Plan Contracting – documenting products, services, and results requirements

The work breakdown structure WBS and WBS dictionary components of the project scope statement provide the structured and detailed plan for the project scope: .4 Work Breakdown Structure The Work Breakdown Structure Section 5.3.3.2 provides the relationship among all the components of the project and the project deliverables Section 4.4. .5 WBS Dictionary The WBS dictionary Section 5.3.3.3 provides detailed statements of work that provide an identification of the deliverables and a description of the work within each WBS component required to produce each deliverable. .6 Project Management Plan The project management plan Section 4.3 provides the overall plan for managing the project and includes subsidiary plans such as a scope management plan, procurement management plan, quality management plan, and contract management plans, which provide guidance and direction for procurement management planning. To the extent that other planning outputs are available, those other planning outputs are considered during the Plan Purchases and Acquisitions process. Other planning outputs that are often considered include: • Risk register Section 11.2.3.1. Contains risk-related information such as the identified risks, risk owners, and risk responses. • Risk-related contractual agreements Section 11.5.3.3. Includes agreements for insurance, services, and other items as appropriate, that are prepared to specify each party’s responsibility for specific risks, should they occur. • Activity resource requirements Section 6.3.3.1. • Project schedule Section 6.5.3.1. • Activity cost estimates Section 7.1.3.1. • Cost baseline Section 7.2.3.1.

12.1.2 Plan Purchases and Acquisitions: Tools and Techniques

.1 Make-or-Buy Analysis The make-or-buy analysis is a general management technique and a part of the project Plan Purchases and Acquisition process that can be used to determine whether a particular product or service can be produced by the project team or can be purchased. Any project budget constraints are factored in the make-or-buy decisions. If a buy decision is to be made, then a further decision of whether to purchase or rent is also made. The analysis includes both indirect as well as direct costs. For example, the buy-side of the analysis includes both the actual out-of- pocket costs to purchase the product as well as the indirect costs of managing the purchasing process. A Guide to the Project Management Body of Knowledge PMBOK ® Guide Third Edition 276 2004 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA