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ProFM: Procurement

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  • Post last modified:July 21, 2020

Procurement is one of the 19 functional FM knowledge areas that are categorized into four key knowledge domains.

Definition: Procurement is the activity of acquiring goods or services from suppliers.

Procurement is an essential part of a facility manager’s job. A facility manager may be providing service to a parent organization (of which FM is one function) or to a client/customer organization (which purchases FM as a service). A facility manager’s role in procurement for a parent organization starts with securing a budget to make purchases.

FM and the procurement department work together to bring goods or services into the organization: from needs identification, through research, cost comparison, and analysis, to selecting good, competent suppliers.

Key Concepts:

  • Definitions of procurement and sourcing.
  • Procurement goals.
  • Strategic procurement considerations and policies.
  • Proposal submission process types.
  • Procurement process/stages.
  • Bid evaluation criteria.
  • Bid evaluation procedures.
  • Roles of FM and procurement department.
  • Service level agreements (SLAs).
  • Monitoring supplier performance.
  • Outsourcing advantages and disadvantages.
  • Outsourcing process.
  • Management contractor types.
  • Balanced scorecard.

Procurement Proficiency Indicators (Task Statements)

  • Demonstrates knowledge of rules and requirements for purchasing products and services.
  • Assists in development of procurement strategy and policies.
  • Establishes source selection criteria for evaluating and choosing resources (e.g., commodity and services).
  • Develops requests for information (RFIs) and requests for proposal (RFPs).
  • Participates in due diligence analysis.
  • Provides technical support to the organization’s procurement process.
  • Identifies and interfaces with internal and external accountable resources (e.g., external vendors, internal or external IT systems owners).
  • Obtains quotes and tenders from vendors and suppliers.
  • Selects vendors and suppliers that allow for sustainable sourcing.
  • Creates an effective statement of work (SOW) to ensure proper procurement of a product or service.
  • Establishes performance criteria for evaluating contracted resources.


Image by mohamed Hassan from Pixabay

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