Chapter 18 PURCHASING Recall the full procurement cycle includes: Procurement planning - determining what to procure and when Solicitation planning - documenting product requirements and identifying potential sources Solicitation - obtaining quotations, bids, offers, or proposals as appropriate Source selection - choosing from among potential sellers Contract administration - managing the relationship with the dealer Contract close-out - completion and settlement of the contract, including resolution of any open terms The Purchasing Department is often not intimately involved with projects, which is surprising considering the potential impact of purchasing activities. The PM should ensure that purchasing is brought into the project early. He should also ensure that he can work well with this department to take advantage of their knowledge and skills. In a projectized company, sometimes purchasing departments do not even exist. In this case, the project team must perform this function. The information in Chapter 6 should be considered seriously and the legal department should be consulted. 260 Purchasing Contract Close out In the final stage the team closes the contract by: verifying that the product or service meets the specifications or requirements, and if necessary, following up with the vendor re any gaps or missing material. documenting all aspects of contract management and vendor management auditing the product/ service provision to ensure that everything was handled properly, and evaluating the supplier and the relationship, as input to further teams or individuals who might deal with this supplier in the future. . knowledge and skills. In a projectized company, sometimes purchasing departments do not even exist. In this case, the project team must perform this function. The information in Chapter 6 should be. intimately involved with projects, which is surprising considering the potential impact of purchasing activities. The PM should ensure that purchasing is brought into the project early. He should. Chapter 18 PURCHASING Recall the full procurement cycle includes: Procurement planning - determining