PMBOK Procurement Management

Overview

The PMBOK Procurement Management skill supports the elaboration of documents for the Procurement Management knowledge area — purchasing or acquiring products, services, or results needed from outside the project team. It covers procurement management plans defining strategy, contract types, and vendor management approach; make-or-buy analyses comparing self-perform vs. outsource with full cost-risk-capability assessment; procurement statements of work with detailed acceptance criteria; source selection criteria with weighted evaluation frameworks; bid evaluation matrices scoring vendors transparently; contract type guidance (FFP, FPIF, T&M, CPFF, CPIF, CPAF) matched to scope maturity and risk profile; RFP/RFQ/IFB outlines; and procurement performance reports tracking deliverables, cost, schedule, and vendor quality.

Getting Started

Upload your project scope, WBS, or preliminary vendor requirements to the workspace and activate the PMBOK Procurement Management skill. The agent will ask about organizational procurement policies, estimated procurement value, and regulatory constraints (public sector rules, trade regulations). It then guides you through the procurement lifecycle — from deciding what to procure, through vendor selection, to contract management and closeout.

Example Conversation

Below is an example of a typical session creating a make-or-buy analysis and bid evaluation matrix for outsourcing IT infrastructure management.

You: We’re considering outsourcing our IT infrastructure management — data center operations, network monitoring, and end-user support for 500 employees. Current in-house team is 8 people. Annual cost is approximately $1.4M. I need a make-or-buy analysis and, if the recommendation is to buy, a bid evaluation matrix we can use to score vendors.

Agent: I’ll structure the make-or-buy analysis across five dimensions: cost, capacity, risk, schedule, and strategic alignment. Let me gather some details:

1. What is driving the outsourcing consideration — cost reduction, capability gap, or strategic refocus?
2. Are there compliance requirements (e.g., SOC 2, ISO 27001, GDPR) that the vendor must meet?
3. What is the contract duration you’re considering — 1 year, 3 years, 5 years?
4. Is there a preference for on-shore, near-shore, or off-shore?

You: Main driver is strategic refocus — we want the IT team to focus on digital transformation projects rather than keeping the lights on. Vendor must be SOC 2 Type II certified and GDPR compliant. We’re thinking 3-year contract with annual renewal option. Prefer on-shore or near-shore (EU-based is fine).

Agent: I’ve completed the analysis. Here’s the summary:

Make-or-Buy Recommendation: BUY (outsource) with the following rationale:

• Cost: Estimated outsourced cost $1.1M–$1.3M/year vs. $1.4M current (potential 7–21% savings), but total cost of ownership including transition costs and retained management overhead reduces net savings to 5–15%
• Capacity: Current team is at 95% utilization with no redundancy. Outsourcing provides elastic capacity and 24/7 coverage (currently only business hours)
• Risk: Vendor dependency is a concern, mitigated by clear SLAs, penalty clauses, and exit strategy. IP risk is low for infrastructure operations
• Strategic alignment: Strongest factor — frees 6 of 8 FTEs to redeploy to digital transformation initiatives (2 retained for vendor management and escalation)

I’ve also prepared the bid evaluation matrix with 6 weighted criteria totaling 100%. Recommended contract type: Fixed Price Incentive Fee (FPIF) — the scope is well-defined (infrastructure operations have predictable baselines), and the incentive fee motivates continuous improvement and cost optimization.

Document Excerpt

Below is a representative excerpt from a make-or-buy analysis with bid evaluation matrix drafted with the skill.

Make-or-Buy Analysis — Excerpt

Subject: IT Infrastructure Management (Data Center Ops, Network Monitoring, End-User Support) Current Annual Cost: $1,400,000 | Team Size: 8 FTEs

Analysis Summary

Recommendation: BUY — outsource IT infrastructure management on a 3-year FPIF contract.

Bid Evaluation Matrix

Recommendation: Vendor C (InfraPlus) — highest overall score (8.50), strongest technical capability with ISO 20000 certification, fastest transition plan, and best SLA commitments. Proceed to contract negotiation.

This excerpt is illustrative. Final content must reflect the specific project’s procurement requirements, vendor landscape, and organizational policies.