PPMP20011: PROCUREMENT AND CONTRACT MANAGEMENTTERM1 2020Important note: You may need to make various assumptions, which is fine. Allassumptions need to be listed and justifiedIntroduction:With the current ongoing pandemic of COVID 19, Australian governments is initiating aprompt response to cope with this emergency through delivering $2.4 billion health packageto protect people and community. One of the aims of this package is to manage the demandon the health system and assist the community to act against COVID19.Part of this fund is directed towards supporting and increasing the capacity of the healthsector in NSW. This includes launching urgent projects to counterattack the unprecedentedconditions and to limit the spread of the virus.This fund for the NSW includes the four main key projects as follow:1. Project 1: The construction of new fully equipped medical facilities to relieve thepressure on existing facilities. To do so, the government has been advised to followmodular and prefab architecture and construction.2. Project 2: Provide the necessary ventilators, accessories, installation, testing andother supplies that will serve the current needs where the health system capacity hasbeen stretched to the maximum.3. Project 3: Construct new hotel to provide proper accommodation for the staffworking in the centre as well as providing secure quarantine place for growingCovid19 cases.4. Project 4: Connecting roadway to link the new medical center with the free way/cityThe above components are grouped in packages and the work to be conducted in parallel.Main concerns and priorities:• The new medical facilities can be implemented in phases allowing forextension. For example, the construction of Patient wing, laboratories andutilities (Oxygen plant, water treatment,..etc) could concurrently be designedand implemented• For this purpose, the advice was to follow the Modular design which providesthe benefit of being adaptable for various scenarios. Ideally, a flexible plugand play’ infrastructure system to allow components added or removedefficiently and safely shall be adopted
• Note the constraints for each project are as follow:Project/ No. PRIORITYCost Time QualityProject 1: New Medical Centre 3 1 2Project 2: Ventilators & other supplies 3 1 2Project 3: New hotel 2 1 3Project 4: Connecting roadway 2 3 1The details of the above four parts are as follow:1. Fully equipped hospital with up to 2000 beds. The work will start with 1250 bedsimmediately and then a second phase with 1000 beds. You need to recommend theroute and the contract accordingly.o The hospital to include advance intensive care unit with up to date standardso The Hospital to ensure high quality standards with no infection or outbreakcould take place.o The hospital is intended to accommodate all COVID 19 cases (growing cases arealso considered).o Up to date laboratorieso The hospital will remain in operation even after this virus pandemic comes to anend (hopefully ASAP!) where facilities will be utilised to serve the communityafterwards for next decades.2. The fund also included immediate buying of 2500 ventilators as a matter ofemergency. The government has no options to get these from overseas.3. The project includes appointing and employing qualified doctors, nurses and adminstaff to run the hospital. The government may conduct this task or can subletting to alocal HR company? You may need to recommend an approach and explain why?4. The plan includes the construction a basic hotel (next to the medical center) thatprovides accommodation for all working staff as well as to quarantine Covid 19cases.o The hotel has a maximum capacity of 300 rooms (5 story building) with andequipped with all necessary facilities to support the staff during the pandemicperiod and will remain in service for the same purpose through the postpandemic periodo It is equipped with all necessary facilities including kitchen, dining, food court,gym, swimming pool and others to ensure convenient residency.o Proper isolation section is attached to the hotel and used to quarantine theCovid 19 caseso The two parts (staff accommodation and quarantine part) can be constructedconcurrently and independently with minimum interconnectivity.5. The project also includes urgent pavement work to construct a 3 KM carriage way toconnect the hospital and the hotel to the main freeway. This includes a dual carriageway construction road with 2 lanes eachImportant note: You may need to make various assumptions, which is fine. Allassumptions need to be listed and justified.• The CQUEngineers Consultancy Firm in NSW-Australia was selected to managethis fund on behalf of the owner. Therefore, CQUEngineers is taking the role of theOWNER• You, as a project manager working at CQUEngineers Consultancy Firm wereassigned as a program manager to manage this fund on behalf of the firm due toyour in-depth experience in procurement management.• The consultancy firm has long and extensive experience in construction projects BUTlow experience in roadways and health sector and supplies.• You may need to make various assumptions (all assumptions to be listed andjustified).• You have got the flexibility to manage the procurement plans, routes and contracts toundertake the above project aspects considering the constraints and limitations aswell as the details and requirements.• Since this is an urgent project, there are unexpected details and design requirementsand the projects are prone to frequent design changes and requirement leading tomany variation orders.• Remember some aspect may considered as unique project in terms of scope, timeand cost and your task is to plan the project procurement accordingly referring toabove points• The Table below explains the main tasks and you need to respond to these tasks indetailsMain points to address (Table 1): These are the TASKS to address.Task Expectations(10 %)Understanding and analysis of thecase study and applying the conceptsof contract and procurementstrategiesIntroduce to the case study whilst explaining the concept of theprocurement and contract strategy. This needs to show yourunderstanding to the procurement strategies and value for moneyin reflection to the case study(35 %)1) Select/recommend the bestprocurement route (method).2) You may use various routes tosuite the different projectsconsidering the limitations andconstraints and the priority interms?You may discuss various procurement routes (minimum 3 routs)that could be used and how each route can work.Based on this discussion you will select the most suitable route andjustify (in line with the project nature and requirements) why doyou think so comparing to other routes. So why other routes wereexcludedKeep your answer specific and concise in line with therequirements and project data. To make it easy for you, explainyour answer based on the following eight parameters:PPMP20011 Contract and Procurement managementTerm1-2020Assessment 2: Case Study: 35% due to 18/05/2020
3) Justify and explain why this couldbe the best route in line of the 8points shown4) DONOT PROVIDE GENERALTEXT5) You need to explain each pointby reflecting the projectrequirements in specific1- Time2- Cost3- Quality (level of service)4- Changing orders5- Complexity6- Risk7- Management capacity and experiences8- Responsibility and other issues(15 %)What are the risks associated withthis selected rout for both the ownerand the contractor.You need to explain how to mitigate/reduce the riskIf you select recommend a specific procurement route, what arethe risks associated with the selected route from the owner pointview.What are risks from contractor view?How to mitigate and minimise the risks ?(15 %)Select the best contract type for thisproject (Fixed price (lump sum, unitprice etc.) Or reimbursement (CPF,CPFF, etc...)What type of contract you recommend (based on the selectedroute).Multiple contracts may be selected to suite each project!Why do you think this is a suitable contract from Owner pointview?Advantages/disadvantages and how this satisfy the projectrequirements(15%)Budget Breakdown: You may providebudget for the HOTEL or theCarriageway (Only One Project)• You can refer to anyreference/ standards in yourestimate• You need to cite thereference.• You can also make your ownassumptions• The budget and cost analysisshould be for relevant itemswithin the project you areselecting.• Develop a rough budget (cost estimates) for one of thesub-projects. You can work on wither the HOTEL OR theCarriageway (One Project only)• You need to list the main items within the project (details)• Estimate the budget for each item (valid assumptions)• Give detailed calculation for the item cost including (Directand indirect) cost• Provide a detail of your assumptions• You may need to be as close as possible to the figures/estimates at NSW (any reference will be accepted)• It is fine to make your own assumptions. Budgetbreakdown must contain at least five main project tasks/items and maximum ten items.