Risk Monitoring and Control: Inputs Risk Monitoring and Control: Tools and Techniques

Figure 12-1. Project Procurement Management Overview A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 272 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 12 Note: Not all process interactions and data flow among the processes are shown. Figure 12-2. Project Procurement Management Process Flow Diagram A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA 273

12.1 Plan Purchases and Acquisitions

The Plan Purchases and Acquisitions process identifies which project needs can best be met by purchasing or acquiring products, services, or results outside the project organization, and which project needs can be accomplished by the project team during project execution. This process involves consideration of whether, how, what, how much, and when to acquire. When the project obtains products, services, and results required for project performance from outside the performing organization, the processes from Plan Purchases and Acquisitions through Contract Closure are performed for each item to be purchased or acquired. The Plan Purchases and Acquisitions process also includes consideration of potential sellers, particularly if the buyer wishes to exercise some degree of influence or control over contracting decisions. Consideration should also be given to who is responsible for obtaining or holding any relevant permits and professional licenses that may be required by legislation, regulation, or organizational policy in executing the project. The project schedule can significantly influence the Plan Purchases and Acquisitions process. Decisions made in developing the procurement management plan can also influence the project schedule and are integrated with Schedule Development Section 6.5, Activity Resource Estimating Section 6.3, and make- or-buy decisions. The Plan Purchases and Acquisitions process includes reviewing the risks involved in each make-or-buy decision; it also includes reviewing the type of contract planned to be used with respect to mitigating risks and transferring risks to the seller. Figure 12-3. Plan Purchases and Acquisitions: Inputs, Tools Techniques, and Outputs A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 274 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA