we have to complete only 35% part of the assignment which clearly mention in the practical case study.
Central Queensland University PPMP20011: Contract & Procurement management Supplementary Assessment PPMP20011: PROCUREMENT AND CONTRACT MANAGEMENT TERM1 2020 Important note: You may need to make various assumptions, which is fine. All assumptions need to be listed and justified Introduction: With the current ongoing pandemic of COVID 19, Australian governments is initiating a prompt response to cope with this emergency through delivering $2.4 billion health package to protect people and community. One of the aims of this package is to manage the demand on the health system and assist the community to act against COVID19. Part of this fund is directed towards supporting and increasing the capacity of the health sector in NSW. This includes launching urgent projects to counterattack the unprecedented conditions and to limit the spread of the virus. This fund for the NSW includes the four main key projects as follow: 1. Project 1: The construction of new fully equipped medical facilities to relieve the pressure on existing facilities. To do so, the government has been advised to follow modular and prefab architecture and construction. 2. Project 2: Provide the necessary ventilators, accessories, installation, testing and other supplies that will serve the current needs where the health system capacity has been stretched to the maximum. 3. Project 3: Construct new hotel to provide proper accommodation for the staff working in the centre as well as providing secure quarantine place for growing Covid19 cases. 4. Project 4: Connecting roadway to link the new medical center with the free way/city The above components are grouped in packages and the work to be conducted in parallel. Main concerns and priorities: • The new medical facilities can be implemented in phases allowing for extension. For example, the construction of Patient wing, laboratories and utilities (Oxygen plant, water treatment,..etc) could concurrently be designed and implemented • For this purpose, the advice was to follow the Modular design which provides the benefit of being adaptable for various scenarios. Ideally, a flexible plug and play’ infrastructure system to allow components added or removed efficiently and safely shall be adopted • Note the constraints for each project are as follow: Project/ No. PRIORITY Cost Time Quality Project 1: New Medical Centre 3 1 2 Project 2: Ventilators & other supplies 3 1 2 Project 3: New hotel 2 1 3 Project 4: Connecting roadway 2 3 1 The details of the above four parts are as follow: 1. Fully equipped hospital with up to 2000 beds. The work will start with 1250 beds immediately and then a second phase with 1000 beds. You need to recommend the route and the contract accordingly. o The hospital to include advance intensive care unit with up to date standards o The Hospital to ensure high quality standards with no infection or outbreak could take place. o The hospital is intended to accommodate all COVID 19 cases (growing cases are also considered). o Up to date laboratories o The hospital will remain in operation even after this virus pandemic comes to an end (hopefully ASAP!) where facilities will be utilised to serve the community afterwards for next decades. 2. The fund also included immediate buying of 2500 ventilators as a matter of emergency. The government has no options to get these from overseas. 3. The project includes appointing and employing qualified doctors, nurses and admin staff to run the hospital. The government may conduct this task or can subletting to a local HR company? You may need to recommend an approach and explain why? 4. The plan includes the construction a basic hotel (next to the medical center) that provides accommodation for all working staff as well as to quarantine Covid 19 cases. o The hotel has a maximum capacity of 300 rooms (5 story building) with and equipped with all necessary facilities to support the staff during the pandemic period and will remain in service for the same purpose through the post pandemic period o It is equipped with all necessary facilities including kitchen, dining, food court, gym, swimming pool and others to ensure convenient residency. o Proper isolation section is attached to the hotel and used to quarantine the Covid 19 cases o The two parts (staff accommodation and quarantine part) can be constructed concurrently and independently with minimum interconnectivity. 5. The project also includes urgent pavement work to construct a 3 KM carriage way to connect the hospital and the hotel to the main freeway. This includes a dual carriage way construction road with 2 lanes each Important note: You may need to make various assumptions, which is fine. All assumptions need to be listed and justified. • The CQUEngineers Consultancy Firm in NSW-Australia was selected to manage this fund on behalf of the owner. Therefore, CQUEngineers is taking the role of the OWNER • You, as a project manager working at CQUEngineers Consultancy Firm were assigned as a program manager to manage this fund on behalf of the firm due to your in-depth experience in procurement management. • The consultancy firm has long and extensive experience in construction projects BUT low experience in roadways and health sector and supplies. • You may need to make various assumptions (all assumptions to be listed and justified). • You have got the flexibility to manage the procurement plans, routes and contracts to undertake the above project aspects considering the constraints and limitations as well as the details and requirements. • Since this is an urgent project, there are unexpected details and design requirements and the projects are prone to frequent design changes and requirement leading to many variation orders. • Remember some aspect may considered as unique project in terms of scope, time and cost and your task is to plan the project procurement accordingly referring to above points • The Table below explains the main tasks and you need to respond to these tasks in details Main points to address (Table 1): These are the TASKS to address. Task Expectations (10 %) Understanding and analysis of the case study and applying the concepts of contract and procurement strategies Introduce to the case study whilst explaining the concept of the procurement and contract strategy. This needs to show your understanding to the procurement strategies and value for money in reflection to the case study (35 %) 1) Select/recommend the best procurement route (method). 2) You may use various routes to suite the different projects considering the limitations and constraints and the priority in terms? You may discuss various procurement routes (minimum 3 routs) that could be used and how each route can work. Based on this discussion you will select the most suitable route and justify (in line with the project nature and requirements) why do you think so comparing to other routes. So why other routes were excluded Keep your answer specific and concise in line with the requirements and project data. To make it easy for you, explain your answer based on the following eight parameters: PPMP20011 Contract and Procurement management Term1-2020 Assessment 2: Case Study: 35% due to 18/05/2020 3) Justify and explain why this could be the best route in line of the 8 points shown 4) DONOT PROVIDE GENERAL TEXT 5) You need to explain each point by reflecting the project requirements in specific 1- Time 2- Cost 3- Quality (level of service) 4- Changing orders 5- Complexity 6- Risk 7- Management capacity and experiences 8- Responsibility and other issues (15 %) What are the risks associated with this selected rout for both the owner and the contractor. You need to explain how to mitigate/ reduce the risk If you select recommend a specific procurement route, what are the risks associated with the selected route from the owner point view. What are risks from contractor view? How to mitigate and minimise the risks ? (15 %) Select the best contract type for this project (Fixed price (lump sum, unit price etc.) Or reimbursement (CPF, CPFF, etc...) What type of contract you recommend (based on the selected route). Multiple contracts may be selected to suite each project! Why do you think this is a suitable contract from Owner point view? Advantages/disadvantages and how this satisfy the project requirements (15%) Budget Breakdown: You may provide budget for the HOTEL or the Carriageway (Only One Project) • You can refer to any reference/ standards in your estimate • You need to cite the reference. • You can also make your own assumptions • The budget and cost analysis should be for relevant items within the project you are selecting. • Develop a rough budget (cost estimates) for one of the sub-projects. You can work on wither the HOTEL OR the Carriageway (One Project only) • You need to list the main items within the project (details) • Estimate the budget for each item (valid assumptions) • Give detailed calculation for the item cost including (Direct and indirect) cost • Provide a detail of your assumptions • You may need to be as close as possible to the figures/ estimates at NSW (any reference will be accepted) • It is fine to make your own assumptions. Budget breakdown must contain at least five main project tasks/ items and maximum ten items. (10%) Applying suitable negotiation strategies, particularly BATNA • One of the project aspects is to employ qualified staff and buy necessary supplies including ventilators. What are the negotiation strategy you will follow. • Identify your BATNA and make any assumptions Hint: You may use different type of contracts for different sub- project component Your submission should represent a business report (Not an academic