This activity is part of the Preparing section of the Project Flow. Preparation starts as soon as you have the idea or offer for the project, and ends with the decision to execute/accept the project, or drop it. Checking the feasibility or possible options for the project happens in this section as well.
At this point, the Project Manager provides all the information in the PMIS to the Sponsor, and the Sponsor makes the Go/No-Go decision, mainly based on the Business Case.
In case you have an external customer, this is the time you decide to sign the contract, or excuse yourself. If you’re going to have external suppliers and some of them are selected in A07, then you might want to sign the contract with them now.
Make sure everyone understands that a No-Go decision is not a failure; it’s a sign of having a successful system that understands what’s not beneficial for the company and doesn’t waste resources on it.