Procurement Case Study: University of Peel Expansion in Perth

This case study analyzes the University of Peel's expansion project, focusing on the procurement strategies involved in establishing a new campus in Perth. The project aims to introduce postgraduate courses in project management, business management, accounting, and finance, targeting both domestic and international students. Key aspects covered include defining the project scope and activities, identifying necessary services and supplies, and issuing a Request for Information (RFI) to potential vendors for constructing a technologically advanced library. The case study outlines the criteria for selecting the appropriate vendor, emphasizing price, quality, skilled teams, time efficiency, and technical advancement. It also recommends using a fixed-price contract to manage costs and ensure clear project objectives. The analysis concludes with recommendations for the project board regarding relevant issues to ensure successful project implementation. Desklib provides students access to similar solved assignments and resources.

PROCUREMENT CASE
STUDY ASSIGNMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Scope of the project and activities which are required for the project.........................................3
The activities, supplies or services required for the project.........................................................4
Request for information report....................................................................................................5
Criteria for selecting the proper seller for carrying out the project work....................................6
Type of contract required for the work........................................................................................7
Recommendation for the project board about the relevant issues...............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Project management is the procedure of guiding the work team to complete the project
effectively to accomplish the goals and objectives. It is the set of rules of knowledge and skills
which helps the person to complete their project (Anantatmula & Rad, (2018)). Every project
differs in their aspects as for every organisation they have different criteria to complete the
project because ultimately the project reach as a conclusion through which the desired goals is
achieved. University of peel a Australian public university which is present in Mandurah
Western Australia. This report will include the scope of the project and activities, services
needed for the project. It will further describe about the request made for the contract of the one
portion of the project, which include the criteria that would use to select the relevant seller for
contract, also includes the type of contract for the work. At last, it includes the recommendation
for the project about the relevant issues.
MAIN BODY
Scope of the project and activities which are required for the project
University of peel situated in Western Australia at present they have 15000 students in their
Mandurah location in which around 3000 students are from oversea they are offering the courses
to the undergraduate or postgraduate student. University is offering the 150 courses in their
Mandurah campus and also through online mode. They want to introduce a new post graduate
course which mainly focus on project management, business management, accounting and
finance learning courses for that they are targeting the oversea postgraduate student, domestic
market. As the main strategy of the university is to enhance their business by giving the new
courses in Perth city to attract the number of learners to enrol in their new courses (Lock,
(2017)). For that purpose they have created a strategy to develop their university in new city by
which they are focusing on strategies to attract the number of students also their aim is to recruit
the best teachers for their courses so that they can give better learning ability to the students. For
this project they have estimated the budget according to which they will invest in the areas which
is required in their project.

The activities which are required to make the project in reality includes the involvement
of the stakeholders who can invest in the project, therefore university need to know about the
specific stakeholders who can help them in accomplishment of their project. For any project
completion it first required the desired goals and objectives than proceeding with the other steps.
It also includes the job roles of the employee who can carry out the responsibilities to complete
the project as they can design the budget for the project, develops a schedule for the project also
sets the deadline of completing the project. Work activity will be divided in different department
as for the University they can give the role to their employee to hire a best candidate for their
teaching courses, also they can give the contract to other reliable company which can take care
of their infrastructure development. These activities can be beneficial to consider all the factor as
risk management, financing, stakeholder analysis for the successful completion of the project
(Meredith, Shafer & Mantel, (2017)).
The activities, supplies or services required for the project
As project designing is not a easy task it required concentration and time the following activities
which are required in the project are-
Planning and measurement of the project, scope management, risk management, stakeholder
analysis, estimation management, finance management. First need to design the plan for the
project which is the primary factor therefore university need to clear the objective and proceed to
plan the project to develop a new branch in new city. They also need to clarify their scopes so
that they can effectively proceed to implement their project.
As supplies for the project includes the proper equipments which are needed in the
implementation of the project as it requires the hardware and software equipment, basic raw
materials (Kerzner, (2017)). So the university need to give a contract to a best supplier who can
give them a price benefit for the supply of raw materials they need to estimate the budget for the
purchasing of tools and equipments which are must require for their project. University need to
contact with the stakeholders who can raise the fund for their project it will help them to develop
a branch of their university and through which they can be able to provide a better course to the
students in the new city. For that university also need to contract with the suppliers in the Perth
city or also they can proceed to develop a good relation so it will help them to negotiate the price
for the raw materials which also benefits in their budgeting system.

The services which are required for the successful evaluation of the project are planning of the
resource, problem tracker, reporting of the project, time measurement, team work, scheduling of
the project. Therefore, university need to verify all their resources and services which are
required for the implementation of their university project.
All the activities and services are strategically assigned so that it will be beneficial for the
university to complete their project (Buganová & Šimíčková, (2019)).University also need to
consider the points to reduce the probability of any issues they need to track the performance of
the project so that if any changes required they can make the changes so that it will be easy for
them to execute their project.
Request for information report (RFI)
Contract title:
To carrying out the one portion of the project as to construct the library with good
technological advance infrastructure.
Contractor's request for information:
In this contractor asked the investor about the information of the project for which they have to
work. They can also made a request to choose the portion of their work if investor accept their
request then they will able to develop the strategy for completing the task. Therefore, for the
university of Peel they need to clearly give the information about the project so that there will
be no ambiguity in carrying out the task. They also need to select those vendors who can do
work according to their desire.
RFI subject:
The main purpose of RFI is that it is a document which is provided by the investor to the
vendors to create a contract to carrying out their project. It allows to select a relevant vendors
for implementing the project.
Information requested:
University of peel requested to their contractors about their work as it will help them to
distinguish among the various vendors in the market. Vendors need to give proper information

about their work as their experience, skilful team, their quality of the services. So that it will
help them to choose the particular vendor for their project. Request for information will help
the university to know about the potential vendors who can carry out their work effectively. It
gives them a proper information so it will be easy for them to make good decisions by choosing
those vendors who fulfil all their needs and requirements.
As for the infrastructure university mainly focusing on building a library for their students so
that their students can easily access to subject books and also good facilities as book shelf,
computers, table chair therefore university uses RFI to identify the suitable vendor who fulfil
their wish by completing this portion of the project.
Criteria for selecting the proper seller for carrying out the project work
Following are the criteria which are required for selecting the seller for the work are-
Price:
As investor always wants that their work will carry out in a less price or in a better way,
therefore they always search for the seller who fulfil their credentials (Bond-Barnard, Fletcher &
Steyn, (2018)). Therefore, Australian university will know about the market of Perth in which
they decided to complete their project, if they have a proper knowledge then they can negotiate
the price for the raw materials or proper research also help them to distinguish among the
contractor in the market so that they can select the particular vendor who give them a price
benefit.
Qualitative good and services:
Cost does not even matter when the quality of the product and service is inferior. University need
to choose a vendor who have good product and services so that there ultimate aim of the project
will achieve (O’Flynn & O’Flynn, (2021)).
Skilful team:
To carry out any work required a skilful team who possess good experience and effectively carry
out the work with good outcomes. So the University need to select the contractors for their
project who have a good team so their project work completed with good efficiency.
Time efficiency:
As everyone wants there work is complete before the deadline for that purpose university need to
choose the vendor who complete their project work within a time with good efficiency so that

they can make further decisions for their project. They must need to choose the vendor who
supply the services in a given time period so there will be no delay in processing of the project.
Selection on the basis of technical advancement:
In today rise in technology creating a many opportunities for everyone. Therefore, university
need to choose the vendor for their project who are advance in technology as they want a good
tech savvy infrastructure for their library therefore they must have to choose the vendor who are
expert in dealing with technology, also able to complete the project in a time (Davies and et.al
(2017)). Technological advancement in the infrastructure will lure the students for them student
will feel more indulge into their project, it will be beneficial for the university.
Type of contract required for the work
As for the university of Peel who wants to start their branch in new city Perth therefore they have
decided to give one portion of their project to other contractor. As part of their plan they wanted
a library with good technical infrastructure therefore they have chosen a relevant vendor who
meets all their requirement. Therefore, the legal contracts are required for this agreement
otherwise it will create a problem for the university. The contract which they have used for their
project is-
Fixed-price contract
It is the legal contract between the project owner and the person who are in charge of completing
the project(Chawla and et.al (2018)). This contract generally point out the detailed quality of the
product and services so that it will give the complete analysis to the project owner. This contract
also includes the timing factor, delivery of the raw materials everything which is required for
completing the project. This contract generally required the presence of two professional supplier
who have good experience and better effective team who can work efficiently to meet the needs
of the project. The other main requirement of this contract as it require a clear scope and
objectives definitely it clears the image of the project so that it will be easy for the seller to
gather all the information or raw materials which are required to complete the project (Hu &
Zhou, (2020)). The main benefit of this contract is that it is inflation adjusted cost. Therefore, if
there is any high in inflation then client can predict the risk that cause from high inflation as rise
in prices therefore based on this they can adjust the contract price on the basis of inflation rate.
Fixed price contract is generally consists of the incentive fee which gives the incentives for
carrying out the project work over the developed baseline which are included in the contract.

This contract includes the incentives as for the university if their chosen vendor carry out their
project portion effectively or in a given time then they have to give the incentives to their vendor
which develop the good relation between them. The other parameter of this contract is that if the
vendor does not give their full efforts or to not complete the project effectively in a given time
then they will be penalized for their careless work.
Therefore this type of contract university has chosen to make agreement with their seller
for completing the portion of their project.
Recommendation for the project board about the relevant issues
As for the project good implementation of the strategy will reduce any kind of probability of the
issue, everyone wants their project should be good and effective with no problem, therefore they
first have to make a proper planning of the project as what things are required in the project
(Kivilä, Martinsuo & Vuorinen, (2017)). Following are the issues which identified in the project
with their recommendation which can made for improving the quality of the project-
Proper strategic planning:
To initialize any work first need to clear the scope and objective so that it give a clear image
about what things are required to complete the project. Therefore, university need to set the aim
for their project so that effective action can be carried out to complete their project. It will help
them to collect the proper resources for completing the task.
Effective communication network:
It is the major issues which is identified during the project implementation if there will be no
transparent communication between the departments so the work productivity for particular
project automatically decreases (Schermerhorn J. R and et.al 2020). Therefore, to cope this issue
project manager required to collaborate with their employees and develop a good interaction so
that they will easily follow their commands it will also increase the productivity of the project.
Good financing of the project:
It is the most common issue found in the project therefore to cope this issue project manager
need to find the ultimate solution as they can proceed by deciding budget for every expense
which will be made for the project. For their project university of the Peel must need to decide
the budget so that they follow accordingly so that there will be no problem for financing in their
project (Liu, Liu & Yang, (2020)).

These are the issues and recommendation made for the project so university need to
consider all the factors before starting their project as well as consider all the factors before
giving portion of the project to other contractor.
CONCLUSION
From the above report it is concluded that the accomplishment of the project required a
specific knowledge and set of tools which could help in successful evaluation of the project.
Report described about the scenario also it first explains the scope of the project which includes
the several activities and services which are required for the project evaluation. It also described
about the relevant supplier for the project by giving contract to complete the project. It further
includes the criteria for the seller also includes the type of contract which are made to carry out
the work. It finally concluded with the recommendations.

REFERENCES
Books and Journals
Anantatmula, V. S., & Rad, P. F. (2018). Role of organizational project management maturity
factors on project success. Engineering Management Journal. 30(3). 165-178.
Bond-Barnard, T. J., Fletcher, L., & Steyn, H. (2018). Linking trust and collaboration in project
teams to project management success. International Journal of Managing Projects in
Business.
Buganová, K., & Šimíčková, J. (2019). Risk management in traditional and agile project
management. Transportation Research Procedia. 40. 986-993.
Chawla, V. and et.al (2018). The sustainable project management: A review and future
possibilities. Journal of Project Management. 3(3). 157-170.
Davies, A. and et.al (2017). Five rules for managing large, complex projects. MIT Sloan
Management Review.
Hu, M., & Zhou, Y. (2020). Price, wage, and fixed commission in on-demand
matching. Available at SSRN 2949513.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Kivilä, J., Martinsuo, M., & Vuorinen, L. (2017). Sustainable project management through
project control in infrastructure projects. International Journal of Project
Management. 35(6). 1167-1183.
Liu, T., Liu, W., & Yang, F. (2020). Research on the variable buyback contract. Journal of
Modelling in Management.
Lock, D. (2017). The essentials of project management. Routledge.
Meredith, J. R., Shafer, S. M., & Mantel Jr, S. J. (2017). Project management: a strategic
managerial approach. John Wiley & Sons.
O’Flynn, A., & O’Flynn, D. A. (2021). Response to your request for official information.
Schermerhorn J. R and et.al 2020 Management 7th Asia Pacific John Wiley and Sons Australia
Online
What is Project Management, 2021. [online].
<https://www.pmi.org/about/learn-about-pmi/what-is-project-management>.