diff --git a/ompi/proc/proc.c b/ompi/proc/proc.c
index 961e8c5f9b9..5b712bf25e1 100644
--- a/ompi/proc/proc.c
+++ b/ompi/proc/proc.c
@@ -116,6 +116,8 @@ static int ompi_proc_allocate (ompi_jobid_t jobid, ompi_vpid_t vpid, ompi_proc_t
     opal_hash_table_set_value_ptr (&ompi_proc_hash, &proc->super.proc_name, sizeof (proc->super.proc_name),
                                    proc);
 
+    /* by default we consider process to be remote */
+    proc->super.proc_flags = OPAL_PROC_NON_LOCAL;
     *procp = proc;
 
     return OMPI_SUCCESS;
@@ -133,26 +135,14 @@ static int ompi_proc_allocate (ompi_jobid_t jobid, ompi_vpid_t vpid, ompi_proc_t
  */
 int ompi_proc_complete_init_single (ompi_proc_t *proc)
 {
-    uint16_t u16, *u16ptr;
     int ret;
 
-    u16ptr = &u16;
-
     if ((OMPI_CAST_RTE_NAME(&proc->super.proc_name)->jobid == OMPI_PROC_MY_NAME->jobid) &&
         (OMPI_CAST_RTE_NAME(&proc->super.proc_name)->vpid  == OMPI_PROC_MY_NAME->vpid)) {
         /* nothing else to do */
         return OMPI_SUCCESS;
     }
 
-    /* get the locality information - all RTEs are required
-     * to provide this information at startup */
-    OPAL_MODEX_RECV_VALUE_OPTIONAL(ret, OPAL_PMIX_LOCALITY, &proc->super.proc_name, &u16ptr, OPAL_UINT16);
-    if (OPAL_SUCCESS != ret) {
-        proc->super.proc_flags = OPAL_PROC_NON_LOCAL;
-    } else {
-        proc->super.proc_flags = u16;
-    }
-
     /* we can retrieve the hostname at no cost because it
      * was provided at startup - but make it optional so
      * we don't chase after it if some system doesn't
@@ -287,20 +277,6 @@ int ompi_proc_init(void)
     }
 #endif
 
-    if (ompi_process_info.num_procs < ompi_add_procs_cutoff) {
-        /* create proc structures and find self */
-        for (ompi_vpid_t i = 0 ; i < ompi_process_info.num_procs ; ++i ) {
-            if (i == OMPI_PROC_MY_NAME->vpid) {
-                continue;
-            }
-
-            ret = ompi_proc_allocate (OMPI_PROC_MY_NAME->jobid, i, &proc);
-            if (OMPI_SUCCESS != ret) {
-                return ret;
-            }
-        }
-    }
-
     return OMPI_SUCCESS;
 }
 
@@ -329,11 +305,44 @@ static int ompi_proc_compare_vid (opal_list_item_t **a, opal_list_item_t **b)
  */
 int ompi_proc_complete_init(void)
 {
+    opal_process_name_t wildcard_rank;
     ompi_proc_t *proc;
     int ret, errcode = OMPI_SUCCESS;
+    char *val;
 
     opal_mutex_lock (&ompi_proc_lock);
 
+    /* Add all local peers first */
+    wildcard_rank.jobid = OMPI_PROC_MY_NAME->jobid;
+    wildcard_rank.vpid = OMPI_NAME_WILDCARD->vpid;
+    /* retrieve the local peers */
+    OPAL_MODEX_RECV_VALUE(ret, OPAL_PMIX_LOCAL_PEERS,
+                          &wildcard_rank, &val, OPAL_STRING);
+    if (OPAL_SUCCESS == ret && NULL != val) {
+        char **peers = opal_argv_split(val, ',');
+        int i;
+        free(val);
+        for (i=0; NULL != peers[i]; i++) {
+            ompi_vpid_t local_rank = strtoul(peers[i], NULL, 10);
+            uint16_t u16, *u16ptr = &u16;
+            if (OMPI_PROC_MY_NAME->vpid == local_rank) {
+                continue;
+            }
+            ret = ompi_proc_allocate (OMPI_PROC_MY_NAME->jobid, local_rank, &proc);
+            if (OMPI_SUCCESS != ret) {
+                return ret;
+            }
+            /* get the locality information - all RTEs are required
+             * to provide this information at startup */
+            OPAL_MODEX_RECV_VALUE_OPTIONAL(ret, OPAL_PMIX_LOCALITY, &proc->super.proc_name, &u16ptr, OPAL_UINT16);
+            if (OPAL_SUCCESS == ret) {
+                proc->super.proc_flags = u16;
+            }
+        }
+        opal_argv_free(peers);
+    }
+
+    /* Complete initialization of node-local procs */
     OPAL_LIST_FOREACH(proc, &ompi_proc_list, ompi_proc_t) {
         ret = ompi_proc_complete_init_single (proc);
         if (OPAL_UNLIKELY(OMPI_SUCCESS != ret)) {
@@ -341,35 +350,32 @@ int ompi_proc_complete_init(void)
             break;
         }
     }
-    opal_mutex_unlock (&ompi_proc_lock);
 
-    if (ompi_process_info.num_procs >= ompi_add_procs_cutoff) {
-        char *val = NULL;
-        opal_process_name_t wildcard_rank;
-        wildcard_rank.jobid = OMPI_PROC_MY_NAME->jobid;
-        wildcard_rank.vpid = OMPI_NAME_WILDCARD->vpid;
-        /* retrieve the local peers */
-        OPAL_MODEX_RECV_VALUE(ret, OPAL_PMIX_LOCAL_PEERS,
-                              &wildcard_rank, &val, OPAL_STRING);
-        if (OPAL_SUCCESS == ret && NULL != val) {
-            char **peers = opal_argv_split(val, ',');
-            int i;
-            free(val);
-            for (i=0; NULL != peers[i]; i++) {
-                ompi_vpid_t local_rank = strtoul(peers[i], NULL, 10);
-                opal_process_name_t proc_name = {.vpid = local_rank, .jobid = OMPI_PROC_MY_NAME->jobid};
-
-                if (OMPI_PROC_MY_NAME->vpid == local_rank) {
-                    continue;
-                }
-                (void) ompi_proc_for_name (proc_name);
-            }
-            opal_argv_free(peers);
+    /* if cutoff is larger than # of procs - add all processes
+     * NOTE that local procs will be automatically skipped as they
+     * are already in the hash table
+     */
+    if (ompi_process_info.num_procs < ompi_add_procs_cutoff) {
+        /* sinse ompi_proc_for_name is locking internally -
+         * we need to release lock here
+         */
+        opal_mutex_unlock (&ompi_proc_lock);
+
+        for (ompi_vpid_t i = 0 ; i < ompi_process_info.num_procs ; ++i ) {
+            opal_process_name_t proc_name;
+            proc_name.jobid = OMPI_PROC_MY_NAME->jobid;
+            proc_name.vpid = i;
+            (void) ompi_proc_for_name (proc_name);
         }
+
+        /* acquire lock back for the next step - sort */
+        opal_mutex_lock (&ompi_proc_lock);
     }
 
     opal_list_sort (&ompi_proc_list, ompi_proc_compare_vid);
 
+    opal_mutex_unlock (&ompi_proc_lock);
+
     return errcode;
 }