Procurement Management 12.4 Close Procurements

Quick Link to Procurement Management

Procurement Management 12.1 Plan Procurements

Procurement Management 12.2 Conduct Procurements

Procurement Management 12.3 Administer Procurements

Procurement Management 12.4 Close Procurements

12.4 Close Procurements

Contract closure supports the close project or phase process (integration management, Section 4.6). It involves product verification (was the work completed correctly?) and administrative closeout (updating and archiving of records). Early termination is a special case of contract closure and can result from a mutual decision, from default by one of the parties, or for convenience of the buyer. The rights of the parties should be defined in a terminations clause in the contract.

Close Procurements
Inputs	Tools	Outputs
1.       Project management Plan 2.       Procurement documentation	1.       Procurement audits 2.       Negotiated settlements 3.       Records management system	1.       Closed procurements 2.       OPA updates

Two Key Inputs for Close Procurements:

1.       Project Management Plan: section 4.2.3.1.

2.       Procurement Documentation: All documentation is collected, indexed, and filed according to established procedures. The information can be used for lessons learned, estimating future contracts, and evaluating contractors for future procurements.

Three Key Tools for Close Procurements:

1.       Procurement Audits: Structured reviews of the procurement process to identify successes and failures. The information is used to improve the current project, future projects, and the overall organization. Procurement audits are also known as lessons learned in some areas.

2.       Negotiated Settlements: Final settlement of outstanding issues, claims, and disputes using negotiation if possible. Alternate dispute resolution is used only when necessary.

3.       Records Management System: Described in Section 12.3.2.7.

Two Key Outputs for Close Procurements:

1.       Closed Procurements: The buyer provides formal, written notice that the contract has been completed.

2.       Organizational Process Assets Updates: Should include the following:

·         Procurement file: An official, complete set of indexed contract documentation.

·         Deliverable acceptance: Formal, written notice that deliverables have been accepted or rejected. Instructions on how to handle non- conforming deliverables should be provided.

·         Lessons learned documentation: Post-project evaluation is important because it provides historical records that help in contractor selection on future contracts (a past performance database to support the select sellers process).