Procurement Management Plan

Running head: PROCUREMENT MANAGEMENT PLAN
Procurement Management Plan
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1PROCUREMENT MANAGEMENT PLAN
1. Process can be used to change the project manager and outsourcing 50% of
the work to TECH2019
In order to improve overall performance of the system designed and implemented by
Canberra Hospitals in their reception desk, processing professional procurement management
plan is also mandatory. The procurement process designed for the project deals with change of
the existing project manager and an outsourcing of 50% work to TECH2019. Though, it will
save the rate of money expenditure but can cause challenges as well. It is mandatory for the
project associates to design a very effective and unique procurement management plan that has
to be followed by all the project team members. The details of the procurement planning
processes are elaborated in the below section:
Formation of procurement team: Before initiation the project head requires to assign a
project team. The authorized participants names should be enlisted, who will also take part in the
decision making processes. For this particular project, the resources who will be assigned in the
project team include project manager, human resources, project analyst, testers, quality assurance
specialist, programmer and project rollout worker etc. As 50% work is outsourcing from
TECH2019 therefore before assigning a project team individuals skills and knowledge must be
measures considering performance measurement matrix.
Item requirements: Several level of information needs to be gathered about each of
equipment required. Based on their type of the project a list should be prepared categorizing
tangible assets, hardware equipments software license etc. apart from that pertinent information
such as size, specs, quality and technical requirements should be considered before purchasing
any new item. The purposes for which the items will be bought and the items that are necessary

2PROCUREMENT MANAGEMENT PLAN
to complete the project are required to be identified by the project team members at the initial
stage. A timeline must be set for completing the product purchase. Effective purchase plan will
also leverage bulk amount of purchase for different departments over the contract length.
Selection of supplier: Then based on the project aim, functional and non functional
requirements the project head should compare all the possible similar suppliers. Based o the
comparison result the most suitable supplier should be selected. The specifications for bidding
are also highlighted in this phase.
Bidding and acceptance: The procurements department of the project issue a request
rather proposal elaborating the project needs and clients requirements. The response from
suppliers will help the project team members outlining the cost, schedule and delivery time
details. As TECH2019 accepts the RFP a breakdown is done that include quality, cost, vendor
history, schedule and comparison of cost for outsourcing and in-sourcing.
Selection of contract: Different types of contract are there such as fixed price, fixed
price with incentives, Cost-reimbursable contract, Fixed-Price with Economic Price Adjustment
Contracts etc. Among these contracts for the Kiosk project of Canberra Hospital the best suited
contract type that should be chosen is fixed price plus incentives. This contract negotiates price
based on the contracted goods and services.
Risk identification and risk management: In order to evaluate this project, most
important knowledge area on which the project manager and the project team members needs to
put their focus is risk management. Before final initiation of the project proper risks are to be
identified. After that their impact, possibilities of occurrences are also needed to be identified.