BSBPMG509A Manage Project Risk

Manage Project Procurement

Unit Guide

Diploma of Project Management 17872Qualification Code BSB51507

Unit Code BSBPMG509A

BSBPMG509A Manage Project Risk

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

Units of Study – Diploma

Units in the Diploma of Project Management

BSBPMG509A 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 assessment activities and the evidence of competency provided.

BSBPMG509A 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

BSBPMG509A 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  

BSBPMG509A 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

3. Approvals for procurement processes to be used for the project are obtained from a higher project authority to enable formal discussions to be conducted  

BSBPMG509A 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 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  

BSBPMG509A 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 identified and reported to a higher project authority, and agreed remedial actions are implemented to ensure project objectives are met  

BSBPMG509A 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 and passed on to a higher project authority for application in future projects  

BSBPMG509A Manage Project Risk

Associated Readings

• Mandatory –• 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

BSBPMG509A Manage Project Risk

Team Assignment Criteria

Team AssignmentComponents

Marks Basic Competency Higher Competency

Procurement Register 10 Table of major procurement and contracting requirements for human and non-human resourcesSourcing approach detailed and responsibility assigned

Table of detailed procurement and contracting requirements including human and non-human resourcesSelection 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 25 19.5 to 25 25.5 to 30

BSBPMG509A Manage Project Risk

Individual Assignment Criteria

Individual AssignmentComponents

Marks Basic Competency Higher Competency

Procurement Plan 10 Table of major procurement and contracting requirements for human and non-human resourcesSourcing approach detailed and responsibility assigned

Table of detailed procurement and contracting requirements including human and non-human resourcesSelection criteria and contract requirements also included

Assessment and selection approach

10 Detailed assessment and selection approach for a major procurementBasic understanding and evidence of tender processes

Detailed assessment and selection approach for several major procurementsAdvanced 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

Total 50 32.5 to 42 42.5 to 50

BSBPMG509A Manage Project Risk

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!