Procurement Management. BSBPMG509A
Part 1.
Diploma Project Management Captain Cook College
Sharon Boyle
Attempted Activity 1, 2 & 3 Discussed results for all Activities Started ? all four assessment items All Risk Unit assessment items MUST be in
by 2 November
Last week’s progress in Risk
The biggest & most complex area of Diploma Big money = big potential problems Some projects rely heavily on procurements
– others not so much Egs
◦ construction & engineering HUGE issue◦ Events = critical issue but perhaps not so much◦ Community based events = not much money
lesser problem◦ IT = entirely about procurement – think RBH &
computers
Procurement or shopping
Workshopped results in class
Why is this an issue :What Potential problems
University of Southern Queensland – full policy list including purchasing
https://policy.usq.edu.au/policy/files/procurement%20and%20purchasing.htm#id13
Projects exist in organisations : Existing policies
Queensland Government Procurement Plan North Carolina Information Technology
Procurement Office University of Southern Queensland
Purchasing & policies
Existing Policy Frameworks
1. Determine procurement requirements2. Establish agreed procurement processes3. Conduct contracting and procurement
activities4. Implement contract and/or procurement5. Manage contract and procurement
finalisation procedures
Procurement Unit
1.1. Identify procurement requirements with input from stakeholders as the basis for procurement planning and contracts
1.2. Establish & maintain, within delegated authority, an agreed procurement management plan
1. Determine procurement requirements
What will the procurement management plan need to align with?
Interaction with other PMP components
2.1. Obtain information from established sources capable of fulfilling procurement requirements
2.2. Adopt established selection processes and selection criteria, including occupational health and safety (OHS) requirements,
2.3. Obtain approvals for procurement processes
2. Establish agreed procurement processes
Workshopped results in class. Signatures – yes, but
Stakeholder input Development of processes Management understanding of processes
What do we need to get approval?
3.1. Communicate agreed proposals prospective contractors or suppliers
3.2. Evaluate responses and select preferred contractors or suppliers in accordance with current legal requirements & agreed selection processes
3.3. Conduct negotiations with preferred contractor or supplier, with guidance of higher project authority if necessary, to agree on contract terms and conditions, establish common goals and minimise uncertainty
3. Conduct contracting and procurement activities
Lunch
Processes http://www.capital.health.vic.gov.au/capdev/
PlanningEvaluation/EngagementConsultants/ConsultantSelectionProcess/
Selection processes
Project ValueNumber of Quotes Required
Additional Information
$0 - $25,000 1 written tender
Due diligence is required. Proposal must be consistent with current market prices.
$25,000 - $150,000
3 written tenders minimum
$150,000 and over
3 Tenderers from a list of pre-qualified consultants or inviting public tenders
The process should incorporate activities set out in Table: Consultancy Appointment Flowchart
Number of Quotes required
Bigger job more processes requiredVictorian Health Dept
Victorian Health Department
Bigger jobs
Consultant Selection…
Communication During Selection Process – Internal and External
Strategy
Service Needs
Selection Committee
Selection Criteria
DevelopRFQ/RFP
Evaluateand Shortlist
Interview/Final Selection
ContractNegotiations
IndependentFee Estimate
Scoping
Debrief LosingFirms
Selection Com.Debrief
Please watch – you will need this for 1st assessment item…..
Workshopped results in class.
Common elements from selection processes
1. Procurement Statement
Describe, in general terms, what products or services are being considered for procurement:
2. Estimated Cost
Provide an estimated total cost of all procurements in this project. Include confidence limits for your estimate (e.g. plus/minus dollars or percent of estimate). Example: $1,567,000 +/- 20%
3. Vendor Selection
Describe what approach the project team will take to select a product or vendor (e.g. RFI, RFP, IFB).
1. Procurement Definition
Describe, in specific terms, what items will be procured and under what conditions:
2. Selection Process & Criteria
Describe the selection process. List selection criteria. Describe any analytical selection tool that you will use.
3. Project Procurement Team
List all stakeholders who are involved in the Procurement Process, along with contact information and a description of their Procurement Role. Enter an [ X ] next to each project team member who is authorized to enter into contract agreements or purchase for the Team (insert rows as needed):
X here
Name: Phone / email: Procurement Role:
[ ]
[ ]
[ ]
[ ]
4. Contract Type
Document which types of contract(s) will be used and the actions required to initiate the contract.
5. Contract Standards
Provide the standards for documentation that will be used for each contract.
6. Vendor Management
Describe what steps the project team will take to ensure that the vendor provides all of the products and/or services (and only the products and/or services) that were agreed upon, and that appropriate levels of quality are maintained.
1.
2.
3.
4.
7. Links to related planning documents
Provide hyperlinks to related documents, such as the Change Request Management Plan, Vendor Payment Plan, etc., or attach as addenda.
Change Request Management Plan,
Vendor Payment Plan,
8. Project Procurement Plan / Signatures
Project Name:
Project Manager:
I have reviewed the information contained in this Project Procurement Plan and agree:
Name Role Signature Date(MM/DD/YYYY)
The signatures above indicate an understanding of the purpose and content of this document by those signing it. By signing this document, they agree to this as the formal Project Procurement Plan.
Powerpoint presentation Introduction to Procurement & contracts
Morning Tea Continued Powerpoint presentation Introduction
to Procurement & contracts Reference to policies & procedures USQ Consultant selection processesLunch Assessment items for unit Procurement management plan Agree date & time for Role play
Lesson plan 25 October
Presentation Richard VH – procurement in the engineering industry
Time for reading & Activities 1,2,3,4 & 5.Morning Tea Revision of yesterday’s termsLunch Answers & discussion Activities 1, 2,3 Complete Fred’s Shed procurement plan Assessments completed
Lesson plan 26 October