Identifying project needs and acquiring goods and services from outside sources, including negotiating terms, creating contracts, and performing vendor management.
Procurement Management Planning: The process of determining what to buy and how to buy it, including contract type, procurement method, and procurement schedule.
Procurement Statement of Work (SOW): A detailed description of the work, goods, or services that the buyer is purchasing from the supplier, including specifications, requirements, and expected outcomes.
Procurement Documents: Various documents used in procurement, including requests for proposals (RFPs), invitations to bid (ITBs), and requests for quotations (RFQs).
Source Selection Criteria: The criteria used to evaluate proposals from potential suppliers, including price, technical capabilities, reputation, and past performance.
Source Selection Methods: The methods used to select the best supplier, which may include objective and subjective techniques, such as cost-benefit analysis, simulations, and interviews.
Contract Types: Different types of contracts used in procurement, including fixed-price contracts, cost-reimbursement contracts, and time-and-materials contracts.
Contract Terms and Conditions: The terms and conditions that govern the relationship between buyer and supplier, including payment terms, delivery schedules, warranties, and termination clauses.
Procurement Negotiation: The process of reaching agreement on the terms and conditions of a procurement contract, including price, specifications, and delivery schedules.
Contract Administration: The ongoing management of the procurement contract, including monitoring supplier performance, managing changes to the contract, and resolving disputes.
Procurement Closeout: The process of completing all activities necessary to close out the procurement contract, including final inspection, acceptance, and payment to the supplier.
Fixed Price (FP) Contract: A contract in which a set price is agreed upon for a defined scope of work.
Cost Reimbursable (CR) Contract: A contract in which the contractor is reimbursed for all actual costs incurred, plus an agreed upon fee for profit.
Time and Material (T&M) Contract: A contract in which the contractor is paid for actual hours worked and cost of materials used, plus an agreed upon fee for profit.
Unit Price Contract: A contract in which the contractor is paid a fixed price per unit of work completed.
Incentive Contract: A contract in which the contractor is offered incentives for achieving or exceeding certain performance targets, such as cost savings or schedule acceleration.
Award Fee Contract: A contract in which the contractor is awarded a fee based on achieving certain performance targets, as determined by the client.
Cost Plus Fixed Fee (CPFF) Contract: A contract in which the contractor is reimbursed for all actual costs incurred, plus a fixed fee for profit.
Cost Plus Incentive Fee (CPIF) Contract: A contract in which the contractor is reimbursed for all actual costs incurred, plus a fee that is partially based on achieving certain performance targets.
Cost Plus Award Fee (CPAF) Contract: A contract in which the contractor is reimbursed for all actual costs incurred, plus an award fee based on achieving certain performance targets.
Performance-Based Contract: A contract in which the contractor is paid based on performance metrics agreed upon with the client, such as meeting quality or safety targets.