Procurement Plan

For [Project Name]

Document Control
Document Information

Information
Document Id [Document Management System #]
Document Owner [Owner Name]
Issue Date [Date]
Last Saved Date [Date]
File Name [Name]
Document History
Version Issue Date Changes
[1.0] [Date] [Section, Page(s) and e!t "e#ised]
Document Approvals
Role Name Signature Date
Project Sponsor
Project Review Group
Project Manager
ualit! Manager
(i$ a%%&ica'&e)
Procurement Manager
(i$ a%%&ica'&e)
"ommunications Manager
(i$ a%%&ica'&e)
Project O##ice Manager
(i$ a%%&ica'&e)
"op!rig$t %&&& Met$od'%( Ltd
i
Table of Contents
TEMPLATE GUIDE....................................................................................1
1 P!CUEME"T E#UIEME"T$.............................................................%
1.1 REQUIREMENTS.................................................................................................................... 2
1.2 PURPOSE............................................................................................................................... 2
1.3 JUSTIFICATION........................................................................................................................ 3
% MA&ET E$EACH...........................................................................'
2.1 MARKET CONDITIONS.............................................................................................................. 4
2.2 AVAILABLE PRODUCTS............................................................................................................. 4
( P!CUEME"T PLA".........................................................................)
3.1 SCHEDULE............................................................................................................................. 5
3.2 ASSUMPTIONS........................................................................................................................ 6
3.3 RISKS................................................................................................................................... 6
' TE"DE P!CE$$.............................................................................*
4.1 OVERVIEW............................................................................................................................. 6
4.2 PROCEDURES......................................................................................................................... 6
4.3 ROLES.................................................................................................................................. 6
4.4 DOCUMENTS.......................................................................................................................... 6
) P!CUEME"T P!CE$$.....................................................................+
5.1 OVERVIEW............................................................................................................................. 7
5.2 PROCEDURES......................................................................................................................... 7
5.3 ROLES.................................................................................................................................. 7
5.4 DOCUMENTS.......................................................................................................................... 7
* APPE"DI,.......................................................................................+
"op!rig$t %&&& Met$od'%( Ltd
ii
Template Gui-e
What is a Procurement Plan?
( Procurement P&an descri'es w)ic) %roducts wi&& 'e ac*uired $rom e!terna& su%%&iers to t)e
%ro+ect, as we&& as w)en and )ow t)ey wi&& 'e ac*uired. More s%eci$ica&&y, t)e %&an inc&udes,
( 'rea-down o$ t)e %roducts to 'e ac*uired $rom e!terna& su%%&iers, inc&uding a detai&ed
descri%tion o$ eac) %roduct and t)e +usti$ication $or %rocuring t)em e!terna&&y rat)er t)an
'ui&ding . %ro#iding t)em interna&&y
(n o#er#iew o$ t)e e!terna& su%%&y mar-et to %ro#ide con$idence t)at t)e %roducts do
actua&&y e!ist in t)e mar-et and t)at suita'&e su%%&iers can readi&y %ro#ide t)e %roducts
wit)in time and 'udget constraints
( %&an out&ining t)e time$rames $or ac*uiring t)e %roducts
( tender %rocess descri'ing )ow t)e %re$erred su%%&iers wi&& 'e c)osen
( %rocurement %rocess descri'ing )ow t)e %roduct wi&& 'e ac*uired $rom t)e %re$erred
su%%&ier and )ow t)e su%%&ier re&ations)i% wi&& 'e managed to ensure continued de&i#ery.
/t is im%ortant to note t)at t)e term 0Products1 inc&udes goods (e.g. com%uter )ardware, raw
materia&s and e*ui%ment) and ser#ices (e.g. raw &a'or, tec)nica& ser#ices, consu&tancy and
management).
When to use a Procurement Plan
( Procurement P&an s)ou&d 'e %roduced $or any %ro+ect w)ic) in#o&#es t)e ac*uisition o$
%roduct $rom an e!terna& su%%&ier. 2)et)er it in#o&#es one or more %roducts or su%%&iers, a
c&ear %&an $or t)e ac*uisition o$ %roduct s)ou&d 'e documented in t)e $orm o$ a Procurement
P&an. )is document is $ormed ear&y in t)e %ro+ect &i$ecyc&e (during t)e P&anning %)ase) and
re&ies )ea#i&y on t)e de$inition o$ de&i#era'&es in t)e Pro+ect P&an and 3ua&ity P&an to
determine w)ic) %roduct s)ou&d 'e ac*uired e!terna&&y rat)er t)an wit)in t)e organi4ation.
2it)out a $orma& Procurement P&an in %&ace, it wi&& not 'e c&ear w)ic) %roduct wi&& 'e sourced
e!terna&&y, $rom w)om and w)en. )is may &ead to %rocurement di$$icu&ties and )ence
increase t)e o#era&& ris- to t)e %ro+ect.

How to use this template
)is document %ro#ides a guide on t)e to%ics usua&&y inc&uded in a Procurement P&an.
Sections may 'e added, remo#ed or rede$ined at your &eisure to meet your %articu&ar
'usiness circumstance. 5!am%&e ta'&es, diagrams and c)arts )a#e 'een added (w)ere
suita'&e) to %ro#ide $urt)er guidance on )ow to com%&ete eac) re&e#ant section.
"op!rig$t %&&& Met$od'%( Ltd
'
1 Procurement e.uirements
Identi#! t$e products to )e sourced #rom outside t$e organi*ation+ t$e purpose o# eac$
product and t$e justi#ication #or procuring it as opposed to sourcing it internall!,
1.1 e.uirements
Descri)e t$e speci#ic products and -uantities to )e sourced #rom t$e e.ternal mar/et place
as well as t$e )udgeted e.penditure #or eac$ product+ using t$e #ollowing ta)le0
ID Prouct Descri!tion "uantit# $uget
"1' "omputer
1ardware
Latest speci#ication computer Intel P" including0
Screen 2'3 inc$ monitor4
"omputer unit 2latest Intel processor4
5ccessories 2/e!)oard+ mouse4
Latest 6indows Operating S!stem
MS O##ice so#tware suite
(mount 6
RM' Raw Materials 7uilding construction materials+ including0
6ooden #raming #or walls
Roo#ing materials
8lectrical ca)ling and switc$es
(mount 6
"S' "onsultanc!
Services
General consultanc! services to assist wit$ t$e
management o# t$e project+ including0
ualit! assurance and auditing
Project o##ice management
5ccounting services
(mount 6
1.% Purpose
Descri)e t$e purpose o# eac$ product wit$in t$e #ollowing ta)le0
ID Prouct Pur!ose
"1' "omputer
1ardware
9o ena)le project management and administrative sta## to oversee t$e
project )! recording and trac/ing progress against project plans
RM' Raw Materials 9o p$!sicall! construct t$e delivera)les to )e produced )! t$e project
"S' "onsultanc!
Services
9o provide con#idence t$at t$e project will ac$ieve t$e time+ cost and -ualit!
targets t$roug$ regular reviews and reporting
"op!rig$t %&&& Met$od'%( Ltd
%
1.( /usti0cation
Provide sound reasoning as to w$! t$e a)ove products must )e ac-uired #rom e.ternal
suppliers as opposed to #rom wit$in t$e )usiness+ using t$e #ollowing ta)le0
ID Prouct %ustification
"1' "omputer
1ardware
9$ere are no availa)le P"s wit$in t$e )usiness o# a suita)le speci#ication to
per#orm t$e re-uired tas/s
RM' Raw Materials 9$e )usiness does not currentl! $ave su##icient spare raw materials to
produce t$e project delivera)le
"S' "onsultanc!
Services
9$ere are no $uman resources wit$in t$e )usiness suita)l! -uali#ied to
underta/e t$e activities re-uired
"op!rig$t %&&& Met$od'%( Ltd
(
% Mar1et esearc2
"onducting mar/et researc$ is critical to ensuring t$at t$e rig$t product is readil! availa)le in
t$e mar/et place at t$e rig$t price, uestions suc$ as :6$ic$ products are availa)le;:< :6ill
t$e! meet t$e re-uirement;:< and :5re suppliers a)le to deliver t$e product at t$e rig$t price
wit$in t$e timescales needed;: are all -uestions w$ic$ need to )e answered )e#ore t$e
Procurement Plan can )e completed, =nderta/e a t$oroug$ mar/et researc$ e.ercise and
document t$e results o# t$e researc$ program wit$in t$e #ollowing section,
%.1 Mar1et Con-itions
Identi#! t$e various mar/et conditions related to t$e suppl! o# t$e products listed in t$e
section a)ove, 9$e t!pes o# mar/et conditions to )e considered include0
Political environment 2Is it sta)le; 6ill in#luences in t$e e.c$ange rate $ave a )earing on
product pricing; Is c$ange li/el!;4
9ec$nological trends 26ill new tec$nologies present new opportunities or t$reats;4
Mar/et segment 21ow man! suppliers are in t$is particular mar/et segment;4,
%.% Availa3le Pro-ucts
List a sample o# t$e potential suppliers and currentl! availa)le products to provide con#idence
t$at t$ere are products availa)le in t$e mar/et place w$ic$ will li/el! meet t$e re-uirement
wit$in t$e )udget stated, "ross re#erence t$e supplier name+ availa)le product and current
price wit$ t$e product ID a)ove+ using t$e #ollowing ta)le0
ID Su!!lier Name Su!!lier Prouct Price
"1' 57" Ltd Intel P"+ including0
Screen 2'3 inc$ monitor4
"omputer unit 2latest Intel processor4
5ccessories 2/e!)oard+ mouse+ "D reader4
>
RM' D8F Ltd 7uilding construction materials+ including0
6ooden #raming #or walls
Roo#ing materials
8lectrical ca)ling and switc$es
>
"S' ?@A Ltd "onsultanc! services+ including0
ualit! assurance auditing
Project O##ice management
5ccounting services
>
"op!rig$t %&&& Met$od'%( Ltd
B
( Procurement Plan
(.1 $c2e-ule
Sc$edule t$e activities re-uired to complete t$e tender+ deliver t$e re-uired products and review t$e suppliersC per#ormance,
ID 9as/ Name Duration
( PR&D'C(T(ND(R )* a#s
B Issue RFI +, a#s
D Document :Statement o# 6or/ 2SO64: % da!s
E Document :Re-uest #or In#ormation 2RFI4: % da!s
F Release 9ender Documents 2RFI and SO64 % da!s
G Receive H 8valuate 9ender Responses % da!s
3 Select 9ender S$ortlist H Noti#! Suppliers % da!s
'& Issue RFP +, a#s
'' =pdate :Statement o# 6or/ 2SO64: % da!s
'% Document :Re-uest #or Proposal 2RFP4: % da!s
'( Release 9ender Documents 2RFPand SO64 % da!s
'B Receive and 8valuate 9ender Responses % da!s
'D Select Pre# erred 9ender H Noti#! Suppliers % da!s
'E Issue Contract * a#s
'F Document Supplier "ontract % da!s
'G Negotiate Supplier "ontract % da!s
'3 Sign Supplier "ontract % da!s
%& Initiate "ontractual O)ligations % da!s
%' ender Process 7om%&ete & da!s
%%
%( D(-IV(RPR&D'CTS ., a#s
%B Deliver Product ... '& da!s
%D Deliver Product ... '& da!s
%E Deliver Product ... '& da!s
%F (&& Products De&i#ered & da!s
%G
%3 R(VI(/S'PP-I(RS ). a#s
(& Review Supplier ... % da!s
(' Review Supplier ... % da!s
(% Review Supplier ... % da!s
(( Su%%&ier "e#iews 7om%&ete & da!s
++0,)
)10,.
+*0,.
DI&' '%I&' '3I&' %EI&' %I&% 3I&% 'EI&% %(I&% 'I&( GI&( 'DI&( %%I&( %3I&(
ar! Fe)ruar! Marc$ 5pr
(.% Assumptions
List an! assumptions made during t$is Procurement Planning e.ercise, For e.ample0
It is assumed t$at0
9$e procurement re-uirements will not c$ange
9$ere will )e no c$anges to mar/et pricing
9$e pool o# current suppliers will )e availa)le as re-uired,
(.( is1s
List an! ris/s identi#ied during t$is Procurement Planning e.ercise, For e.ample0
9$e procurement re-uirements ma! not )e de#ined in su##icient detail to provide potential
suppliers wit$ an inJdept$ understanding o# t$e project re-uirement
9$e met$ods underta/en to review supplier per#ormance ma! not provide ade-uate
con#idence t$at t$e suppliers will meet t$e speci#ied procurement re-uirements
9$e resource allocated to underta/e t$e supplier reviews ma! not )e appropriatel!
s/illed to complete t$e activit! as re-uired,
' Ten-er Process
Depending on t$e si*e o# t$e project+ eit$er summari*e t$e 9ender Management Process as
provided )elow or re#erence a more detailed 9ender Management Process document,
(N8 "e$er to t)e Met)od19: ;ender Management Process< $or a detai&ed e!am%&e).
'.1 !vervie4
Provide an overview o# t$e process underta/en to select pre#erred suppliers #or t$e
ac-uisition o# product #or t$e project 2i,e, t$e K9ender ProcessL4,
'.% Proce-ures
Provide a diagram $ig$lig$ting t$e procedures involved wit$ creating and releasing tenders+
selecting pre#erred suppliers and #orming contractual relations$ips wit$ pre#erred suppliers,
Descri)e $ow eac$ procedure will )e underta/en,
'.( oles
De#ine t$e roles and responsi)ilities o# all resources involved wit$ t$e selection o# pre#erred
e.ternal suppliers,
'.' Documents
List an! ot$er documentation used w$en underta/ing t$e tendering process, For e.ample0
Statement o# 6or/ 2SO64+ Re-uest #or In#ormation 2RFI4+ Re-uest #or Proposal 2RFP4+
9ender Register,
) Procurement Process
Depending on t$e si*e o# t$e project+ eit$er summari*e t$e Procurement Process as
provided )elow or re#erence a more detailed Procurement Management Process document,
(N8 "e$er to t)e Met)od19: ;Procurement Management Process< $or a detai&ed e!am%&e).
).1 !vervie4
Provide an overview o# procurement management and t$e general process #or ac-uiring
products 2goods and services4 #rom e.ternal suppliers #or t$e )ene#it o# t$e project,
).% Proce-ures
Provide a diagram $ig$lig$ting t$e procedures involved wit$ managing t$e ordering+ receipt+
review and approval o# products #rom suppliers+ as well as t$e overall management o#
supplier relations$ips+ to ensure continued customer service, Descri)e $ow eac$ procedure
will )e underta/en,
).( oles
De#ine t$e roles and responsi)ilities o# all resources involved wit$ t$e procurement o#
product #rom e.ternal suppliers,
).' Documents
List an! ot$er documentation used w$en purc$asing product #or t$e project 2e,g,
Procurement Register+ Purc$ase Order Form4,
* Appen-i5
5ttac$ an! documentation !ou )elieve is relevant to t$e Procurement Plan+ including0
Project documentation 2e,g, 7usiness "ase+ Feasi)ilit! Stud!+ 9erms o# Re#erence+
Project Plan+ Resource Plan+ Financial Plan or ualit! Plan4
Re-uirements 5nal!sis or Needs 5nal!sis documentation
Mar/et Researc$ materials
Ot$er relevant in#ormation or correspondence,