According to the PMBOK® Guide and the Plan Procurement Management process, once the organization decides whether to produce a product or service internally or purchase it from external sources (Make-or-Buy Analysis), the next logical step is to determine the approach for the purchase.
The Procurement Strategy is the document that specifically defines:
Delivery Methods: For professional services, this might include options like " no-subcontracting, " " joint venture, " or " regional liaison. " For construction, it could include " Design-Build (DB) " or " Design-Bid-Build (DBB). "
Contract Types: Selection of the specific contract category (Fixed-price, Cost-reimbursable, or Time and Material).
Procurement Phases: The sequencing or stages of the procurement process.
Analysis of other options:
A. Procurement Statement of Work (SOW): This describes the procurement item in sufficient detail to allow prospective sellers to determine if they are capable of providing the products, services, or results. It focuses on the " what, " whereas the Strategy focuses on the " how " (delivery method).
C. Terms of Reference (TOR): This is similar to the SOW and is often used when contracting for services. It includes tasks, standards, and data requirements, but does not define the overarching project delivery method.
D. Change Request: A make-or-buy decision might result in a change request to modify the project management plan, but the change request itself is the vehicle for change, not the document that defines the delivery method strategy.
In the PMI framework, the Procurement Strategy is a primary output of the planning phase that bridges the gap between the decision to buy and the execution of the solicitation.
