget and cost-related risk.
4. Vendor unreliability
5. Unrealistic schedule.

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Procurement Risk Management
Asoutlined in the project’s Scope Management Plan, the Talent Contest will enforce
various strategies to identify and mitigate risk arising in the project. Procurement risk mentioned
above must be carefully assessed and appropriate preventive measures formulated. The
procurement efforts of the Talent Contest involve external and internal operations that may
negatively affect the success of the project.To prevent these risks, all procurement decisions
must be approved by the Project Manager. The Project Manager will organise a stakeholder
meeting to discuss the show management. In the unfortunate event that a risk occurs, the Project
Manager must enforce an emergency risk management plan.
Cost Determination
The Talent Contest project will use a Request for Bid (RFB) to lobby bids from various
vendors. Bids submitted will be required to detail the procurement items and the costs of such.
The vendors will be required to provide all relevant information to the project manager who will
select the most qualified and cost-effective vendor to provide procurement items and services
such as web services, waste management facilities, the PA system and other stage equipment.
Standardized Procurement Documentation
It is important to ensure standardisation of project activities to ensure uniformity and
effective management (Kerzner, 2013). Due to the dynamic nature of the talent contest, all the
way from registration of participants, auditions, and even the main event, it is important to use
standardised documents to simplify the procurement process. They allow easier comparison of
vendor bids and other procurement activities. Standardized documents for the Talent Contest
procurement activities include:
1. Standardized request for bids

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2. Firm fixed price contract
3. Non-disclosure agreements
4. Letter of intent
5. Procurement audit form
Procurement Constraints
Before procurement planning, all possible constraints to the project must be determined
(Burke, 2013). The constraints must then be communicated to all members of the procurement
team and vendors. Procurement constraints relevant to the Talent Contest include:
1. Scope constraints
2. Schedule constraints
3. Cost
4. Sound, lighting, and other stage equipment
Contract Approval Process
The Contract and Purchasing Team of the project will be responsible for conducting costs
analysis of all procurements needs identified in the project. Following the analysis, the Contract
and Purchasing team will compare the costs and benefits associated with either sourcing the
procurement items mentioned above internally or soliciting external vendors. If external vendors
are the most efficient option, strict selection criteria for all bids will be used to select the best
vendors. It is important to note that the Project Manager must approve all procurement contracts.
Decision Criteria
The Project Manager is responsible for all procurement decisions for the Talent Contest.
These procurement decisions shall be made following the input of other members of the

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procurement team (Styne et al., 2016). The criteria for selecting the best vendor will involve the
following activities:
1. Quality of Equipment and other procurement requirements.
2. The ability of the vendor to meet the procurement requirements on time.
3. Cost-effectiveness of the bids.
4. Comparison between internal sourcing of procurement items and outsourcing from
vendors.
Vendor Management
The vendor management plan will be prepared by the Project Manager as outlined in the
project schedule. Specific procurement requirements for the project will be communicated to all
vendors to ensure only the highest quality items are supplied to ensure the success of the project.
Furthermore, the Project Manager will work closely with the Contract and Purchasing team. Bids
from the vendors will be carefully scrutinised to ensure they align with the Talent Contest.
Performance Metrics for Procurement Activities
Performance measures are useful in evaluating and ensuring the project goes according to
plan and constraints, or risks are met as they arise (Walker & Hampson, 2008). Although there
are various performance measures scheduled for the Talent Contest such as a mock stage show,
event-day review, feedback meeting, and documentation of lessons learned, performance
measures for procurement activities often revolve around contracts and vendors.To measure the
performance of vendors, a scale may be used to rate them as shown below.
Vendor Product
Quality
Delivery
timeline
Costs Efficiency

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Vendor 1
Vendor 2
Based on the score after review, vendors will be rated on a scale of one (poor) to four
(exceptional).
Sponsor Acceptance
Approved by the Project Sponsor:
___________________________________________ Date:____________________

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References
Burke, R. (2013). Project management: planning and control techniques. New Jersey, USA.
Judd, P. D. M. G. (2012). Project procurement management. Recuperado el7 de diciembre de.
Kerzner, H. (2013). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Larson, E. W., & Gray, C. (2013). Project Management: The Managerial Process with MS
Project. McGraw-Hill.
Snyder, C. S., & Stackpole, C. S. (2013). A User's Manual to the PMBOK Guide. John Wiley &
Sons.
Steyn, H., Dekker, A. H., Kuschke, B., Van Eck, B. P. S., & Visser, K. (2016). Project
management: A multi-disciplinary approach. FPM Publishing.
Walker, D., & Hampson, K. (Eds.). (2008). Procurement strategies: A relationship-based
approach. John Wiley & Sons.
Westland, J. (2006). The project management life cycle. ISBN, 749445556, 5-37.