PROJ6004: Contracts and Procurement Review of Procurement Process

This report provides an in-depth analysis of the procurement process, focusing on the New Royal Adelaide Hospital (RAH) project as a case study. It examines the key components of the procurement cycle, from initial needs assessment to contractor selection, and highlights the importance of effective logistic management and inventory control. The report also delves into the risks associated with the RAH project, including complexities related to ICT integration, new technology implementation, and financial management. Furthermore, it explores the governance arrangements, risk mitigation strategies, and the roles of the procurement and project managers in ensuring stakeholder satisfaction and successful project outcomes. The report emphasizes the significance of sound risk management practices, continuous monitoring, and the application of enterprise structure to address challenges and achieve project objectives. The analysis covers various aspects, including planning, selection, administration, and closing procurement, with a focus on the Public-Private Partnership (PPP) model and its implications. It underscores the need for strong governance, efficient decision-making, and regular review throughout the project lifecycle to ensure timely delivery, within budget, and with intended benefits realized.

Running head: PROCUREMENT PROCESS
PROCUREMENT PROCESS
Name of the student
Name of the university
Author note

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The public undertaking is regarded as the noteworthy reality in the context of the social
formation as the same provides the continual aim of progress for the particular administration of
the public project. The case scenario is related to the development of the new English national
stadium that engaged in the assessment. It describes the operational accountability that is
connected with the establishment and management of the public project. In addition to that, there
occur several operational and maintenance possibilities that are required by the anticipated
procedure as well as necessitate comprehensive analysis (Lim, Zhang & Oo, 2018).
The cycle of procurement of the project for the specified case started with the ideological
principles that are based on needs and ended up with the selection of the range of skilled
contractors to achieve the desired target. The process that is applied with procurement and
management of the public undertaking that is elected inclined to the complete analysis of the
required portion along with that removal of unidentified and unnecessary criteria (Schapper,
Malta & Gilbert, 2017).
The logistic management and inventory control are the influential determinants that are
engaged under procurement operating for the project. Furthermore, identification and planning
are the relevant factors that must involve throughout the process of effective implementation.
Therefore procurement is the conduct of obtaining services, goods, or supplies (Mansi & Pandey,
2016). Therefore procurement undertaking is receiving materials as well as the services that are
required for the project. The administration of the project procurement entails the process that is
implicated for the purpose of making the project management efficacious. The scope of the
procurement has wide outcomes as well as interaction in the separate functioning of the supply
chain.

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The procedure of procuring ranges from the description of the need and requirement of
the end-users to ensuring that payment will be made within the specified time of accrued
invoices. Therefore the administration of the undertaking concerning procurement is classified
into planning, selection, administrating, and closing procurement.
The novel Royal Adelaide Hospital is the major social infrastructure undertaking that is
undertaken by the state. The novel RAH is to establish, financed, and maintained as well as
provided with the non-medical assistance in addition to that equipment applied Public-Private
Partnership agreement (Lloyd-Walker & Walker, 2015). Therefore creating as well as
maintaining a strong arrangement of corporate governance in addition to that efficient
management supervising procedure is significant to the effective conferring of the complicated
undertaking. Thus, in particular, it is important that an effective and efficient system of decision
making, as well as administration, are in position are often reconsidered and amended throughout
the lifecycle of the project (Barraket, Keast & Furneaux, 2015).
The RAH project is the generational undertaking in the context of its complexity, scales,
expenses, resources that are allocated as well as its significance in facilitating sustainable and
enhanced services of healthcare as well as impact to the public of South Australia. The novel
RAH part of the reform programming being established to guarantee the state has a sustainable
and responsive health system for the future (Atmo et al., 2017). Thus maintaining and
establishing strong governance arrangements as well as efficient administration processes of
oversight is critical to the effective delivery of the complicated undertaking. In particular, it is
important that an efficient and effective system of decision making as well as management, in
addition to that procedures are in position and regularly revised and reviewed throughout the
lifestyle of the project.

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The reconsideration of the aspect of the undertaking has been continuing as well as endure
throughout the lifecycle. The review is developing in phases mirror the continuing nature of the
undertaking in addition to that chief undertaking lifecycle milestones and stages. The phase of
reconsideration concentrates on the undertaking status as well as reviewing the arrangement that
is created by the state enabling the undertaking to be delivered within budgets, on time, within
resources, and with intending advantages that are realized (Thurbon, 2015). Thus concentration
is put on management, reporting arrangement and project governance involving
 Organizational structure and project governance
 Business planning
 Assurance processes
 Risk management
 Financial and budgetary management
 Contract management and administration
 Procurement
Some significant initiatives and arrangements are impacting on the undertaking such as
planning of transition, initiatives of health reform, operational commissioning as well as
readiness strategy for the undertaking that were not subjected to comprehensive
assessment as a portion of the phase for the reconsideration.
Components
The series of components involved in the proposed procedure of procurement.
That components that functioned critical character in idealizing sand initiating the
operational necessitates concerning RAH. From the context of the contemporary
undertaking, it is considered as the fundamental phase under the procedure of

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procurement. Thus as per the component of the procedure of procurement, the general
ideology is provided to the contractors that are obtainable regarding the necessary
resources. The process of tender evaluation is accomplished with the available division of
the process, along with the categorized format.
Key issues or risk
The RAH undertaking is the intrinsically extraordinary risk project in the context
of complexity, cost, scales, and the resource that are allocated and the significance of the
project in an aspect of facilitating improved as well as sustainable services at health care
as well as impact to the citizen of South Australia. The model of PPP implemented to
send the project, as well as an underlying contractual agreement, have shifted potential
risk connected with the undertaking to Project Co involving risk connecting to the
construction and design of the facilities at healthcare.
Thus RAH undertaking is multifaced, major, as well as the complicated project
that represents numerous risks and challenges, which is as follows. Firstly the integration
and delivery of the novel health enterprise ICT structure, some of them are not developed
yet, implemented, or tested throughout the rest of the public healthcare system. Secondly,
the integration and application of new technology, innovation, as well as the method of
implementing matter. Thirdly delivering the complex and large undertaking
corresponding to the considerable initiatives of health reform that is transforming health.
Fourthly guaranteeing the staff are appropriately, readily trained in addition to that hold
the required development and connected reform initiatives optimistically. Fifthly
financial administration of the limited resources to convey undertaking as well as
understand the anticipated benefits. Sixthly, the integration and coordination of services

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that are provided by Project Co under the arrangement of PPP with the services that are
clinical as well as other associated services to be facilitated by the state.
The object of novel RAH undertaking involves the leading cultural development
by SA heath structure by establishing an environment that supports and persuade staff to
accept novel values of the organization and structure of functioning that is tending to the
patient and impact concentrate on the method to care that is consistent with the SA health
care plan. The functioning of the board of operation is to facilitate the novel RAH
program with the operational leadership as well as administration for the integrated
programming along with that effective shift to the operational commissioning. It is
significant that governance commissions, as well as the entity accounted for the
obligation in respect of guaranteeing to undertake, are conveyed within the cost
limitations, and the intended advantages of the undertaking are understood are facilitated
with financial and budget information that is relevant, timely and reliable.
The governance arrangement and structures for the undertaking have undergone
development since the commencement of the project. The significant development was
undergone in reaction to the outcome of the reconsideration that has been undertaken by
the independent consultant that is Calcutta Group. The consultant, in its first
reconsideration, concluded in June 2013, mentioned the formulation of the framework of
governance that clarifies the accountabilities and responsibilities of the governance
committee as well as of the key individuals. It is recommended by the consultant that the
formulation of the novel RAH program shielding all interconnected undertakings that are
necessary to attain effective operational commissioning of the novel RAH (Young,
Nagpal & Adams, 2016). It is also relevant to consider those findings, observation, and

6PROCUREMENT PROCESS
also conclusion mirror discussion, understanding, testing procedures, inquiries, evidence
that is obtained at the point of time. The novel RAH program and SA heath are
continually revisiting and reviewing processes, the system as well as practices to
discourse the evolving issues. The issues have emphasized from the decision of the
governance committee as well as action items, outcomes from reconsideration by the
autonomous consultant, and also an ongoing process of review (Kakwezi & Nyeko,
2019).
The key characteristic of effective project management is the establishment of
sound processes of risk management as well as practices involving implementation,
identification in addition to that continuous monitoring of the strategies of risk
mitigation. Furthermore, in September 2014, the strategic register has appeared to the
committee. The register labeled high, extreme as well as moderate risk and also
facilitated general and brief description of each of the risk involved. In many situations,
the description of risk was unclear and did not provide adequate comprehension of the
character of risk and impact of the risk to state and project. Nevertheless, the risk register
did not engage the particulars of the strategies adopted to mitigate the challenges of the
contemporary standing of the strategies.
Mitigation
The number of challenges that are significant to conveying the undertaking
engages relevant complexities and, if understood, would have the material outcome to the
state in terms of fulfilling the intended advantage, time frame, financial exposure and
patient safety. It is recommended that SA health guarantee consistent report is delivered
to the committee on the continuing basis that efficiently report the risk and status

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connected with the meeting of fixing dates specified in MWP. Furthermore, it is
recommended that the SA health guaranteed reporting that involves regular updates on
the efficiency of the mitigation strategies applied for the branded risk. SA health appoints
an autonomous consultant, the Calcutta group, to commence assurance reconsideration
over the novel RAH undertaking. The reconsideration completed in April 2015 that
involve investigating novel RAH ICT programs. The external consultant discovered that
heath business as the usual manner of functioning was unlikely to facilitate adequate,
timely production for the novel RAH program because of the health team is accountable
for the whole SA health structure (Ruparathna & Hewage, 2015).
It is recommended by the external consultant that SA heath guarantees the
application of enterprise structure at the novel RAH is given extreme priority, fully
coordinated along with MWP, assisted by comprehensive transition and schedule, plan of
change management, and training. The reconsideration engages attaining information on
the remediation position of the recommendation of the external consultant. It is advised
by SA health that the novel RAH program method is to guarantee that the application of
the enterprise structure has no bearing on MWP. The implementation of either mitigation
or the novel enterprise structure is expected to facilitate Project CO, which necessitates
and is recently planned and also being actioned. Furthermore, the novel RAH ICT
program is operating with enterprise programs to determine the comprehensive planning
that is at the diverse margin of maturity as well as completeness rest on the program.
After reporting to SA heath in September 2015, SA heath facilitates a
comprehensive reaction to the issues evolved, advising measures already adopted or
suggested. Furthermore, at the time of reporting, SA heath directed that a significant

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portion of recommendation has either applied or the remediation was advanced well. The
proposed action and development will be subject to the added comprehensive assessment
during the next phase of review. Thus it is recommended that SA health should update all
novel RAH ICT procurements to the contract management structure of procurement as
the issue of urgency. Secondly, finalizing development as well as application of the JIRA
system and also connected process to aid with tracking and managing ICT procurements
by various phases of the lifecycle of procurement. Thirdly to implement and develop
regular reporting as well as monitoring to the committee and also to senior management
on the position of procurement of ICT services for the novel RAH undertaking (Naoum
& Egbu, 2015).
The review of the procurement arrangement created for the novel RAH ICT
program observed strategic acquisition planning was not arranged for ICT services that
were procured for novel RAH ICT undertaking. The comprehensive acquisition plan was
developed as well as accepted by SPB. The first phase defined scope, cost, and record the
integrated program of ICT functioning for the novel RAH and the second phase was to
administer the application of ICT program. The amended strategy characterizes a relevant
departure from the method described in the detailed primary plan of acquisition that was
approved in July 2014. The transition from contracting and procuring out functioned to
the single contractor to obtaining resources for particular roles as well as discrete work
packages put forward diverse complexities and risk profile connecting to the management
of the procurement undertaking (Bohari et al., 2017).
The novel RAH ICT program was in the procedure of operating within the
enterprise ICT program to determine detailed planning. The planning was at the diverse

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margin of completeness and maturity. There was a necessity to formulate and applied
strategic acquisition planning to guarantee a consistent method of obtaining ICT services,
improve transparency, and also assist in guaranteeing the effective and efficient
application of key resources.
Thus it can be concluded from the discussion mention above that report
investigates the operational proposals throughout the noteworthy public construction
undertaking. The different considerations and principles are applied to labeled the
working in addition to that connected understanding of the deep method for generating
economically empowered supervision of the project are simulated. The restricted
responsibility that is put forward by agencies and companies engaged are investigated in
addition to that, the suggestions that are made to interlink them along with the
development. Finance is regarded as the significant determinant that is integrated into the
report, along with that describe a particular situation that can be regarded as the tough
reality in the public domain undertaking.
The roles, responsibilities, and obligations are described, and the demarcation is
examined to guarantee the more analyzed and comprehensive context in the subject
matter that is concerned. The factors such as management, leadership, and the key
complications and issues are talked over throughout the report for idealizing the inner
broadcast of the procedure. The different risk determinants and also the distinct
recommendation are incorporated that are supplementary beneficial for the institution
engaged. The plan of procurement management, like other plans of management
becoming subordinate to the planning of project management. The methods and tools that

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can be employed during the planning phase of procurement buy or make examination in
addition to that description of the type of contract.
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