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