Manage Project Procurement Unit Guide Diploma of Project

Manage Project Procurement Unit Guide Diploma of Project Management 17872 Qualification Code BSB 51507 Unit Code BSBPMG 509 A Manage Project Risk

Units of Study – Diploma Units in the Diploma of Project BSBPMG 501 A Manage Application of Project Integrative Processes Management BSBPMG 502 A Manage Project Scope BSBPMG 503 A Manage Project Time BSBPMG 504 A Manage Project Costs BSBPMG 505 A Manage Project Quality BSBPMG 506 A Manage Project Human Resources BSBPMG 507 A Manage Project Communication BSBPMG 508 A Manage Project Risk BSBPMG 509 A Manage Project Procurement BSBPMG 509 A Manage Project Risk

Manage Project Procurement On completion of this unit you will – – be able to undertake procurement and contract management within projects • This unit is Ungraded which means that you will be found Competent or Not Yet Competent based on the completion of the BSBPMG 509 A Manage Project Risk

Elements of Competency • Each unit of study is composed of elements of competency • Manage Project Procurement comprises 5 elements of competency– – – Determine procurement requirements Establish agreed procurement processes Conduct contracting and procurement activities Implement the contract and/or procurement Manage contract and procurement finalisation procedures • Elements of competency are further broken down into performance criteria, these can be found on the next slides BSBPMG 509 A Manage Project Risk

1. Determine procurement requirements 1. Procurement requirements are identified, with input from stakeholders and guidance of a higher project authority, as the basis for procurement planning and the contract 2. Within delegated authority, an agreed procurement management plan and strategies are established and maintained to ensure clarity of understanding between stakeholders and achievement of project objectives BSBPMG 509 A Manage Project Risk

2. Establish agreed procurement processes 1. Information is obtained from established sources capable of fulfilling procurement requirements to determine how project objectives can be met 2. Established selection processes and selection criteria (including OHS requirements) are adopted and communicated to stakeholders and prospective contractors or suppliers to ensure fair competition BSBPMG 509 A Manage Project Risk

3. Conduct contracting and procurement activities 1. Agreed proposals and/or specifications are communicated to prospective contractors or suppliers to ensure clarity of understanding of project objectives 2. Responses are evaluated and preferred contractors or suppliers are selected in accordance with current legal requirements and agreed selection processes 3. Negotiations are conducted with the BSBPMG 509 A Manage Project Risk

4. Implement the contract and/or procurement 1. Established procurement management plan is implemented and modifications made with a higher project authority approval to ensure a common approach to achievement of objectives 2. Progress is reviewed and agreed changes are managed to ensure timely completion of tasks, resolution of conflicts and achievement of project objectives within the legal framework of the contract 3. Procurement management problems are BSBPMG 509 A Manage Project Risk

5. Manage contract and procurement finalisation procedures 1. Finalisation activities are conducted to ensure contract deliverables meet contractual requirements 2. Project outcomes are reviewed using available procurement records and information to determine the effectiveness of contracting and procurement processes and procedures 3. Lessons learned and recommended improvements are identified, documented BSBPMG 509 A Manage Project Risk

Associated Readings • Mandatory – • PMBOK Chapter 12 – 12. 1, 12. 2, 12. 3, 12. 4 • Recommended – ü Diploma Skills Kit – Manage Project Procurement ü Learning Guide 1 – N/A ü Learning Guide 2 – Develop Project Plans, pages 16 and 17 ü Learning Guide 3 – Administer & Monitor Project, pages 8 to 10 ü Learning Guide 4 – Finalise Project, pages 2 and 3, 6 and 7 ü Learning Guide 5 – Review Project, pages 2 to 5 BSBPMG 509 A Manage Project Risk

Team Assignment Criteria Team Assignment Components Marks Basic Competency Procurement Register 10 Table of major procurement and contracting requirements for human and non-human resources Sourcing approach detailed and responsibility assigned Table of detailed procurement and contracting requirements including human and non-human resources Selection criteria and contract requirements also included Assessment and selection approach 5 Detailed assessment and selection approach for a major procurement Detailed assessment and selection approach for several major procurements Procurement procedures 10 Basic procurement policies and procedures developed including contract review and approval Advanced procurement policies and procedures developed including flowcharts and different processes as values increase Total BSBPMG 509 A Manage Project Risk 25 19. 5 to 25 Higher Competency 25. 5 to 30

Individual Assignment Criteria Individual Assignment Components Marks Basic Competency Procurement Plan 10 Table of major procurement and contracting requirements for human and non-human resources Sourcing approach detailed and responsibility assigned Table of detailed procurement and contracting requirements including human and non-human resources Selection criteria and contract requirements also included Assessment and selection approach 10 Detailed assessment and selection approach for a major procurement Basic understanding and evidence of tender processes Detailed assessment and selection approach for several major procurements Advanced understanding and evidence of tender processes Procurement procedures 10 Basic procurement policies and procedures developed including contract review and approval Advanced procurement policies and procedures developed including flowcharts and different processes as values increase Contract management procedures 10 Basic contract management policies and procedures including contract manager, responsibilities, escalation and review process Advanced contract management policies and procedures including contract change control, performance bonuses and penalties Contract Performance Reports 10 At least one example of a contract performance report or discussion for a major procurement Several examples of contract performance reports or discussions for several major procurements 50 32. 5 to 42 42. 5 to 50 Total BSBPMG 509 A Manage Project Risk Higher Competency

Best wishes for your studies Crows Nest TAFE and the Business and Commerce Business Line of the Northern Sydney Institute wish you success in your studies! BSBPMG 509 A Manage Project Risk