Project Procurement Management

This paper evaluates the different aspects of procurement management based on a real-life software development project. It discusses key procurement decisions, processes, and compares to industry best practices.

Running head: PROJECT PROCUREMENT MANAGEMENT
PROJECT PROCUREMENT MANAGEMENT
Name of the Student:
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1Introduction
PROJECT PROCUREMENT MANAGEMENT
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Aspects of the chosen project:.........................................................................................................2
Key procurement decisions made by the project team:...................................................................3
Three procurement management processes needed to complete the procurement process:............4
Comparison to the project procurement management to the best practice in the industry:.............5
Recommendations:..........................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

2Introduction
PROJECT PROCUREMENT MANAGEMENT
Introduction
Project procurement management is concerned about the acquiring of the goods and
services as the resource outside from the performing organization. The services are needed for
the organization for the fulfillment of the scope requirements in the project. Ideally, the project
procurement management is seen on the basis of the buyer and the seller relationship (Rendon &
Rendon, 2015). The seller in the project management can be seen as the project developer team of
the organization and the buyer can be referred to the client of the organization (Lindstrom,
2013). The procurement management helps to maintain the relationship between the vendors
and the suppliers. The main objective of this paper is to evaluate the different aspects of the
procurement management based on the real life project. In this case, the chosen project is related
to the development of the software.
Discussion
The software development project discussed in this phase is concerned about the
development of the system that will cooperate with the ticket booking system. The users of this
software will be able to book the railway tickets using this application (Naoum &Egbu, 2015).
Different stages of the life cycle of the project management has been followed by the project.
Requirements of the projects has been defined clearly so that it can avoid the chances of the
scope creep in the project. However, the different aspects of the procurement management on the
basis of this project is needed to be evaluated.
Aspects of the chosen project:
Type of procurement:

3Introduction
PROJECT PROCUREMENT MANAGEMENT
The software is aimed to developed for the inline ticket booking service. In this case, it
can be said that the type of the procurement is the service type. The vendors will avail the
service.
The provider:
The provider of this service is the development team. In this case, the development team
has gained some sponsorships from certain organizations.
Key procurement decisions made by the project team:
There are some decisions made by the project development team regarding the procurement
management of the ticket booking system software. Some of these decisions are-
 Decision over the type of the contract: The decision over the type of the contract is
important as it reflects the relationship between vendor and the supplier. In this case, the
project is done through the joint venture and the contract between the supplier and the
vendor is fixed price contract (De Marco,2018). Here the supplier of the service or the
product is the development team on the other hand the vendor are the users or the clients
who is going to use the software. The project is happening in a joint venture so the
contract is fixed price contract.
 Managing of the procurement plan: The procurement management plan is the important
process (Zhang, Zhou & Zong, 2017). The first step of the procurement management is the
planning phase. In this stage business goals, procurement policies and stakeholders needs
are required to be evaluated. This step is followed by the alignment which is concerned
about the including expert team members, making the right strategy regarding the
development of the project and work environment. The qualification of the suppliers and

4Introduction
PROJECT PROCUREMENT MANAGEMENT
contracting, tendering and the delivery of the product are included in the procure stage
(Whizlabs,2013). The management of the quality of the product along with the business
process is done in the management phase of the development.
 Soliciting the bids: This process includes the fixing of the price for the product between
the seller and the vendor.
 Evaluation of the bids and making of the contract: The bids and the prices are evaluated
and managing of the contract is done in this phase.
Three procurement management processes needed to complete the procurement process:
There are different stages in the procurement process those are needed to be completed
for the procurement management. Three essentials steps those are needed to manage the process
in a right way:
Planning: The planning phase of the procurement management is concerned with the
making of the blueprint of the procurement plan (Ferri et al., 2016). The planning phase will
include the identification of the items those will be produced internally and the identification of
the processes which will be produced externally or will be outsourced for meeting the
requirements of the project. The procurement document will be developed in this phase along
with the frameworks those will be helpful to select the right vendors.
The selection process: The selection process includes the selection of the vendors. The
selection of the vendors depends on the comparison of different advantages and disadvantages of
different vendors. Here, the vendor is the clients who are using the software (Whitaker, 2016). The
meeting with the clients about the requirements are discussed. The resource calendar has been

5Introduction
PROJECT PROCUREMENT MANAGEMENT
developed in this phase stating the numbers and the origin of the resources along with the way
off the utilization of those resources.
Monitoring: This step involves the evaluation of the final product which has been
delivered to the clients by the suppliers. The monitoring process ensures that the final product
meets all the required quality and the delivery of this product is done in a right way (Weerasinghe
et al.,2016). The monitoring process monitors all the stages in the procurement management
process. Some of the services or the products needs the control and the maintenance even after
the delivery of the products (Bag et al.,2018). In that case, the procurement process involves in the
monitoring of the after service of the products. This is an important phase in the procurement
management as it ensures the quality of the product delivered to the client as well as the
maintenance of the services.
Comparison to the project procurement management to the best practice in the industry:
The best practice in the project procurement management ensures that all the five steps in
the procurement management process will be carried out in an effective way. In that case, the
proposed project will go through all the five stages mentioned in the procurement management
process which ensures the quality of the product which meets all the requirements and the
conditions in the contract.
Recommendations:
There are certain recommendations those can be made on the basis of the analysis made
in this paper. In that case, the project is going to follow all the stages in the procurement
management. However, the project procurement management is a overlooked section in the

6Introduction
PROJECT PROCUREMENT MANAGEMENT
project management process. It has been seen that in many cases that the project managers
follow the project management life cycle properly. However, the project management life cycle
is different from the project procurement processes. The procurement management is concerned
with the management of the contract and delivery of the products. It is recommended in this case,
the project managers are needed to clarify the difference between the project life cycle and the
project procurement process.
Conclusion
The procurement management process concerns about the delivery of the final product. It
defines the certain relationship between the suppliers and the vendors. The proper outcome of the
product depends on the right implementation of the project life cycle and the project
methodology, however, the proper delivery of the product and the services depends on the
implementation of the right procurement management plan. There are certain steps in the
procurement management planning. The compilation of the each stages ensures that the contract
between the suppliers and the vendors and maintained in correct way and the product delivered
to the vendors ensures the proper quality. It can be said the procurement management process in
the project is an important phase that has to be maintained for the development of the project.

7Introduction
PROJECT PROCUREMENT MANAGEMENT
References
Bag, S., Venkatesh, V. G., Luthra, S., & Anand, N. (2018). Ethical Practices, Buyer-Supplier Relationship, and
Innovative Green Procurement Performance: Some Exploratory Results. In Ethics and Decision-Making for
Sustainable Business Practices (pp. 1-23). IGI Global.
certification [Video file] https://youtu.be/u09-s-DGUvc
De Marco, A. (2018). Procurement Management. In Project Management for Facility Constructions (pp. 149-154).
Springer, Cham.
effectiveness. Retrieved from https://ebookcentral.proquest.com
Ferri, L. M., Oelze, N., Habisch, A., & Molteni, M. (2016). Implementation of responsible procurement management:
an institutional perspective. Business Strategy and the Environment, 25(4), 261-276.
Journals. Procedia Economics and Finance, ISSN: 2212-5671, Vol: 21, Page: 6-13
Lindstrom, D. (2013). Procurement project management success : achieving a higher level of
Naoum, M., &Egbu, C. (2015). Critical Review of Procurement Method Research in
Construction
Rendon, R. G., & Rendon, J. M. (2015). Auditability in public procurement: An analysis of internal controls and fraud
vulnerability. International Journal of Procurement Management, 8(6), 710-730.
Weerasinghe, W. A. V. C. M., Palliyaguru, R. D. H., Yakupitiyage, Y. D. L., & Jayasinghe, G. D. I. (2016). An
Empirical Study on the Application of Lean Management to Enhance Procurement Management in the
Public Sector.
Whitaker, S. (2016). Procurement Management. In Pass the PMP® Exam (pp. 405-444). Apress, Berkeley, CA.
Whizlabs. (2013, September 16). Project manager’s role in procurement management -
PMP

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PROJECT PROCUREMENT MANAGEMENT
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