2-1.3 Components of a Purchase Plan

As discussed above, a purchase plan should be concise and informative, providing a clear understanding of the best value sought and the business processes that will be used to attain that value. The following list shows the components a plan may address, but purchase/SCM teams should address only those relevant to the particular purchase:

• Purpose of purchase.
• Purchase history.
• Statement of objectives (SOO), statement of work (SOW), specifications.
• Sustainability.
• Price estimate and funding availability.
• Total cost of ownership.
• Delivery schedule/period of performance (including options and/or renewals).
• Market research.
• Supplier diversity.
• Purchase method.
• Contract type.
• Prequalification.
• Source selection strategy.
• Technical evaluation.
• Price/Cost analysis.
• Special considerations.
• Privacy protection and security considerations (including information technology).
• Subcontracting plan.
• Supplier reporting.
• Quality assurance/warranty.
• Payment.
• Data rights and intellectual property.
• Life-cycle support.
• Required property or facilities.
• Conflicts of interest.
• Supply chain management impact.
• Key milestones/schedule.
• Risk and risk management.
• Required reviews and approvals.