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

2. 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

3. 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.

4. 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

5. 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  

6. 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  

7. 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  

8. 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  

9. 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  

10. 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

11. 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

12. 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

13. 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