A **sub procurement** refers to a specific part or activity within the broader process of acquiring goods, services, or construction. While not a single, universally defined term, it typically denotes procurement actions that are subordinate to, or form a component of, a larger purchasing effort or contractual relationship.
Based on the general definition:
**Procurement** means the **purchasing, buying, renting, leasing, or otherwise obtaining of any supplies, services, or construction**.
A "sub procurement," therefore, relates to obtaining items or services *within* or *in support of* a primary procurement activity or by a party acting under a main contract.
## Understanding Sub Procurement in Context
The term "sub procurement" often comes into play in complex projects or supply chains. It highlights procurement activities that are distinct but linked to a principal acquisition process.
Here are some common interpretations or scenarios where "sub procurement" might apply:
* **Procurement by Subcontractors:** When a prime contractor hires a subcontractor to perform a specific part of a project, that subcontractor will often need to procure their own materials, equipment, or services to complete their work. This is a form of sub procurement relative to the prime contract.
* **Procurement of Sub-Components:** In manufacturing or large construction projects, the procurement of individual parts, components, or sub-assemblies that will be incorporated into a larger final product or structure can be considered sub procurement.
* **Segmented Procurement Activities:** A large, multi-phase procurement project might break down into several distinct "sub procurements" for different lots, phases, or categories of goods/services. Each sub procurement is a smaller, manageable part of the overall acquisition strategy.
* **Decentralized Procurement:** In large organizations, while a central department handles major procurements, individual departments or branches might handle smaller, specific purchases necessary for their operations. These decentralized activities could be viewed as sub procurements.
## Practical Examples
Consider a large construction project to build a new office complex:
* The **prime procurement** is the contract between the owner and the general contractor for the entire building.
* The general contractor then awards contracts to subcontractors (e.g., for electrical work, plumbing, HVAC).
* When the *electrical subcontractor* purchases wires, conduits, circuit breakers, and hiring labor for installation, this is a **sub procurement** related to their subcontract.
* When the *general contractor* purchases raw materials like concrete and steel directly for foundational work, distinct from specific subcontracts, this might also be considered a form of sub procurement within the overall project scope.
## Key Takeaway
Essentially, a sub procurement is procurement that occurs *within* or *as part of* a larger acquisition framework, often performed by a party (like a subcontractor) or focused on specific components or segments of the main requirement. It ensures that all necessary resources are obtained at various levels to achieve the objectives of the primary procurement.
