Task 1 – Project Procurement
This assessment task requires you to:
• work with others to determine procurement requirements and produce a procurement
management plan for a project
• ca
y 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.
Assuming you are part of the organization that was awarded the following tender:
Bruce Rock District High School Recreational Courts Resurfacing Works.
DESCRIPTION AND LOCATION OF THE WORKS:
Location: Bruce Rock District High School 35 Dunstall Street, Bruce Rock WA 6418
Description: Refer to the document uploaded on Moodle. From page 70 to 92.
Within your practice environment, complete each of the following parts:
1. 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 a
iving early? What about if they a
ive late?
2. 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 cu
ently 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?
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3. Planning to procure
• Describe the methods used to procure the products and services for the 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 organization did you use to assist in planning
how products and services would be procured?
4. Contract administration planning
• For the project you are cu
ently 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 contact’s performance throughout the
project?
• What types of reports are required in administering the contract?
• Who was involved in the contract administration planning process from your project
team?
5. 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 prefe
ed 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?
6. Evaluation criteria
• Obtain a copy of the evaluation criteria used when you acquired a product or service for a
project you are cu
ently managing.
• Describe the product or service you acquired.
• What were the evaluation criteria you used to select the successful contractor? List them
elow.
• Comment on whether you found the criteria clear and useful or whether improvements
needed to be made.
• Which members of the project team were involved in developing the evaluation criteria?
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• What documents did you refer to in formulating the evaluation criteria?
7. Selecting the best supplier
• Answer 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?
8. 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?
• Describe how you reviewed the contracting and procurement activities on a project you
worked on previously.
• 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
esult of your review?
9. Dispute resolution
• Think of a time when you found yourself in dispute with the subcontractor. 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?
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10. 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
equired?
For which unit
or team will
they be
needed? What
equirements
do they have?
Quantity
or
amount?
When will the
goods/services
e required?
Where will the
goods/services
e obtained?
How will
the
contract be
managed?
How will
the
contract be
finalised
and
eviewed?
Other questions that you will need to ask when formulating a procurement plan are:
• 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?
11. Evaluation of tender criteria and weighting system proforma
Tenders, proposals or quotes are often evaluated using a weighting system. Each of the
evaluation criteria are assigned a weighting for their importance. Then each of the proposals, bids
or tenders are allocated a rating based on how well they meet the criteria. The weighting is then
multiplied by the weighting to come up with an overall score. The scores for each criterion are
then added up and compared against the other proposals to determine which proposal meets the
evaluation criteria the best.
This proforma provides a sample evaluation and weighting system that could be used to evaluate
proposals and assist in selecting the prefe
ed contractor. A 3-point scale for weighting the
importance of the evaluation criteria could be:
3- Highly important 2- Important 1 – Desirable
A four-point scale such as the one below could be used to rate how well the bid or proposal
meets the evaluation criteria:
1 - Does not meet criteria XXXXXXXXXXPartially meet criteria 3 - Meets criteria
4 - Exceeds criteria
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An example of how the weighting system works is provided in the proforma below:
Evaluation
Criteria
Weighting Proposal 1 Proposal 2 Proposal 3
Rating W x R
score
Rating W x R
score
Rating W x R
score
Ability to
commence in
accordance with
project
timeframe
XXXXXXXXXX
12. Documented lessons learned and recommended improvements for future projects.