Project Procurement Management is part of the project management process in which products or services are aquired or purchased from outside the existing employee base (which would work on the project) in order to complete the task or project.
There are essentially two different types of procurements, one in which the company is responsible for the particular product or service under a legal contract, this PPM includes contract management responsibilities that issue specific tasks to various team members. Both of these project management processes are imperative to a company’s success.
PPM includes a variety of tasks including the planning process where one decides what to acquire or purchase and how they will do so.
Planning purchases and acquisitions: Determining what to procure, when, and how.
Planning contracting: Describing requirements for the products or services desired from the procurement and identifying potential sources or sellers.
Requesting seller responses: Obtaining information, quotes, bids, offers, or proposals from sellers, as appropriate.
Selecting sellers: Choosing from among potential suppliers through a process of evaluating potential sellers and negotiating the contract.
Administering the contract: Managing the relationship with the selected seller.
Closing the contract: Completing and settling each contract, including resolving any open items.
