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Identify procurement requirements with input from stakeholders as basis for procurement planning Establish and maintain, within delegated authority, agreed procurement management plan Obtain information from suppliers capable of fulfilling procurement requirements Determine or adopt established selection processes and selection criteria, and communicate to vendors to ensure transparency Obtain relevant approvals for procurement processes to be used Identify and act according to probity and project governance constraints Communicate agreed proposals and/or specifications to prospective vendors to ensure clarity of understanding of project objectives Solicit vendor responses according to proposal requirements Evaluate responses and select preferred vendors according to current legal requirements and agreed selection criteria Negotiate with preferred contractor or supplier, to agree on terms.

Internal Need Analysis

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

The main policies and procedures that are relevant to planning procurement in National Archives of Australia for the project of website redevelopment are,

Internal Need Analysis: The project of website redevelopment by National Archives of Australia would be procured by effective utilization of the need analysis. The internal needs of the website redevelopment would be analyzed in this strategy.

Collection Supplier Information: The collection of supplier information would be done in this approach so that the works aligned with the utilization of the procurement process of website redevelopment would be effectively executed by website design procurement.

Development of Outsourcing Strategy: The National Archives of Australia would require utilization and development of outsourcing strategies for their redevelopment of website. The outsourcing of the website would be supported by the formation of the effective work alignment.

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

The policy defined above lacks the communication proposition and negotiation strategy to be used for the procurement of the website redevelopment. There is no explanation of the methods of defining the management of the communication medium for the procurement process. Moreover lack of effective negotiation strategy would also result in issues with the formation of the effective work implication process.

The actions required for the filling of the gaps in policies are,

  • Selection of effective communication medium for the project
  • Development of communication plan for National Archives of Australia
  • Identify the negotiation strategy required in the formation of the work

1.3 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.

The method for planning when to acquire the required products and services for completion of the project for National Archives of Australia of would comprise of,

Step 1: Analysis of the requirements of website redevelopment

Step 2: Estimation of Cost and schedule for the project

Step 3: Acquisition Plan is developed for the required products and services

Step 4: Analysis of the risk associated with the project execution

The planning of the time for the acquiring of the required products and services to complete the project of National Archives of Australia would be initiated by analysis of the requirements of the project. In this step the major requirement of the project would be analyzed such as activities involved, expenses of the project, market analysis, legal taxation, and policies. The cost and schedule estimation is done later for ensuring that the cost expenses and time used must not exceed the desired time and cost. The acquisition plan would be developed for ensuring the alignment of the works and the consideration for the effective work alignment.

The person responsible for the process is the Project Manager or any other individual from the business organization depending on the organizational policies.

The documents like Tender Documents, Charter Documents, Budget Estimation Plan, and Request for information would be used as references.

2. Market Analysis

Collecting Supplier Information

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:

  1. State the product or the service that was sourced.

The project of Website Redevelopment for National Archives of Australia would involve the use of computer system with internet connectivity for developing the website. The configuration required for the computer desktop/laptop would be,

Major

Storage

250Gb or above (HDD or SSD more preferably)

Display

Resolution of 1920X1080

4k display

Processor

I5 or I7

RAM

4GB of RAM of above

Minor Requirements

Graphics Card

Integrated graphics for website of NAA

For example: Dell XPS 15 (Storage: 500GB SSD, Display: 3840 X 2160, Processor: I7-6700HQ, RAM: 16GB RAM, Graphics Card: GTX 960M 2GB, Batter Life: 5hrs and 30 mins)

  1. How well did the team member conduct the supplier analysis? Mention the gaps if any?

The supplier analysis was done based on local shops and laptop dealers in the locality. The following data was observed,

Laptop

Configuration

Cost

Microsoft Surface Pro 3

Storage: 250GB SSD, Display: 2160 X 1440, Processor: I7-4650HQ, RAM: 8GB RAM, Batter Life: 8hrs and 30 mins

$700

Dell XPS9360-1718SLV

Storage: 120GB SSD, Display: 3200 X 1800, Processor: I7-7200HQ, RAM: 8GB RAM, Batter Life: 10hrs and 30 mins

$950

Dell XPS 15

Storage: 500GB SSD, Display: 3840 X 2160, Processor: I7-6700HQ, RAM: 16GB RAM, Graphics Card: GTX 960M 2GB, Batter Life: 5hrs and 30 mins

$1950

How could the project team members have performed the analysis better?

The project team members would have been assigned with the consideration of the effective and smart management works. The analysis of the better work performance would be effective with the formation of the evaluation of,

Successful completion of the projects would be defined with the inclusion of the probable work completion.

The similar completion of the projects would be effectively managed with the alignment information management.

The development of the conditions would be implied with the formation of the effective work alignment.

The conditions of the purchase would be effectively deployed with the alignment of the facilities and the development logistics. The

Reputation analysis would be done for ensuring that the procuring parties are defined successfully

3. Planning to procure

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

At the time of purchasing of the components for the website redevelopment at National Archives of Australia it was required for making sure that all the required functionality would be met. A definite methodology must be adopted for execution of the work. The redevelopment of website would be supported by the use of the methodology for innovation and it would be required for ensuring that the purchases of the resources have been done successfully. The project development would align the management of the cost, quality, delivery date, and location of delivery.

The required documents for the preparation to distribute to perspective sellers were request for proposal, invoice, tender notice, negotiation document, and request for final quotation.

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

Fix Price with Incentive is the contract type to be used for the website redevelopment project as it would help in forming the modification. The website redevelopment would involve the designing and modifying the current procurement process for development of the effective work management. The fix price with cost efficiency would be helpful for analyzing the work and the formation of estimation of the cost based on the work. A fix price would be considered for development of the website and an incentive program for the early completion of the project. The contractor would be allowed a fix sum plus incentive if he/she can complete the project in lesser duration that estimated.

Outsourcing Strategy Development

4. Contract Administration Planning

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

The contract administration process would be helpful for developing the effective strategies for the formation of the contract and effectively signing it off. The procurement development would be eased by the help of market analysis and the management of contract planning. The ensuring of the seller obligations would be dependent on the utilization of the duties and rights. The project owner would have to take ideas from project manager for management of the contract development. The steps required for the planning of the contract administration process to be followed by National Archives of Australia are,

Step 1: The first step of contact administration is reviewing the vendor on the basis of cost efficiency, schedule estimation, and delivery of the products.

Step 2: The proper inspection of the operations would be aligned with the formation of the audit and analysis of the effective work completion.

Step 3: This step involves the analysis of the works and the completion of the effective work alignment for taking care of the work

Step 4: The decision of the payment system would be done for ensuring how the payment would be done and on what dates they would be processed.

Step 5: The records would be kept by the manager for ensuring that the contract and purchases are managed effectively.

The project procurement manager/officer would be the person in charge of the administration of contracts.

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

The key performance indicators developed by the project team for the contract for the website redevelopment project of National Archives of Australia are

  1. Schedule: Project Checklist and Project Progress Plan
  2. Cost: Resource Usage and Baseline Project Plan
  3. Quality: Testing Results and Quality Baseline

The process to be followed for determining the contractor’s performance throughout the project is,

Step 1: Evaluation of the Contract Progress

Step 2: Review of the Cost Budget Efficiency

Step 3: Analysis of the Project Progress

Step 4: Delivery of the products

Step 5: Analysis of the role of the contractor

The reports required in administering the contract are contract form, work performance, delivery reports, records report, claim reports, and selection report. The selection reports provides the information of the procurement contractor, method, payment, and delivery date that has been selected. The claim reports help in identifying the work to be done for the completion of the effective work analysis. The delivery reports would comprise of the information of the delivery date and method for the delivery of the product.

5. Establishing Procurement Processes

5.1 What documented procedures do you normally follow in your organization for:

Going to the market  with a request for tender:

The documents that are normally processed for going to the market with a request for tender are request for proposal, tender invitation, negotiation documentation, contractor initial response, and quotation request. These documents have separate roles and provides the organization with better scope for the completion of the effective work alignment completion.

Evaluating Responses:

The evaluation of the responses would be done by using market analysis as it would consider the current trends in the services. The market analysis would be based on the latest likes/dislikes, information alignment, customer’s needs, and profit calculation. The document that is normally processed for evaluating responses is Market Analysis Document.

Selecting preferred contractors:

The selection of the preferred contractors involves the activities of reviewing the vendor on the basis of cost efficiency, schedule estimation, and delivery of the products, proper inspection of the operations, analysis of the works for development of decision of the payment system, and management of records of the contracts. The documents to be used for the Selecting preferred contractors are selection report and proposal evaluation sheet.

Developing key performance indicators for a contract:

The documents that are normally processed for developing key performance indicators for a contract are the KPI documents and Contract Progress Report. The objectives of the project is considered for development of the KPI information for the contract.

Monitoring contractor performance:

The documents that are normally processed for monitoring contractor performance are work performance report and seller performance evaluation.

Making changes to the procurement management plan:

The documents that are normally processed for making changes to the procurement management plan are contract change control system.

Conducting reviews of the procurement activities:

The documents that are normally processed for conducting reviews of the procurement activities are procurement performance review.

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

The lack of the documents like request for proposal, tender invitation, negotiation documentation, contractor initial response, quotation request, market analysis document, selection report, proposal evaluation sheet, KPI documents, contract progress report, work performance report, seller performance evaluation, contract change control system, and procurement performance review. It would result in forming issues in execution of the activities of request for tender, evaluating responses, selecting preferred contractors, developing key performance indicators, monitoring contractor performance, making changes to the procurement management plan, and conducting reviews of the procurement activities. The risk factors would result in forming the issues in the implication of the work and defining the work integrated with the continuation of the factors.

Identifying Policy Gaps and Suggesting Actions

6. Evaluation Criteria 

Name of the Project acquired:

Redevelopment of the website for National Archives of Australia

Description of the product:

The new website would be developed with the contribution of the effective safety and innovation using effective website design development. The product would ensure that the commonwealth data and information would be effectively executed using the management of the works.

Evaluation of Successful Contractor:

1. Website Functionality                                                         45%    Highly Important

2. Cost Effective processes                                                      20 %   Important

3. Completion of the project in the estimated time duration   15%    Important

4. Utilization of the website development process                  20%    Important

Comment on the clarity and usefulness of the set criteria. Also, mention the improvements if needed.

The website developed must be effectively deployed using the alignment of the information and the listing of the probable work completion. The new website would secure the information of the commonwealth due to the implication of the innovative work alignment.

Developed by:

1. Project manager

2. Procurement Officer

Documents Referred:

1. Work Package Information

2. Inspection of the work to be completed

Key Comments:

7. Tender Selection Process

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

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

The key milestones and the timeframe for the tender is shown in the table below,

WBS

Task Name

Duration

Start

Finish

M1

Start of Project

0 days

Mon 12/17/18

Mon 12/17/18

M2

Selecting a Contract

0 days

Thu 1/3/19

Thu 1/3/19

M3

Collecting the Necessary Information

0 days

Tue 1/15/19

Tue 1/15/19

M4

Choosing a Negotiator

0 days

Mon 1/28/19

Mon 1/28/19

M5

Contract Review Process

0 days

Mon 3/4/19

Mon 3/4/19

M6

Contract Signing

0 days

Fri 3/8/19

Fri 3/8/19

Project Manager and Procurement Officer would be responsible for the development of the contract tender process as they are directly related with all the processes of the information development.

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

The documentations that were involved in the process from the organization seeking tenders and the tenderers are request for proposal, tender invitation, negotiation documentation, contractor initial response, quotation request, market analysis document, selection report, proposal evaluation sheet, KPI documents, contract progress report, work performance report, and seller performance evaluation.

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

The important things to consider while running a competitive tender are evaluation of the product, ability for specific product information, successful alignment of the work, and valued added services by the contractors.

The pitfalls that should be avoided in the project are fluctuation in the financial cost, lack of specific state in terms of monetary value, and delay in delivery of the products and services.

Contracts

8.1 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?

The important characteristics of a good contract are work completion, schedule, cost, payment option, product support after sales, and dispute resolution. The work completion is the most important feature of the contract as it would encompass the work agreed to be done by the contractor. The schedule would show the timeline and the activities required for the completion of the work. The cost would show the overall estimated cost expenditure for the activities agreed in the project. The payment option comprise of the information for the method of paying to the contractor and the method of paying in the given time.

The documentation process for the good contract would be highly assisted by the use of the contract documentation structure and legal expertise.

The common problems that occur during the contract writing process are lack of proper structure, missing information in contract, incomplete specification, and absence of control processes.

8.2 Provide an example of a contract handled previously:8.3 How was the contractor’s performance monitored? Also state the positivity and the negativity in contract.

Dispute with the contractor

Reason for the dispute and the person involved:

The early delivery of the product requirement by the client was the reason behind the dispute of client and contractor.

The client and contractor were involved in the contract. However, the transporters would also be involved in this dispute.

Policies and procedures available for assistance in handling the dispute:

Deductive Negotiation in terms of schedule and Integrative Bargaining in terms of cost would be helpful for assistance in handling the dispute

Actions taken by the project team members:

Agree on delivering the product with 2% hike in overall contract payment

Outcome:

The product was delivered 2 weeks prior to set date with an increased payment of 2%

 Reviewing contracting and procurement

9.1 Describe the methods used to review the contracting and procurement activities. What was the type of the project?

The methods used for the review of the contracting and procurement activities were,

Step 1: The first step of contact administration is reviewing the vendor on the basis of cost efficiency, schedule estimation, and delivery of the products.

Step 2: The proper inspection of the operations would be aligned with the formation of the audit and analysis of the effective work completion.

Step 3: This step involves the analysis of the works and the completion of the effective work alignment for taking care of the work

Step 4: The decision of the payment system would be done for ensuring how the payment would be done and on what dates they would be processed.

Step 5: The records would be kept by the manager for ensuring that the contract and purchases are managed effectively.

The project was an IT project that involves utilization of the design build contract procurement type.  

9.2 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?

The lack of review of the contracting and procurement activities would result in forming issues in execution of the activities of request for tender, evaluating responses, selecting preferred contractors, developing key performance indicators, monitoring contractor performance, making changes to the procurement management plan, and conducting reviews of the procurement activities.

The contractor followed all information and documentation resulting in forming the effective completion of the project in the estimated time and duration.

Project manager and Procurement Officer were involved from the project team in the review process.

9.3 Outline the recommendations made for future contracting and procurement activities

Some recommendations made for future contracting and procurement activities are,

  • Cost Effective processes
  • Completion of the project in the estimated time duration
  • Utilization of the website development process

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