Provide information on the project and document:

• Project Name and Reference
• Document information: ID, owner, issue date, last saved date, file name or path
• Document history: version, issue date, changes.
• Document approvals: role, name, signature, date

Describe how the goods and services for the project will be purchased, this could include a flow chart. For example:

The supplier of the core product will be chosen via a tendering process. The requirements will form the backbone of an RFP, which will be sent to suppliers recommended by Gartner. The successful response will move to a SOW with time and material being the preferred contract type.

Wherever possible internal resources will be used. Credit cards can be used for one off items below 1.5k e.g. venues, food, printing.

One month post project go live the supplier and product will move into BAU with performance any non-compliance issues managed by the Contract and Supplier Management team.

Include a description or flow diagram of your procurement process. For example:

Describe the types of contracts that will be used during the project. For example, firm fixed price, fixed price incentive fee, cost plus, milestone payments, time and materials.

Document the procurement and contract risks. For example, inability of vendors to meet requirements, RFP submission errors, procurement system failure and/or poor evaluation process. You could use a table like the one below:

List the procurement milestones. For example, requirements completion, RFP’s sent, RFP submission deadline, evaluation completion. You could use a table like the one below.

Describe how the supplier’s activities will integrate with the project scope, schedule, risk management, documentation, and reporting. For example:

Include the metrics that will be used in managing and evaluating the suppliers and contracts. Here are some examples of performance metrics:

• Quantity ordered vs quantity received.
• Delivery on time.
• Ordered price versus invoiced price.
• Percentage of units/tests failing inspection vs. total inspected units/tests.
• Returns rate metrics.
• Order fill rate metrics.
• Lead-time variance metrics.
• Software downtime.

Document the role and responsibilities of the people involved in procurement, including how much spend they can approve. An example is below:

Note any procurement assumptions that will be made, along with any constraints. For example:

It is assumed that day-to-day equipment and services for the running of the project will be available through existing provision. For example, office space or working from home space, wifi, stationary, laptops, online document repository, scheduling software, Microsoft Office or compatible equivalent, projectors, printers, teleconferencing and video conferencing services.

State which location has legal jurisdiction and which currency will be used. For example, European Union (Euro) or US (USD).

For some projects, the cost estimates are reviewed and validated by an independent team.

If independent estimates are going to be used explain who will be responsible for the estimates, the process, and the timeline.

List any prequalified sellers that will be used on the project.