A project in execution is behind schedule and missing some materials. A contractor offers to supply the missing materials and cover the cost because internal procurement would cause more delay. The project manager disagrees with the contractor's proposed costs. What should the project manager do next?

The project manager should update the procurement management plan and negotiate with the contractor. The plan needs updating to reflect the new procurement approach (from internal to external for these materials) and to document the revised strategy. Negotiation is crucial to address the disagreement on costs. Requesting sponsor approval for additional budget is premature without first attempting to negotiate a fair price. Asking the contractor to simply reduce their offer is not a collaborative or strategic approach. Revising the procurement strategy is part of updating the plan, but the immediate next step after updating the plan is to negotiate the terms with the contractor.