SUBCONTRACT MANAGEMENT PLAN

Use the following outline to prepare a comprehensive Subcontracting Plan.

1.0 OVERVIEW

The Subcontracting Plan explains the overall project approach to using third-party suppliers on the project. Third-party suppliers may provide hardware, perform services, or develop and provide software used in the system. COMPANY responsibility for supplier management is to ensure that all subcontracted elements are fully integrated into the overall system and that they are managed integrally throughout the project.

Explain the project approach to using subcontractors, and generally describe which project elements will be performed by third-party suppliers. Describe generally the process of managing those suppliers.

2.0 PROJECT ELEMENTS TO BE SUBCONTRACTED

Use the WBS to identify which WBS elements will be subcontracted. Describe why those elements will be performed by subcontractors and why COMPANY cannot or should not do the work internally. For each element, discuss the specific requirements for the subcontractor. Provide a schedule showing when subcontracts will be awarded for each element.

3.0 IDENTIFICATION AND SELECTION OF SUBCONTRACTORS

Discuss the process by which subcontractors will be selected. If subcontractors will be competitively selected, identify which COMPANY organizations will be responsible for preparing statements of work and other requirements documentation. Typically, they will be the organizations that have responsibility (shown in the Responsibility Matrix) for the WBS elements being subcontracted.

For each WBS element to be subcontracted, identify the third-party supplier that will perform the work. If that supplier is already known, there is usually no need for a formal procurement procedure.

4.0 SUBCONTRACT MANAGEMENT

4.1 Discuss the overall process for managing the subcontracts. What COMPANY organizations will provide legal and contracting support? Who will be responsible for administering subcontract changes and modifications? Who will review progress and approve payment of supplier invoices?

4.2 As each subcontract is awarded, establish a Subcontract Tracking Summary in a file for that subcontract. Use the summary to record the progress of the subcontract throughout its life.

4.3 Assign a Project Team member or organization the responsibility for managing each subcontract. Identify the responsible parties in this section of the Subcontracting Plan, as well as on each Subcontract Tracking Summary.

5.0 SUPPLIER PARTICIPATION IN PROJECT MANAGEMENT

Discuss the level of supplier participation in the project management process. Some suppliers may be responsible for major portions of the project. If this is the case, there should be a representative from those suppliers on the Project Steering Committee to facilitate project control and communication. Discuss supplier input to the project management information system. Discuss the level of reporting required from suppliers, and ensure that the input and reports are listed as contractual requirements in the subcontracts.