RESPONSE: 5-1 Discussion: Project Procurements With EVM 420 (WR)

DBR5-1 (WR)


5.The purchased items must be received, inspected, accepted, or the purchased services verified. This consists of taking physical possession of the commodities and/or of verifying their satisfactory completion. Various functions perform this work.


The work described in this event must be broken down into separate tasks. When an item from a procurement is received this item needs to be inspected and accepted and put into inventory for use on the project. A project team member could be given this responsibility to track incoming procurement items. These items can be cataloged and then given to the team to incorporate into the project. IF the procurement is a service, the team member can verify that the service has been completed and will function as necessary when incorporated into the project.

Completing the receipt of a procured item can be estimated in terms of cost by a purchase order. When an item is received usually it is documented on a purchase order and that is verified to be accurate to the cost of the item that comes with an invoice. When the invoice and purchase order are matched, accounting can then process payment to the seller. In terms of earned value, the “value” of the item and what it will allow the project to accomplish can be estimated by its usefulness to the project requirements. If the items will help achieve a requirement of produce a deliverable its
“value” will be combined into the final deliverable. If the procurement is a service, the “value” of the service will also be incorporated in the production of the final deliverable. This earned value can be measured when the procurement is obtained, (product or service) or it can be measure at another stage as it is incorporated into the end result of the project.


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