Contracts and Procurement Case Study

Running head: CONTRACTS AND PROCUREMENT CASE STUDY
Contracts and Procurement Case Study – Report – Review of new Royal Adelaide Hospital
Auditor General Report
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1CONTRACTS AND PROCUREMENT CASE STUDY
Table of Contents
1. Part A: Procurement context........................................................................................................2
1.1 Introduction to life cycle journey and current status of project.............................................2
1.2 Complexities..........................................................................................................................2
1.3 Discussion on project environment and organizational aspects............................................3
1.4 Leadership and governance...................................................................................................3
2. Part B: Apply judgment and initiative in the development of best practice................................4
2.1 Identification of key risks......................................................................................................4
2.2 Mitigation and possible learning...........................................................................................5
2.3 Roles and responsibilities of key project resources...............................................................6
2.3 Scope and the procurement process.......................................................................................7
3. Part C: Analyze the responsibilities of the procurement manager and project manager.............8
3.1 Explore roles of procurement managers................................................................................8
3.2 Explore roles of project and project managers......................................................................9
Part D.............................................................................................................................................10
4.1 Reflection summarizes ideas of procurement and contracts................................................10
Bibliography..................................................................................................................................12

2CONTRACTS AND PROCUREMENT CASE STUDY
1. Part A: Procurement context
1.1 Introduction to life cycle journey and current status of project
The public procurement approach is referred to as a governmental activity used to either
purchase services or goods or carry out the operational functionalities of New Royal Adelaide
Hospital. This is Australia’s one of the most advanced complex clinical care service providers.
The phrase public procurement is generally used to refer those activities. Three different phases
of public procurement processes are there such as- Deciding which services and goods are to be
brought by the project team members, a process of placing the contract for acquiring the goods
and services and the administrative process useful to make the process effective and business
focused.
It is responsibility of the New Royal Adelaide Hospital to operate the procurement
processes in such a way so that it can resolve the procurement challenges. The procurement
process helps to measure integrated tools and technologies very effectively. However with the
procurement approach three of these phases are required to be integrated successfully. The
significant connection between three of these phases would become easier with implementation
of the procurement process. This process requires involvement of future procurement plan also.
It ensures that they have sufficient time to run procurement process.
1.2 Complexities
Various complexities are there which impacts the operational activities of the New Royal
Adelaide Hospital. The issues identified for this company are as follows:

3CONTRACTS AND PROCUREMENT CASE STUDY
 Main issue which impacts the New Royal Adelaide Hospital is safety issues.
These identifies operational disputes are needed to be resolved by company
associates.
 Cost over allocation is another major issue that has been identified for the
operation of this specific hospital. If the finance manager fails to identify
appropriate cost for specific elements then the net cost assigned for the project
will exceed.
 For the operational and clinical activities of this specific project the other
identified issue is over crowd.
 The new hospital is also out of date as the design for this building is prepared
before 10 years
 The senior industrial officer of the hospital failed to implement all needful
strategies.
1.3 Discussion on project environment and organizational aspects
The project environment represents the connection, following which a project progresses
towards success. This impacts the process and it is much conditioned. This type of interaction is
offered by numerous factors such as operational, social, cultural, economical, financial and
organizational. Individually each of these factors are required to be
1.4 Leadership and governance
There is a huge difference between the terms leadership and governance. On the
development agenda, proper governance in the healthcare industry is increasing rapidly regarded
as a salient characteristic or theme. Governance and leadership in building the health system
include different strategic policy and regulatory frameworks. This framework ensures that all the