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How Do You Plan a Procurement Activity for a Project?

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18926 Plan a Procurement Activity US 18926 Assignment Brief Purpose People credited with this unit standard are able to: analyse the factors relevant to a procurement activity; decide a delivery method to meet expected project outcomes; and choose a supplier selection method to meet expected project outcomes.

Outcomes And Performance Criteria Outcome 1 Analyse the factors relevant to a procurement activity.

Performance criteria

1.1  Project scope is identified.

Range may include – project purpose, description of works, location, scale, related projects, interested stakeholders, range of activities, potential subcontractor involvement, degree of specialisation, potential economic, environmental, social and cultural benefits, procurement strategies and priorities.

1.2 The capability, capacity and competitiveness of the supplier market are analysed in relation to the specific project.

Range may include – number of known capable suppliers, location of suppliers, supplier sizes, supplier pricing, supplier resources, existing relationships and track records, characteristics of unsuitable suppliers, appetite and potential for new suppliers.

Outcome 2 Decide a delivery method to meet expected project outcomes.

Performance criteria

2.1  The chosen delivery method is justified with respect to project outcomes.

Range may include – benefits, complexity, scale, funding, staging, potential for innovation, risk assessment, environmental impacts, timeline, resources, safety.

Outcome 3 Choose a supplier selection method to meet expected project outcomes.

Performance criteria

3.1  Opportunities for using a staged approach to supplier selection are described.

Range may include – preconditions, prequalification, expression/registration of interest, supplier panels, statement of interest and ability, direct appointment.

3.2   Supplier selection methods are compared.

Range  direct appointment, lowest price conforming, purchaser nominated price, price or quality, weighted attributes, quality-based selection.

3.3 The relative importance of price and quality are described in relation to each of the supplier selection methods.

Range direct appointment, lowest price conforming, purchaser nominated price, price or quality, weighted attributes, quality-based selection.

3.4 Options for supplier selection methods for specific project are evaluated with supporting recommendations.

Range must include two of – direct appointment, lowest price conforming, purchaser nominated price, price or quality, weighted attributes, quality-based selection.

3.5 Total cost of the supplier selection process is analysed for both the supplier and purchaser.

3.6 Non-price attributes to be used for supplier selection are described in terms of their purpose and the information required for evaluating them

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