Project 1 – Task A

Impact = EV : 70% x $120,000 =

70% $120,000 $84,000
In-House $84,000 +(-$9,000) =
$100,000 $75,000
Impact = EV : 30% x -$30,000 =
30%
-$30,000 -$9,000
Production Options
Impact = EV : 50% x $100,000 =
50% $100,000 $50,000
$40,000 $50,000 +(-$5,000) =
Outsourcing $45,000
Impact = EV : 50% x -$10,000 =
50%
-$10,000 -$5,000

Net Benefit:

1) In-House : $75,000 - $100,000 = -$25,000 (loss)

2) Outsourcing : $45,000 - $40,000 = $5,000 (gain)

Results: The decision analysis has shown that there will be a profit of $5,000 with the outsourcing strategy.
Project 1 – Task B
Procurement Management Plan
Name of Project:
Background:
Description of goods/services:
Key Dates:
Contract Type:
Payment Schedule
Estimated Cost:
Budget approval:
Procurement method:
Procurement Schedule/Timeline
Tender release date:
Tender closing date:
Tender panel recommendation date:
Negotiations completed:
Advise unsuccessful suppliers:
Supplier debriefs:
Production of Electronic Auto Parts
Production of special electronic auto part is required as part of
the car upgrading project. A decision tree analysis was carried
out and shown that outsourcing investment is the preferred
option over in-house production investment.
The production of 400 nos. of electronic auto part for car model
X will be outsourced to the shortlisted contractor. The
contractor is expected to deliver 150 nos. of auto part in Stage 1,
which has duration of 6 months after Award of Contract. The
remaining 250 nos. of auto part is to be delivered 12 months
after Award of Contract.
The completion of milestone will serve as the basis of payment
according to the payment schedule listed below.
 Stage 1 – 6 months upon award of contract
 Stage 2 – 12 months upon award of contract
 New Tender (Outsource)
 Stage 1 – 40% of total sum
 Stage 2 – 60% of total sum
$40,000.00 (excluding GST).
The budget for this project is to be approved by Section
Manager
Three specialist electronic auto part suppliers have been invited
to submit their RFP for this Tender
2 Jan 2020
23 Jan 2020
28 Jan 2020
31 Jan 2020
31 Jan 2020
3 Feb 2020
Source Selection Criteria

Criteria weight
Price 40%
Production capacity 25%
Technical approach 15%
Financial capacity 10%
Management experience 5%
Track record 5%
Total score 100%
Project 1 – Task C

Description of Project

Production of special electronic auto part is required as part of the car upgrading project. The
contract requires the contractor to produce and deliver 400 nos. of the special electronic auto part
for car model X.

Exclusions

The contract excludes the installation of the auto part into the car system.

Performance Reporting

The contract requires a bi-weekly progress reporting to the Client.

Submittals/Deliverables

The contractor is required to submit and deliver the following as per the Contract condition:

 400 nos. of special electronic auto part

 Technical report comprises of production capacity, approaches and progress
 Testing and commissioning report
 Operation and maintenance manual
 Product warranty for 5 years upon delivery
 Product support for 2 years upon delivery

Schedule

The delivery schedule for the products as per Table below:

Work Phases Deliverables Timeline

Stage 1 150 nos. of auto part including 6 months from the Date of Award
testing and commissioning,
technical support
Stage 2 250 nos. of auto part including 12 months from the Date of Award
testing and commissioning,
technical support

Insurance and Performance Bonds

Contractor to provide a performance bond for the production of electronic auto part in the
aggregate amount of Twenty Thousand dollars ($20,000.00) as part of the schedule performance
guarantee. The performance bond must be provided within ten (10) working days from the Date of
Award.

Pricing and Payment Term

The Contract is awarded with Total Sum of Forty Thousand dollars ($40,000.00) for the execution of
the works stipulated in this Contract.
The payment term for this Contract as per Table below:

Work Phases Payment Term Amount ($)

Stage 1 40% of Total Sum $16,000.00
Stage 2 60% of Total Sum $24,000.00

General Terms and Conditions

The Contractor is obliged to adhere to the General Terms and Conditions stipulated in the Client’s
Standard Conditions of Contract document.
Project 1 – Task D

Definition:

Work Performance Data refers to the current observations and measurements during the project life
cycle including the cost, duration, and the percent of work physically completed.

Work Performance Information refers to the performance data collected from various controlling
processes, analyzed in context and integrated based on relationships across areas to derive an
overview of the project status.

Work performance Report refers to the physical or electronic representation of work performance
information intended to generate decisions, actions, or awareness.

Techniques:

Expert Judgment requires involvement of individuals or groups with specialised knowledge to share
his/her expertise in a certain fields or areas in the project.

Data Analysis consists of numerous analysis tools to help the project team in assessing the current
status of the project and to explore ways or actions to be initiated.

Decision Making technique is used generally in a situation where voting is essential to determine the
consensus of various parties in a project towards certain proposal or decision.

Meetings are organised to carry out discussion or review of an issue in the project. Generally, a
meeting may includes project team members and other project stakeholders.
Project 1 – Task E

Techniques adopted in the control procurement process:

Expert Judgment requires involvement of individuals or groups with specialised knowledge to share
his/her expertise in a certain fields or areas in the project. Generally, these individual or groups has
specific skill set or knowledge base in functional areas (finance, development, engineering, design,
supply chain, etc.) laws and regulations as well as contract administration. In some cases, the
services may be obtained in-house within a large organization or obtained externally for an agreed
fee.

Claim Administration refers to the management of claims and disputes which took place when the
buyer and seller cannot reach an agreement on the compensation term for the change or due to
disagreement that a change has occurred. Typically, claims are documented, processed, monitored
and managed throughout the contract life cycle. A recommended method for settlement of claims
and disputes is through negotiation.

Data Analysis consists of numerous analysis tools to help the project team in monitoring and control
procurement processes. The few tools commonly used are Performance Reviews, Earned Value
Analysis and Trend Analysis. These tools could identify and analyse the schedule, cost, resource,
quality and forecast completion of the project to determine if the project is over-perform, on-target
or under-perform.

Inspection is a structured review of the project, involving simple assessment of the deliverables or
actual physical check on the work itself. This technique promotes mutual understanding between
the buyer and seller pertaining to the work in progress.

Audit is structured review of the procurement process, in which the rights and obligations related to
audits should be described in the contract. The audit observations should be made available to both
the buyer and seller to allow for adjustments to be made to the project, if applicable.