The Complete Project Management Office Handbook, Second Edition (ESI International Project Management Series)

The accomplishment of vendor/contractor oversight should be a distinct activity in every project management environment: for large PMOs, small PMOs, and no PMOs. Vendor/contractor activity must be managed as a means of achieving the prescribed business interests and objectives of the relevant organization. Vendor/contractor activity that is not managed only achieves vendor/contractor business interests and objectives. To that end, there are a few activities that the smaller PMO can contribute with regard to managing the vendor/contractor relationship.

The smaller PMO should formally or informally pursue the following basic vendor/contractor relationship management activities:

• Identify and categorize vendor/contractor project participation: This activity is useful to identify current vendor/contractor participation and activities within the project management environment. It could provide discovery of redundant vendor/contractor contracts, make project managers aware of vendor/contractor availability for their projects, and account for costs associated with one or more project efforts.

• Compile vendor/contractor information: Establish information on current and prospective vendor/contractor relationships. The more that is known, the better the vendor/contractor selection decisions will be. In particular, compile historical information on current vendor/contractor relationships. The smaller PMO may not have the responsibility or capability to conduct detailed vendor/contractor analyses, but having pertinent vendor/contractor relationship information will still provide fundamental insight to vendor/contractor performance. The PMO should incorporate all information collected into the project knowledge management system for access by project managers having needs for vendor/contractor products and services.

• Develop vendor/contractor management guidance: The PMO should develop and document the prescribed common process for vendor/contractor acquisition and management, ideally for incorporation in the project management methodology. This can be accomplished in collaboration with project managers and business unit representatives within the relevant organization. The initial elements of early process development should include:

  • Determination of vendor/contractor needs

  • Vendor/contractor selection

  • Vendor/contractor performance management

  • Vendor/contractor contract administration

The PMO should facilitate the introduction and use of the established vendor/contractor relationship management process as a single project management activity or as a part of the overall project management methodology deployment effort.