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Government Extension

A Guide to the Project Management

Body of Knowledge (PMBOK® Guide) – 2000 Edition

EXPOSURE DRAFT

October 2001

© 2001 Project Management Institute

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Government Extension to
A Guide to the Project Management Body of Knowledge
Exposure Draft © 2001 Project Management Institute

CONTENTS

Contents ........................................................................................................................................... i
Preface............................................................................................................................................. 1
1. Introduction............................................................................................................................. 3
2. The Project Management Context .......................................................................................... 7
3. Project Management Processes............................................................................................... 9
4. Project Integration Management........................................................................................... 10
5. Project Scope Management................................................................................................... 13
6. Project Time Management.................................................................................................... 15
7. Project Cost Management ..................................................................................................... 17
8. Project Quality Management ................................................................................................ 20
9. Project Human Resource Management................................................................................. 23
10. Project Communications Management ................................................................................. 27
11. Project Risk Management ..................................................................................................... 31
12. Project Procurement Management........................................................................................ 37
Glossary ........................................................................................................................................ 43
Appendix A. Government Extension Team.................................................................................. 45
Appendix B: Notes........................................................................................................................ 47

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Government Extension to
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PREFACE
Appendix E of A Guide to the Project Management Body of Knowledge (PMBOK® Guide – 2000 Edition)
recognizes that there are generally accepted best practices for particular types of projects. It suggests that application
area extensions be written for each project type. This is the exposure draft of an application area extension for
government projects.

Please note that this is strictly an extension to the PMBOK® Guide – 2000 Edition. This means that there are limits
on what can be included. These are:

CHAPTERS 1 THROUGH 3 (INTRODUCTION, CONTEXT, AND PROCESSES): Refer to specific sections of

these chapters and describe features that are peculiar to government projects.

CHAPTERS 4 THROUGH 12: Changes can take one of two forms:

A. INTRODUCTION: Describe features of the chapter's subject that are peculiar to government projects.

B. LEVEL 4 ITEMS: Apart from the introductions, changes to Chapters 4 through 12 should be at level 4.
(Examples: The first level 4 item in Chapter 4 is 4.1.1.1 “Other Planning Outputs.” The last level 4 item in Chapter
12 is 12.6.3.2 “Formal Acceptance and Closure.”) You may add to the discussion of an existing level 4 item,
describing features that are peculiar to government projects. You may also add new level 4 items that are peculiar to
government projects. And you may state that particular level 4 items in the PMBOK® Guide – 2000 Edition do not
apply to government projects.

EVOLUTION OF THE GOVERNMENT EXTENSION

In October 1998 the PMI Government Specific Interest Group (SIG) appointed Nigel Blampied as project manager
of the Government Extension. Over the course of the following year, articles were published in the SIG newsletter
both to recruit team members and to begin a discussion on the features that make government projects unique.

A project work breakdown structure was prepared in September 1999, and the PMI Standards Member Advisory
Group approved a project charter in January 2000.

The team began to assemble in August 1999, mainly in response to articles in the SIG newsletter. Team members
are listed in Appendix A. All team members are volunteers, and they come from eight countries. The team includes
project managers from all levels of government—national, regional, and local. They manage projects in several
fields, including agriculture, education, energy, health and human services, labor, and transportation.

Each team member was asked to join one or more of the twelve chapter teams, and a lead author was assigned to
each chapter. Lead authors were responsible for the successful completion of a particular chapter and wrote the first
draft of the chapter. Co-authors contributed ideas and text to the chapter.

Draft 1 of each chapter was submitted to the full team as it was completed. This took place between July and
November 2000. Team members responded with 123 recommended amendments. The team evaluated these
proposed amendments, approved ninety-one, and decided that thirty-two were unpersuasive. Draft 1 with the ninety-
one amendments became Draft 2.

In December 2000, Draft 2 was submitted to all the members of the Government SIG with known email addresses.
SIG members responded with 173 recommended amendments. A core team evaluated these proposed amendments,
approved 153, and decided that ten were unpersuasive. Draft 2 with the 153 amendments became Draft 3. After
editorial corrections Draft 3 became the exposure draft.

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Draft 3 was submitted to a panel of Subject Matter Experts in July 2001. The panel reviewed the draft, gave it a
generally positive review and recommend that it proceed to the exposure draft. Panel members proposed thirteen
specific amendments, and the team incorporated eleven of these into the document.

1. INTRODUCTION
A Guide to the Project Management Body of Knowledge1 (PMBOK® Guide – 2000 Edition) describes the principles
of project management that are generally accepted for all types of projects. Throughout this document, A Guide to
the Project Management Body of Knowledge will be referred to as the PMBOK® Guide – 2000 Edition. All
references are to the PMBOK® Guide – 2000 Edition.
This extension is a supplement to the PMBOK® Guide – 2000 Edition. It describes the generally accepted
principles for government projects that are not common to all project types.
This chapter defines and explains several key terms and provides an introduction to the rest of the document. It
includes the following major sections.
1.1 Purpose of this Document
1.2 What makes Government Projects Unique?
1.3 What is Project Management?
1.4 Relationship to Other Management Disciplines
1.5 Programs of Projects
1.6 Levels of Government
1.7 The PMBOK® Guide – 2000 Edition Processes—Inputs, Tools and Techniques, and Outputs

1.1 PURPOSE OF THIS DOCUMENT

The primary purpose of the PMBOK® Guide – 2000 Edition is “to identify and describe that subset of the PMBOK®
that is generally accepted.”2
Appendix E of the PMBOK® Guide – 2000 Edition describes application area extensions. It says “Application
area extensions are necessary when there are generally accepted knowledge and practices for a category of projects
in one application area that are not generally accepted across the full range of project types in most application
areas. Application area extensions reflect:
• Unique or unusual aspects of the project environment of which the project management team must be aware in
order to manage the project efficiently and effectively.
• Common knowledge and practices that, if followed, will improve the efficiency and effectiveness of the project
(e.g., standard work breakdown structures).”3
This is an application area extension for government projects. The key characteristics of these projects are listed
in Section 1.2.

1.1.1 Why Is the Government Extension Needed?

Governments around the world spend vast sums of money on projects. These projects cross many industries. These
industries include Aerospace and Defense; Communications Technologies; Design-Procurement-Construction;
Environmental Management; Financial Services; Health Services; Information Systems; Oil, Gas, and
Petrochemical; Utilities; Safety needs; Welfare; Socio-economic; and many others. Government projects in each of
these industries have some features in common with similar private sector projects, but there are also features that
are shared by all government projects that do not occur in the private sector.
It is in the interests of every taxpayer and every citizen that their government projects be well managed.

1.1.2 What Is the Goal of the Government Extension?

This extension aims to improve the efficiency and effectiveness of the management of government projects. Given
the size of the government sector, even a marginal improvement will have enormous benefits to the stakeholders.

1.2 WHAT MAKES GOVERNMENT PROJECTS UNIQUE?

This extension refers to projects that have two characteristics.
• They are controlled by elected governments.
• They are funded from mandatory taxes and fees.
Each of these characteristics is discussed in the following section.

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1.2.1 Elected Government

In an elected government, the voters elect representatives who meet, deliberate, and set rules. They may call these
rules by several names. They include laws, statutes, ordinances, regulations, and policies.
Representative bodies consist of
several members, who deliberate
together to reach a decision. Having Voters
several members serves as a protection
to the voters, taxpayers, and other
Elections
stakeholders. If several people must
agree on a decision, it is more difficult Rules
to keep secrets. This makes it less likely Chief Executive
that there will be fraud or abuse of (may be appointed by
Representatives Reports
power. In addition, having several representatives or
members encourages debate and a elected by the voters)
thorough consideration of the issues, Audits
thus resulting in better decisions, again
to the benefit of the stakeholders. Cabinet
It is generally not practical for a Department Directors
representative body to provide day-to- Executive Staff
day direction to project managers. There
are too many decisions to allow for
group deliberation on every decision.
Group deliberations would cause delays, Project Manager
and compromises would lead to
inefficient and ineffective solutions.
It is therefore necessary to have an Figure 1-1. The Project Manager's Relationship to
executive who carries out the rules that the Representative and Executive Branches, and to
the representative body has established. the Voters
In most cases, the representative body
appoints the executive. Sometimes, the
voters directly elect the executive. There are also variations of the two approaches. Figure 1-2 gives examples of
these variations.
An executive is necessary for efficient government, but the practice is fraught with danger. History has shown
that people with too much power will abuse that power. Among their rules, the representative body must set clear
limits on the executive. To proceed
beyond those limits, the executive must Executives appointed by the representative body:
obtain permission from the representative The Chancellor of Germany. The President of South
body, or from a commission or committee Africa. City Managers, County Executives, and School
that acts for the voters. Superintendents in the United States.
To fulfill its duty to the voters, the Executives elected by the majority party in the
representative body must require regular representative body and appointed by a ceremonial
reports from the executive. It must also Head of State: The Prime Ministers of the United
conduct audits and investigations to Kingdom, Italy, Sweden, Japan, the Netherlands,
ensure that the executive is obeying the Canada, Australia, New Zealand, and India.
rules. Executives elected indirectly by the voters, through
The most essential duty of the an Electoral College: The President of the United
representative body is to produce a States.
budget. The executive should not spend Executives elected directly by the voters: The
money without budgetary authority.4 Presidents of France, Russia, Mexico, and Brazil. The
Without a budget, the government does Prime Minister of Israel. Governors and some Mayors in
not have the authority to continue the United States.
functioning.
As they have responsibility for the Figure 1-2. Examples of Appointed and Elected
day-to-day management of projects, Executives, with Variations
4

project managers are part of the executive.5 Most project managers report to members of the executive staff. On
large projects or in small governments they may report directly to the chief executive.

1.2.2 Mandatory Taxes and Fees

In the private sector, people can choose not to buy a company’s products. In government, people may be able to
choose not to use a service but they can seldom choose not to pay. If this is not balanced by an accountability
system, it could reduce the motivation to perform well on government projects.
The problem is minimized in countries with the fewest limits on suffrage. If many taxpayers are not qualified to
vote, or if many voters do not pay a particular tax, there will be little motive for the representative body to control
the executive.6
The project manager has a duty to use the taxpayers’ funds to meet the goals set by their elected representatives.

1.3 WHAT IS PROJECT MANAGEMENT?

See Section 1.3 of the PMBOK® Guide – 2000 Edition.

1.4 RELATIONSHIP TO OTHER MANAGEMENT DISCIPLINES

See Section 1.4 of the PMBOK® Guide – 2000 Edition.

1.5 PROGRAMS OF PROJECTS

The PMBOK® Guide – 2000 Edition defines a program as “a group of projects managed in a coordinated way to
obtain benefits not available from managing them individually.”7 Programs are more common in the government
than in the private sector. Representative bodies in large governments generally assign funds to programs rather than
to individual projects. This is because these representative bodies do not have time to consider individual projects. In
small governments, on the other hand, the representative body may select individual projects. A local body may, for
instance, vote funds for a new classroom at a local school. At the regional or national level, the representative body
cannot consider this level of detail. They vote a program of funds for school improvements, with rules for how the
funds are to be divided among individual projects.
There are three methods that representative bodies can adopt for dividing program funds into individual
projects.
• Delegate the decision to a commission. Commissioners are often nominated by the executive and approved by
the representative body. Where executives are directly elected, the commission may consist of some members
appointed by the executive and some by the representative body. Commissioners must have no financial interest
in the projects and they often volunteer their time. Volunteer commissioners are paid only for their travel and
accommodation expenses.
• Delegate or “devolve” the decision to a lower representative body. The national government might delegate
decisions to regional or local governments. Regional governments might delegate to local governments.
• Delegate the decision to the executive. To prevent the executive from abusing its power, this delegation must be
subject to strict limits.

1.6 LEVELS OF GOVERNMENT

This document references three levels of government.
• National Government. The government of an internationally recognized country. The country may be a
confederation, federation, or unitary state.
• Regional Government. The government of a portion of a large country. In small countries, there are no regional
governments—only a national government and local governments. In confederations and federations, the
regional government has considerable autonomy. In unitary states, the regional government is subject to control
by the national government. Regions are called by many different terms. These terms include states, provinces,
lander, departments, cantons, kingdoms, principalities, republics, regions, and territories.
• Local Government. The government of a small portion of a country or region. There are often overlapping local
governments with different duties. Local governments include counties, cities, towns, municipalities, school
boards, water boards, road boards, sanitation districts, electrification districts, fire protection districts, and
hospital districts. They are governed by elected boards. This election distinguishes them from local branches of
regional or national governments.

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1.7 THE PMBOK® GUIDE – 2000 EDITION PROCESSES—INPUTS, TOOLS AND TECHNIQUES,
AND OUTPUTS
The PMBOK® Guide – 2000 Edition describes the inputs, tools and techniques, and outputs of each project
management process. For each process it includes a table that lists these elements. This document includes similar
tables. In each table, the elements have this format:
• Elements that remain unchanged from the PMBOK® Guide – 2000 Edition are shown in plain text.
• New items are shown in Bold Italics.
• Changed elements are shown in Italics.

2. THE PROJECT MANAGEMENT CONTEXT

The PMBOK® Guide – 2000 Edition advises that “Projects and project management operate in an environment
broader than the project itself.”8 Section 1.2 describes some of the unique features of this environment for
government projects.

2.1 PROJECT PHASES

A responsible representative body will require the executive to submit intermediate deliverables during project
development. The phases of government projects often correspond to these deliverables. Government construction
projects, for instance, typically have the five phases shown in Figure 2-1. Each phase in this example is required by
a law adopted by a representative body.

2.1.1 Three Standard Phases

On many, perhaps most, government projects the main product of the project is purchased from the private sector.
These projects have at least three phases.
• Proposal. The proposal phase is described in section 2.1.2.
• Planning and design. This phase produces Proposal
the documents that are necessary to 1. Proposal, used to obtain funding.
proceed with the major procurement. They
Planning and design
are described in rules established by the
1. Alternative selection (planning), which is often
representative body. In the example shown
controlled by environmental law. For
in Figure 2-1, there are separate planning
example, on United States government
and design phases. If the alternative
projects alternative selection is controlled by
selection was straightforward, these could
the National Environmental Protection Act.
be merged into a single phase.
2. Bid documents (design), controlled by public
• Procurement. This phase acquires the main
contract law.
products of the project from the private
Procurement
sector. They are described in rules
established by the representative body. In 1. Property acquisition, using eminent domain
the example shown in Figure 2-1, there are law.
two procurement phases, one for real estate 2. Construction, controlled by public contract
and the other for construction. In other law.
government projects, there are activities
outside the procurement for transitioning Figure 2-1. Typical Phases of a Government
the project to the operational user, which Construction Project
can often be the point failure for an
otherwise successful project. This is particularly the case for complex Information Technology projects. For
more information on procurement, see Chapter 12.

2.1.2 Proposal Phase

Every government project begins with a proposal phase. The product of this phase is called by many different
names. These names include feasibility study report, basic planning report, project study report, project concept
report, project location report, budget proposal, and funding request. It describes the product in sufficient detail to
determine if the project should proceed. If there is a program of projects, the proposal is used to determine if the
project should be included in the program. (For a discussion of programs, see Section 1.5). If there is no program of
projects, the representative body must approve each project separately. In this case, the proposal is the document
that the executive submits to request funding.
The budget must include some discretionary funds for the executive to produce project proposals. Without this
funding, the executive cannot legally propose new projects.

2.2 PROJECT STAKEHOLDERS

The PMBOK® Guide – 2000 Edition lists five key stakeholders on every project.9

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• Project manager—the individual responsible for managing the project.

• Customer—the individual or organization that will use the project's product. There may be multiple layers of
customers. For example, the customers for a new pharmaceutical product may include the doctors who
prescribe it, the patients who take it, and the insurers who pay for it. In some application areas, customers and
users are synonymous, while in others customer refers to the entity purchasing the project's results and users are
those who will directly use the project's product.
• Performing organization—the enterprise whose employees are most directly involved in doing the work of the
project.
• Project team members—the group that is performing the work of the project.
• Sponsor—the individual or group within or external to the performing organization that provides the financial
resources, in cash or in kind, for the project.
On government projects, the project manager, customer, and project team members are no different than for
private sector projects. The performing organization is a department or agency that reports to the executive. The
sponsor is either an executive official or a representative body.
Government projects have several other key stakeholders.
• Regulators. The individuals or organizations that must approve various aspects of the project. Regulators
enforce rules and regulations. They are actively involved in the project, but they generally have no interest in its
success—it will not affect them. Regulators are either agents of a higher government or of another agency in the
same government as the performing organization. Thus:
− National government projects are regulated by other national government agencies. They are generally not
subject to regulation by regional and local governments. National projects may also be regulated by
international compacts such as the European Union, North American Free Trade Agreement (NAFTA),
General Agreement on Tariffs and Trade (GATT), and Convention on International Trade in Endangered
Species (CITES).
− Regional government projects are subject to the same regulation as national government projects. They are
also regulated by other regional government agencies. They are generally not subject to regulation by local
governments.
− Local government projects are subject to the same regulation as regional government projects. They are
also regulated by other local government agencies.
Inadequate communication between the project manager and regulators can delay or even destroy a project.
• Opposition Stakeholders. Though not found in every project, this is a special class of stakeholders who perceive
themselves as being harmed if the project is successful. An example is the homeowner who lives beside a park
now that adjacent park land is being converted into a highway.
• The Press. In countries that have freely elected governments, the press is always present on major projects
where large sums of money are involved. The press has a duty to report on the project in an objective manner,
but often reports only the problems and not the successes.
• Sellers. In the procurement process these are often significant stakeholders. They are discussed in Chapter 12.
• Future Generations. During their limited tenure, governments have a responsibility to future generations
regarding long-term debt, viable and affordable infrastructure, and a viable environment.
• The Private Sector. The private sector provides counterpart funding and participates in Public-Private-
Partnerships.

2.3 ORGANIZATIONAL INFLUENCES

See Section 2.3 of the PMBOK® Guide – 2000 Edition.

2.4 KEY GENERAL MANAGEMENT SKILLS

See Section 2.4 of the PMBOK® Guide – 2000 Edition.

2.5 SOCIOECONOMIC INFLUENCES

See Section 2.5 of the PMBOK® Guide – 2000 Edition.

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O livro "UML 2 - Uma Abordagem Prática", escrito por
Gilleanes T. A. Guedes, é um guia completo sobre a
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3. PROJECT MANAGEMENT PROCESSES

Chapter 3 of the PMBOK® Guide – 2000 Edition describes five process groups.10
• Initiating processes.
• Planning processes.
• Executing processes.
• Controlling processes.
• Closing processes.
The application of these process groups to government projects is no different from private-sector projects.

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4. PROJECT INTEGRATION MANAGEMENT

Chapter 4 of the PMBOK® Guide – 2000 Edition describes three major project integration processes.
4.1 Project Plan Development
4.2 Project Plan Execution
4.3 Overall Change Control
In most cases the application is no different in government service projects than in all others. In Project Plan
Development and Overall Change Control, however, there are significant additional considerations directly related
to government or public service projects.
Government projects, and the priority accorded them, result in many instances from policy requirements. This is
not exclusively the case, but when it is project managers should be aware that the underlying purpose of the project
is the implementation of the program, reflected by its overriding policy, and not the execution of the project. This
will require project managers to ensure that there is clear and continuing integration between the policy
requirements, the program, and the project’s scope and deliverables. Changes of policy might affect the program
and, in turn, cause the project to be modified or even cancelled.

4.1 PROJECT PLAN DEVELOPMENT

Inputs Tools & Techniques Outputs

.1 Other planning outputs .1 Project planning .1 Project plan
.2 Historical information methodology .2 Supporting detail
.3 Organizational policies .2 Stakeholder skills and
.4 Constraints knowledge
.5 Assumptions .3 Project management
information system (PMIS)
.4 Earned value management
(EVM)

4.1.1 Inputs to Project Plan Development

Section 4.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Project Plan Development.
.1 Other planning outputs
.2 Historical information
.3 Organizational policies
.4 Constraints
.5 Assumptions
These are all used on government projects. The following inputs have particular applications in government.
.1 Other planning outputs. Projects will in some way relate to the electoral cycle. Project managers should be aware
of the significance of this cycle.
There is obvious pressure to demonstrate policy success by announcing “deliverables” from those contesting
elections. There is the possibility of a reversal of policy should the administration change. Less obviously, there is
often a principle of civil service neutrality during the electoral process that can require an avoidance of decision-
making, which could be interpreted as favoring one party over another.
It is possible in a government structure, that the Program Office (which determines the need for a project to
fulfill a mission) is separate from the Project Office (which executes a project). The project manager is often not
involved in the programmatic discussions that take place, which can put the project in jeopardy. Once assigned, the
project manager should open communications with the Program Office to ensure the project will satisfy the users'
needs and will meet the technical requirements, if they change. Technical requirements often change as the
administration changes.
.2 Historical information. Where the government body is the sole or dominant participant in the sector (for example
healthcare in the United Kingdom or defense procurement in most countries), changes in policy or methodology
may invalidate local historical information. Indeed, the change may be intended to counteract a previous policy or
methodology. Project managers should therefore be aware of the potential fragility of such historical information.

.3 Organizational policies
• Devolved powers. As a general rule, public executive bodies only have such specific powers as the
representative body gives to them. Actions outside these powers are ultra vires (beyond the power). For
example, though a public body may own land on which to carry out its functions, it may not automatically have
the power to sell, or benefit from the sale proceeds, of that land.
• Approval controls. Different branches or tiers of government—local, national, and supra national (e.g. European
Union)—may have separate formal requirements for approval of phases of the project. In principle these are no
different to the financial controls any organization would exert. Project managers should, however, make
certain they understand the potentially diverse requirements for approval.

4.1.2 Tools and Techniques for Project Plan Development

See Section 4.1.2 of the PMBOK® Guide – 2000 Edition.

4.1.3 Outputs from Project Plan Development

Section 4.1.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Project Plan Development.
.1 Project plan
.2 Supporting detail
These are both used on government projects. The project plan has particular applications in government.
.1 Project plan. The PMBOK® Guide – 2000 Edition discusses eight subsidiary management plans. Two of them,
risk response and procurement, have particular applications on government projects.
• Scope management plan (PMBOK® Guide – 2000 Edition section 5.2.3.3).
• Schedule management plan (PMBOK® Guide – 2000 Edition section 6.4.3.3).
• Cost management plan (PMBOK® Guide – 2000 Edition section 7.2.3.3).
• Quality management plan (PMBOK® Guide – 2000 Edition section 8.1.3.1).
• Staffing management plan (PMBOK® Guide – 2000 Edition section 9.1.3.2).
• Communication management plan (PMBOK® Guide – 2000 Edition section 10.1.3.1).
• Risk response plan (PMBOK® Guide – 2000 Edition section 11.5.3.1). A key feature of governments is the
presence of an opposition. Project managers should be aware that the project or the policy that causes the
project to be is likely to be subject to actively hostile scrutiny from the opposition.
• Procurement management plan (PMBOK® Guide – 2000 Edition section 12.1.3.1). Government procurement is
normally heavily regulated (see Chapter 12). This is to ensure equality of opportunity for applicants for public
works and probity on the part of the procuring body. Where there is a choice of methodologies for procurement,
that choice may determine the work and skills required of the project team. Project managers need to carefully
consider the options available to them and the implications of following a particular route. For example, all
public works and service contracts in the European Union (EU) above a certain value must be advertised
throughout the EU, and can follow either a Tendered procedure or a Negotiated procedure. The latter would
require a team with specific skills in negotiation to develop a contract and a price for the service or works
required. If the needed negotiating skills were not available, an undesirable contract could result.
The PMBOK® Guide – 2000 Edition identifies that certain issues will remain open or pending. In government
service project managers should determine the body capable of resolving open issues, taking account of the legal
powers of executives. At the highest level this may require primary legislation—i.e., a new law—to be passed to
enable the decision to be made. This is a lengthy process.

4.2 PROJECT PLAN EXECUTION

See Section 4.2 of the PMBOK® Guide – 2000 Edition.

4.3 INTEGRATED CHANGE CONTROL

Inputs Tools & Techniques Outputs

.1 Project plan .1 Change control system .1 Project plan updates
.2 Performance reports .2 Configuration management .2 Corrective action
.3 Change requests .3 Performance measurement .3 Lessons learned
.4 Additional planning

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.5 Project management
information system

4.3.1 Inputs to Integrated Change Control

Section 4.3.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Integrated Change Control.
.1 Project plan
.2 Performance reports
.3 Change requests
These are all used on government projects. Change requests have a particular application in government.
.3 Change requests. A major cause for the initiation of government projects is political policy. This policy is subject
to change (e.g., a change in government or personnel in government). While not unique to government, such
changes are usually publicly debated and well publicized in advance. The change is therefore a predictable
consequence of a predictable event. Project managers should be aware of possible changes and plan accordingly.

4.3.2 Tools and Techniques for Integrated Change Control

Section 4.3.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Integrated Change Control.
.1 Change control system
.2 Configuration management
.3 Performance measurement
.4 Additional planning
.5 Project management information system
These are all used on government projects. Performance measurement has a particular application in government.
.3 Performance measurement. Performance measurement in government service is likely to involve independent
scrutiny either by the representative body or by external bodies (such as the British National Audit Office or the
United States General Accounting Office). In the former case the scrutiny is as likely to focus on the policy
underlying the project as on the plan to implement it.
Performance contracts for project managers and team members are becoming common. These contracts are
linked to the relevant Key Performance Indicators of the specific program being managed.

4.3.3 Outputs from Integrated Change Control

See Section 4.3.3 of the PMBOK® Guide – 2000 Edition.

5. PROJECT SCOPE MANAGEMENT

The PMBOK® Guide – 2000 Edition defines Project Scope Management as “the processes required to ensure that the
project includes all the work required, and only the work required, to complete the project successfully.”11 Chapter 5
of the PMBOK® Guide – 2000 Edition describes five processes.
5.1 Initiation
5.2 Scope Planning
5.3 Scope Definition
5.4 Scope Verification
5.5 Scope Change Control

5.1 INITIATION
The PMBOK® Guide – 2000 Edition says, “Initiation is the process of formally recognizing that a new project exists
or that an existing project should continue into its next phase (see Section 2.1 for a more detailed discussion of
project phases).”12 It is important to remember that this process is repeated for each phase. An officer in the
executive branch generally initiates the proposal phase. The initiation of later phases is determined by the rules set
by the representative body (see Sections 1.2.1, 1.5, and 2.1).
The PMBOK® Guide – 2000 Edition lists typical reasons for initiating a project.
• A market demand.
• A business need.
• A customer request.
• A technological advance.
• A legal requirement.
• A social need.
Each of these may occur on government projects, but they do not adequately describe the main reasons for
initiating government projects. Government projects are initiated mainly for the health, safety, and welfare of the
constituents.
• Health needs (such as mass immunization, hospitals, sanitation, water purification, research, and food and
pharmaceutical administration).
• Safety needs (such as defense, counter-terrorism, police, fire protection, disaster prevention and mitigation,
prisons, justice, foreign policy, land mine inspection, and drug trafficking control).
• Welfare, socioeconomic, and environmental needs (such as participatory long-range planning projects, poverty
alleviation projects, education and schools, water supply, transportation and roads, energy, social security,
environmental protection, and parks and recreation).
Government projects may be initiated in order to achieve a specific policy goal of the administration, for
example a reduction in budget deficit, or the achievement of essentially political goals, such as the nationalization or
privatization of utility companies.

Inputs Tools & Techniques Outputs

.1 Product description .1 Project selection methods .1 Project charter
.2 Strategic plan .2 Expert judgment .2 Project manager
.3 Project selection criteria identified/assigned
.4 Historical information .3 Constraints
.4 Assumptions

5.1.1 Inputs to Initiation

Section 5.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Initiation.
.1 Product description
.2 Strategic plan
.3 Project selection criteria
.4 Historical information
These are all used on government projects. The following inputs have particular applications in government.

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.2 Strategic plan. See Section 5.1.1.2 of PMBOK® Guide – 2000 Edition and the discussion of Quality Policy in
Section 8.1.1.1 of this document.
Scope definition and management is often exceptionally difficult for government projects, since they frequently
have many masters. The scope must not only satisfy the plans and objectives of the performing organization but also
the various regulatory organizations (see discussion in Section 2.2), some of which may provide portions of the
project funds. The goals of these parties are sometimes in conflict. Thus, the project manager must take extra care to
ensure all parties are in agreement, to minimize problems downstream.
.3 Project selection criteria. Section 5.1.1.3 of PMBOK® Guide – 2000 Edition discusses the need to meet
management concerns such as financial return, market share, and public perceptions. Government project selection
criteria are characterized by nonprofit and socially driven characteristics that satisfy the needs and requirements of
the constituents.

5.1.2 Tools and Techniques for Initiation

See Section 5.1.3 of the PMBOK® Guide – 2000 Edition.

5.1.3 Outputs from Initiation

Section 5.1.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Initiation.
.1 Project charter
.2 Project manager identified/assigned
.3 Constraints
.4 Assumptions
These are all produced on government projects. The following output has particular applications in government.
.1 Project charter. Section 5.1.3.1 of PMBOK® Guide – 2000 Edition provides an outline of the requirements for a
project charter. The charter of a particular phase of a government project is often included in the end product of an
earlier phase. This is more apparent in government projects as the new phase may include changes in executive
responsibility, e.g. from the procurement arm to the operational arm.
If appropriately worded, agreements and contracts with external sponsors can serve as project charters.

5.2 SCOPE PLANNING

See Section 5.2 of the PMBOK® Guide – 2000 Edition.

5.3 SCOPE DEFINITION

See Section 5.3 of the PMBOK® Guide – 2000 Edition.

5.4 SCOPE VERIFICATION

See Section 5.4 of the PMBOK® Guide – 2000 Edition.

5.5 SCOPE CHANGE CONTROL

See Section 5.5 of the PMBOK® Guide – 2000 Edition.

6. PROJECT TIME MANAGEMENT

Chapter 6 of the PMBOK® Guide – 2000 Edition describes five processes.
6.1 Activity Definition
6.2 Activity Sequencing
6.3 Activity Duration Estimating
6.4 Schedule Development
6.5 Schedule Control

6.1 ACTIVITY DEFINITION

See Section 6.1 of the PMBOK® Guide – 2000 Edition.

6.2 ACTIVITY SEQUENCING

See Section 6.2 of the PMBOK® Guide – 2000 Edition.

6.3 ACTIVITY DURATION ESTIMATING

See Section 6.3 of the PMBOK® Guide – 2000 Edition.

6.4 SCHEDULE DEVELOPMENT

Inputs Tools & Techniques Outputs

.1 Project network diagrams .1 Mathematical analysis .1 Project schedule
.2 Activity duration estimates .2 Duration compression .2 Supporting detail
.3 Resource requirements .3 Simulation .3 Schedule management plan
.4 Resource pool description .4 Resource leveling heuristics .4 Resource requirement updates
.5 Calendars .5 Project management
.6 Constraints software
.7 Assumptions .6 Coding structure
.8 Leads and lags .7 Obligations
.9 Risk management plan
.10 Activity attributes
.11 Line-item projects

6.4.1 Inputs to Schedule Development

Section 6.4.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Schedule Development.
.1 Project network diagrams
.2 Activity duration estimates
.3 Resource requirements
.4 Resource pool description
.5 Calendars
.6 Constraints
.7 Assumptions
.8 Leads and lags
.9 Risk management plan
.10 Activity attributes
These are all used on government projects. The following input has particular applications in government, and
another input is peculiar to government.
.6 Constraints. Constraints are described in Section 6.4.1.6 of the PMBOK® Guide – 2000 Edition. The annual
budget cycle is the unique, and often most difficult, time constraint for government projects. To prevent the
executive from abusing its power, the representative body budgets funds for only a limited time. Budgets are
typically for one fiscal year at a time.13 This means that projects and programs must be divided into one-year slices.
Use it or lose it provisions require funds to be spent by the end of the fiscal year. Project delays can cause the loss of
15

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funding if work moves from one fiscal year into the next. Fortunately, funds are generally appropriated to programs
rather than individual projects (see Section 1.5). Effective program managers can often move funds between projects
to minimize the overall loss of funding. However, some very large projects in terms of their funding levels keep
their budgetary identity and no movement of funds to or from that project can be processed without the clearance of
the elected government or whomever the elected government delegates that authority.
.11 Line-item projects. These projects are added to the budget by the representative body on a project-by-project
basis. They often are not supported by a proposal from the executive (see Section 2.1.1). The representatives set
their schedules and budget. As a result, these projects often have poorly defined scopes, inadequate funding, or
unreasonable schedules. The project manager must expeditiously work with the customer to determine the scope of
work and the appropriate acquisition strategy to accomplish the project within the time constraints.

6.4.2 Tools and Techniques for Schedule Development

Section 6.4.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Schedule Development.
.1 Mathematical analysis
.2 Duration compression
.3 Simulation
.4 Resource leveling heuristics
.5 Project management software
.6 Coding structure
These are all used on government projects. Another tool is also useful on government projects.
.7 Obligations or encumbrances help to address the annual budget cycle constraint (see Section 6.4.1.6). They are
useful on projects with large procurements. As noted in Section 2.1.2, on many government projects the main
product of the project is purchased from the private sector. Some governments can encumber the funds for these
contracts if the contract is signed before the end of the fiscal year. This obligation places the contract funds into a
separate account that can be used only for the specific contract. The funds remain available for two to five years,
depending on the rules set by the representative body. This avoids the need to vote funds in each fiscal year. It is a
most useful technique on multi-year procurements.
Obligations are also used in inter-governmental agreements, sometimes called government transfer payments.
Obligations can be used only if the representative body enacts rules to make them possible.

6.4.3 Outputs from Schedule Development

See Section 6.4.3 of the PMBOK® Guide – 2000 Edition.

6.5 SCHEDULE CONTROL

See Section 6.5 of the PMBOK® Guide – 2000 Edition.

7. PROJECT COST MANAGEMENT

Chapter 7 of the PMBOK® Guide – 2000 Edition describes four processes.
7.1 Resource Planning
7.2 Cost Estimating
7.3 Cost Budgeting
7.4 Cost Control

7.1 RESOURCE PLANNING

See Section 7.1 of the PMBOK® Guide – 2000 Edition.

7.2 COST ESTIMATING

See Section 7.2 of the PMBOK® Guide – 2000 Edition.

7.3 COST BUDGETING

Inputs Tools & Techniques Outputs

.1 Cost estimates .1 Cost budgeting tools & .1 Cost baseline
.2 Work breakdown structure techniques
.3 Project schedule .2 Split funding by program
.4 Risk management plan .3 Matching funds
.5 Annual budget cycle .4 Split funding by fiscal year
.5 Obligations
.6 Counterpart Funding

7.3.1 Inputs to Cost Budgeting

Section 7.3.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Cost Budgeting.
.1 Cost estimates
.2 Work breakdown structure
.3 Project schedule
.4 Risk management plan
These are all used on government projects. In addition, another input is of great concern on government projects.
.5 Annual budget cycle. The annual budget cycle is discussed in Section 6.4.1.6.

7.3.2 Tools and Techniques for Cost Budgeting

Section 7.3.2 of the PMBOK® Guide – 2000 Edition discusses the tools and techniques for Cost Budgeting under
one heading.
.1 Cost budgeting tools & techniques
The following tools are used on government projects.
.2 Split funding by program. Programs are discussed in Section 1.5. Representative bodies in large governments
generally assign funds to programs rather than to individual projects. They set rules for how the funds are to be
divided among individual projects.
If the representative body budgets by program, each project must be funded from one or more of these programs.
It is possible that a single project can contribute to the goals of more than one program. This is particularly common
in transportation infrastructure projects. A road-widening project could be combined with pavement rehabilitation,
bridge rehabilitation, seismic retrofit, or new signals. These are generally budgeted as separate programs. Similar
situations are common wherever new facilities are budgeted separately from rehabilitation. It generally makes sense
to have a single contractor perform both the new work and the rehabilitation at a particular location. This minimizes
the overhead cost of developing and managing multiple contracts and it minimizes the disruption to the occupants of
the facility.
If a single project receives financial contributions from more than one program, it is split-funded. There are three
possible methods of split funding.
17

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• Defined elements of work. Each program bears the cost of its portions of the project.
• Defined contribution. Some programs contribute a fixed amount, with one program funding the balance. The
balance is generally funded by the program with the largest contribution. This program bears the risks
associated with cost overruns or underruns.
• Percentage split. Each program funds a percentage of the project.
To the representative body, defined elements of work appears to be the best choice because they pay only for the
elements that they want. However, this method requires a detailed manual accounting system because an automated
system can seldom discern which elements are being worked on. Such a manual process is prone to inaccuracy. It
requires a large commitment of time for reporting and auditing. The increased cost generally outweighs the slight
increase in the accuracy of charges.
The defined elements of work method also requires a far more detailed work breakdown structure (WBS) than
the other two methods. To capture each program’s portion accurately, the WBS must be defined to a level where
each program’s portion maps uniquely to a set of WBS elements. This level of detail is generally far greater than
what is needed to manage the project.
The defined contribution does not require an amendment to the WBS. Typically, it is established as a
“percentage split.” When the limit is reached for the fixed programs, the split is changed to a 100 percent payment
by the risk-bearing program. If the project is completed within budget, the change never occurs.
Percentage split is the simplest approach. The contribution of each program is estimated at the start of the
project. Based on that estimate each program bears its percentage of the project cost. As programs fund many
projects, variances on one project will probably be counterbalanced by opposite variances on other projects.
.3 Matching funds. Matching funds are a form of split funding by program. When governments “devolve” project
selection to lower representative bodies, they often require those lower bodies to pay a portion of the project cost.
(See the discussion of devolution in Section 1.5). This assures that the lower government is committed to the project.
Matching funds may be apportioned on a percentage basis or as a defined contribution.
.4 Split funding by fiscal year. The annual budget cycle is discussed in Section 6.4.1.6. If a project begins in one
fiscal year and ends in another, it will need funding from the budget of each fiscal year in which there is project
work. This split funding by fiscal year can be decreased through obligations, if the representative body allows them
(see Section 6.4.2.7).
Funding by fiscal year requires that project managers plan their work by fiscal year with great care. This is
particularly true in large governments with many levels of review. In the United States government, for instance, the
President submits a budget to Congress in January for the fiscal year that begins on October 1. Before this, the
executive staff must assemble all the supporting data for the budget. They must also agree on priorities for the
allocation of limited funds. To be included in the January budget, the project manager must have project plans
completed by June of the previous year. This is more than fifteen months before the start of the fiscal year. Once a
budget request is submitted, changes are difficult to effect.
Fortunately, funds are generally appropriated to programs rather than individual projects (see Section 1.5).
Program managers can use funds from projects that underrun their fiscal year budgets to fund the overruns in other
projects. These are fiscal year variances, not variances in the total cost of the project.
Private sector firms could not survive with the government budget process. They must respond quickly to
market challenges from their competitors. Without a quick response, they will lose business and may descend into
bankruptcy. Large private firms therefore delegate the detailed budget decisions to smaller cost centers. The
manager of each cost center has clear performance measures—make a profit, satisfy customers so that the firms gets
return business, and obey the law. In government, there is no profit motive and customers seldom have the option
not to return.
Paradoxically, fiscal year funding can have an effect that is opposite to what is intended. Annual budgets are
intended to establish limits on the executive. In operational areas, they achieve this goal. (For a discussion of
operations and projects, see section 1.2 of the PMBOK® Guide – 2000 Edition.) On projects, they often fail. The
executive must request budgets for each project in fiscal year slices. This focus on fiscal years can draw attention
away from the overall multi-year cost of the project. The representative body may not see this overall cost. Projects
can incur large overall cost overruns without the representative body becoming aware of this fact. Representative
bodies need to be aware of this problem and require multi-year reports. Project managers should provide multi-year
reports to their project sponsors.
Government accounting standards often fail to recognize the peculiar needs of multi-year projects. Project
managers should keep records on the entire project that are reconciled with the government's official accounts.

Some governments have begun to adopt performance-based budgeting as an alternative to the rigid annual
budget process. This is discussed in Section 8.1.2.6.
.5 Obligations. Obligations are discussed in Section 6.4.2.7. They are a tool to minimize split funding by fiscal year.
They can be used only where there is a contract with a private sector firm to provide portions of the product.
.6 Counterpart Funding. This is also called “Counterfunding”. It involves funding from the private sector, and is an
option in “developing” countries, which will not have enough funds for many years to meet all the basic
infrastructure needs of their population.

7.3.3 Outputs from Cost Budgeting

See Section 7.3.3 of the PMBOK® Guide – 2000 Edition.

7.4 COST CONTROL

See Section 7.4 of the PMBOK® Guide – 2000 Edition.

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8. PROJECT QUALITY MANAGEMENT

The PMBOK® Guide – 2000 Edition defines Project Quality Management as “the processes required to ensure that
the project will satisfy the needs for which it was undertaken.”14 On government projects, these needs are defined by
the representative body, acting on behalf of the voters. In large governments, the needs are generally stated as goals
for a program, rather than for individual projects. Each project must contribute to the program goals.
Chapter 8 of the PMBOK® Guide – 2000 Edition describes three processes.
8.1 Quality Planning
8.2 Quality Assurance
8.3 Quality Control

8.1 QUALITY PLANNING

Inputs Tools & Techniques Outputs

.1 Quality policy .1 Benefit/cost analysis .1 Quality management plan
.2 Scope statement .2 Benchmarking .2 Operational definitions
.3 Product descriptions .3 Flowcharting .3 Checklists
.4 Standards and regulations .4 Design of experiments .4 Inputs to other processes
.5 Other process outputs .5 Cost of quality
.6 Performance-based
budgeting

8.1.1 Inputs to Quality Planning

Section 8.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Quality Planning.
.1 Quality policy
.2 Scope statement
.3 Product descriptions
.4 Standards and regulations
.5 Other process outputs
These are all used on government projects. The following input has particular applications in government.
.1 Quality policy. The PMBOK® Guide – 2000 Edition says, “Quality policy is the overall intention and direction of
the organization with regard to quality, as formally expressed by top management.”15 In government, quality policy
is rooted in the constitution, the founding documents of the country, or in policies set by the representative body.
Figure 8-1 gives examples of these policies.
If quality policy is established in the constitution, the representative body will generally add further details in
rules and regulations. The chief executive might add further refinements. Lower-level executives often add more
refinements.
The PMBOK® Guide – 2000 Edition says, “The project management team is responsible for ensuring that the
project stakeholders are fully aware of [the quality policy].”16 On government projects, this means that they must be
aware of their responsibilities under the constitution and under law (see Section 1.2).
Because government quality policy is rooted in the constitution and other documents that seldom change,
government quality policies should not change much. Projects may vary considerably, but they remain focused on
service to the voters and taxpayers.

The United States of America

We the people of the United States, in order to form a more perfect union, establish
justice, insure domestic tranquillity, provide for the common defense, promote the general
welfare, and secure the blessings of liberty for ourselves and our posterity do ordain and
establish this Constitution for the United States of America. (Preamble to the Constitution)
We hold these truths to be self-evident, that all men are created equal, that they are
endowed by their Creator with certain unalienable rights, that among these are life, liberty
and the pursuit of happiness. (Declaration of Independence)
South Africa
We, the people of South Africa, Recognise the injustices of our past; Honour those who
suffered for justice and freedom in our land; Respect those who have worked to build and
develop our country; and Believe that South Africa belongs to all who live in it, united in our
diversity. (Preamble to the Constitution)
The Republic of South Africa is one, sovereign, democratic state founded on the
following values:
a) Human dignity, the achievement of equality and the advancement of human rights and
freedoms.
b) Non-racialism and non-sexism.
c) Supremacy of the constitution and the rule of law.
d) Universal adult suffrage, a national common voters roll, regular elections and a multi-
party system of democratic government, to ensure accountability, responsiveness and
openness.
(Founding Provisions the Constitution)
Figure 8-1. Examples of Highest-Order Government Quality Policies

8.1.2 Tools and Techniques for Quality Planning

Section 8.1.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Quality Planning.
.1 Benefit/cost analysis
.2 Benchmarking
.3 Flowcharting
.4 Design of experiments
.5 Cost of quality
These are all used on government projects. An additional tool is useful on government projects.
.6 Performance-based budgeting. Sections 6.4.1.6, 7.3.1.5, and 7.3.2.4 discuss the problems of the annual budget
cycle. Some governments have begun to adopt performance-based budgeting as an alternative to the rigid annual
process. For projects, this is rooted in the concept of the triple constraint. Project quality is a combination of three
factors—product scope, time, and cost. Quality projects deliver the required product scope on time and within
budget. If a change is made to any of the three factors, at least one other factor must change. Every change is
therefore a change in quality.
For programs and projects, the representative body establishes performance measures for each of the three
quality factors. Program managers are permitted to trade-off between the three factors to achieve the overall
program goals. This includes permission to change the annual budget, within prescribed limits.
Performance-based budgeting can be of great benefit to the voters and taxpayers. However, there are pitfalls.
• Performance measures must be carefully designed to encourage desirable behavior. Poorly defined measures
can require managers to make the wrong decisions in order to meet their performance target. The design of the
measures requires a thorough understanding of the program.
• In large governments, the executive generally reports its progress to the representative body only once a year. It
would be wasteful to gather the data for more frequent reports, and the legislative cycle typically allows the
representative body to take action only on an annual cycle. For performance-based budgeting, annual reports are
inadequate. If performance is not adequate or the process is abused, the representative body must be able to take
action more frequently than once a year. This typically requires an independent “watchdog” body, with paid
auditors, which review data from the program and report to the representative body if there is a need to take
immediate action.

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8.1.3 Outputs from Quality Planning

See Section 8.1.3 of the PMBOK® Guide – 2000 Edition.

8.2 QUALITY ASSURANCE

See Section 8.2 of the PMBOK® Guide – 2000 Edition.

8.3 QUALITY CONTROL

See Section 8.3 of the PMBOK® Guide – 2000 Edition.

9. PROJECT HUMAN RESOURCE MANAGEMENT

The PMBOK® Guide – 2000 Edition defines Project Human Resource Management as “the processes required to
make the most effective use of the people involved with the project.”17 Project Human Resource Management is one
of the two PMBOK® Guide – 2000 Edition knowledge areas that focus on the acquisition and use of resources for
the project. The other is Project Procurement Management (see the introduction to Chapter 12). All the resources
used on a project are obtained either from inside the performing organization or they are obtained by procurement.
The resources used on a project fall into four categories.
• Resources obtained from outside the performing organization.
− Human resources—discussed in both Chapter 9 and Chapter 12.
− Goods (materials and equipment)—discussed only in Chapter 12.
• Resources obtained within the performing organization.
− Human resources—discussed only in Chapter 9.
− Goods (materials and equipment).
Government agencies seldom produce the materials and equipment that are used on their projects. Their
resource contribution consists mainly of human resources.
Chapter 9 of the PMBOK® Guide – 2000 Edition describes three processes.
9.1 Organizational Planning
9.2 Staff Acquisition
9.3 Team Development

9.1 ORGANIZATIONAL PLANNING

Inputs Tools & Techniques Outputs

.1 Project interfaces .1 Templates .1 Role and responsibility
.2 Staffing requirements .2 Human resource practices assignments
.3 Constraints .3 Organizational theory .2 Staffing management plan
.4 Civil service system .4 Stakeholder analysis .3 Organizational chart
.5 Preferences and restrictions .4 Supporting detail
.6 Freedom of information

9.1.1 Inputs to Organizational Planning

Section 9.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Organizational Planning.
.1 Project interfaces
.2 Staffing requirements
.3 Constraints
These are all used on government projects. In addition, the following inputs are of particular significance on
government projects.
.4 Civil service system. The unique features for government employees are rooted in the civil service system. In an
elected government, there is a likelihood that government policies will change from one election to another.
Government employees must often implement policies that directly contradict those of a prior administration. In the
past, this was often addressed by a “spoils system” where each new administration replaced government employees
en masse. This system has been replaced around the world by a merit-based civil service. Civil servants hold office
from one administration to another, but they must remain politically neutral. They are legally and ethically required
to carry out the will of the voters, no matter how they feel. In many countries, civil servants may not be members of
political parties or engage in any political activity other than exercising their vote.
As a guarantee of their neutrality, civil servants have tenure in their positions. Executives cannot remove a civil
servant without documented cause. This can become a significant issue in establishing a project team. Each civil
servant’s position must be preserved. Assigning a civil servant to a position that is perceived to be inferior might be
a constructive demotion.
Budget and law control civil service employee numbers. A project manager is not afforded the ability to hire
personnel to fill critical skills needs (such as project controls), without going through a bureaucratic process. If a

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hiring is authorized, the process can take several months. Because project managers do not choose their staff, the
project manager must create a viable, performing team from what is given. Project managers need to master
teambuilding skills, understand the different personality types, and motivate these individuals to produce a
functioning team.
.5 Preferences and restrictions. Governments will often give employment preferences to a particular population
group. These may be ethnic groups, people who are deemed to be disadvantaged (e.g., women and disabled people),
people to whom the voters feel indebted (e.g., military veterans), or citizens. There may also be restrictions based on
security requirements.
.6 Freedom of information. Project managers may be constrained in what they may keep confidential. Public
disclosure laws in many countries give citizens the right to view almost all governmental records, with a few non-
absolute exceptions for secrecy and invasion of privacy. Project managers might find themselves required to make
public memos from meetings in which appraisals of staff performance or interpersonal problems were discussed.

9.1.2 Tools and Techniques for Organizational Planning

See Section 9.1.2 of PMBOK® Guide – 2000 Edition.

9.1.3 Outputs from Organizational Planning

See Section 9.1.3 of PMBOK® Guide – 2000 Edition.

9.2 STAFF ACQUISITION

Inputs Tools & Techniques Outputs

.1 Staffing management plan .1 Negotiations .1 Project staff assigned
.2 Staffing pool description .2 Pre-assignment .2 Project team directory
.3 Recruitment practices .3 Procurement
.4 Civil service flexibility
.5 Hybrid staff

9.2.1 Inputs to Staff Acquisition

See Section 9.2.1 of PMBOK® Guide – 2000 Edition.

9.2.2 Tools and Techniques for Staff Acquisition

Section 9.2.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Staff Acquisition.
.1 Negotiations
.2 Pre-assignment
.3 Procurement
These are all used on government projects. In addition, the following tools are often valuable on government
projects.
.4 Civil service flexibility. Although it is seldom recognized in formal human resource systems, more often than not
employees are able to choose among projects. Civil service makes this even more practical than in the private sector.
.5 Hybrid staff. It is common practice in government to contract for human resources using a contract form whereby
the government pays the actual salary and overhead for employees. While there is also a fee paid to the contractor
firm, such employees are better described as hybrids between civil service employees and procurement contracts.
Such arrangements allow the agency to staff up and down for projects rapidly. Another rationale for use of such
arrangements occurs in jurisdictions that are legally prohibited from recognizing employee organizations (unions).
In many cases, such staff work in government-owned facilities and are managed by government employees. Project
managers often supervise such staff much like other employees, with the exception of certain agency personnel
systems.

9.2.3 Outputs from Staff Acquisition

See Section 9.2.3 of PMBOK® Guide – 2000 Edition.

9.3 TEAM DEVELOPMENT

Inputs Tools & Techniques Outputs
.1 Project staff .1 Team-building activities .1 Performance improvements
.2 Project plan .2 General management skills .2 Input to performance
.3 Staffing management plan .3 Reward and recognition appraisals
.4 Performance reports systems
.5 External feedback .4 Collocation
.5 Training
.6 Project management office

9.3.1 Inputs to Team Development

See Section 9.3.1 of PMBOK® Guide – 2000 Edition.

9.3.2 Tools and Techniques for Team Development

Section 9.3.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Team Development.
1. Team-building activities
.2 General management skills
.3 Reward and recognition systems
.4 Collocation
.5 Training
These are all used on government projects. The following technique has particular applications in government, and
another tool, the project management office, can be particularly useful.
.4 Collocation. Section 2.3.3 and Figures 2-6 to 2-11 of the PMBOK® Guide – 2000 Edition discuss five
organizational structures for projects.
• Functional organization.
• Projectized organization.
• Weak matrix organization.
• Balanced matrix organization.
• Strong matrix organization.
Functional organizations are the most common structure in civil service. This is because the chief executive is
responsible for all the actions of the executive branch. Senior management reports directly to the chief executive,
middle management reports to senior management, and junior management reports to middle management. In this
way all employees report to the chief executive through the hierarchy. This structure is generally not effective for
project management. It creates a “throw it over the wall” approach where nobody takes full responsibility for the
completion of the project. Each functional area completes its work without making sure that it is well coordinated
with other functions and that the final product meets the customers’ needs.
One solution is to use a projectized organization, where all employees on the project report to the project
manager. This may not always be possible, for two reasons.
• It requires that employees transfer from one unit to another when they change projects. This may work on large
projects, where the employee works on the project for a considerable time. It is generally not practical if the
employee works only briefly on each project or part-time on several projects concurrently. The personnel unit
may object to doing all the transfers. Transfers may also be delayed by requirements for competitive selection.
There is also a danger of the “constructive demotion” described in Section 9.1.1.4.
• Civil service rules often require that employees be supervised by people in their own civil service series (for
example, engineers supervise engineers, and computer programmers supervise computer programmers). This
ensures that employees have a career path that allows them the possibility of advancement. It also encourages
them to keep abreast with their functional specialty.
The strong matrix is generally the most effective organization for project management because it allows team
members to keep abreast with their functional specialty while, at the same time, being committed to the project. This
approach works only if project managers have full control of the project budget and can choose their project team.
This is seldom possible in civil service, for two reasons.
• If project managers choose team members, this can lead to the “constructive demotion” described in Section
9.1.1.4.

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• Civil service tenure requires that functional managers must have budgets to pay their staff. This prevents the
project manager from having full control of the project budget.
Collocation is a tool that can overcome many of these problems. It is used in combination with a balanced
matrix organization. Each project has an assigned work area, and employees sit together in that area while they are
working on the project. This ensures that they communicate with other team members, particularly with the full-time
project manager. Although the employee reports to their functional manager and the project manager does not
control their salary, employees clearly identify with the project team and are committed to the success of the project.
Collocation is also called a tight matrix.18 On small projects, a war room can serve some of the functions of
collocation. This is a room where the team congregates and posts schedules, updates and other project data.19
.6 Project Management Office. Section 2.3.4 of the PMBOK® Guide – 2000 Edition introduces the project office.
The terms Project Management Office, Project Office, Program Office, and Program/Project Management Office are
used by different organizations to describe units that provide a variety of support functions to project managers. An
office of this type is particularly in a government organization that is characterized by strong functional structures. It
can be helpful in project and program reporting, integrating the activities of functions, mentoring project managers,
and leading further process improvements.

9.3.3 Outputs from Team Development

See Section 9.3.3 of PMBOK® Guide – 2000 Edition.

10. PROJECT COMMUNICATIONS MANAGEMENT

The PMBOK® Guide – 2000 Edition says, “Project Communications Management includes the processes required to
ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project
information. It provides the critical links among people, ideas, and information that are necessary for success.
Everyone involved in the project must be prepared to send and receive communications and must understand how
the communications in which they are involved in as individuals affect the project as a whole.”20
10.1 Communications Planning
10.2 Information Distribution
10.3 Performance Reporting
10.4 Administrative Closure

10.1 COMMUNICATIONS PLANNING

The PMBOK® Guide – 2000 Edition says, “Communications planning involves determining the information and
communications needs of the stakeholders: who needs what information, when will they need it, how will it be given
to them, and by whom. While all projects share the need to communicate project information, the informational
needs and the methods of distribution vary widely. Identifying the informational needs of the stakeholders and
determining a suitable means of meeting those needs is an important factor for project success.”21

Inputs Tools & Techniques Outputs

.1 Communications .1 Stakeholder analysis .1 Communications management
requirements plan
.2 Communications technology
.3 Constraints
.4 Assumptions

10.1.1 Inputs to Communications Planning

Section 10.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Communication Planning.
.1 Communications requirements
.2 Communications technology
.3 Constraints
.4 Assumptions
These are all used on government projects, and they each have particular applications in government.
.1 Communications requirements. Communications requirements unique to government planning are those based
on information sharing in a functional bureaucracy. Government departments tend to be compartmentalized, not
projectized. So when multi-agency communication will be required, how this will be accomplished should be
planned into the project.
.2 Communications technology. The compatibility of technologies used to transfer information can vary
significantly from one agency or level of government to another. The availability of funding for technology
upgrades to mitigate communications inconsistencies should be factored into the communications planning, along
with the size of the project team, the communications “comfort levels” of its team members, and the expected length
of the project’s life cycle.
.3 Constraints. A constraint likely in government projects is a lack of understanding about the communication
process by the team members or their sponsor. Another constraint (though not necessarily unique to government
projects), is the project manager’s access to top management, especially during the “go/no go” decision gates.
In many government projects, contracted vendors/consultants (sellers) run the project day to day, reporting to an
appointed government employee (project manager) who may have a limited project management background (or be
selected as project manager based on technical expertise rather than project management skills).
.4 Assumptions. The primary assumption is that the project team will be working with or for a governing body,
elected officials (for a representative government), or a nationally/internationally recognized governing body, and its
constituents. Other assumptions to include in the communication planning are those that include a degree of risk that

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needs to be identified and mitigated, such as project national culture implications on the project, possible project
team members, the applicable laws of the project country, and so on.

10.1.2 Tools and Techniques for Communications Planning

Section 10.1.2 of the PMBOK® Guide – 2000 Edition discusses one tool for Communications Planning.
.1 Stakeholder analysis
This is used on government projects, and it has particular applications in government.
.1 Stakeholder analysis. Project stakeholders are discussed in detail in Sections 2.2 and 5.1 of the PMBOK® Guide –
2000 Edition. Remember in government planning that not only the office holders but the public, too, is usually the
stakeholder (that is, the constituents, those governed, and the taxpayers). Analysis and planning for those
stakeholders in opposition to the project can also be very beneficial. Timely and appropriate information needs to be
clearly understood, therefore, by a broader range of affected individuals than is true for most private sector projects.
If the project is publicly funded, then accountability to the public needs to be factored in, as does the openness
of the political debate during project planning.

10.1.3 Outputs from Communications Planning

Section 10.1.3 of the PMBOK® Guide – 2000 Edition discusses one output from Communications Planning.
.1 Communications management plan
This is used on government projects, and it has particular applications in government.
.1 Communications management plan. A communications management plan may be formal or informal, highly
detailed or broadly framed, based on the needs of the project. It is a subsidiary element of the overall project plan
(described in Section 4.1 of the PMBOK® Guide – 2000 Edition).
In government projects, it may happen that government officials (rather than the project manager) control the
communications. This could work well, but when it does not it can become difficult to pinpoint the reasons for the
communication breakdowns.

10.2 INFORMATION DISTRIBUTION

Inputs Tools & Techniques Outputs

.1 Work results .1 Communications skills .1 Project records
.2 Communications .2 Information retrieval .2 Project reports
management plan systems .3 Project presentations
.3 Project plan .3 Information distribution
systems

10.2.1 Inputs to Information Distribution

Section 10.2.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Information Distribution.
.1 Work results
.2 Communications management plan
.3 Project plan
These are all used on government projects, and the following input has particular applications in government.
.1 Work results. Work results are described in Section 4.2.3.1 of the PMBOK® Guide – 2000 Edition. Specifics will
vary from one jurisdiction to the next. In this, work results are level dependent. Reporting on the status of work and
deliverables is guided by procedures at the municipality, state, federal/national, or international level.

10.2.2 Tools and Techniques for Information Distribution

See Section 10.2.2 of the PMBOK® Guide – 2000 Edition.

10.2.3 Outputs from Information Distribution

Section 10.2.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Information Distribution.
.1 Project records
.2 Project reports
.3 Project presentations

These are all produced on government projects, and the following output has particular applications in government.
.1 Project records. Project records may include correspondence, memos, reports (written or electronic), recorded
records, presentations of content, and any other document describing and detailing the project. This information may
become available to the public, or be made available via Freedom of Information Act requests (or similar legislation,
depending on the government sponsoring the project).

10.3 PERFORMANCE REPORTING

The PMBOK® Guide – 2000 Edition says, “Performance reporting involves collecting and disseminating
performance information to provide stakeholders with information about how resources are being used to achieve
project objectives. Performance reporting should generally provide information on scope, schedule, cost, and
quality. Many projects also require information on risk and procurement. Reports may be prepared comprehensively
or on an exception basis.”22

Inputs Tools & Techniques Outputs

.1 Project plan .1 Performance reviews .1 Performance reports
.2 Work results .2 Variance analysis .2 Change requests
.3 Other project records .3 Trend analysis
.4 Earned value analysis
.5 Information distribution

10.3.1 Inputs to Performance Reporting

Section 10.3.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Performance Reporting.
.1 Project plan
.2 Work results
.3 Other project records
These are all used on government projects, and they each have particular applications in government.
.1 Project plan. The project plan is discussed in Section 4.1.3.1 of the PMBOK® Guide – 2000 Edition. It needs to
account for any reporting on a project being performed on behalf of the government. Formats for this reporting may
be prescribed by government components (such as defense or transportation) or have matching formats across all
agencies.
When working with a governing body, elected officials (for a representative government), or a recognized
governing body, and its constituents, the reporting time line may be influenced by election cycles.
If the project is contracted, the vendors or consultants would likely run the project reporting through the
government employee project manager responsible for the work.
.2 Work results. Specifics will vary from one jurisdiction to the next. Work results reporting rules were devised with
the “big ticket” projects in mind (construction or other long-term, expensive projects). However, milestone and life
cycle reporting is consistent for any size project.
.3 Other project records. Project records are discussed in Section 10.2.3.1 of the PMBOK® Guide – 2000 Edition.
Other records, such as procurement competition reporting, may need to be filed with the project performance
reports. If the project is contracted, there may be a need to maintain additional records related to vendor personnel
and contract performance.

10.3.2 Tools and Techniques for Performance Reporting

See Section 10.3.2 of the PMBOK® Guide – 2000 Edition.

10.3.3 Outputs from Performance Reporting

Section 10.3.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Performance Reporting.
.1 Performance reports
.2 Change requests
These are both used on government projects, and they each have particular applications in government.
.1 Performance reports. Laws may prescribe the report timing and even the formats.
.2 Change requests. A significant source of government projects’ change requests comes from newly elected
governments, oversight agencies, new rules, and new laws.

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10.4 ADMINISTRATIVE CLOSURE

The PMBOK® Guide – 2000 Edition says, “The project or phase, after either achieving its objectives or being
terminated for other reasons, requires closure. Administrative closure consists of verifying and documenting project
results to formalize acceptance of the product of the project by the sponsor, or customer. It includes collecting
project records; ensuring that they reflect final specifications; analyzing project success, effectiveness, and lessons
learned; and archiving such information for future use.”23

Inputs Tools & Techniques Outputs

.1 Performance measurement .1 Performance reporting .1 Project archives
documentation .2 Project reports .2 Project closure
.2 Product documentation .3 project presentations .3 Lessons learned
.3 Other project records
.4 Agency policy or law

10.4.1 Inputs to Administrative Closure

Section 10.4.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Administrative Closure.
.1 Performance measurement documentation
.2 Product documentation
.3 Other project records
These are all used on government projects. Another input has particular importance on government projects.
.4 Agency policy or law. This is especially important in regard to permanent archives described in Section 10.4.3.1.

10.4.2 Tools and Techniques for Administrative Closure

See Section 10.4.2 of the PMBOK® Guide – 2000 Edition.

10.4.3 Outputs from Administrative Closure

Section 10.4.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Administrative Closure.
.1 Project archives
.2 Project closure
.3 Lessons learned
These are all produced on government projects. The following output has particular applications in government.
.1 Project archives. Governmental archive records should be tagged/indexed for retrieval, possibly much later and
by those unfamiliar with the project. The project archive should be maintained for the appropriate number of years
and in the required format as prescribed by governing records management standards.

11. PROJECT RISK MANAGEMENT

The PMBOK® Guide – 2000 Edition defines Project Risk Management as “the systematic process of identifying,
analyzing, and responding to project risk.”24 Government risk is completely different from that in the private sector,
except at the most basic level. At the basic level, all risk management has to do with survival. For a private firm,
survival means that the firm remains in business. For elected representatives, survival means that they or their party
remains in power. Loss of power is their greatest risk. Governments are replaced, but government very rarely ceases
to exist. In the rare cases where there is a complete cessation of government (anarchy), people quickly form a new
government.
Chapter 11 of the PMBOK® Guide – 2000 Edition describes six processes.
11.1 Risk Management Planning
11.2 Risk Identification
11.3 Qualitative Risk Analysis
11.4 Quantitative Risk Analysis
11.5 Risk Response Planning
11.6 Risk Monitoring and Control

Government projects follow the same processes, but their focus is on social, environmental, and political risk as
well as on financial risk. Many government projects would be abandoned if they were subjected only to the private
sector risk analysis process. A well-known example is the program to place a man on the Moon and bring him back
again. As a private sector project, this would have been completely unacceptable. It carried immense risks and had
virtually no potential for profit. As a government project, however, it was an enormous success. (Success is judged
by the stakeholders—in this case, the taxpayers and voters in the United States of America and their elected
representatives.)

11.1 RISK MANAGEMENT PLANNING

Inputs Tools & Techniques Outputs

.1 Project charter .1 Planning meetings .1 Risk management plan
.2 Organization's risk
management policies
.3 Defined roles and
responsibilities
.4 Stakeholder risk tolerances
.5 Template for the
organization's risk
management plan
.6 Work breakdown structure
.7 Laws and regulations

11.1.1 Inputs to Risk Planning

Section 11.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Risk Planning.
.1 Project charter
.2 Organization's risk management policies
.3 Defined roles and responsibilities
.4 Stakeholder risk tolerances
.5 Template for the organization's risk management plan
.6 Work breakdown structure
These are all used on government projects. An additional input is of great concern on government projects.
.7 Laws and regulations. These are a particular form of the organization's practices and tolerances described in
Sections 11.1.1.2 and 11.1.1.4 of the PMBOK® Guide – 2000 Edition. Voters, through their elected representatives,
establish practices and tolerances for government projects. Some of these tolerances relate to:

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• Air and water quality.

• Affirmative action and assistance to disadvantaged groups.
• Archeological, historical, and architectural preservation.
• Assistance to small businesses.
• Endangered species protection.
• Noise prevention.
• Religious freedom and the protection of places of worship and burial.
• Protection of scenic areas and parks.
Several of these items are often combined into an omnibus environmental protection law. Although they
generally do not use the word “risk,” these are risk management laws. They inform the project manager of the
limitations on the project and define risks that the voters will not accept.

11.1.2 Tools and Techniques for Risk Management Planning

See Section 11.1.2 of the PMBOK® Guide – 2000 Edition.

11.1.3 Outputs from Risk Management Planning

See Section 11.1.3 of the PMBOK® Guide – 2000 Edition.

11.2 RISK IDENTIFICATION

Inputs Tools & Techniques Outputs

.1 Risk management plan .1 Documentation reviews .1 Risks
.2 Project planning outputs .2 Information gathering .2 Triggers
.3 Risk categories techniques .3 Inputs to other processes
.4 Historical information .3 Checklists .4 List of potential responses
.5 Political risk .4 Assumptions analysis
.5 Diagramming techniques

11.2.1 Inputs to Risk Identification

Section 11.2.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Risk Identification.
.1 Risk management plan
.2 Project planning outputs
.3 Risk categories
.4 Historical information
These are all used on government projects. Risk categories has a particular application that warrants separate
consideration.
.3 Risk categories. Section 11.2.1.3 of the PMBOK® Guide – 2000 Edition describes four risk categories.
• Technical, quality, or performance risks.
• Project management risks.
• Organizational risks.
• External risks.
For government projects, another category far outranks the categories in the PMBOK® Guide – 2000 Edition. This is
political risk.
.5 Political risk. This measures the voters' opinion of the project. It could be considered a subset of “external risks”
(Section 11.2.1.3), but to do so would decrease its prominence. The voters’ opinion is the overriding concern on
government projects.
A basic assumption in democratic societies is that the voters’ decisions are correct. A government project
manager is ethically bound to carry out the will of the voters, not to ignore or evade it. The will of the voters is
displayed at the ballot box. It is conveyed to the project manager from the elected representatives through the
executive.
There are many variations in voter opinion. These include:
• Conflicts between voters at the national, regional, and local levels. Voters in national or regional elections, and
their representatives, may support a project while local voters oppose the project. This is often associated with

the NIMBY phenomenon (“Not in my back yard”). National and regional voters may want a facility (e.g., a
solid waste disposal facility), but local voters oppose it.
• Inconsistencies in the will of voters. For instance, voters may want to commute to work alone each day in their
private cars, but also want to have no air pollution.
• Changes over time. Voters may support a project in its early stages, but oppose it later as its effects become
better known.

11.2.2 Tools and Techniques for Risk Identification

Section 11.2.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Risk Identification.
.1 Documentation reviews
.2 Information gathering techniques
.3 Checklists
.4 Assumptions analysis
.5 Diagramming techniques
These are all used on government projects. The following section has particular applications in government.
.2 Information gathering techniques. Section 11.2.2.2 of the PMBOK® Guide – 2000 Edition discussed techniques
for information gathering—brainstorming; the Delphi technique; and strengths, weaknesses, opportunities, and
threats (SWOT) analysis. These techniques are the same for government projects, but the focus is different. On
government projects, the focus of these techniques should be on the factors that are of concern to the voters and their
representatives. Project managers should avoid the temptation to slavishly follow the factors that generally arise
when these techniques are used in the private sector. In government projects, for instance, cost and schedule may be
far less important than social factors like environmental protection and affirmative action.
In addition to the techniques described in Section 11.2.2.2 of the PMBOK® Guide – 2000 Edition, field research
and surveys can be most valuable on government projects.
• Field research is essential in environmental areas such as air and water quality, the protection of endangered
species, and noise prevention. Specialists need to perform field observations and tests to ascertain how the
project might affect these factors.
• Surveys are useful in measuring some of the social concerns of voters such as affirmative action, archeological,
historical, and architectural preservation, and the protection of scenic areas.

11.2.3 Outputs from Risk Identification

Section 11.2.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Risk Identification.
.1 Risk or risk conditions
.2 Triggers
.3 Inputs to other processes
These outputs are all produced on government projects. In addition, another output is of great concern on
government projects.
.4 List of potential responses. The production of this list is one of the most creative parts of project management,
and it is critical to the remainder of the risk management process. Effective risk responses can create “win-win”
situations that satisfy several competing groups of stakeholders.
Consideration of potential responses begins in the scope planning process. Potential responses are closely
related to, and often dependent on, alternatives identification (see Section 5.2.2.3 of the PMBOK® Guide – 2000
Edition).
“No go” is always a potential response. This may be called by a variety of terms, including “do nothing” and
“no build.” The product of the project must be of greater value to the voters than the sum of its economic, social, and
environmental costs.

11.3 QUALITATIVE RISK ANALYSIS

Inputs Tools & Techniques Outputs

.1 Risk management plan .1 Risk probability and impact .1 Overall risk ranking for the
.2 Identified risks .2 Probability/impact risk project
.3 Project status rating matrix .2 List of prioritized risks
.4 Project type .3 Project assumptions testing .3 List of risks for additional
33

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.5 Data precision .4 Data precision ranking analysis and management

.6 Scales of probability and .5 Public review .4 Trends in qualitative risk
impact analysis results
.7 List of potential responses

11.3.1 Inputs to Qualitative Risk Analysis

Section 11.3.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Qualitative Risk Analysis.
1. Risk management plan
2. Identified risks
3. Project status
4. Project type
5. Data precision
6. Scales of probability and impact
These inputs are all used on government projects. An additional input is of great concern on government projects.
7. List of potential responses. The list of potential responses is described in Section 11.2.3.4.

11.3.2 Tools and Techniques for Qualitative Risk Analysis

Section 11.3.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Qualitative Risk Analysis.
.1 Risk probability and impact
.2 Probability/impact risk rating matrix
.3 Project assumptions testing
.4 Data precision ranking
These tools and techniques inputs are all used on government projects. An additional tool is most useful on
government projects.
.5 Public review. If there is any controversy about a government project, it should be subjected to public scrutiny.
This allows the elected representatives to gauge voter opinion. Some of the best practices in public review include:
• Helping opponents of the project to make their case. Every project has advantages and disadvantages. The
opponents of the project need to have the opportunity to present their case in a clear, logical manner. Often the
supporters of the project have more resources and information. This leaves the opponents to respond mainly on
an emotional level. Emotions do not inform the voters or contribute to the search for the best solution. Project
resources must therefore be committed to helping the opponents to articulate their case and place a logical
choice before the voters and their representatives.
• Holding workshops rather than public hearings. In a workshop, the different aspects of the projects are
described at booths or information stations. At several stations there are recording devices for people to give
their opinions. Members of the public move from booth to booth to learn about the project and present opinions.
This gives everyone an opportunity to participate. In public hearings, by contrast, there is one public place
where people can address the assembly. Participation in hearings is limited to those who feel strongly about the
project or who enjoy public speaking. Most people do not participate. Workshops give a better gauge of public
opinion and are more useful in developing logical arguments and alternatives.

11.3.3 Outputs from Qualitative Risk Analysis

See Section 11.3.3 of the PMBOK® Guide – 2000 Edition.

11.4 QUANTITATIVE RISK ANALYSIS

Risk quantification analysis on government projects has similar processes to private sector projects. Unlike private
sector projects, however, government risk is not expressed only in terms of cost and schedule. Social and
environmental concerns often carry much greater weight than cost and schedule.

Inputs Tools & Techniques Outputs

.1 Risk management plan .1 Interviewing .1 Prioritized list of quantified
.2 Identified risks .2 Sensitivity analysis risks
.3 List of prioritized risks and .3 Decision tree analysis .2 Probabilistic analysis of the

Inputs Tools & Techniques Outputs

risk conditions .4 Simulation project
.4 List of risks for additional .3 Probability of overrunning the
analysis and management project cost and time
.5 Historical information objectives
.6 Expert judgment .4 Contingency reserve amounts
.7 Other planning outputs needed
.8 List of potential responses

11.4.1 Inputs to Quantitative Risk Analysis

Section 11.4.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Quantitative Risk Analysis.
.1 Risk management plan
.2 Identified risks
.3 List of prioritized risks and risk conditions
.4 List of risks for additional analysis and management
.5 Historical information
.6 Expert judgment
.7 Other planning outputs
These inputs are all used on government projects. In addition, another input is of great concern on government
projects.
.8 List of potential responses. The list of potential responses is described in Section 11.2.3.4.

11.4.2 Tools and Techniques for Quantitative Risk Analysis

See Section 11.4.2 of the PMBOK® Guide – 2000 Edition. In Section 11.4.2.1, interviewing, note that project
stakeholders are discussed in Section 2.2.

11.4.3 Outputs from Quantitative Risk Analysis

See Section 11.4.3 of the PMBOK® Guide – 2000 Edition.

11.5 RISK RESPONSE PLANNING

Inputs Tools & Techniques Outputs

.1 Risk management plan .1 Avoidance .1 Risk response plan
.2 List of prioritized risks .2 Transference .2 Residual risks
.3 Risk ranking of the project .3 Mitigation .3 Secondary risks
.4 Prioritized list of quantified .4 Acceptance .4 Contractual agreements
risks .5 No go decision .5 Contingency reserve amounts
.5 Probabilistic analysis of the needed
project .6 Inputs to other processes
.6 Probability of achieving the .7 Inputs to a revised project
cost and time objectives plan
.7 List of potential responses .8 Work breakdown structure
.8 Risk thresholds updates
.9 Risk owners .9 Schedule changes
.10 Common risk causes .10 Cost changes
.11 Trends in qualitative and
quantitative risk analysis
results

11.5.1 Inputs to Risk Response Planning

See Section 11.5.1 of the PMBOK® Guide – 2000 Edition.

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11.5.2 Tools and Techniques for Risk Response Planning

Section 11.5.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Risk Response Planning.
.1 Avoidance
.2 Transference
.3 Mitigation
.4 Acceptance
These tools and techniques are all used when analyzing social, environmental, and political risks. If any of them is
adopted, the result is expressed through amendments to the project work breakdown structure and associated cost
increases and schedule extensions.
Another tool must always be considered on government projects.
.5 No go decision. If the adverse impacts of the project are greater than the benefit it produces, it must be
abandoned. Impacts and benefits are measured from the perspective of the voters and their elected representatives.

11.5.3 Outputs from Risk Response Planning

Section 11.5.3 of the PMBOK® Guide – 2000 Edition discusses outputs from Risk Response Planning.
.1 Risk response plan
.2 Residual risks
.3 Secondary risks
.4 Contractual agreements
.5 Contingency reserve amounts needed
.6 Inputs to other processes
.7 Inputs to a revised project plan
These outputs are all produced on government projects. In addition, the following outputs are of concern on
government projects.
.8 Work breakdown structure updates. If a risk is being avoided, transferred, or mitigated, this will require
additional work packages. These must be amended into the work breakdown structure (see Section 5.3.3 of the
PMBOK® Guide – 2000 Edition).
.9 Schedule changes. See Chapter 6 of the PMBOK® Guide – 2000 Edition.
.10 Cost changes. See Chapter 7 of the PMBOK® Guide – 2000 Edition.

11.6 RISK MONITORING AND CONTROL

See Section 11.6 of the PMBOK® Guide – 2000 Edition.

12. PROJECT PROCUREMENT MANAGEMENT

The PMBOK® Guide – 2000 Edition defines project procurement as “the processes required to acquire goods and
services, to attain project scope, from outside the performing organization.”25 Project Procurement Management is
one of the two PMBOK® Guide – 2000 Edition knowledge areas that focus on the acquisition and use of resources
for the project. The other is Project Human Resource Management (see the introduction to Chapter 9). All the
resources used on a project are obtained either from inside the performing organization or they are obtained by
procurement. On most projects, internal resources consist mainly of human resources. The only project resources
that are not covered either by procurement or by human resources are goods that are produced by the performing
organization and used on the project.
On government projects, the performing organization is the responsible government agency (see Section 2.2).
Governments around the world invest enormous amounts of money in project procurement. In the United States
alone, government procurement in the construction industry amounted to $180 billion in 1999.26 To estimate the
total government project procurement, one must add government procurement in other countries and expand to other
industries such as health and human services, aerospace, defense, environmental, financial, oil, gas, petroleum,
utilities, and communications technologies.
This enormous flow of money creates large risks and responsibilities for safeguarding the public's interest. One
problem is a huge potential for corruption. Civil servants who manage contracts regularly approve payments that are
several times their lifetime income. Civil servants are also subject to political pressures from elected officials whose
constituents may benefit from a government contract. A second type of problem is when the purchased goods or
services do not fulfill the intended requirements because of poorly defined expectations, which lead to
misunderstandings or opportunities for misrepresentation by the vendor. A third type of problem arises from
restrictive procedures designed to prevent fraud and abuse, which make procurement a difficult, costly, and time-
consuming process without commensurate benefits.
Avoiding these problems is essential for the efficient use of government resources and for maintaining public
trust. Good Project Procurement Management gives government the tools for controlling these risks. Project
Procurement Management should serve the following purposes.
• Provide an open, fair, and competitive process that minimizes opportunities for corruption and does not give
subjective partiality to a specific vendor.
• Avoid conflicts of interest or the appearance of a conflict of interest.
• Establish an objective basis for vendor selection.
• Obtain the best value in terms of price and quality.
• Document the requirements that a vendor must fulfill in order to obtain payment.
• Provide a basis for evaluating and overseeing the work of the vendor.
• Allow flexible arrangements for obtaining goods and services in given circumstances, when those arrangements
do not violate the other purposes of Project Procurement Management.
To be effective, Project Procurement Management must be part of other institutional arrangements to protect the
public's interest. These include procedures to ensure that no one person can make large payments without
verification, regular audits, public competition for contracts, and independent inspection of products received from
contractors. It includes public disclosure of statements of financial interest on the part of officials responsible for
procurement decisions. It includes public access to records and documents.
Open, fair, public competition is particularly important. If all contracts are publicly advertised and the results
are also public, losing contractors are likely to challenge any circumstance that favor one firm over another. This
public exposure decreases the likelihood of corruption. It also helps assure the voters and taxpayers that their funds
are being handled properly.
Chapter 12 of the PMBOK® Guide – 2000 Edition describes six processes.
12.1 Procurement Planning
12.2 Solicitation Planning
12.3 Solicitation
12.4 Source Selection
12.5 Contract Administration
12.6 Contract Closeout

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12.1 PROCUREMENT PLANNING

Procurement Planning for government projects involves the same basic considerations used for projects in private
industry with additional requirements.

Inputs Tools & Techniques Outputs

.1 Scope statement .1 Make-or-buy analysis .1 Procurement management
.2 Product description .2 Expert judgment plan
.3 Procurement resources .3 Contract type selection .2 Statement(s) of work
.4 Market conditions .4 Indefinite delivery
.5 Other planning outputs indefinite quantity
.6 Constraints contracts
.7 Assumptions .5 Degrees of competition
.6 Eminent domain
.7 Multiple award schedules
.8 Degrees of qualification

12.1.1 Inputs to Procurement Planning

Section 12.1.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Procurement Planning.
.1 Scope statement
.2 Product description
.3 Procurement resources
.4 Market conditions
.5 Other planning outputs
.6 Constraints
.7 Assumptions
These are all used on government projects, but one has particular applications in government.
.6 Constraints. Constraints are described in Section 12.1.1.6 of the PMBOK® Guide – 2000 Edition. On government
projects, most constraints revolve around the rules set by the representative body. These typically include:
• An open, competitive process for selecting and awarding contracted services. Competition is designed to ensure
that the taxpayers get the best value. An open process is designed to prevent collusion and graft.
• Standard evaluation methods, published in advance.
• The level of funding voted by the representative body.
• Programs to achieve social and economic goals. These include preferences for disadvantaged population groups
and preferences for small businesses.

12.1.2 Tools and Techniques for Procurement Planning

Section 12.1.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Procurement Planning.
.1 Make-or-buy analysis
.2 Expert judgement
.3 Contract type selection
These are all used on government projects. In addition, the following tools are of particular use on government
projects.
.4 Indefinite delivery indefinite quantity contracts (IDIQ). Some agencies also call these on call contracts. Many
agencies utilize this method of obtaining services for small projects. Open, competitive selection is a time-
consuming process. To go through this process for each project would often cause unacceptable delays. IDIQ
minimizes delay by performing the process once for many projects. In many cases, the contract is in place before the
project starts. The contract states the type of service to be delivered, gives a length of time in which the service can
be requested (generally five years), and the minimum and maximum contract amount. With this contract in place, a
project manager can obtain architectural, engineering, or construction services without having to go through a
separate solicitation process. This streamlined process supports small, non-complex projects.
.5 Degrees of competition.
• Full and open competition. All responsible sources are allowed to compete. This is the most used method of
contracting.

• Full and open competition after exclusion of sources. Under this contracting method, agencies are allowed to
exclude one or more sources from competing. A set-aside for a small business or a disadvantaged firm is an
example of this method.
• Other than full and open competition. This is used when there is only a single contractor that can accomplish
the work, by reason of experience, possession of specialized facilities, or technical competence, in a time-frame
required by the government. This type of contract is also known as “sole-source” and requires a written
justification to be approved by an authorized executive.
6. Eminent domain. This is a particular form of sole-source or other than full and open competition. It has been in
use for thousands of years, and is probably the oldest form of government procurement. The government may take
possession of private property when this is in the best interests of the public. Eminent domain is used most often to
take possession of real property. The government is generally required to pay just compensation for the property.
Such compensation is required in Roman Law, the Magna Carta, the Code Napoleon, and the Fifth Amendment of
the United States Constitution.
.7 Multiple award schedules. In many jurisdictions, this type of contract is fairly new. It often requires specific
legislation. It is used when there is a generally accepted “reasonable price” for a good or service. Contractors submit
their schedule of rates to the government procurement office. If these are approved, government agencies may buy
goods and services at the published rates without a separate competition. This method is often adopted in response to
W. Edwards Deming’s fourth point for management, “End the practice of awarding business on the basis of price
tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long-term relationship of
loyalty and trust.”27
.8 Degrees of qualification. All government contracts require that the contractor have minimum qualifications that
are listed in the solicitation documents. Once these minimum qualifications are met there are several degrees of
qualification that can be considered. There are some common approaches.
• Lowest qualified bidder. This is probably the most common approach. Contractors’ proposals are evaluated to
ensure that they meet minimum qualifications. Then the cost proposals of the qualified contractors are opened
and the lowest qualified bidder is accepted. The level of qualification may vary. On construction contracts, the
minimum qualification is generally a contractor’s license and a performance bond. On professional service
contracts, there is generally a more detailed evaluation of the contractors’ qualifications.
• Weighted price and qualifications. This process is similar to the lowest qualified bidder for professional
services. Contractors are evaluated against several factors, with a pre-determined weight assigned to each
factor. A weight is also assigned to the contractor’s bid price. The contract is awarded to the contractor that has
the best weighted score. This is also known as a “best value” qualification.
• Qualifications-based selection. This approach is most often used on design contracts, where the design cost is a
small fraction of the construction cost. Increased attention to design can result in large construction savings.
Contractors’ qualifications are evaluated, the contractors are ranked, and a contract is negotiated with the most
qualified firm. If the government and the contractor cannot agree on a reasonable price, the government
terminates the negotiations and begins negotiating with the second-ranked firm. Once negotiations are
terminated they cannot be re-opened.

12.1.3 Outputs from Procurement Planning

See Section 12.1.3 of the PMBOK® Guide – 2000 Edition.

12.2 SOLICITATION PLANNING

See Section 12.2 of the PMBOK® Guide – 2000 Edition.

12.3 SOLICITATION

Inputs Tools & Techniques Outputs

.1 Procurement documents .1 Bidder conferences .1 Proposals
.2 Qualified seller list .2 Advertising

12.3.1 Inputs to Solicitation

See Section 12.3.1 of the PMBOK® Guide – 2000 Edition.

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12.3.2 Tools and Techniques for Solicitation

Section 12.3.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Solicitation.
.1 Bidder conferences
.2 Advertising
These are both used on government project, but they have particular applications designed to ensure an open
competitive process.
.1 Bidder conferences—control of communication with contractors. From the date a procurement document is
issued until a determination is made and announced regarding the selection of the contractors, contact between the
potential seller and individuals employed by the government is strictly controlled. Specific instructions on
communications are generally spelled out in the procurement documents. Once a seller is selected, similar
restrictions are in place until the contract is signed. Permissible communication consists of:
• Pre-proposal conferences. If a pre-proposal conference is held, the entire proceeding must be transcribed and
provided to every potential bidder. It must be made clear that in the event of a dispute, the written record is the
only admissible evidence. No hearsay or understanding of a verbal comment can be accepted.
• Written communication specifically to clarify questions on the scope statements by the responsible agency.
• On site inspection tours to offer the bidders a clear understanding of the procurement document requirements
that are specified by law. Any statements must be recorded in the same fashion as pre-proposal conferences.
.2 Advertising—public notice. To assure an open competition, representative bodies often require that public notices
be published in regional publications in the locality of the project. Many governments also publish a bulletin that
lists all their contracts that are in the solicitation process. These include the Commerce Business Daily (United
States Government), Government Gazette (many governments), California Contracts Register, and similar
publications.

12.3.3 Outputs from Solicitation

See Section 12.3.3 of the PMBOK® Guide – 2000 Edition.

12.4 SOURCE SELECTION

Inputs Tools & Techniques Outputs

.1 Proposals .1 Contract negotiation .1 Contract
.2 Evaluation criteria .2 Weighting system
.3 Organizational policies .3 Screening system
.4 Independent estimates
.5 Proposal opening and
rejection of proposals
.6 Mandatory requirements
.7 Demonstrations and oral
presentations
.8 Award and preference laws
.9 Protest and grievance
procedures
.10 Best and final offers

12.4.1 Inputs to Source Selection

See Section 12.4.1 of the PMBOK® Guide – 2000 Edition.

12.4.2 Tools and Techniques for Source Selection

Section 12.4.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Source Selection.
.1 Contract negotiation
.2 Weighting system
.3 Screening system
.4 Independent estimates

These are all used on government projects. In addition, the following techniques are particularly useful on
government projects.
.5 Proposal opening and rejection of proposals. The sealed proposals are publicly opened. The bidders are
informed of the time and location of the opening of the proposals. Governments reserve the right to reject any or all
proposals received. Proposals become the property of the government. Potential sellers whose proposals are not
accepted are notified in writing after the award of the contract.
.6 Mandatory requirements. Most contracts have minimum mandatory requirements. The proposals must include
evidence that they meet these requirements. Proposals that do not meet the mandatory requirements are excluded
from further evaluations. Examples of mandatory requirements include:
• Compliance with drug-free workplace policy.
• Format of the proposal.
.7 Demonstrations and oral presentations. Demonstrations and presentations are often included as part of the
solicitation process. When they are included, they may be either mandatory or optional. Potential sellers demonstrate
their proposed package and clarify or explain unusual or significant elements of their proposed package. Potential
sellers are not allowed to alter or amend their proposals after submission. Potential sellers are not allowed to conduct
negotiations during the interview process. A “best business practice” calls for each panelist to prepare their list of
questions so that the same questions are asked of each potential seller.
.8 Award and preference laws. Representative bodies often use preferences in procurement to achieve social and
economic goals. Preferences may be a percentage weighting or an absolute restriction. Some preferences include:
• Regional preference. In some cases, a resident seller has preference over a non-resident. This preference may be
applied by a national government, giving preference to their own nationals, or a regional or local government
giving preference to regional or local firms.
• Population groups. Governments will often give preference to a particular population group. These may be
ethnic groups, people who are deemed to be disadvantaged (e.g., women and disabled people), or people to
whom the voters feel indebted (e.g., military veterans).
• Small business preferences.
.9 Protest and grievance procedures. Each governing body has administrative procedures for sellers to file
grievances and protests related to an award. Each issue identified by a seller is communicated in writing to the
agency. The agency sends a written response to the seller. If the response from the agency has not satisfied the firm,
meetings are scheduled. However, final decisions are the agency’s responsibility. The seller must exhaust the
administrative process before proceeding through the court system.
.10 Best and final offers. In some instances, government agencies have the authority to ask the top-rated candidates
for “best and final” offers if none of the submitted bids is acceptable as is. When this option is available, it can be a
powerful tool for getting a contract more closely meeting an agency’s needs.

12.4.3 Outputs from Source Selection

See Section 12.4.3 of the PMBOK® Guide – 2000 Edition.

12.5 CONTRACT ADMINISTRATION

Inputs Tools & Techniques Outputs

.1 Contract .1 Contract change control .1 Correspondence
.2 Work results system .2 Contract changes
.3 Change requests .2 Performance reporting .3 Payment requests
.4 Seller invoices .3 Payment system
.5 Cost and payment schedule .4 Inspection
.6 Claims

12.5.1 Inputs to Contract Administration

Section 12.5.1 of the PMBOK® Guide – 2000 Edition discusses inputs to Contract Administration.
.1 Contract
.2 Work results
.3 Change requests
.4 Seller invoices
41

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These are all used on government projects. In addition, the following tools are particularly significant on
government projects.
.5 Cost and payment schedule. The seller submits progress payment invoices on dates that are specified in the
contract. Most government agencies have “prompt payment” rules that require them to pay invoices in a prompt
manner.
.6 Claims. If the government agency rejects a change requested by the contractor, this creates a potential claim. The
project manager is responsible for ensuring the prompt negotiation and settlement of claims. Government agencies
generally have a structured dispute resolution process. It can take many years before a final determination is made.

12.5.2 Tools and Techniques for Contract Administration

Section 12.5.2 of the PMBOK® Guide – 2000 Edition discusses tools and techniques for Contract Administration.
.1 Contract change control system
.2 Performance reporting
.3 Payment system
These are all used on government projects. In addition, there are is another vital tool on government projects.
.4 Inspection. Depending on the type of contract, there are various inspection clauses. The government retains the
right to inspect project deliverables for compliance to requirements prior to acceptance. The responsible agency has
a duty to the voters and taxpayers to ensure that it has received the contracted goods and services and that these
goods and services meet the specifications.

12.5.3 Outputs from Contract Administration

See Section 12.5.3 of the PMBOK® Guide – 2000 Edition.

12.6 CONTRACT CLOSEOUT

See Section 12.6 of the PMBOK® Guide – 2000 Edition.

GLOSSARY
Best Value Qualification. See weighted price and qualifications.
Civil Service System. A system in which government employees hold office from one administration to another.
Their positions are protected provided that they remain politically neutral. See spoils system.
Constructive Demotion. Assigning a civil servant to a position that is perceived to be inferior.
Defined Contribution. Split funding by program where some programs contribute a fixed amount, with one
program funding the balance.
Defined Elements of Work. Split funding by program where each program bears the cost of its portions of the
project.
Devolution. Delegation of work or power by a national government to a regional or local government; or by a
regional government to a local government.
Devolve. See devolution.
Eminent Domain. A process that allows the government may take possession of private property when this is in the
best interests of the public. It is used most often to take possession of real property. The government is
generally required to pay just compensation for the property.
Encumbrance. See obligation.
Full and Open Competition After Exclusion of Sources. A process in which agencies are allowed to exclude one
or more sources from competing for a contract. A set-aside for a small business or a small disadvantaged
firm is an example of this method.
Full and Open Competition. A process in which all responsible sources are allowed to compete for a contract.
Government Transfer Payment. See obligation.
Hybrid Staff. A mixture of civil service and contracted staff.
Indefinite Delivery Indefinite Quantity Contracts (IDIQ). Contract that states the type of service to be delivered,
gives a length of time in which the service can be requested (generally five years), and the minimum and
maximum contract amount, but no specific project information.
Line-Item Projects. Projects are added to the budget by the representative body on a project-by-project basis.
Local Government. The government of a small portion of a country or region. There are often overlapping local
governments with different duties. Local governments include counties, cities, towns, municipalities,
school boards, water boards, road boards, sanitation districts, electrification districts, fire protection
districts, and hospital districts. They are governed by elected boards. This election distinguishes them from
local branches of regional or national governments.
Lowest Qualified Bidder. A contracting process in which the lowest bid is accepted. Contractors’ proposals are
evaluated to ensure that they meet minimum qualifications. The level of qualification may vary. On
construction contracts, the minimum qualification is generally a contractor’s license and a performance
bond. On professional service contracts, there is generally a more detailed evaluation of the contractors’
qualifications.
Matching Funds. A form of split funding by program. When governments “devolve” project selection to lower
representative bodies, they often require those lower bodies to pay a portion of the project cost. Matching
funds may be apportioned on a percentage basis or as a defined contribution.
Multiple Award Schedules. A contracting process sometimes used when there is a generally accepted “reasonable
price” for a good or service. Contractors submit their schedule of rates to the government procurement
office. If these are approved, government agencies may buy goods and services at the published rates
without a separate competition.
National Government. The government of an internationally recognized country. The country may be a
confederation, federation, or unitary state.
Obligation. A process that places funds for a contract into a separate account that can be used only for the specific
contract. The funds remain available for two to five years, depending on the rules set by the representative
body. This avoids the need to vote funds in each fiscal year.
On-Call Contracts. See indefinite delivery indefinite quantity contracts.
Opposition Stakeholders. Stakeholders who perceive themselves as being harmed if the project is successful.

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Other Than Full and Open Competition. A process in which there is only a single contractor that can accomplish
the work, by reason of experience, possession of specialized facilities, or technical competence, in a time-
frame required by the government.
Percentage Split. Split funding by program where each program funds a percentage of the project.
Program. A group of projects managed in a coordinated way to obtain benefits not available from managing them
individually.28
Qualifications-Based Selection. A contracting process in which the contract is awarded to the contractor that is best
qualified among those that offer a price that is reasonable to the government. This approach is most often
used on design contracts, where the design cost is a small fraction of the construction cost. Increased
attention to design can result in large construction savings. Contractors’ qualifications are evaluated, the
contractors are ranked, and a contract is negotiated with the most qualified firm. If the government and the
contractor cannot agree on a reasonable price, the government terminates the negotiations and begins
negotiating with the second-ranked firm. Once negotiations are terminated they cannot be re-opened.
Regional Government. The government of a portion of a large country. In small countries, there are no regional
governments—only a national government and local governments. In confederations and federations, the
regional government has considerable autonomy. In unitary states, the regional government is subject to
control by the national government. Regions are called by many different terms. These terms include states,
provinces, lander, departments, cantons, kingdoms, principalities, republics, regions, and territories.
Regulators. The individuals or organizations that must approve various aspects of the project. Regulators enforce
rules and regulations. They are actively involved in the project, but they generally have no interest in its
success—it will not affect them. Regulators are either agents of a higher government or of another agency
in the same government as the performing organization.
Representative Body. A group of people, elected by the voters, who meet, deliberate, and set rules. They may call
these rules by several names. They include laws, statutes, ordinances, regulations, and policies.
Sole Source Contract. See other than full and open competition.
Split Funding by Fiscal Year. The process of funding a single project from several annual budgets.
Split Funding by Program. The process of funding a single project from more than one program.
Spoils System. A system in which each new administration can replace government employees. See civil service
system.
Tight Matrix. A system in which each project has an assigned work area, and employees sit together in that area
while they are working on the project, even though they do not report to the same supervisor.
Use It or Lose It. Provisions in an annual budget that require funds to be spent, or obligated, by the end of the fiscal
year.
Weighted Price and Qualifications. A contracting process in which contractors are evaluated against several
factors, with a pre-determined weight assigned to each factor. A weight is also assigned to the contractor’s
bid price. The contract is awarded to the contractor that has the best weighted score.

APPENDIX A. GOVERNMENT EXTENSION TEAM

PROJECT MANAGER
Nigel Blampied

CHAPTER TEAMS
Each chapter was written by a chapter team, consisting of a lead author and several co-authors. Lead authors
were responsible for the successful completion of a particular chapter and wrote the first draft of the chapter. Co-
authors contributed ideas and text to the chapter.
Chapter 1: Introduction—Lead Author: Nigel Blampied; Co-authors: Ted Aho, Curt Bramblett, Nicolle Goldman,
Ronald Lester, Bongani Matomela, Jack McDaniel, and Roykumar Sukuram.
Chapter 2: Context—Lead Author: Nigel Blampied; Co-authors: Ted Aho, Curt Bramblett, Nicolle Goldman,
Ronald Lester, Jack McDaniel, Larry Sieck, and Roykumar Sukuram.
Chapter 3: Processes29—Lead Author: Nigel Blampied; Co-authors: Ted Aho, George Belev, Curt Bramblett,
Nicolle Goldman, Ronald Lester, and Larry Sieck.
Chapter 4: Project Integration Management—Lead Author: Adrian Hayward; Co-authors: Ted Aho, Nigel
Blampied, Curt Bramblett, Dawn Daugherty, Peter Heffron, Jeff Romanczuk, Kazuo Shimizu, Larry Sieck, and
Roykumar Sukuram.
Chapter 5: Project Scope Management—Lead Author: Roykumar Sukuram; Co-authors: Ted Aho, Nigel
Blampied, Nicolle Goldman, Adrian Hayward, Peter Heffron, Ronald Lester, Linda Salac, and Larry Sieck.
Chapter 6: Project Time Management—Lead Author: Nigel Blampied; Co-authors: Ric Albani, George Belev,
Dawn Daugherty, Nicolle Goldman, Ronald Lester, Jack McDaniel, Larry Sieck, and Roykumar Sukuram.
Chapter 7: Project Cost Management—Lead Author: Nigel Blampied; Co-authors: Ted Aho, Curt Bramblett,
Nicolle Goldman, Ronald Lester, Jack McDaniel, and Larry Sieck.
Chapter 8: Project Quality Management—Lead Author: Nigel Blampied; Co-authors: Larry Sieck, Roykumar
Sukuram, and Dale Woolridge.
Chapter 9: Project Human Resources Management—Lead Author: Dale Woolridge; Co-authors: Ted Aho, Nigel
Blampied, Curt Bramblett, Dawn Daugherty, and Larry Sieck.
Chapter 10: Project Communications Management—Lead Author: Jeff Romanczuk; Co-authors: Emmanuel
Abegunrin, Nigel Blampied, Curt Bramblett, Nicolle Goldman, Jack McDaniel, and Larry Sieck.
Chapter 11: Project Risk Management—Lead Author: Nigel Blampied; Co-authors: Ted Aho, Nicolle Goldman,
Ronald Lester, Larry Sieck, Roykumar Sukuram, and Dale Woolridge.
Chapter 12: Project Procurement Management—Lead Authors: Dawn Daugherty and Linda Salac; Co-authors:
Ted Aho, Nigel Blampied, Nicolle Goldman, Adrian Hayward, Ronald Lester, Jack McDaniel, James McGee, Brad
Poeckes, Larry Sieck, and Steven Schafer.

DRAFT 1 AMENDMENT EVALUATORS

Draft 1 of each chapter was submitted to the full team. Team members responded with 123 recommended
amendments. The team evaluated these proposed amendments, approved ninety-one and decided that thirty-two
were unpersuasive. Once the ninety-one amendments were made to Draft 1, it became Draft 2. Evaluators of the
amendments were Nigel Blampied, Curt Bramblett, Dawn Daugherty, Nicolle Goldman, Adrian Hayward, Peter
Heffron, Jack McDaniel, Jeff Romanczuk, Kazuo Shimizu, and Dale Woolridge.

DRAFT 2 AMENDMENT EVALUATORS

Draft 2 was submitted to the all members of the Government SIG with known email addresses. SIG members
responded with 173 recommended amendments. Six team members evaluated these proposed amendments,
approved 153 and decided that ten were unpersuasive. Once the 153 amendments were made to Draft 2, it became
Draft 3. The six evaluators were Emmanuel Abegunrin, Nigel Blampied, Curt Bramblett, Nicolle Goldman, Adrian
Hayward, and Linda Salac.

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Government Extension to
A Guide to the Project Management Body of Knowledge
Exposure Draft © 2001 Project Management Institute

SELECTED REVIEWERS OF PRE-EXPOSURE DRAFT

These volunteers provided specific evaluations and comments on the pre-exposure draft. The project team and the
PMI Standards Program Team considered their input in the development of the Exposure Draft.
• Raymond Abé, Sydney Water Corporation, Australia
• Michael Airaudi, Texas Department of Human Services, USA
• William Bahnmaier, Defense Acquisition University, USA
• Brenda Breslin, New York State Office of Technology, USA
• Edward Commons, Pennsylvania State Police, USA
• Peter W. Sheremeta, P. Eng, PMP, Universite du Quebec a Hull, Canada
• Carel Van Zyl, BKS, South Africa
• Aloysio Vianna, Jr., Ministry of Defense, Brazil

RESPONDENTS TO PRE-EXPOSURE DRAFT REVIEW

Reviewers of the pre-exposure draft proposed thirteen specific amendments. Nine team members evaluated these
proposed amendments and incorporated eleven of them into the document. The nine evaluators were Emmanuel
Abegunrin, Ted Aho, Nigel Blampied, Nicolle Goldman, Peter Heffron, Jack McDaniel, Jeff Romanczuk, Larry
Sieck, and Linda Salac.

TEAM MEMBER AFFILIATIONS

• Emmanuel Abegunrin, Toronto Hydro-Electric Commission, Canada
• Ted Aho, Public Employee Retirement System of Idaho, USA
• Ric Albani, KPMG Consulting, California, USA
• George Belev, KAPI, Inc.—a Lockheed Martin Company, USA
• Nigel Blampied, California Department of Transportation, USA
• Curt Bramblett, City of Charlotte, North Carolina, USA
• Dawn Daugherty, United States Department of Energy, USA
• Nicolle Goldman, Covansys, Inc., California, USA
• Adrian Hayward, Portsmouth Hospitals Development, United Kingdom
• Peter Heffron, Best Practice Planning, Hawaii, USA
• Vicente Cordero Herrera, International Institute of Learning, Mexico
• Ronald Lester, United States Department of Agriculture, USA
• Rodrigo Loureiro, Ministry of Foreign Relations, Brazil
• Bongani Matomela, Project Administration Services, South Africa
• Jack McDaniel, United States Coast Guard, USA
• James McGee, Nebraska Department of Health and Human Services, USA
• Takeshi Nishi, Ministry of Commerce and Telecommunications, Japan
• Bradley Poeckes, Nebraska Department of Health and Human Services, USA
• Jeff Romanczuk, Sevier County School System, Tennessee, USA
• Linda Salac, Nebraska Department of Health and Human Services, USA
• Steven Schafer, State of Nebraska, USA
• Kazuo Shimizu, Advanced Construction Technology Center, Japan
• Larry Sieck, Texas Parks & Wildlife, USA
• Roykumar Sukuram, Project Administration Services, South Africa
• Dale Woolridge, Pennsylvania Department of Public Welfare, USA
• Carlos Zervigón, Zervigón International, Ltd., Louisiana, USA

APPENDIX B: NOTES

1
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute.
2
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 3.
3 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –

2000 Edition. Newtown Square, PA: Project Management Institute, page 181.
4
This principle dates back at least to the Magna Carta and, in some countries, probably earlier. Article 12 of the
Magna Carta, signed in 1215 by King John of England, says, “No scutage or aid shall be imposed in our realm
unless by the common counsel of our realm.”
5
This is true even if the project manager works in the legislative branch of a government (e.g., the project manager
may be responsible for managing audits for the legislative branch). Within the legislative branch, there are executive
officers responsible for day-to-day operations. The project manager would be part of this executive-within-the-
legislature.
6
Such abuses are most likely in places where there are severe limitations on voting rights (most often limitations
based on ethnicity or length of residence).
7
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown, PA: Project Management Institute, page 10. This definition is quoted from Turner, J.
Rodney. 1992. The Handbook of Project-Based Management. New York, N.Y.: McGraw-Hill.
8
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown, PA: Project Management Institute, page 11.
9
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown, PA: Project Management Institute, page 16.
10 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 29.
11 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 51.
12 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 53.
13
For countries that use English law, the annual budget originates from the English Declaration of Rights. William
III and Mary II signed this in 1689. It prevented the king from maintaining an army without the consent of
Parliament. Its goal was to prevent the king from using the army against the people, as Charles I had done in the
Civil War. Parliament began to pass six-month "Mutiny Acts" to permit the king to keep his army. They were later
changed to annual acts.
The United States adopted a version of the British limit. Article 1, Section 8 of the U.S. Constitution says that,
“[The congress shall have power] to raise and support armies, but no appropriation of money for that use shall be for
a longer term than two years.” Article 1, Section 9 adds, “No money shall be drawn from the treasury, but in
consequences of appropriation made by law.”
14
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 95.
15
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 98. This is a quotation from the
International Organization for Standardization. ISO 8402. 1994. Quality Management and Quality Assurance.
Geneva, Switzerland: ISO Press.
16
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 98.
17
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 107.

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Government Extension to
A Guide to the Project Management Body of Knowledge
Exposure Draft © 2001 Project Management Institute

18 For a discussion of the tight matrix, see Stuckenbruck, Linn C., and David Marshall. 1996. Team Building for

Project Managers. The Principles of Project Management. Newtown Square, PA: Project Management Institute,
page 152.
19 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 115.
20 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 117.
21
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 119.
22
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 122.
23
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 125.
24 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 127.
25 Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide)

– 2000 Edition. Newtown Square, PA: Project Management Institute, page 147.
26
ENR (Engineering News Record). 2000. July 24/July 31, page 51.
27 W. Edwards Deming. 2000. Out of the Crisis. Cambridge, Mass: The MIT Press, page 23. (Originally published:

Cambridge, Mass: MIT, Center for Advanced Educational Services, 1986).

28
Project Management Institute. 2000. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) –
2000 Edition. Newtown Square, PA: Project Management Institute, page 10. This definition is quoted from Turner,
J. Rodney. 1992. The Handbook of Project-Based Management. New York, N.Y.: McGraw-Hill.
29
Although chapter 3 is very brief, several proposals were considered for this chapter before the team decided to
adopt the current brief text.

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