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PROJECT PROCUREMENT MANAGEMENT

Project Procurement Management includes the processes necessary to purchase or acquire products, services, or results needed from outside the project team. Project Procurement Management includes the management and control processes required to develop and administer agreements such as contracts, purchase orders, memoranda of agreements (MOAs), or internal service level agreements (SLAs). The personnel authorized to procure the goods and/or services required for the project may be members of the project team, management, or part of the organization's purchasing department if applicable.

Project Procurement Management processes include the following:

12.1 Plan Procurement Management—The process of documenting project procurement decisions, specifying the approach, and identifying potential sellers.

12.2 Conduct Procurements—The process of obtaining seller responses, selecting a seller, and awarding a contract.

12.3 Control Procurements—The process of managing procurement relationships, monitoring contract performance, making changes and corrections as appropriate, and closing out contracts.

The procurement processes are presented as discrete processes with defined interfaces. In practice, procurement processes can be complex and can interact with each other and with processes in other Knowledge Areas in ways that cannot be completely detailed in the PMBOK® Guide. The processes described in this section are written from the viewpoint where goods or services are obtained from outside of the project.

Figure 12-1 provides an overview of the Project Procurement Management processes. The Project Procurement Management processes are presented as discrete processes with defined interfaces while, in practice, they overlap and interact in ways that cannot be completely detailed in the PMBOK® Guide.

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KEY CONCEPTS FOR PROJECT PROCUREMENT MANAGEMENT

More than most other project management processes, there can be significant legal obligations and penalties tied to the procurement process. The project manager does not have to be a trained expert in procurement management laws and regulations but should be familiar enough with the procurement process to make intelligent decisions regarding contracts and contractual relationships. The project manager is typically not authorized to sign legal agreements binding the organization; this is reserved for those who have the authority to do so.

The Project Procurement Management processes involve agreements that describe the relationship between two parties—a buyer and a seller. Agreements can be as simple as the purchase of a defined quantity of labor hours at a specified labor rate, or they can be as complex as multiyear international construction contracts. The contracting approach and the contract itself should reflect the simplicity or complexity of the deliverables or required effort and should be written in a manner that complies with local, national, and international laws regarding contracts.

A contract should clearly state the deliverables and results expected, including any knowledge transfer from the seller to the buyer. Anything not in the contract cannot be legally enforced. When working internationally, project managers should keep in mind the effect that culture and local law have upon contracts and their enforceability, no matter how clearly a contract is written.

A purchasing contract includes terms and conditions and may incorporate other buyer specifics as to what the seller is to perform or provide. It is the project management team's responsibility to make certain that all procurements meet the specific needs of the project while working with the procurement office to ensure organizational procurement policies are followed. Depending on the application area, an agreement can be a contract, an SLA, an understanding, an MOA, or a purchase order.

Most organizations document policies and procedures specifically defining procurement rules and specifying who has authority to sign and administer such agreements on behalf of the organization. Across the world, organizations use different names for departments or divisions that deal with procurement, such as purchasing, contracting, procurement, or acquisitions; however, the responsibilities are likely to be similar.

Although all project documents may be subject to some form of review and approval, the legally binding nature of a contract means it will be subjected to a more extensive approval process, often involving the legal department. In all cases, the primary focus of the review and approval process is to ensure that the contract adequately describes the products, services, or results that the seller is agreeing to provide, while being in compliance with the laws and regulations regarding procurements. These sections are often separate appendices or annexes, allowing standardized legal contract language to be used.

A complex project may involve managing multiple contracts simultaneously or in sequence. In such cases, each contract life cycle may begin and end during any phase of the project life cycle. The buyer-seller relationship may exist at many levels on any one project, and between organizations internal to and external to the acquiring organization.

Depending on the application area, the seller may be identified as a contractor, vendor, service provider, or supplier. The buyer may be the owner of the final product, a subcontractor, the acquiring organization, a service requestor, or the purchaser. The seller can be viewed during the contract life cycle first as a bidder, then as the selected source, and then as the contracted supplier or vendor.

The winning bidder may manage the work as a project. In such cases:

In this section, it is assumed that the buyer of an item for the project is assigned to the project team and/or is part of the larger organization. The seller is assumed to be providing services and/or materials to the project and is usually outside the performing organization. For some projects, the seller role may be filled by a group or function that is part of the performing organization but external to the project. For larger, more complex projects, the seller may become part of an integrated project team after the contract is awarded.

For smaller organizations or startup companies and those without a purchasing, contracting, or procurement department, the project manager may assume the purchasing authority role to negotiate and sign contracts directly (decentralized purchasing). For more mature organizations, the actual procurement and contracting functions will be carried out by a separate department with the specific role to purchase, negotiate, and sign contracts (centralized purchasing).

In international contracting, the legal jurisdictions under which the contracts will be administered are clearly spelled out in the contract. In most cases, the seller is an external contractor who is bound by a formal contractual relationship.

TRENDS AND EMERGING PRACTICES IN PROCUREMENT MANAGEMENT

There are a number of major trends in software tools, risk, processes, logistics, and technology with different industries that can affect the success rate of projects. Trends and emerging practices for Project Procurement Management include but are not limited to:

TAILORING CONSIDERATIONS

Because each project is unique, the project manager may need to tailor the way that Project Procurement Management processes are applied. Considerations for tailoring include but are not limited to:

CONSIDERATIONS FOR AGILE/ADAPTIVE ENVIRONMENTS

In agile environments, specific sellers may be used to extend the team. This collaborative working relationship can lead to a shared risk procurement model where both the buyer and the seller share in the risk and rewards associated with a project.

Larger projects may use an adaptive approach for some deliverables and a more stable approach for other parts. In these cases, a governing agreement such as a master services agreement (MSA) may be used for the overall engagement, with the adaptive work being placed in an appendix or supplement. This allows changes to occur on the adaptive scope without impacting the overall contract.

12.1 PLAN PROCUREMENT MANAGEMENT

Plan Procurement Management is the process of documenting project procurement decisions, specifying the approach and identifying potential sellers. The key benefit of this process is that it determines whether to acquire goods and services from outside the project and, if so, what to acquire as well as how and when to acquire it. Goods and services may be procured from other parts of the performing organization or from external sources. This process is performed once or at predefined points in the project. The inputs, tools and techniques, and outputs of this process are depicted in Figure 12-2. Figure 12-3 depicts the data flow diagram of the process.

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Defining roles and responsibilities related to procurement should be done early in the Plan Procurement Management process. The project manager should ensure that the project team is staffed with procurement expertise at the level required for the project. Participants in the procurement process may include personnel from the purchasing or procurement department as well as personnel from the buying organization's legal department. These responsibilities should be documented in the procurement management plan.

Typical steps might be:

The requirements of the project schedule can significantly influence the strategy during the Plan Procurement Management process. Decisions made in developing the procurement management plan can also influence the project schedule and are integrated with the Develop Schedule process, the Estimate Activity Resources process, and make-or-buy decisions.

12.1.1 PLAN PROCUREMENT MANAGEMENT: INPUTS

12.1.1.1 PROJECT CHARTER

Described in Section 4.1.3.1. The project charter contains the objectives, project description, summary milestones, and the preapproved financial resources.

12.1.1.2 BUSINESS DOCUMENTS

Described in Section 1.2.6. The business documents include the following:

12.1.1.3 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

12.1.1.4 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

12.1.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can influence the Plan Procurement Management process include but are not limited to:

12.1.1.6 ORGANIZATIONAL PROCESS ASSETS

The various types of contractual agreements used by the organization also influence decisions for the Plan Procurement Management process. The organizational process assets that can influence the Plan Procurement Management process include but are not limited to:

12.1.2 PLAN PROCUREMENT MANAGEMENT: TOOLS AND TECHNIQUES

12.1.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1. Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:

12.1.2.2 DATA GATHERING

A data-gathering technique that can be used for this process includes but is not limited to market research. Market research includes examination of industry and specific seller capabilities. Procurement teams may leverage information gained at conferences, online reviews, and a variety of sources to identify market capabilities. The team may also refine specific procurement objectives to leverage maturing technologies while balancing risks associated with the breadth of sellers who can provide the desired materials or services.

12.1.2.3 DATA ANALYSIS

Data analysis techniques that can be used for this process include but are not limited to make-or-buy analysis. A make-or-buy analysis is used to determine whether work or deliverables can best be accomplished by the project team or should be purchased from outside sources. Factors to consider in the make-or-buy decision include the organization's current resource allocation and their skills and abilities, the need for specialized expertise, the desire to not expand permanent employment obligations, and the need for independent expertise. It also includes evaluating the risks involved with each make-or-buy decision.

Make-or-buy analysis may use payback period, return on investment (ROI), internal rate of return (IRR), discounted cash flow, net present value (NPV), benefit/cost analysis (BCA), or other techniques in order to decide whether to include something as part of the project or purchase it externally.

12.1.2.4 SOURCE SELECTION ANALYSIS

It is necessary to review the prioritization of the competing demands for the project before deciding on the selection method. Since competitive selection methods may require sellers to invest a large amount of time and resources upfront, it is a good practice to include the evaluation method in the procurement documents so bidders know how they will be evaluated. Commonly used selection methods include the following:

12.1.2.5 MEETINGS

Research alone may not provide specific information to formulate a procurement strategy without additional information interchange meetings with potential bidders. By collaborating with potential bidders, the organization purchasing the material or service may benefit while the seller can influence a mutually beneficial approach or product. Meetings can be used to determine the strategy for managing and monitoring the procurement.

12.1.3 PLAN PROCUREMENT MANAGEMENT: OUTPUTS

12.1.3.1 PROCUREMENT MANAGEMENT PLAN

The procurement management plan contains the activities to be undertaken during the procurement process. It should document whether international competitive bidding, national competitive bidding, local bidding, etc., should be done. If the project is financed externally, the sources and availability of funding should be aligned with the procurement management plan and the project schedule.

The procurement management plan can include guidance for:

A procurement management plan can be formal or informal, can be highly detailed or broadly framed, and is based upon the needs of each project.

12.1.3.2 PROCUREMENT STRATEGY

Once the make-or-buy analysis is complete and the decision is made to acquire from outside the project, a procurement strategy should be identified. The objective of the procurement strategy is to determine the project delivery method, the type of legally binding agreement(s), and how the procurement will advance through the procurement phases.

12.1.3.3 BID DOCUMENTS

Bid documents are used to solicit proposals from prospective sellers. Terms such as bid, tender, or quotation are generally used when the seller selection decision is based on price (as when buying commercial or standard items), while a term such as proposal is generally used when other considerations such as technical capability or technical approach are the most important. Specific procurement terminology used may vary by industry and location of the procurement.

Depending on the goods or services needed, the bidding documents can include a request for information, request for quotation, request for proposal, or other appropriate procurement documents. The conditions involving their use are presented below:

The buyer structures procurement documents to facilitate an accurate and complete response from each prospective seller and to facilitate easy evaluation of the responses. These documents include a description of the desired form of the response, the relevant procurement SOW, and any required contractual provisions.

The complexity and level of detail of the procurement documents should be consistent with the value of, and risks associated with, the planned procurement. Procurement documents are required to be sufficiently detailed to ensure consistent, appropriate responses, but flexible enough to allow consideration of any seller suggestions for better ways to satisfy the same requirements.

12.1.3.4 PROCUREMENT STATEMENT OF WORK

The statement of work (SOW) for each procurement is developed from the project scope baseline and defines only that portion of the project scope that is to be included within the related contract. The SOW describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results. Sufficient detail can vary based on the nature of the item, the needs of the buyer, or the expected contract form. Information included in a SOW can include specifications, quantity desired, quality levels, performance data, period of performance, work location, and other requirements.

The procurement SOW should be clear, complete, and concise. It includes a description of any collateral services required, such as performance reporting or post-project operational support for the procured item. The SOW can be revised as required as it moves through the procurement process until incorporated into a signed agreement.

The phrase terms of reference (TOR) is sometimes used when contracting for services. Similar to the procurement SOW, a TOR typically includes these elements:

12.1.3.5 SOURCE SELECTION CRITERIA

In choosing evaluation criteria, the buyer seeks to ensure that the proposal selected will offer the best quality for the services required. The source selection criteria may include but are not limited to:

For international projects, evaluation criteria may include “local content” requirements, for example, participation by nationals among proposed key staff.

The specific criteria may be a numerical score, color-code, or a written description of how well the seller satisfies the buying organization's needs. The criteria will be part of a weighting system that can be used to select a single seller that will be asked to sign a contract and establish a negotiating sequence by ranking all the proposals by the weighted evaluation scores assigned to each proposal.

12.1.3.6 MAKE-OR-BUY DECISIONS

A make-or-buy analysis results in a decision as to whether particular work can best be accomplished by the project team or needs to be purchased from outside sources.

12.1.3.7 INDEPENDENT COST ESTIMATES

For large procurements, the procuring organization may elect to either prepare its own independent estimate or have a cost estimate prepared by an outside professional estimator to serve as a benchmark on proposed responses. Significant differences in cost estimates can be an indication that the procurement SOW was deficient or ambiguous, or that the prospective sellers either misunderstood or failed to respond fully to the procurement SOW.

12.1.3.8 CHANGE REQUESTS

Described in Section 4.3.3.4. A decision that involves procuring goods, services, or resources may require a change request. Other decisions during procurement planning can also create the need for additional change requests. Changes to the project management plan, its subsidiary plans, and other components may result in change requests that impact procurement actions. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

12.1.3.9 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

12.1.3.10 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that are updated as a result of the Plan Procurement Management process include but are not limited to information on qualified sellers.

For projects with few procurements and relatively simple procurements, some of these outputs may be combined. However, for projects with large, complex procurements and where much of the work is done by contractors, there are several different types of documentation. Table 12-1 is a representative list of common types of documents used in procurements and some of their contents. Given the legal nature of procurements, this list should not be considered prescriptive, but rather it should be used as a general outline of types of documents and contents needed to conduct procurement. The organization, environment, and legal constraints dictate the required procurement documents and information needed for the project.

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12.2 CONDUCT PROCUREMENTS

Conduct Procurements is the process of obtaining seller responses, selecting a seller, and awarding a contract. The key benefit of this process is that it selects a qualified seller and implements the legal agreement for delivery. The end results of the process are the established agreements including formal contracts. This process is performed periodically throughout the project as needed. The inputs, tools and techniques, and outputs of the Conduct Procurements process are depicted in Figure 12-4. Figure 12-5 depicts the data flow diagram for the process.

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12.2.1 CONDUCT PROCUREMENTS: INPUTS

12.2.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

12.2.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs for this process include but are not limited to:

12.2.1.3 PROCUREMENT DOCUMENTATION

Procurement documentation provides a written record used in reaching the legal agreement, and may include older documents predating the current project. Procurement documentation can include:

12.2.1.4 SELLER PROPOSALS

Seller proposals, prepared in response to a procurement document package, form the basic information that will be used by an evaluation body to select one or more successful bidders (sellers). If the seller is going to submit a price proposal, good practice is to require that it be separate from the technical proposal. The evaluation body reviews each submitted proposal according to the source selection criteria and selects the seller that can best satisfy the buying organization's requirements.

12.2.1.5 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can influence the Conduct Procurements Process include:

12.2.1.6 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can influence the Conduct Procurements process include but are not limited to:

12.2.2 CONDUCT PROCUREMENTS: TOOLS AND TECHNIQUES

12.2.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:

12.2.2.2 ADVERTISING

Advertising is communicating with users or potential users of a product, service, or result. Existing lists of potential sellers often can be expanded by placing advertisements in general circulation publications such as selected newspapers or in specialty trade publications. Most government jurisdictions require public advertising or online posting of pending government contracts.

12.2.2.3 BIDDER CONFERENCES

Bidder conferences (also called contractor conferences, vendor conferences, and pre-bid conferences) are meetings between the buyer and prospective sellers prior to proposal submittal. They are used to ensure that all prospective bidders have a clear and common understanding of the procurement and no bidders receive preferential treatment.

12.2.2.4 DATA ANALYSIS

A data analysis technique that can be used for this process includes but is not limited to proposal evaluation. Proposals are evaluated to ensure they are complete and respond in full to the bid documents, procurement statement of work, source selection criteria, and any other documents that went out in the bid package.

12.2.2.5 INTERPERSONAL AND TEAM SKILLS

Interpersonal and team skills that can be used for this process include negotiation. Negotiation is a discussion aimed at reaching an agreement. Procurement negotiation clarifies the structure, rights, and obligations of the parties and other terms of the purchases so that mutual agreement can be reached prior to signing the contract. Final document language reflects all agreements reached. Negotiation concludes with a signed contract document or other formal agreement that can be executed by both buyer and seller.

The negotiation should be led by a member of the procurement team that has the authority to sign contracts. The project manager and other members of the project management team may be present during negotiation to provide assistance as needed.

12.2.3 CONDUCT PROCUREMENTS: OUTPUTS

12.2.3.1 SELECTED SELLERS

The selected sellers are those who have been judged to be in a competitive range based on the outcome of the proposal or bid evaluation. Final approval of complex, high-value, high-risk procurements will generally require organizational senior management approval prior to award.

12.2.3.2 AGREEMENTS

A contract is a mutually binding agreement that obligates the seller to provide the specified products, services, or results; obligates the buyer to compensate the seller; and represents a legal relationship that is subject to remedy in the courts. The major components in an agreement document will vary, and may include but are not limited to:

12.2.3.3 CHANGE REQUESTS

Described in Section 4.3.3.4. Change requests to the project management plan, its subsidiary plans, and other components are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

12.2.3.4 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization's change control process via a change request. Components of the project management plan that may require a change request for the project management plan include but are not limited to:

12.2.3.5 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

12.2.3.6 ORGANIZATIONAL PROCESS ASSETS UPDATES

Elements of the organizational process assets that can be updated as a result of the Conduct Procurements process can include:

12.3 CONTROL PROCUREMENTS

Control Procurements is the process of managing procurement relationships; monitoring contract performance, and making changes and corrections as appropriate; and closing out contracts. The key benefit of this process is that it ensures that both the seller's and buyer's performance meet the project's requirements according to the terms of the legal agreement. This process is performed throughout the project as needed. The inputs, tools and techniques, and outputs of this process are depicted in Figure 12-6. Figure 12-7 depicts the data flow diagram of the process.

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Both the buyer and the seller administer the procurement contract for similar purposes. Each is required to ensure that both parties meet their contractual obligations and that their own legal rights are protected. The legal nature of the relationship makes it imperative that the project management team is aware of the implications of actions taken when controlling any procurement. On larger projects with multiple providers, a key aspect of contract administration is managing communication among the various providers.

Because of the legal aspect, many organizations treat contract administration as an organizational function that is separate from the project. While a procurement administrator may be on the project team, this individual typically reports to a supervisor from a different department.

Control Procurements includes application of the appropriate project management processes to the contractual relationship(s) and integration of the outputs from these processes into the overall management of the project. This integration often occurs at multiple levels when there are multiple sellers and multiple products, services, or results involved.

Administrative activities may include:

The quality of the controls, including the independence and credibility of procurement audits, is critical to the reliability of the procurement system. The organization's code of ethics, its legal counsel, and external legal advisory arrangements including any ongoing anti-corruption initiatives can contribute to proper procurement controls.

Control Procurements has a financial management component that involves monitoring payments to the seller. This ensures that payment terms defined within the contract are met and that compensation is linked to the seller's progress as defined in the contract. A principal concern when making payments is to ensure there is a close relationship of payments made to the work accomplished. A contract that requires payments linked to project output and deliverables rather than inputs such as labor hours has better controls.

Agreements can be amended at any time prior to contract closure by mutual consent, in accordance with the change control terms of the agreement. Such amendments are typically captured in writing.

12.3.1 CONTROL PROCUREMENTS: INPUTS

12.3.1.1 PROJECT MANAGEMENT PLAN

Described in Section 4.2.3.1. Project management plan components include but are not limited to:

12.3.1.2 PROJECT DOCUMENTS

Project documents that can be considered as inputs to this process include but are not limited to:

12.3.1.3 AGREEMENTS

Described in Section 12.2.3.2. Agreements are understandings between parties, including understanding of the duties of each party. The relevant agreements are reviewed to verify terms and conditions are met.

12.3.1.4 PROCUREMENT DOCUMENTATION

Procurement documentation contains complete supporting records for administration of the procurement processes. Procurement documentation includes the statement of work, payment information, contractor work performance information, plans, drawings, and other correspondence.

12.3.1.5 APPROVED CHANGE REQUESTS

Described in Section 4.6.3.1. Approved change requests can include modifications to the terms and conditions of the contract, including the procurement statement of work (SOW), pricing, and descriptions of the products, services, or results to be provided. All procurement-related changes are formally documented in writing and approved before being implemented through the Control Procurements process. In complex projects and programs, change requests may come from sellers involved with the project that can influence other involved sellers. The project should have the capability of identifying, communicating, and resolving changes that impact the work of multiple sellers.

12.3.1.6 WORK PERFORMANCE DATA

Described in Section 4.3.3.2. Work performance data contains seller data on project status such as technical performance; activities that have started, are in progress, or have completed; and costs that have been incurred or committed. Work performance data can also include information on the seller invoices that have been paid.

12.3.1.7 ENTERPRISE ENVIRONMENTAL FACTORS

The enterprise environmental factors that can influence the Control Procurements process include but are not limited to:

12.3.1.8 ORGANIZATIONAL PROCESS ASSETS

The organizational process assets that can influence the Control Procurements process include but are not limited to, procurement policies.

12.3.2 CONTROL PROCUREMENTS: TOOLS AND TECHNIQUES

12.3.2.1 EXPERT JUDGMENT

Described in Section 4.1.2.1 Expertise should be considered from individuals or groups with specialized knowledge or training in the following topics:

12.3.2.2 CLAIMS ADMINISTRATION

Contested changes and potential constructive changes are those requested changes where the buyer and seller cannot reach an agreement on compensation for the change or cannot agree that a change has occurred. These contested changes are called claims. When they cannot be resolved, they become disputes and finally appeals. Claims are documented, processed, monitored, and managed throughout the contract life cycle, usually in accordance with the terms of the contract. If the parties themselves do not resolve a claim, it may have to be handled in accordance with alternative dispute resolution (ADR) typically following procedures established in the contract. Settlement of all claims and disputes through negotiation is the preferred method.

12.3.2.3 DATA ANALYSIS

Data analysis techniques that can be used to monitor and control procurements include but are not limited to:

12.3.2.4 INSPECTION

An inspection is a structured review of the work being performed by the contractor. This may involve a simple review of the deliverables or an actual physical review of the work itself. On a construction/engineering/infrastructure project, inspections involve walkthroughs of the site by both the buyer and the contractor to ensure a mutual understanding of the work in progress.

12.3.2.5 AUDITS

Audits are described in Section 8.2.2.5. Audits are a structured review of the procurement process. Rights and obligations related to audits should be described in the procurement contract. Resulting audit observations should be brought to the attention of the buyer's project manager and the seller's project manager for adjustments to the project, when necessary.

12.3.3 CONTROL PROCUREMENTS: OUTPUTS

12.3.3.1 CLOSED PROCUREMENTS

The buyer, usually through its authorized procurement administrator, provides the seller with formal written notice that the contract has been completed. Requirements for formal procurement closure are usually defined in the terms and conditions of the contract and are included in the procurement management plan. Typically, all deliverables should have been provided on time and meet technical and quality requirements, there should be no outstanding claims or invoices, and all final payments should have been made. The project management team should have approved all deliverables prior to closure.

12.3.3.2 WORK PERFORMANCE INFORMATION

Described in Section 4.5.1.3. Work performance information includes information on how a seller is performing by comparing the deliverables received, the technical performance achieved, and the costs incurred and accepted against the SOW budget for the work performed.

12.3.3.3 PROCUREMENT DOCUMENTATION UPDATES

Procurement documentation that may be updated includes the contract with all supporting schedules, requested unapproved contract changes, and approved change requests. Procurement documentation also includes any seller-developed technical documentation and other work performance information such as deliverables, seller performance reports and warranties, financial documents including invoices and payment records, and the results of contract-related inspections.

12.3.3.4 CHANGE REQUESTS

Described in Section 4.3.3.4. Change requests to the project management plan, its subsidiary plans, and other components such as the cost baseline, schedule baseline, and procurement management plan, may result from the Control Procurements process. Change requests are processed for review and disposition through the Perform Integrated Change Control process (Section 4.6).

Requested but unresolved changes can include direction provided by the buyer or actions taken by the seller, which the other party considers a constructive change to the contract. Since any of these constructive changes may be disputed by one party and can lead to a claim against the other party, such changes are uniquely identified and documented by project correspondence.

12.3.3.5 PROJECT MANAGEMENT PLAN UPDATES

Any change to the project management plan goes through the organization's change control process via a change request. Components that may require a change request for the project management plan include but are not limited to:

12.3.3.6 PROJECT DOCUMENTS UPDATES

Project documents that may be updated as a result of carrying out this process include but are not limited to:

12.3.3.7 ORGANIZATIONAL PROCESS ASSETS UPDATES

Organizational process assets that can be updated as a result of the Control Procurements process include but are not limited to: