Reference no: EM133059468

BSBPMG518 Manage Project Procurement - Danford College

Task - Project Procurement

This assessment task requires you to:

• work with others to determine procurement requirements and produce a procurement management plan for a project
• carry out procurement and contracting activities according to agreed processes
• monitor activities across a project's life cycle and resolve issues that could affect achievement of project objectives
• create and maintain procurement records and documentation according to requirements of project and organisation
• Document a review of procurement management processes and procedures.

Within your practice environment, complete each of the following parts:

Policies and procedures

• Locate the policies and procedures that are relevant to planning procurement in your organisation. Make a list of these documents. Are there any policy gaps you have identified?
• If so, what action do you plan to take to fill these gaps?

Planning procurement

• How do you plan when to acquire products and services needed to complete project activities?
• Who is involved in deciding when products and services are ordered?
• What documents do you refer to when deciding on when to order products or services?
• What are the effects of a product or service arriving early? What about if they arrive late?

Market analysis

• Delegate to a project team member responsibility for conducting a market analysis for a product or service that you need in a project you are currently working on. Ask them to conduct any necessary research and to source at least three potential suppliers. After they have prevented you with a list of suppliers, conduct a critique of how well they performed this task.
• List the product or service that was being sourced here.
• How well did the project team member conduct the supplier analysis?
• Were there any gaps in their analysis? If so, please list them below.
• How could the project team member have performed the analysis better?

Planning to procure

• Describe the methods used to procure the products and services for a project you are working on.
• What documents did you prepare to distribute to prospective sellers?
• What type of contract was selected? Why was this type of contract selected?
• What policies and procedures within your organisation did you use to assist in planning how products and services would be procured?

Contract administration planning

• For a project you are currently managing, describe the steps you took to plan the contract administration process.
• What are the key performance indicators that your project team developed for the contract?
• What process did you develop to review the contractor's performance throughout the
contract?
• What types of reports are required in administering the contract?
• Who was involved in the contract administration planning process from your project team?

Establishing procurement processes

• What documented procedures do you normally follow in your organisation for:
• Going to the market with a request for tender?
• Evaluating responses?
• Selecting preferred contractors?
• Developing key performance indicators for a contract?
• Monitoring contractor performance?
• Making changes to the procurement management plan?
• Conducting reviews of procurement activities?
• If your organisation does not have these documents, how does it affect the ease with which you conduct procurement in your organisation?

Selecting the best supplier

• Interview a senior project or program manager in your organisation and ask them to walk your through a tender selection process. Ask the following questions:
• What were the key stages or milestones and the timeframe for the tender?
• Who was on the tender selection panel and why?
• What documentation was involved in the process (documentation from both the organisation seeking tenders and the tenderers in their responses)?
• What are the key things to remember when running a competitive tender?
• What are the pitfalls that need to be avoided?

Contracts

• Based on your experience as a project manager, outline what you think are the most important characteristics of a good contract.
• What assistance do you normally seek or require when writing contracts?
• What are some of the common problems you may experience or have experienced as a result of a poorly written contract?

Contract management

• Think back to a contract you managed in the past. Answer the following questions about how effective the contract management process was:
• What was the contract for? Were the key performance indicators for the contract?
• What were the key performance indicators for the contract?
• How did you monitor the contractor's performance?
• Who was involved form your project team in the contract management process?
• How well did your project team members manage the contract?
• What worked well? What went wrong or could have worked better?

Dispute resolution
• Think of a time when you found yourself in dispute with a contractor. Answer the following questions about the dispute:
• How did the dispute arise? Who was involved?
• How did you manage the dispute?
• What policies and procedures were available to assist you in handling the dispute?
• What was the outcome?
• What actions did you ask your project team members to take to resolve the dispute?

Reviewing contracting and procurement

• Describe how you reviewed the contracting and procurement activities on a project you worked on previously.
• Describe the type of project you worked on.
• What methods did you use to review the contracting and procurement activities used in the project (e.g. procurement audits, review meetings, project team interviews etc.)?
• How satisfactory was the contractor's performance?
• What issues, difficulties, or problems were identified in the review process?
• Who was involved from your project team in the review?
• What recommendations were made for future contracting and procurement activities as a result of your review?

Procurement plan proforma

The proforma contained below may assist you in recognising the sorts of procurement issues and activities that you will need to plan for involved in when developing a procurement plan.

What goods /services will be required? For which unit or team will they be needed? What requirements do they have? Quantity or amount? When will the goods/services be required? Where will the goods/services be obtained? How will the contract be managed? How will the contract be finalised and reviewed?

- Describe the risks that are or were associated with this procurement.
- What contracts were, or will be required?
- How will these contracts be managed and by whom?

I) Planning Procurement

List the main policies and procedures that are relevant to planning procurement in your organisation.

Identify the policy gaps and suggest an action required to fill the gaps.

Explain the method to plan when to acquire the required products and services to complete the project. Who decides to order them and when? List the documents required as reference. Also, mention the consequences of the early or late arrival of the products or the services.

II) Market Analysis

2.1 You are required to delegate the responsibility of conducting a market analysis for a product or service as required in the project to one of your project team members. Ask him/her to source at least three potential suppliers and then conduct a critique of his/her performance.

In your explanation, please answer the following parts:

a) State the product or the service that was sourced.
b) How well did the team member conduct the supplier analysis? Mention the gaps if any?
c) How could the project team member have performed the analysis better?

III) Planning to procure

Describe the methods adopted to procure the products and services for a project. List the documents that were prepared to distribute to perspective sellers.

Discuss the type and the need of the contract selected to procure the product or service for the project.

IV) Contract Administration Planning

Explain the steps involved in the process of planning the contract administration process. Name the person involved in the contract administration planning process from your team.

Discuss the key performance indicators developed by the project team for the contract. Also, explain the process involved in determining the contractor's performance throughout the project. List the types of reports required in administering the contract.

V) Establishing procurement processes

What documented procedures do you normally follow in your organisation for:

Going to the market with a request for tender:

Evaluating responses:

Selecting preferred contractors:

Developing key performance indicators for a contract:

Monitoring contractor performance:

Making changes to the procurement management plan:

Conducting reviews of procurement activities:

What will be the consequences (in relation to the case) if your organisation does not have these documents?

VI) Evaluation Criteria

EVALUATION OF SUCCESSFUL CONTRACTOR: 1.
Comment on the clarity and usefulness of the set criteria. Also, mention the improvements if needed.

VII) Tender selection process

7.1 While interviewing a senior project manager seek the answers for the following questions:

1. What were the key stages or milestones and the timeframe for the tender? Who was on the tender selection panel and why?

2. What documentation was involved in the process from the organisation seeking tenders and the tenderers?

3. What are the important things to consider while running a competitive tender? Mention the pitfalls that need to be avoid.

VIII) Contracts

Outline the important characteristics of a good contract and mention about the assistance required when writing contracts. What are the common problems that occur during the contract writing process?

Provide an example of a contract handled previously:
How was the contractor's performance monitored? Also, state the positivity and the negativity in the contract.
Dispute with the contractor
Reason for the dispute and the person involved:

Policies and procedures available for assistance in handling the dispute:

Actions taken by the project team members: Outcome:

IX) Reviewing Contracting and procurement

Describe the methods used to review the contracting and procurement activities (example procurement audits, review meetings, project team interviews...etc.). What was the type of project?

What issues or difficulties were identified in the review process? How satisfactory was the contractor's performance? Who was involved from the project team in the review process?

Outline the recommendations made for future contracting and procurement activities

Attachment:- Manage Project Procurement.rar