<Project Name>

Budget, Procurement and Vendor Management Plan

Budget, Procurement and Vendor Management Plan Template Instructions

(Please remove this section before completion of template)

The Budget, Procurement, and Vendor Management Plan specifies the controls that are agreed upon by the Project Manager(s) to address the funding and cost monitoring of the budget, the procurement and invoicing of vendor goods and services, and how the vendor (s) will be managed.

Be sure to maintain version control as the plan is modified and/or edited.

All instructions within the template are italicized within the document.

Any examples are in a red font.

Any portion of the template that does not fit or pertain to your project should be documented that it was reviewed and is not relevant. See below for requirements for a project and deliverable approvals.

Be sure to unlock TOC by selecting TOC then Ctrl-Shift-F11 to enable TOC update in Word docx.

Project Deliverable	Requirements by Project Size
Planning/Development Phase	Large	Medium	Small	Requirements	Approvals
Budget, Procurement & Vendor Management Plan	R	O	O	The Budget, Procurement and Vendor Management Plan is required for large scale projects and optional for medium and small scale projects.	The completed plan MUST be signed-off by the Project Manager, Co-Project Manager (if assigned), and budget fiscal officer. Any change to the funding amounts shall require formal Steering Committee approval.

Table of Contents

1.	Version Control	2

2.	Budget	3

2.1	Funding:	3

2.2	Cost Monitoring & Controls:	3

3.	Procurement	3

3.1	Procurement of Goods & Services:	3

4.	Vendor Management	4

4.1	Single Point of Contact:	4

4.3	Purchase Orders:	4

4.4	Vendor Invoices:	4

5.	Budget Closure	5

5.1	Funding	5

6.	Approval	6

Version Control

Version	Date	Person	Change
1.0	Initial Document Creation

Budget

Funding:

The plant fund index is xxxxxx. It has been set up for fund availability in FY XX.

The expended capital is $XXX, XXX and the remaining capital budgeted for FY XX budget is $XXX, XXX, for a total project implementation fund of $XXX, XXX.

The fiscal officer for this project/plant fund is {NAME}, {TITLE}.

Cost Monitoring & Controls:

It is the responsibility of the Project Managers (IST: {NAME} & Department: {NAME}) to monitor all expenditures against this plant fund. During the project implementation, regular status updates shall be given to the Steering Committee summarizing actual costs and project completion estimates.

Any change to the above referenced funding amounts shall require formal Steering Committee approval.

Procurement

Procurement of Goods & Services:

No purchase order or contract shall be issued against this plant fund without the approval of both project managers. Additional approvals from senior management may also be required.

No invoice shall be paid to any vendor for goods or services without the approval of both project managers. Additional approvals from senior management may also be required.

Vendor Management

Single Point of Contact:

A single point of contact has been set up with the vendors. {NAME} as the IST PM, shall be the main point of contact during the implementation of this project. The IST PM is obligated to provide regular status updates to the Co-Project Manager.

IST PM shall maintain a centralized vendor contact list which includes detailed contact information and management escalations.

Vendor Quotations

All quotations shall be reviewed by both project managers for completeness against project requirements. Prior to purchasing, final vendor quotes shall be reviewed by any team member deemed necessary, but at a minimum, both project managers must approve the quote before PO issuance.

Purchase Orders:

As stated above, all purchase orders, at a minimum, shall be approved by both project managers.

Vendor Invoices:

As stated above, NO vendor invoices shall be paid unless both project managers have approved payment. All invoices to be reviewed against completeness or delivery of services and goods per the established purchase order or contract obligations.

Budget Closure

Funding

Close out vendor invoices.

Update Salary Information.

Confirm that PO’s have been closed

Cross Reference Banner Reports

Project/Sponsor Closure

Meet with Sponsor, Owner and Finance to transition Index/Fund

Complete Budget Closure Memo

Approval

The individuals below agree that they have reviewed and approved the plan outlined in this Support Documentation.

APPROVED BY:
Function Role	Name and Title	Signature	Date

[REMOVE THE FOLLOWING PAGES AFTER COMPLETING THE PLAN]

BUDGET, PROCUREMENT and VENDOR MANAGEMENT PLAN

The Budget, Procurement, and Vendor Management Plan specifies the controls that are agreed upon by the Project Manager(s) to address the funding and cost monitoring of the budget, the procurement and invoicing of vendor goods and services, and how the vendor (s) will be managed.

Enter Project Name – Specify a name for the project to be called by the organization.

Plan – The management plan is meant to be changed to fit the needs of each specific project. Use the example provided below and modify to accommodate the Project Manager’s concerns.

Approvals – The complete plan must be signed-off by the IST project manager, co-project manager (if assigned), and budget fiscal officer.

Project Management Office

EXAMPLE

Placeholder

Budget, Procurement and Vendor Management Plan The e-Procurement Project

Table of Contents

1.	Version Control	2

2.	Budget	2

2.1	Funding:	2

2.2	Cost Monitoring & Controls:	2

3.	Procurement	2

3.1	Procurement of Goods & Services:	2

4.	Vendor Management	2

4.1	Single Point of Contact:	2

4.3	Purchase Orders:	2

4.4	Vendor Invoices:	2

5.	Budget Closure	2

5.1	Funding	2

6.	Approval	2

Version Control

Version	Date	Person	Change
1.0	Initial Document Creation

Budget

Funding:

The plant fund index is 980762. It has been set up for fund availability in FY 2008 and FY 2009.

The expended capital for FY 2008 is $495,450 and the remaining capital budgeted for FY 2009 budget is $766,410, for a total project implementation fund of $1,359,400.

The fiscal officer for this project/plant fund is Thomas Kenyon, Vice President, Supply Chain.

Cost Monitoring & Controls:

It is the responsibility of the Project Managers (IST: Frances Haies & Purchasing: Larry D’Ambrosa) to monitor all expenditures against this plant fund. During the project implementation, regular status updates shall be given to the Steering Committee summarizing actual costs and project completion estimates.

Any change to the above referenced funding amounts shall require formal Steering Committee approval.

Procurement

Procurement of Goods & Services:

No purchase order or contract shall be issued against this plant fund without the approval of both project managers. Additional approvals from senior management may also be required.

No invoice shall be paid to any vendor for goods or services without the approval of both project managers. Additional approvals from senior management may also be required.

Vendor Management

Single Point of Contact:

A single point of contact has been set up with the vendors. Frances Haies as the IST PM, shall be the main point of contact during the implementation of this project. The IST PM is obligated to provide regular status updates to her colleague, Purchasing PM, Larry D’Ambrosa. Purchasing PM shall be invited to attend all meetings or conference calls with any vendor.

IST PM shall maintain a centralized vendor contact list which includes detailed contact information and management escalations.

Vendor Quotations

All quotations shall be reviewed by both project managers for completeness against project requirements. Prior to purchasing, final vendor quotes shall be reviewed by any team member deemed necessary, but at a minimum, both project managers must approve the quote before PO issuance.

Purchase Orders:

As stated above, all purchase orders, at a minimum, shall be approved by both project managers.

Vendor Invoices:

As stated above, NO vendor invoices shall be paid unless both project managers have approved payment. All invoices to be reviewed against completeness or delivery of services and goods per the established purchase order or contract obligations.

Budget Closure

Funding

The project manager(s) will work with the vendor to confirm that all invoices have been closed out.

The project manager(s) will work with sponsor to determine that all Salary Information has been updated.

The project manager(s) will confirm with finance that PO’s have been closed out and completed.

The recourses that will be used for this process will be to cross reference Banner Reports

Project/Sponsor Closure

Meet with Sponsor, Owner and Finance to transition Index/Fund

Complete Budget Closure Memo

Approval

The individuals below agree that they have reviewed and approved the plan outlined in this Support Documentation.

APPROVED BY:
Function Role	Name and Title	Signature	Date