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Procurement Evaluation Report (3500 words) - Adelaide Hills Council You have been contracted to advise the Adelaide Hills Council based on your knowledge and expertise in strategic procurement...

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Procurement Evaluation Report (3500 words) - Adelaide Hills Council

You have been contracted to advise the Adelaide Hills Council based on your knowledge and expertise in strategic procurement (particularly public procurement). Upon a review of the structure of local government in Australia, you have identified the following interesting facts from the Australian Local Government Association website (https://alga.asn.au/facts-and-figures/):

  • There are 537 councils Australia-wide. Of these, around 60% to 70% are regional or rural councils.
  • Local government employs 187,600 people which is nearly 10% of the total public sector (as at June 2018).
  • Local government’s total annual expenditure is $35.9 billion XXXXXXXXXX).
  • The sector’s major expenditure items include housing and community amenities (24.3%), and transport and communications (21.5% XXXXXXXXXX).
  • Local roads add up to around 662,000kms in length XXXXXXXXXXThis is approximately 75% of the total national road length – enough to circle the earth 16.5 times.
  • The value of local roads infrastructure in 2018 was $136.4 billion.
  • The replacement cost of local government land and fixed assets supporting the various economic (e.g. roads, buildings, water supply, etc.) and social services (e.g. health, welfare services, etc.) is in the order of $426 billion XXXXXXXXXX).

Roles and responsibilities
Constitutional responsibility for local government lies with State and territory governments. Consequently, the roles and responsibilities of local government differ from State to State. Local government services cross all areas and can include:

  • infrastructure and property services, including local roads, bridges, footpaths, drainage, waste collection and management
  • provision of recreation facilities, such as parks, sports fields and stadiums, golf courses, swimming pools, sport centres, halls, camping grounds and caravan parks
  • health services such as water and food inspection, immunisation services, toilet facilities, noise control and meat inspection and animal control
  • community services, such as childcare, aged care and accommodation, community care and welfare services
    building services, including inspections, licensing, certification and enforcement
  • planning and development approval
  • administration of facilities, such as airports and aerodromes, ports and marinas, cemeteries, parking facilities and street parking
  • cultural facilities and services, such as libraries, art galleries and museums
  • water and sewerage services
  • other services, such as abattoirs, sale-yards and group purchasing schemes.

Although local Councils are responsible to the various State Governments, they operate largely independently i.e. each Council essentially purchases its own goods and services. These are for local needs with specific requirements as well as common/public goods and services (see list above).

Your task is to advise the Adelaide Hills Council on how to consolidate its expenditure to achieve substantial and effective savings (e.g. bulk purchasing, council’s need for less staff perhaps, etc.) that could be redirected to other important community needs.

You are required to submit a 3500-word ( +/- 10%) strategic plan outlining your ideas and recommendations. Specifically, it is an opportunity for you to apply the concepts, models and/or theories learnt in this course (e.g. Procurement lifecycle model, Kraljic Procurement model, e-procurement, buyer-supplier relationships, network theory, SRM, BSR etc.) and their application to the procurement strategy as well as the expected benefit for the Council.

You are required to use at least TEN sources of references including at least SIX journal articles. The preferred method of referencing is the UniSA Harvard Referencing system within context. An omission to include the required journal articles or incorrect use of the UniSA Harvard referencing system will result in a failure for the Referencing component. (Also note that your Executive Summary is inclusive of the 3500 word count).
Requirements for Assessment 2:
Use Arial Font size 12 with 1.5 line spacing.
Reference list on a separate page.
Use the UniSA Harvard style of referencing only.
Do NOT use footnotes.
Print word count at the end of your assignment after the recommendations section.
Include your name and student ID as a header on each page.
Number each page.
Do not include anyCover Page or Feedback form in your submission.
Marking criteria and standards
Marks will be awarded for:
- relevance of your answer to the question
- originality and creative thought
- up-to-date research with the topic
- clarity of expression
- supporting documentation for arguments
- correct documentation and use of at least TEN sources of references including SIX academic journal articles
- logical planning and sequence
- use of inclusive language
- overall presentation, including correct grammar, spelling and punctuation
- comprehensive coverage reflecting engagement with readings, texts and other relevant materials.
Content Page (2 marks)
1-page Executive Summary(10 marks)
Introduction (8 marks)
Application of theory and/or concepts learnt in the course (40 marks)
Strategic Plan recommended for Adelaide Hills Council (20 marks)
English Expression (10 marks)
Referencing (10 marks)
TOTAL 100 marks

Please also refer to the Feedback proforma for details

Answered Same Day Aug 21, 2021

Solution

Dilpreet answered on Sep 29 2021
145 Votes
PROCUREMENT EVALUATION REPORT-ADELAIDE HILLS COUNCIL
Executive Summary
Strategic procurement can be considered as one of the key elements of success for organisations that are operational in the public as well as the private sector. Depending on strategic procurement can assist local bodies and procurement teams of places like those that strategic procurement can be considered as one of the key elements of success to come up with development plans and strategies that can be planned and implemented successfully within the budget. Focusing on strategic procurement plans in public procurement can help to consolidate expenditures by helping these organisations to focus on their core competencies and by ensuring that the operations are in line with the specified budget. Strategic procurement as a part of public procurement ensures that all the required goods and services can be managed in cost effective manner while improving the value that is being created from the operations and tasks. Strategic procurement has been enabling organisations in the public sector to advantage of their purchasing power. This report shall advice Adelaide Hills Council to consolidate its expenditures to achieve substantial and effective savings. The report shall also focus on associated theories and frameworks that can assist Adelaide Hills Council to optimise their procurement function.
Table of Contents
Introduction    4
About Adelaide Hills Council    4
Applying Theory Concepts to Consolidate Expenditures Through Effective Procurement for Adelaide Hills Council    5
Procurement Lifecycle Model    5
Kraljic Procurement Model    7
E-Procurement    8
Network Theory of Procurement    9
Buyer-Supplier Relationships    9
Strategic Plan recommended for Adelaide Hills Council    10
Conclusion    12
References    13
Introduction
For organisations operational in both public and private sector, strategic procurement can be considered as one of the key elements of success. Strategic procurement in simple words can be defined as a long-range plan, which ensures that supply of goods and services that support the core objectives of the organisation can be done in a timely manner. Strategic procurement plays an essential role, when it comes to public procurement, which means purchases related to government and state-owned goods, services and other tasks. Strategic procurement as a part of public procurement ensures that all the required goods and services can be managed in cost effective manner while improving the value that is being created from the operations and tasks. Strategic procurement has been enabling organisations in the public sector to advantage of their purchasing power. This report shall advice Adelaide Hills Council to consolidate its expenditures to achieve substantial and effective savings. The report shall also focus on associated theories and frameworks that can assist Adelaide Hills Council to optimise their procurement function.
About Adelaide Hills Council
Adelaide Hills Council is a local government area in Adelaide Hills of South Australia. This council was established in the year 1997 and includes an amalgamation of District Council of East To
ens, District Council of Gumeracha, District Council of Sterling and District Council of Onkaparinga. This council covers an area of SQ 795.08 km. The roles and responsibilities of this council lie under Local Government Act 1999 and have certain powers, which it is free to exercise. This council has been categorised as the medium-sized local authority with a population of 40,000 and a $45 million budget (Adelaide Hill Council, 2019). ​The council focuses on fulfilling the needs of the population living in the region primarily through purchasing its own goods and services rather than relying completely on various state governments. Some of the core responsibilities that require procurement activities to be ca
ied by this council include infrastructure and property services, constructing and maintaining local roads, drainage system,
idges and footpaths.
The council also has to purchase goods and services in order to ensure that recreational needs of the people living in the region can be fulfilled through construction of parks, sports fields, stadium and many more. Another major area, where the council has to invest heavily to procure goods and services is the health care and services including inspection of food and water, immunisation services, childcare services, old age care and accommodation. The council further aims to procure goods and services in the most cost-effective manner to ensure that community care and other welfare services can be provided to the people (Adelaide Hill Council, 2019). These services may include approval for planning and development, certification and enforcement, licensing and many activities that are more similar. The Adelaide Hills Council of South Australia also procures goods and services to provide cultural facilities and services to its population like construction of li
aries, art galleries and museums.
Applying Theory Concepts to Consolidate Expenditures Through Effective Procurement for Adelaide Hills Council
Procurement Lifecycle Model
For Adelaide Hills Council to work effectively, it is essential that the people in power must understand the process, through which products and services must be obtained in order to meet the needs of the people and to fulfil the roles and responsibilities in a cost effective manner. The managing authorities of the council can rely on procurement lifecycle model. This model will help the council to identify the requirements in a systematic manner ensuring that the council is able to achieve its pre-set goals within the specified budget and timeframe.
In order to purchase goods and services to come up with development plans and other recreational and health services-based plans, the Adelaide Hills Council must first focus on the following stages:
Need Recognition
The council must first identify the needs of a new plan or a new project. The members of the council responsible for procuring these goods and services must then determine whether the needs can be fulfilled through internal sources or the resources already available to they need to be procured from external sources. As opined by Witjes and Lozano (2016), recognising the need is extremely vital, as it will help to manage other processes associated with procurement with greater efficiency and effectiveness.
Finding the Suppliers
Finding the right supplier, who is capable of fulfilling the needs in a timely manner, is a vital decision that the power holding authorities and procurement team of the council must focus on. Choosing to work with an inefficient supplier may cause a cascading failure effect throughout the project or the plan that has been undertaken by the council. Council must look for a supplier, who is accountable, has sufficient production capabilities and is aware of the business ethics.
Negotiating Terms and Prices
This very essential stage needs immense focus as being attentive in this particular stage can save a lot of cost and time. This stage is essential as the contract terms and prices have to be negotiated with the suppliers. Determining the best price will help the council to save huge sum of money, which can be used for the welfare of the people living in the region in some other plan or project. It is suggested that the council must look out for two or more suppliers to compare their offerings and prices and then decide the one, whose offerings are the most feasible.
Finalising the Purchase Orde
Putting the purchase order in place will allow for...
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