BUSS5143: Contracts and Procurement Case Study-Report Writing - Management Assignment Help

Assignment Task

Case Study

You are a Project Manager tasked with issuing a Request for Proposal (RFP) for the supply and installation of a new Gear Box. As background information that is not needed to be researched, the following assumptions are to be considered as a given as part of completing this assignment.

• The EOI / RFI process successfully identified three compliant suppliers who have since been invited to respond to this RFP.

• A package of technical, commercial and procurement related information has been used and sent to all three suppliers (probity).

• All three RFP responses have been received in full and within the stipulated timeframe.

• An agreed evaluation criteria template has been used by the team tasked with identifying a preferred candidate supplier. The process was successful in identifying a clear preference, albeit with some risks to your project.

Key Issue #1 – Contracts

1. What steps should be taken to review, negotiate and resolve all rejected and amended terms proposed by the preferred candidate supplier.

2. What level of detail is required when issuing a Contract Formation Letter?

3. Subsequent to this letter, when issuing a Letter of Award, describe its purpose

4. Discuss the schedule impact associated with prolonged negotiations.          

Key Issue #2 – Project Budgets for procurement process

1. Discuss no less than four of the key areas commonly reviewed as part of a Value for Money assessment of any tender submission, to confirm that the proposed procurement activity can bring value to the business.

2. Discuss the benefits of a “cost neutral” approach to project and procurement costs. Give 2 or more examples as to why they are necessary and 2 or more examples of how they need to be controlled in terms of ensuring the supply meets the payments made.

3. Identify Milestone Payment Schedule Templates that are commonly used across various industry backgrounds and discuss why they may differ from industry to industry. Provide 2 or more examples that support those approaches.

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