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Module 3 - Classify Procurements
Module 3 - Classify Procurements
Management
Module 3: Classify Procurements
Dr. Khalid Ahmad Khan
Project Procurement Framework
Project
Buy
Procurement Procurements
1. Classify procurement: Make
or Buy
• One could easily separate a project into two distinct parts:
• Make: portion which will be done with your own company
employees
• Authorized by the project manager with use of non-legal
documents typically called work authorizations or budgets
• Directly controlled by company
• Buy: portion which will be sent outside of your company for
performance
• Governed strictly by the legal document the buyer has
issued called the contract, or subcontract, or purchase
order
• No direct control by company
2. Classify Buy Items by Complexity
Project
Make Buy
Generic Special
Major Complexity Minor Complexity COTS Teaming Interdepartmental
1. Major (high risk) complexity procurements,
the purchase of something which does not
exist, tailored to the project's unique
specification. These would be considered
critical sub-projects.
2. Minor (low risk) complexity procurements,