This guide covers everything you need to know about the sourcing strategy plan in PMBOK 8. The sourcing strategy plan defines how the project will obtain external resources, goods, and services — it establishes the make-or-buy decisions, procurement methods, contract types, vendor selection criteria, and governance processes for all project procurement activities.
What Is the Sourcing Strategy Plan?
The sourcing strategy plan is a component of the project management plan that defines the project’s approach to procurement. It documents make-or-buy decisions (which work will be performed by the internal team and which will be outsourced), the procurement methods to be used (competitive bidding, direct negotiation, sole-source), the contract types appropriate for each procurement (fixed-price, time-and-materials, cost-reimbursable), the vendor selection criteria, and the governance structure for managing vendor relationships throughout the project.
A well-crafted sourcing strategy plan reduces procurement risk by establishing clear governance before any vendor engagement begins. It ensures that contract types match the nature of the work, that vendor selection is objective and documented, and that vendor management responsibilities are clearly assigned.
PMBOK 8 introduces the sourcing strategy plan as a distinct output, recognizing that procurement governance is a significant project management domain requiring dedicated planning attention, especially for projects with substantial external spending.
Sourcing Strategy Plan in PMBOK 8 — Domain and Process
In the PMBOK Guide 8th Edition, the sourcing strategy plan belongs to the Governance Performance Domain and is produced during the Plan Sourcing Strategy process. It guides all subsequent procurement activities and informs the cost estimates, risk register, and schedule for procurement-dependent activities.
The sourcing strategy plan feeds into vendor selection processes, contract negotiations, the issue log (for vendor performance issues), and the lessons learned register (for procurement effectiveness insights).
Key Elements of the Sourcing Strategy Plan
A well-structured sourcing strategy plan typically includes:
- Make-or-Buy Analysis — rationale for each major work component’s internal vs. external decision
- Procurement Items List — goods and services to be procured, with estimated value and timing
- Contract Types — the contract structure for each procurement (FP, T&M, CR) with justification
- Vendor Selection Criteria — the evaluation factors and weighting used to select vendors
- Procurement Schedule — timeline for issuing solicitations, evaluating responses, and awarding contracts
- Vendor Management Approach — how vendor performance will be monitored and managed
Sourcing Strategy Plan Example — Project Phoenix
The Project Phoenix sourcing strategy plan documented two external procurements: BrightFrame Design Studio (design services) and CloudHost Pro (hosting infrastructure). The make-or-buy analysis determined that design work would be outsourced because MCG lacked in-house design capability at the required quality level, while development and project management would be performed internally. For CloudHost Pro, the analysis confirmed that managed hosting was more cost-effective than internal infrastructure for a project of this scale.
BrightFrame was selected on a fixed-price contract ($12,900 SOW) based on a three-vendor competitive evaluation using criteria: portfolio quality (40%), price (30%), timeline (20%), and references (10%). BrightFrame scored highest overall at 87/100. CloudHost Pro was selected as a sole-source based on TechCorp’s existing enterprise agreement. Alex Morgan was assigned as the vendor relationship manager for both vendors, with escalation to Riley Park for any contract dispute.
You can download the complete filled-in example below — it shows exactly how the sourcing strategy plan was built for a real project.
Download Free Sourcing Strategy Plan Template and Example
We have prepared two free resources to help you develop a sourcing strategy plan for your own projects:
- Download the Sourcing Strategy Plan Template — PMBOK 8 (blank, ready to fill in)
- Download the Sourcing Strategy Plan Example — Project Phoenix (filled in for a real $72K website launch)
Both are free downloads — no registration required.
Sourcing Strategy Plan — Best Practices and Common Mistakes
Match contract type to risk allocation: fixed-price contracts transfer risk to the vendor when scope is well defined; time-and-materials contracts retain risk with the project when scope is uncertain. Document vendor selection criteria and scoring before evaluating vendors — post-hoc criteria development invites bias. Include a vendor performance monitoring schedule in the plan so that performance issues are caught early, not at deliverable acceptance.
The sourcing strategy plan is most effective when it is completed before any vendor outreach begins, ensuring that procurement is governed by a consistent strategy rather than individual ad hoc decisions. Teams that skip or rush this plan often end up with poorly structured contracts that create disputes and cost overruns.
Want to master project management with PMBOK 8? The PMBOK Guide 8th Edition is the definitive reference. Get your copy and use it alongside these free resources.
Free Template & Filled-In Example
Apply what you’ve learned with these two free resources:
- Download the Free Sourcing Strategy Plan Template (PMBOK 8) — Ready-to-use blank template for your next project.
- Download the Filled-In Example — Project Phoenix — See exactly how this document was completed for a real $72K website launch project.
Project Management