The overall function of contract management includes various phases which are;
Procurement Planning: This involves the process of identifying which business needs can be best met by procuring products or services outside the organization. This process involves determining whether to procure, how to procure, what to procure, how much to procure, and when to procure (Garrett & Rendon, 2005).
2. Solicitation Planning involves the process of preparing the documents needed to support the solicitation. This process involves documenting program requirements and identifying potential sources (Garrett & Rendon, 2005).
3. Solicitation is the process of obtaining information (bids and proposals) from the prospective sellers on how project needs can be met (Garrett & Rendon, 2005).
4. Source Selection is the process of receiving bids or proposals and applying the proposal evaluation criteria to select a supplier (Garrett & Rendon, 2005). The source selection process includes the contract negotiations between the buyer and the seller in attempting to come to agreement on all aspects of the contract, to include cost, schedule, performance, terms and conditions, and anything else related to the contracted effort.
5. Contract Administration is the process of ensuring that each party’s performance meets the contractual requirements (Garrett & Rendon, 2005).
Contract Closeout is the process of verifying that all administrative matters are concluded on a contract that is otherwise physically complete (Garrett & Rendon, 2005).