What do you think should be Project Procurements added contribution in Essay

What do you think should be Project Procurements added contribution in the likely difficult economic climate for business in 2012 - Essay Example The Project Management Institute (2004, 269) defines this as the process of acquiring or purchasing the results, products or services required from outside the team members of the project to perform the work. The essay will discuss the added value that project procurement may bring in the volatile and diffi9cult 2012 business environment. In order to understanding the added value that comes with project procurement, one needs to properly understanding the project procurement process. The first steps involved in the process include planning, acquisitions and purchases (Walker and Rowlinson, 2008). In this stage, the needs of the project that require outsourcing are identified after which the sources for obtaining the required results, goods or services are differentiated by conducting a market analysis.The next step is planning the procurement as noted by Walker and Rowlinson (2008). Here, the objectives of the project are reviewed to ensure that the acquisition activities do not differ from the objectives of the project. Wysocki et al. (2000) explain that the completion of this step includes pointing out the resources required for the acquisition to take place, the determination of the type of contract to be engaged in so as to secure the acquisition, and finally, procurement management plan preparation. The other three steps that need to be completed before project procurement is conducted are requesting seller responses, selecting sellers, and contract planning according to Wysocki et al (2000). In contract planning, the products or services required are described in detail. Vendors are then identified and the best is chosen based on their ability to provide the results, goods or services required (Cheung et al, 2001).After successful vendor selection, the contract is negotiated. This is the forth step, also known as contract administration. This is when the