Procurement Plan
The Molonglo Fire Station
Emergency Services Agencies, ACT
Approved by: Samten wangchuk
20/4/2020
Procurement Plan
The Molonglo Fire Station
Emergency Services Agencies, ACT
Approved by: Samten wangchuk
20/4/2020
Table of Contents
- SUMMARY OF PROPOSED PROCUREMENT 4
- BACKGROUND AND STRATEGIC AIMS 4
- DESCRIPTION AND SCOPE OF PROJECT 4
- ESTIMATED CONTRACTCOMMENCEMENTDATE 4
- PROCUREMENT METHOD 5
- Sourcing and delivery methodology 6
- CONTRACT MODEL AND TERM74
- FUNDING 7
- ESTIMATED CONTRACTVALUE 7
- APPROVAL TO PROCEED 7
- PROPOSED PROCUREMENT TIME TABLE
- KEY PROPOSED DATES 8
- RISK ANALYSIS 9
- BUY LOCAL POLICY 10
- PLANNING THE PROCUREMENT 10
- LOCAL BUSINESS CAPACITY 10
- LOCAL CONTENT 10
- EARLY TENDER ADVICE 11
- PLANNING THE PROCUREMENT 10
- PROCUREMENT RESEARCH 11
- ALTERNATIVE PROCUREMENT OPTIONS 11
- PROCUREMENT AND DELIVERY STRATEGIES
- ALTERNATIVE PROCUREMENT OPTIONS 11
CONSIDERED 11
- NUMBER OF RESPONDENTS 12
- STAKEHOLDER RESEARCH 13
- SUSTAINABILITY ISSUES 14
- PROCUREMENT METHODOLOGYAND STRATEGY 15
- PROCUREMENTMETHOD 15
- EVALUATION PROCESS AND REQUIREMENTS 16
- EVALUATION PROCESS 16
- PRE-QUALIFICATION REQUIREMENTS 16
- COMPLIANCE AND DISCLOSURE REQUIREMENTS 18
- QUALITATIVE REQUIREMENTS 19
- INSURANCE REQUIREMENTS 19
- EVALUATION RATINGS CALE 20
- TENDER/REQUEST BRIEFING SESSION 24
- EVALUATION COMMITTEE 25
- CONTRACT MANAGEMENT 25
- GOVERNANCE 26
- CONTRACT MANAGEMENT PLAN 26
- PERFORMANCE REQUIREMENTS 28
- PROMOTION AND MARKETING 28
- POSTCONTRACT EVALUATION 28
- REFERENCES…………………………………………………………………………. 29
APPENDIX A –RISKREGISTER 30
- SUMMARY OF PROPOSEDPROCUREMENT
- BACKGROUND AND STRATEGICAIMS
The procurement is required as the act government is aiming to increase the existing customer fire service stations in the region of Canberra. Through this project, the new location of Molonglo Valley has been identified as the best location for starting a new fire service station. The project will offer outcomes such as increase in the number of fire service stations along with which it will also combat the fire incidents that can take place in the future in the capital territory and the areas surrounding it. The place for the construction of the fire service station is appropriate as there is no such station in the nearby area. The procurement is required as the act government is aiming to increase the existing customer fire service stations in the region of Canberra (McIver et al., 2017). The ACT government aiming or planning to increase the number of Fire Stations in Canberra to ensure that the nearby area has required services at the time of fire.
- DESCRIPTION AND SCOPE OF THE PROJECT
The project will require a contract with the specific department of the government involved in this project. Along with this, the project will require funds and the approved budget for which the project will require Approval of the Procurement Plan. The project would also cover risk analysis. In addition to this, the project will also cover the sustainability issues and the concept of insurance as it applies to this project. The project would cover the supply of the material required in the construction along with which it would also include the supply of the machinery and the equipment that would be required in the construction process. The project will cover all the activities related to the supply of inputs of any nature. This will broadly cover the scope of the procurement project. The project requirement will further include an insurance cover to mitigate the loss, quality assurance partial certification to ISO 9001: 2008. Certification from the industry association.
- ESTIMATED CONTRACT COMMENCEMENT DATE
The proposed contract commencement date is 1 July 2020.
- PROCUREMENT METHOD
- Sourcing and Delivery Methodology
The proposed sourcing method for the project is the open tendering method where request for tenders or request for offer is publish either in newspaper or in a relevant website in which perspective bidders are invited and the best contractor would be selected to undertake the project. The open tendering method would involve bidding process which would, in turn, ensures that the bid is open to all the bidders who are able to qualify the pre-requirements. The bids would be sealed for the public and would provide the bidders with an option to choose the price and the quality. The method is appropriate as it would offer the government an opportunity to select new contractors and use their expertise and skills in this project (Mehrbod et al., 2017). The open tendering method is chosen as through the open tendering; the government would get an opportunity to choose the most appropriate contractor among a list of many. Furthermore, I have chosen this sourcing methodology because according to ACT procurement act, every procurement above $200 thousand must go for public tender.
The delivery methodology for this project would be Design and Construct or Build. In a design-build project, the principle hires a company or team under one contract to deliver the construction project from start to finish. Since the team is responsible for both the design and the construction components, pricing changes are kept to a minimum, and are usually isolated only to those instances where unknown conditions or principle requests necessitate cost increases. If Design and Build entities are comprised of more than one company, it is important for the principle to identify the working relationship between the members of a potentially selected team in order to minimize conflicts further down the road.
The Design and Build method provides the ability to deliver a project on a tight schedule, as projects can be split up and delivered in a package approach, where individual components are designed and built as needed to achieve the final completion date. Generally, the principle can establish a firm maximum price of the project early on, and has a significant amount of cost control.
Design build is typically used for construction projects where the principle has clearly established the requirements prior to design. It can also be an appropriate method when schedule is a concern, as it removes the components of the schedule that would typically be consumed by the bidding and procurement process
Further, by choosing this delivery method the cost efficiencies can be achieved since the contractor and designer are working together throughout the entire process which requires rarer changes, littler claims and less litigation. Design and Build can carry out a project more quickly than conventional Design-Bid-Build or Construction Management at Risk. An example of an open tender project by the Australian government is the Procurement of Natural Gas to the Contestable Defense Sites in the ACT & HMAS Albatross (NSW). Example of design and construct delivery method used in a project- railway projects.
- CONTRACT MODEL AND TERM
The proposed contract term is 2 years.
The contract model that is to be used in this project is ACT Government modified GC21 version. It allocates responsibilities and sets up the procedures for making the Contract work. it will help in enhanced communication, responsibility of the end results, promotion of the most suitable practice, definition of the roles, responsibility for outcomes and also the cooperative contracting. The co-operation is considered as a key element of the contract even though the parties have different responsibilities. General Conditions of Contract as modified for use by the Australian Capital Territory are used Contract framework, carrying out the works, Claim and Issue resolution, Termination, Meanings includes (Deed of Contract Agreement, Contract Information, Schedules and Attachment)
FUNDING
The source of funding for this project is the government funds where it will cover the budget funding, public-private partnership and the loans. The funding will be done by the government of Australia after undertaking checks and granting approvals.
The availability of appropriate funding has been confirmed by ABC and the title of a senior project officer.
- ESTIMATED CONTRACT VALUE
The estimated contract value, including all extension options, 15 million Australian Dollars.
The estimated contract value is based on the contract value of similar projects of fire service stations in the other areas in Australia. The contract value has been estimated by considering the value of a similar project undertaken in the past 5 years and adding to it, the current value of money (Shah, 2016). Along with this, the value is also based on the estimate of the quantity surveyor.
Details of the estimate:
- Project cost estimate- $ 9 million
- Permits and approvals cost- $ 3.5 million
- Miscellaneous expenditure- $ 2 million
- Overheads- $ 0.5 million
Examples can be taken from past projects where cost estimation has been done. One of such projects is ESA STATIONS RELOCATION PROGRAM.
Cost estimation for the project is as follow. The cost covers the target cost of construction of three different venues which further includes fees, site development, building works, electricity and water works at site.
• Charnwood $12M
• Aranda $14M
• Calwell/Conder $9M
- APPROVAL TO PROCEED
Approval to proceed with the procurement has been provided by Chief Executive officers of ACT agencies.
- PROPOSED PROCUREMENT TIMETABLE
- KEY PROPOSED DATES
The key dates for the proposed procurement are as follows:
STAGE | TARGET DATE |
Early Tender Advice notification | 6 April 2020 |
Procurement Plan submitted for approval | 8 April 2020 |
Endorsement/Approval of Procurement Plan | 15 April 2020 |
Request/Tender documentation completed | 20 April 2020 |
Draft Request/Tender advertised for industry comment | 22 April 2020 |
Pre-Tender Industry Forum | 25 April 2020 |
Approval of Request/Tender documentation | 29 April 2020 |
Request/Tender advertised | 30 April 2020 |
Request/Tender briefing | 5 May 2020 |
Request/Tender closes | 1 June 2020 |
Request/Tender evaluation and recommendation | 12 June 2020 |
Evaluation Report submitted to Delegate for approval | 13 June 2020 |
Contract Management Plan developed | 16 June 2020 |
Endorsement/Approval of Evaluation Report | 17 June 2020 |
Contract negotiations | 18 June 2020 |
Letter of Acceptance | 19 June 2020 |
Contract commencement date | 1 July 2020 |
Contract Completion date | 1 July 2022 |
Post Contract Evaluation Meeting | 15 July 2022 |
- RISK ANALYSIS
A number of risks were identified in the procurement and contracting stage, the risk includes,
- Inadequate Needs of Analysis.
If does not consider or know when we need, who will deliver on time at the best price, will end up buying not enough, too much or incorrect goods and services at very optimal prices without the benefits of discount and economies of scale offered by well negotiated contracts.
- Poor supply chain management.
This leads to the increase in risk of reputational damages.
- in sufficient contract management.
- Fraud and corruption.
- Contract creation risk, are current processes delaying revenue?
- Contract terms risk, Do unapproved contract terms make it to execution?
- Contract execution risk, Can you fully settle contract terms and obligations into accurate payments?
- Financial risk, whether the current contracts going to end up costing money?
The risk in design and construction stages includes designs that are fundamentally flawed, infeasible, inefficient, unstable or below client standards. this may manifest itself as functional defects or hurdles to development that impede project progress. Health and safety hazard, subcontractors default, Labor Shortages & Productivity Issues and change of order are some of this risk in construction stage.
Generally, the other risk identified are the failure to satisfy stakeholders security of supply risk, noncompliance with regulations, public health and safety risk, inappropriate quality, budget risk and the delay in project delivery. Among the above-highlighted risks, the severity of the risk differentiates. Public health and safety risk rank first among all as it involves the risk to the life of people involved in the project. Thus, it would cover the loss to life. The next risk is the inappropriate quality as it would determine the actual quality of the project and the ability of the project to meet the quality expectations of the government. After this, comes the budget risk where the risk involves the ability of the project to be performed within the defined budget (Modarres et al., 2016). The delay in project delivery and the failure to satisfy stakeholders are among the last ones as they would not have a direct impact on the life and the success of the project.
- BUY LOCAL POLICY
The procurement that would be done under the project would support the buy local policy of the ACT government as local suppliers would be the approach for procuring all the raw material and the inputs that would be required in the project. The small scale suppliers would be selected to boost the small scale industry in the surrounding areas and ensure delivery of fiscal benefits. The local buying policy named as the Queensland Procurement Policy would be referred. This will create new jobs in the area and generate income for the local residents.
- PLANNING THE PROCUREMENT
- LOCAL BUSINESSCAPACITY
Scope requirements, based on:
- The way in which the local business respond to the past, similar or existing contracts;
- Findings of the discussions undertaken with the appropriate industry associations
- The scope of works that have been performed by the local businesses
- Reviews of the customers catered by the local businesses
- Flexibility for respondents to respond to all or some of the required services; and
- Potential for local industry development.
To examine the level of capability of local businesses to meet the procurement requirements, research was undertaken which covered the following:
- The quality of inputs and material used by the contractor
- The past performance of the contractor in similar projects
- The timely delivery by the local business during the project
- The ability of the local business to meet the expectation of the government
Example of the project with local business capacity- Curtis Island LNG, Queensland, Australia
- LOCAL CONTENT
The anticipated level of local content for this contract is as follows:
- Anticipation about the locally sourced contract outcomes along with majority of the products, materials and services.
- The labor would be sourced locally by the local ACT builder while the products would be sourced from elsewhere.
- The local ACT builder sources the labor from the nearby locality after undertaking a reference check.
- The project manager is sourced from major cities of Australia such as Melbourne and Sydney.
This estimation is based on:
- The level of local content for previous, similar or current contracts; and
- The performance history of the local businesses,
- Reports of the previous and similar projects.
- EARLY TENDERADVICE
An early tender advice notice shall be placed on Tenders UC for this proposed procurement. This is because the Tenders UC will help the government in ensuring that the project gets a wide number of applications from the prospective contractors. Any other place would to be as appropriate in fulfilling the objectives of sending an early tender notice.
- PROCUREMENT RESEARCH
- ALTERNATIVE PROCUREMENT OPTIONS
- PROCUREMENT AND DELIVERY STRATEGIES CONSIDERED
The procurement and delivery strategies that have been considered for the project include the open tender and sourcing from internal suppliers. These two options were taken into consideration where the benefit analysis for each of these was done before reaching the conclusion.
The open tender as a procurement and delivery method would provide the project with the advantage of allowing new suppliers to offer the project with inputs and supplies. Thus, the project would be able to make use of more creative and innovative supplies (Athias
& Chever, 2018). On the other hand, sourcing from internal suppliers would offer the project with more security about the delivery of supplies, its quality and the ability to cater to the requirements of the project. Among the two options, open tendering is preferred as it would help the project in making use of new and innovative inputs and therefore add efficiency and quality of the overall project. It can be considered as the most appropriate method to meet the value of money while achieving regional objectives.
Open tender- Contract structure and non-contract options
The contract structure and the non-contract options include the sorting of the pre-qualification process and the activities undertaken to attract the tenders and the candidates.
Internal suppliers- contract structure and non-contract options
The contract and the non-contract options include the documentation of the internal suppliers and the pre-qualification process for them.
- NUMBER OF RESPONDENTS
It is anticipated that 10 respondents will be received, based on the past experience in contracting for this project along with the size of the industry.
The majority of respondents are likely to represent small and medium firms from the Canberra region. The qualification of the respondents includes: (50% should be on qualifications).
- Some degree in procurement work
- Atleast 5 years of experience in past projects
- Experience in buying local policy
- Know how about fire service station project
- Know how about government projects and process
- STAKEHOLDER RESEARCH
All relevant stakeholders have been consulted in relation to this proposed procurement.
The relevant stakeholders for the project include the client, staff, sub-contractors, public, governmental regulatory bodies and the designer.
The analysis of the above-identified stakeholders can be represented in the following section.
The public will have a stake in the project as the fire service station will offer fire services at the time of the fire accidents and would be helpful at the occurrence of fire only. But the public can put high pressure on the decisions affecting them and the surrounding areas due to the fire service station.
Along with this, the designer or the architect of the fire service station will have a stake as it will help him in gaining experience and adding to the future work. The staff and the sub-contractors will be another set of stakeholders where there has a direct impact on their livelihood and earnings. Furthermore, the government and the client would also be the stakeholders of the project as they would be responsible for the working of the fire service station and the project success would be a positive indicator of their work.
- SUSTAINABILITY ISSUES
The plan should identify and address sustainability issues – the level of effort expended to minimize the impact of procurement should be commensurate with the nature of the budget/project. The sustainability issues may include:
- Use of recycled or recovered materials- The project should aim to make use of the recycled material to reduce wastage and pollution that is linked to the poor disposal of the waste generated during the project. The material used in construction should be recycled and reused which would further assist in the reduction of the cost related to the purchase and the procurement of the material (Aarseth et al., 2017).
- Energy efficiency and consumption- The project should also focus on the efficient use of energy in the most appropriate manner. The electricity used during the construction of the fire service station should be used with care. Energy-efficient processes should be adopted which would ensure that the construction is not consuming more than the required electricity while saving a lot on the cost of energy usage.
- Water efficiency- Water efficiency should be ensured during the project. The ways and measures should be adopted that help in the reduction of water wastage. The amount of water that would be used in the project should be measured during the construction of the fire service station where it will help in ensuring the judicious use of water for the required purposes (Madu, 2017).
- Environmental health issues- The project should make sure that it is not causing any kind of environmental health issues. The project should ensure that there is no pollution including land, air and noise pollution. The project manager should make use of best practices and make use of equipment which helps in controlling the dust and other kind of pollution caused during the construction. Government regulations affecting the construction processes and the construction site should be considered during the construction of the fire service station
To support sustainability, the following initiatives will be incorporated:
- The qualitative requirements will provide a positive advantage to products, services and/or processes that minimize environmental impact e.g. qualitative requirements will give preference to recycled or recovered materials.
- The specification will consider standards, codes or legislation where appropriate.
- The suppliers would be approached to gather information on the environmental impact of products, services and process tendered. The supplier would be asked about the aspects of hazardous material content, energy efficiency, water efficiency, recycled content, durability and the option of reusing the products.
- Research on sustainability practices- the sustainability practices that have been adopted in similar projects of construction would be researched where the construction sites would be visited and the practical approaches adopted for the environmental protection would be considered in this project of construction of the fire service station.
- Water conservation to increase water efficiency- the construction project should adopt sustainability practices by ensuring the conservation of water to add to the efficiency of water usage in the project (Kiesnere & Baumgartner, 2019).
- Waste management- the project should also ensure that there is a proper waste management process adopted during the construction. A proper wastage management process should make use that all the waste generated during the process of construction is disposed of in a safe manner. Along with this, it should also ensure that the waste generated during the process should be recycled to the maximum extent possible.
Among these the best ones to adopt is the waste management and water conservation due to the rising pollution and reduction of global water levels respectively.
- PROCUREMENT METHODOLOGY AND STRATEGY
- PROCUREMENT METHOD
The proposed procurement method will be open tendering. The open tendering method would be suitable as the procurement strategy as this will allow the contractor to make use of innovative materials and processes of the suppliers.
The method is appropriate as it would offer the government an opportunity to select new contractors and use their expertise and skills in this project. Through the open tendering, the government would get an opportunity to choose the most appropriate contractor among a list of many.One stage open tendering would be undertaken where only one process of tendering would be used to search and chosen the most appropriate contractors for the project. The other forms of sourcing method including direct negotiation, e tendering, one envelop and two envelop are not appropriate. This is because, the government is aiming to comply with the buy local policy and wants to employ local contractors and suppliers. The open tendering method would help the government to select from the local contractors and suppliers.
EVALUATION PROCESS AND REQUIREMENTS
- EVALUATION PROCESS
A recommendation will be made based on an assessment of the fulfillment of the requirements and the process that has been adopted by the contractor during the construction of the fire service station. The evaluation process that would be adopted for the project will include a presentation and the interviews. The project manager would provide a presentation of the current progress in the project which would help in the determination of the shortcoming in the actual performance during the project and help the stakeholder in understanding the way in which the contractor is proceeding with the project (Tewari et al., 2017).
Along with this, the interviews will be organized with the staff and the workers at the site to determine the progress and the working. The interview will also be organized with the contractor to understand the current practices and processes that have been adopted in the project.
The contractor must hold a basic degree in project management and should have an expertise of a minimum of 5 years.
- PRE-QUALIFICATION REQUIREMENTS
- Value for money. A tender evaluation process using weighted criteria should be adopted to determine the tender that offers the best value. A system of weighting the selection criteria is used to compare tenders and identify the tenderer with the best performance record in terms of time, cost and value for money. The assessments are done according to the criteria outline below.
- Threshold Criteria
- Tenderers must register their attendance at the compulsory site inspection.
- Tenders that do not meet the above threshold criteria will be regarded as non-conforming, and will not be considered for further assessment against remaining criteria.
Weighted criteria are,
Past performance. The tenderer’s performance in completing past projects to the quality standards required, time performance, within budget, claims history, project management, and product value can be assessed. Extension of contract completion dates and claims for variations also give an indication of performance capability. Similarly, the satisfaction of previous clients regarding the management of the project and project outcome provide useful information on performance of the tenderer. With all the details of the following,
project name;
quality standards, target performance levels;
tender price, variations and final cost;
completion date and extensions of time granted;
details of health and safety records; and
referee contact details,
Financial Capacity
Tenderers most provide the following information to demonstrate their ability to provide the services:
Any claims demand or actions against the Tenderer that are relevant; Financial statements (audited) for the last two years; and If part of a group, relevant information in relation to the group’s ability to contract with the Territory as a single entity.
None weighted criteria
Price, including hourly rates (if applicable); including
Supply and installation pricing;
Temporary relocation and reinstallation pricing; and
Other prices as requested.
Referees Report
Contact details of two referees, names of organization minimum of two for whom such work was undertaken including name, address and telephone number. Referees must be able to directly comment on the Tenderers capacity against each of the assessment criteria.
Failure to comply with any of the above-mentioned pre-qualification requirements will eliminate the Respondent from further consideration.
COMPLIANCE AND DISCLOSURE REQUIREMENTS
The proposed compliance and disclosure requirements are as follows:
a). Head Agreement Compliance
b). Customer Contract Compliance
c). General Conditions/Schedules Compliance
d). Subcontractors)
f). Convictions of criminal nature
- Conflict of interest
- Small Business, Australian Disability Enterprise (ADE) and/or AboriginalBusiness
- QUALITATIVE REQUIREMENTS
The proposed qualitative requirements are as follows:
- Material quality- 40%;(the material quality occupies 50 % weightage in the project)
- HR quality -25 %; and (contribution of the HR occupies 40 % of weightage)
- WHS ( work health and safety)- 15%
- Local content–10% (10 % weightage is given to the focus on buying local policy)
- Finance- 10 % (10 % of the focus is on financing of the project)
- INSURANCE REQUIREMENTS
The proposed insurance requirements are as follows:
- Insurance for an amount that would not be less than $20 million would be required. The policy will fall in the category of public liability insurance where it would be applicable for a particular occurrence and also applicable for a number of times the particular occurrence takes place during the tenure of the policy,
- Insurance covering the products and the public liability would be taken where it would be not less for a sum of money $20 million. The insurance would be applicable for a particular occurrence and would not be limited to the number of times the occurrence takes place during the tenure of the insurance. The insurance would cover products whose aggregated value during a year would be equal to $20 million.
- Other insurance under the name of the Professional Indemnity insurance would be taken. The value of the insurance would cover a sum of $1 million – $5 million (dependent on the level of risk) and would be applicable for one claim.
- Insurance for an amount which not be less than a sum of money of $50 million for a particular occurrence would be taken. The insurance would be named as the Workers’ Compensation Insurance.
- Other insurance for motors would be taken with the name of the Motor Vehicle Third Party insurance. The insurance would cover a sum of money of not less than $30 million. The insurance would cover only one occurrence or/and Compulsory Third Party insurance.
[The $30 million coverage stated in this clause should be reassessed where the nature of the use of the vehicle may require a higher limit, for example, fuel cartage.]
- EVALUATION RATING SCALE
A rating scale of 0-10 will be used for evaluating each submission. Panel members will be required to score each Respondent’s response to the qualitative requirements. The rating scale and a description for the range of scores are shown in the table below. Where ‘Local Content’ is a separate qualitative requirement, panel members will use the rating scale shown in the second table to score that qualitative requirement.
Rating Table for use in Tender Evaluation
Descriptor | Sample Commentary | Rating |
Superior | Highly convincing and credible. The response demonstrates superior capability, capacity and experience relevant to, or understanding of, the requirements of the valuation Criterion. Comprehensively documented with all claims fully substantiated. Low risk. | 10 |
Descriptor | Sample Commentary | Rating |
Outstanding | Highly convincing and credible. The response demonstrates outstanding capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. Documentation provides complete details. All claims adequately demonstrated and substantiated. Low risk. | 9 |
Excellent | Response complies, is convincing and credible. The response demonstrates excellent capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. Some minor lack of substantiation but the Tenderer’s overall claim is supported. Low risk. | 8 |
Very Good | Response complies, is convincing and credible. The response demonstrates very good capability, capacity and experience, relevant to, or understanding of, the requirements of the Evaluation Criterion. Minor Uncertainties and shortcomings in the Tenderer’s claims or documentation. Low risk. | 7 |
Good | Response complies and is credible but not completely convincing. Response demonstrates adequate capability, capacity and experience, relevant to, or understanding of, the requirements of the Evaluation Criterion. Tenderer’s claims have some gaps. Low risk. | 6 |
Adequate | The response has minor omissions. Credible but barely convincing. The response demonstrates only a marginal capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. Medium risk. | 5 |
Reservations | Barely convincing. The response has shortcomings and deficiencies in demonstrating the Tenderer’s capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. Medium risk. | 4 |
Poor | Unconvincing. The response has significant flaws in demonstrating the Tenderer’s capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. High risk. | 3 |
Very Poor | Unconvincing. The response is significantly flawed and fundamental details are lacking. Minimal information has been provided to demonstrate the Tenderer’s capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. High risk. | 2 |
Inadequate | The response is totally unconvincing and requirements have not been met. The response has inadequate information to demonstrate the Tenderer’s capability, capacity and experience relevant to, or understanding of, the requirements of the Evaluation Criterion. High risk. | 1 |
Descriptor | Sample Commentary | Rating |
Not Acceptable | Tenderer was not evaluated as it did not provide any requested information and/or contravened nominated restrictions. Extreme risk. | 0 |
The rating scale to be used to evaluate the Local Content qualitative requirement is shown below:
SCORE | DESCRIPTION |
0 | The response does not address the Buy Local requirement. OR The evaluation panel is not confident that the Respondent will be able to satisfactorily meet the specified requirements. |
3 | The response offers minimal benefits in relation to the Buy Local Policy. OR The evaluation panel has some reservations about whether the Respondent will be able to satisfactorily meet the specified requirements. |
5 | The response offers a reasonable or average level of benefits in relation to the Buy Local Policy. OR The evaluation panel is reasonably confident that the Respondent will be able to satisfactorily meet the specified requirements to a reasonable standard. |
7 | The response offers a high or above-average level of benefits in relation to the Buy Local Policy. AND The evaluation panel is confident that the Respondent will be able to satisfactorily meet the specified requirements to a high standard. |
9 | The response offers a very high level of benefits in relation to the Buy Local Policy. AND The evaluation panel is completely confident that the Respondent will be able to satisfactorily meet the specified requirements to a very high standard. |
- TENDER/REQUEST BRIEFING SESSION
A mandatory request briefing will be held during the request advertisement period. The purpose of the briefing session will be to outline and clarify the basis and details of the proposed contractual framework and the project. The session would be conducted where the contractor will highlight the contractual framework and the details of the project. The stakeholders would be invited through formal invitation and would be asked to provide details of the respective expectations and requirements from the project (Watts & Kunchev, 2019).
- EVALUATION COMMITTEE
An evaluation panel made up of the following people will evaluate responses:
a). Senior Manager and ABC agency;
- Product Development and CQS company;
- CEO and SKH Limited; and d). Senior Manager and DLM Private Limited.
The independent panel members would include the legal advisor, facilitator and the probity auditor. This would help in ensuring that there is no biasness in the evaluation and audit.
It is important that the members who would be a part of the evaluation panel have a number of skills and hold experience as well. The skills should be important to the nature of the purchase and also include a member who has skills and expertise in the area of procurement.
- CONTRACT MANAGEMENT
- GOVERNANCE
Governance is an important part of the overall management of the contract where it is responsible for ensuring the success of the project and in meeting the project goals and objectives. The governance strategy for the project would include the following steps:
- Initiation- the first step is the initiation where the project governance framework would be established along with which the roles and responsibility of the governance committee would be provided. Along with this, this step would also include engagement with the stakeholders.
- Planning- this step would include the definition of the issues and the risk management procedure and strategy for the project. It would also include the way in which the project would communicate with the stakeholders.
- Executing – the next step in the governance strategy is the execution where the governance framework is executed. In this step, the communication and the engagement with the stakeholder take place and include a number of activities such as organizing meetings and reporting (Musawir et al., 2017).
- Controlling and monitoring- it step would include the control of the project where the project management control process is initiated. In this step, the governance committee would ensure that whether or not the project has met the benchmarks of the performance. The deviations in the performance are recorded and improvement strategies are devised.
- Closing- the last step of the governance strategy is the closing where the governance committee ensues the stakeholders that the framework adopted for governance of the project is effective and appropriate.
- CONTRACT MANAGEMENT PLAN
The contractor would be held to account regarding the timeliness, quality and budget/contract value. The contractor would be required to ensure that the client and the government about the quality and the timeliness of the contract. For this purpose, the contractor would be required to sign an agreement which would cover a number of aspects which are as follows:
- Deadline- The agreement would include the deadline of the project where the deadline with a graced period of fifteen days should be met. In case of the failure to meet the same, the contractor would have to face penalties.
- Quality- The project must fulfill the quality standards that would be highlighted in the agreement. The project assessment undertaken during the final stage would highlight whether or not the contract has met the pre-determined standards of quality. The quality standards must be met by the contractor for securing future contracts of similar nature and also ensuring that there are no penalties on the contractor for breaching the quality standards.
- Budget value- The contract is also required to meet the budget of the project where the budget provided to the contractor would be listed in the agreement. The budget would be prepared after evaluating the current scope of work and also the prices of the raw material and other inputs that are required in the construction project. The contractor would be communicated about the budget and would make sure that the actual expenses fall within the stipulated budget after considering the variance level provided by the government (Jumbad & Chel, 2018).
- PERFORMANCE REQUIREMENTS
The proposed contract management performance requirements for the contract are a). Key performance indicators
The criteria that will be used to measure the performance of the contractor are as follows:
- Meeting budget- one of the key performance indicators of the project is the ability of the contractor in completing the project within the budget. The contractor should be able to cover up the cost and the expenditure of the project within the proposed budget provided for the same. This will highlight the effective planning skills of the contractor.
- Meeting timelines- another key performance indicator for the successful execution of the project by the contractor is meeting up of the deadline of the project. The contractor should be able to meet the proposed deadline of the project which would in turn help in ensuring that all the activities undertaken by the contractor provided success to the project (Jahangirian et al., 2017).
- Milestones- The contractor should be able to meet the milestones of the project where each of the milestones must be reached within the defined period of time.
- Cost variance- Furthermore, the project should be completed within the predefined variance for cost. This would be helpful for ensuring that the project is completed within the defined cost estimates.
- Reporting
The contractor/s will be required to provide the Directorate with the following reports:
- Reports for the cost and expenditure incurred during the project.
- Reports on the management of the project.
- Reports on the implementation of the buy local policy.
- Reports on the procurement process and quality standards.
- Meetings
The proposed meeting requirements to be included are as follows:
- 10 Management Meeting for discussing the project management each after a period of two months.
- Quality assurance meeting- One quality assurance meeting in a year to revise and discuss the quality standard and expectation.
- PROMOTION AND MARKETING
Promotion and marketing of the fire service station would be undertaken in the following manner:
- Print advertisement- The opening up of a new fire services station would be advertised in the local newspaper and the national newspaper of Australia. The same would also be advertised in the weekly magazines to ensure that more and more people are aware of it.
- Digital promotion- Digital means of promotion would be used where social media channels such as Instagram YouTube and Facebook would be employed to promote the fire service station.
- Online newspaper- The news of the opening of the new fire service station would be advertised in the newspaper circulated on the net (Zhang et al., 2016).
- Malls and shopping centers- Before the opening of the fire service station, posters and banners about the same would be installed in the leading malls and the shopping centers of the nearby areas.
- Posters and banners- Posters and banners would be installed in the nearby area to spread awareness in the public about the upcoming fire service station in the nearby area along with the emergency numbers that can be called in case of help for the station.
- POST CONTRACT EVALUATION
The performance of the project would be evaluated by the use of the following key criteria-
- Meeting budget- The evaluation of the project would be done to ensure that the cost and the expenditure incurred during the project falls under the pre-determined budget or not.
- Meeting deadline- Another criterion to evaluate the performance of the project is the ability of the project to be completed within the stipulated time frame.
- Implementation of the policies- Furthermore, the project performance would also be evaluated by the determination of whether or not the policies specified in the project have been met (Mansi& Pandey, 2016).
- Quality standards- the evaluation of the quality of various activities and the material used in the construction of the fire service station would also highlight the performance of the project. The project should be able to meet the quality standard while allowing some variances to consider the changes in the external and internal environment affecting a project.
References
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Athias, L., &Chever, L. (2018). The Relative efficiency of competitive tendering. In The Economics of Public-Private Partnerships (pp. 113-133). Springer, Cham.
Jahangirian, M., Taylor, S. J., Young, T., & Robinson, S. (2017). Key performance indicators for successful simulation projects. Journal of the Operational Research Society, 68(7), 747-765.
Jumbad, V., &Chel, A. (2018, September). Strategic use of control plan as a process audit tool in automotive industry: A case study. In AIP Conference Proceedings (Vol. 2018, No. 1, p. 020006). United States: AIP Publishing LLC.
Kiesnere, A. L., & Baumgartner, R. J. (2019). Sustainability management emergence and integration on different management levels in smaller large‐sized companies in Austria. Corporate Social Responsibility and Environmental Management, 26(6), 1607-1626.
Loosemore, M., & Reid, S. (2019). The social procurement practices of tier-one construction contractors in Australia. Construction Management and Economics, 37(4), 183-200.
Madu, C. N., Kuei, C. H., & Lee, P. (2017). Urban sustainability management: A deep learning perspective. Sustainable Cities and Society, 30, 1-17.
Mansi, M., & Pandey, R. (2016). Impact of demographic characteristics of procurement professionals on sustainable procurement practices: Evidence from Australia. Journal of Purchasing and Supply Management, 22(1), 31-40.
McIver, C. P., Metcalf, A. L., & Berg, E. C. (2018). Procurement contracting and forest communities: Factors affecting local business utilization in the Inland Northwest. Journal of Forestry, 116(5), 412-419.
Mehrbod, A., Zutshi, A., Grilo, A., & Cruz-Machado, V. (2017). Evaluation of an E-catalogue matching mechanism in public procurement notice search. In Proceedings of the Tenth International Conference on Management Science and Engineering Management (pp. 1237-1247). Springer, Singapore.
Modarres, M., Kaminskiy, M. P., &Krivtsov, V. (2016). Reliability engineering and risk analysis: a practical guide. United States: CRC press.
Musawir, A., Serra, C. E. M., Zwikael, O., & Ali, I. (2017). Project governance, benefit management, and project success: Towards a framework for supporting organizational strategy implementation. International Journal of Project Management, 35(8), 1658-1672.
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Tewari, A., Kallakuri, S., Devarapalli, S., Jha, V., Patel, A., &Maulik, P. K. (2017). Process evaluation of the systematic medical appraisal, referral and treatment (SMART) mental health project in rural India. BMC Psychiatry, 17(1), 385.
Watts, A., &Kunchev, R. (2019). Briefing: Grand Théâtre de Rabat, Morocco–a case study. Proceedings of the Institution of Civil Engineers-Construction Materials, 172(3), 127-132.
Xie, H., & Liu, H. (2017). Studying contract provisions of shared responsibilities for integrated project delivery under national and international standard forms. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 9(3), 04517009.
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PROCUREMENTPLAN
APPENDIX A – RISK REGISTER
Risk Register |
This risk register is consistent with AS/NZS ISO 31000:2018 reputational risk, security of supply risk, regulatory risk, public health and safety risk, quality risk, budget risk and the schedule risk. Management standard
Risk Ref. No. | Risk Description (source/ Cause) The risk event, source and cause What can happen (that will affect our ability to meet our objectives) and how it comes about. | Describe the consequence If what can happen does happen what is the impact or outcome? (In its most ‘normal’ form – not an extreme form) | Risk controls – what is in place to manage the risk. How are risks to be Managed? What ordinary policies, procedures and actions (BAU) are to be taken to manage the risk? | Risk Owner (person or entity who manages the risk) | Consequence | Likelihood | Current risk rating | Control effectiveness |
1 | Inability to satisfy stakeholders | Poor public image | Effective promotion and marketing | Marketing manager | 3 | 2 | 4 | 4 |
2 | Security of supply risk | Negative impact on supply chain and logistics | Logistics and supply chain management | Logistics personnel | 2 | 4 | 3 | 3 |
3 | Non compliance with regulations | Legal consequences | Compliance with regulations | Legal advisor | 3 | 2 | 1 | 5 |
4 | Public health and safety risk | Legal consequence and closure | WHS policies | Legal advisor | 5 | 2 | 1 | 4 |
5 | Budget risk | Lack of funds to support activities | Meeting budgetary requirements | Finance manager | 2 | 3 | 4 | 5 |
6 | Poor quality of project | Poor quality and project success | Meeting quality standards | Contractor | 3 | 4 | 2 | 3 |
7 | Delay in project | Not meeting project deadline | Proper scheduling of activities | Contractor | 2 | 1 | 4 | 2 |
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