Which term describes the process of obtaining external goods or services for the project?

• A. Sourcing
• B. Procurement
• C. Contract Management
• D. Acquisition

Answer: (B)

Procurement is the process of obtaining external goods or services needed for the project, covering activities from planning and identifying needs to selecting suppliers, negotiating contracts, purchasing, and managing ongoing relationships. This broader scope makes it the best fit for the description, since it encompasses not just finding vendors but also the actual acquisition and handling of external resources. Sourcing focuses mainly on finding potential suppliers and evaluating capabilities, which is a step within procurement rather than the whole process. Contract management deals with administering the contract after it’s awarded, ensuring terms and performance are met. Acquisition can be used in some contexts but PMI’s terminology centers on procurement to describe obtaining external resources and managing those agreements.