Project Procurement Management

This assignment explores the intricacies of project procurement management. It delves into various stages, including planning, executing, controlling, and closing phases. Specific emphasis is placed on understanding the Victorian Government Procurement Board (VGPB) policies, risk management strategies, and the critical role of contract management in successful procurement. The case study focuses on Federation Enterprises contracting Vulcan Dream Tours for a project, highlighting potential challenges and mitigation techniques.

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PROJECT PROCUREMENT MANAGEMENT
Project Procurement Management Process
It is a way of establishing relations with the suppliers to facilitate the ordering, reception,
reviewing and approval of all purchases made for project implementation (de Araújo et al, 2017).
Following the Victorian Government Purchasing Board’s (VGPB) policies and practices as
advised by his CEO, would make Jim’s work lengthy due to the involvement of more parties. For
example, the accountable officer would need to conduct an audit of the organization’s
compliance with the VGPB supply policies and report back. this would bring more productivity
to Federation Enterprises if it was spent on actualizing the procurement and building of the ship
(Eriksson et al, 2017). For a successful procurement, Jim Kirk should ensure that his company
follow the major steps involved in this process which are:
Specification: the purchasing department is responsible for stipulating the required products to
the vendor after thorough discussion of these item with the project manager.
Supplier Contact: Federation Enterprises can then proceed to requesting for information,
quotations and tenders from Vulcan Dream Tour, after ensuring that this institution is the best
supplier depending on quality, cost and delivery systems.
Contracting: this entails creation of a procurement contract which communicates the delivery and
payment methods within the organization’s project budget. Jim Kirk should ensure that the
contract already made is legally enforceable and it is in the best interests of the organization.
Control: to ensure successful procurement, the purchasing department must have some level of
control on the procured items through tracking delivery, checking the purchased goods against
the orders made and making the necessary changes to the procurement contract.

Measurement: this involves coming up with a performance system to identify the success of the
purchase including communications with the suppliers, performance of the procurers and Vulcan
Dream Tour’s adherence to the products’ specifications.
Project Management Plan
It is a formal and approved document which is developed by the project manager in
consideration of the stakeholders’ and the project teams’ inputs, to control, execute and monitor
the project. It is meant to ensure that the project is undertaken within the set budget, completed
on time and the performance is measured against the set standards and policies (Uyarra et al,
2017).
Procurement Documents
These are the documents involved in the procurement cycle and are crucial in the early periods of
project instigation, that is, they aid in the bidding and submitting of the project proposals and
work facets that makeup a project. They include; a request for quotation (RFQ), request for
proposal (RFP), request for information (RFI) and amendment documents.
Project’s Performance Evaluation
Performance Review:
This is a periodic undertaking to check the running of the project and offer the required support
to the project team, thus it involves direct communication with the team members. It is carried
out by the project manager, while referring to the project’s objectives and the expected results. A
project review should be documented for future reference.
Reporting:

This involves communicating the project progress, forecasting future plans and gathering and
disseminating project information to the relevant stakeholders. Performance reports take either
graphical or tabular formats. This can be effectively done by noting the project overview, using
visualized data and using the same report format consistently for easy analysis by the
stakeholders.
Auditing:this is done to understand the project feasibility and ensure the project’s management is
in sync with the objectives.
Closing Phase
The key considerations during project closure include acceptance of the project deliverables,
finalizing the lessons learnt, and writing the project report.
Risks Involved: during the closing phase several risks such as lost or damaged items in transit,
one party discrediting the procurement agreement, failure by Vulcan Dream Tours to meet the
product’s specifications.These risks can be avoided or mitigated by ensuring that the risk
breakdown structure is examined and that there are serious consequences to either of the
participants for failure to honor the procurement contract (Olson, D.L. and Wu, D.D., 2017). The
risk arrangement on risk transfer or sharing should also be binding and both Federation
Enterprises and Vulcan Dream Tours should adhere to its terms.
VGPB Procurement Policies
Contract Management and Disclosure Policy: this rule states that all organizations must disclose
all the key details concerning the procurement contract. Since this not an under-head contract,
Jim Kirk must revealall the material concerning the convention if it proves to be worth more than
100 thousand Australian dollars.

Evaluation, negotiation and selection: According to this policy, assessment of the procured
productsrequireshighstandardsofintegrit
yandorganizedapplicationofvaluationcriteriaandweightings. This is for assurance purposes that the
procurement agreement has been honored and the items delivered are of good quality and cost as
per the participant’s arrangement.
References

Uyarra, E., Flanagan, K., Magro, E. and Zabala-Iturriagagoitia, J.M., 2017. Anchoring the
innovation impacts of public procurement to place: The role of conversations. Environment and
Planning C: Politics and Space, p.2399654417694620.
de Araújo, M.C.B., Alencar, L.H. and de Miranda Mota, C.M., 2017. Project procurement
management: A structured literature review. International Journal of Project
Management, 35(3), pp.353-377.
Olson, D.L. and Wu, D.D., 2017. Enterprise Risk Management in Projects. In Enterprise Risk
Management Models (pp. 161-173). Springer Berlin Heidelberg.
Perrenoud, A., Lines, B.C., Savicky, J. and Sullivan, K.T., 2017. Using Best-Value Procurement
to Measure the Impact of Initial Risk-Management Capability on Qualitative Construction
Performance. Journal of Management in Engineering, 33(5), p.04017019.
Papke-Shields, K.E. and Boyer-Wright, K.M., 2017. Strategic planning characteristics applied to
project management. International Journal of Project Management, 35(2), pp.169-179.
Eriksson, P.E. and Eriksson, P.E., 2017. Procurement strategies for enhancing exploration and
exploitation in construction projects. Journal of Financial Management of Property and
Construction, 22(2), pp.211-230.