Manage Project Procurement Unit Guide Diploma of Project Management 17872 Qualification Code BSB51507 Unit Code BSBPMG509A

Units of Study – Diploma Units in the Diploma of Project Management BSBPMG501A Manage Application of Project Integrative Processes BSBPMG502A Manage Project Scope BSBPMG503A Manage Project Time BSBPMG504A Manage Project Costs BSBPMG505A Manage Project Quality BSBPMG506A Manage Project Human Resources BSBPMG507A Manage Project Communication BSBPMG508A Manage Project Risk BSBPMG509A Manage Project Procurement 2

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 assessment activities and the evidence of competency provided.

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

Determine procurement requirements Procurement requirements are identified, with input from stakeholders and guidance of a higher project authority, as the basis for procurement planning and the contract 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  

2. Establish agreed procurement processes Information is obtained from established sources capable of fulfilling procurement requirements to determine how project objectives can be met Established selection processes and selection criteria (including OHS requirements) are adopted and communicated to stakeholders and prospective contractors or suppliers to ensure fair competition Approvals for procurement processes to be used for the project are obtained from a higher project authority to enable formal discussions to be conducted  

3. Conduct contracting and procurement activities Agreed proposals and/or specifications are communicated to prospective contractors or suppliers to ensure clarity of understanding of project objectives Responses are evaluated and preferred contractors or suppliers are selected in accordance with current legal requirements and agreed selection processes Negotiations are conducted with the preferred contractor or supplier, with guidance of a higher project authority if necessary, to agree on contract terms and conditions, establish common goals and minimise uncertainty  

4. Implement the contract and/or procurement Established procurement management plan is implemented and modifications made with a higher project authority approval to ensure a common approach to achievement of objectives 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 Procurement management problems are identified and reported to a higher project authority, and agreed remedial actions are implemented to ensure project objectives are met  

5. Manage contract and procurement finalisation procedures Finalisation activities are conducted to ensure contract deliverables meet contractual requirements Project outcomes are reviewed using available procurement records and information to determine the effectiveness of contracting and procurement processes and procedures Lessons learned and recommended improvements are identified, documented and passed on to a higher project authority for application in future projects  

Associated Readings Mandatory – Recommended – PMBOK Chapter 12 – 12.1, 12.2, 12.3, 12.4 Recommended – Diploma Skills Kit – Manage Project Procurement Learning Guide 1 – N/A Learning Guide 2 – Develop Project Plans, pages 16 and 17 Learning Guide 3 – Administer & Monitor Project, pages 8 to 10 Learning Guide 4 – Finalise Project, pages 2 and 3, 6 and 7 Learning Guide 5 – Review Project, pages 2 to 5

Team Assignment Criteria Components Marks Basic Competency Higher 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 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 25 19.5 to 25 25.5 to 30

Individual Assignment Criteria Components Marks Basic Competency Higher 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 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 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 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 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 Total 50 32.5 to 42 42.5 to 50

Best wishes for your studies Northern Beaches TAFE and the Business and Commerce Business Line of the Northern Sydney Institute wish you success in your studies! 13