Describe How Basic Procurement Principles relate to Competitive Procurement: Facilities Management Assignment, UCD,

Understanding Procurement and Contract Management in Facilities Management

Task 1 – Contract and procurement strategy

1.1 Describe how basic procurement principles (eg right product, right price) relate to competitive procurement of facilities good and services. How are “purchasing” and “procurement” differentiated from each other?

1.2 Explain the relationship between “cost to the organization” and “importance to the organization” in determining a procurement strategy. Use examples from a range of facilities goods and services to describe different procurement methods that demonstrate this relationship. (Your answer must describe a minimum of four different procurement methods).

1.3 Identify appropriate types of contracts for the procurement methods you described in Task 1b. Describe each contract type and explain their advantages and disadvantages in the procurement of the goods or services you used as examples in Task 1b. (Your answer must describe a minimum of four different contract types).

1.4 Using examples, explain how procurement can be facilitated by the use of standard contract forms.

1.5. Describe different roles and responsibilities involved in the procurement of facilities goods and services. Explain how an organization can maintain the integrity of its procurement processes.

1.6 Using examples, explain how legislation affects the procurement of facilities goods and services. Explain the purpose of EU legislation on public sector procurement and its effect on full tendering processes.

Task 2 – Full tendering process

2.1 Select a facility service that represents high cost and high importance to your organization (or one you are familiar with). Provide a brief description of the service and its significance. Explain why procurement of this service should use a full tendering process.

2.2 Explain the separate stages of a full tendering exercise for the facilities service described in Task 2a (from specifying requirements through to contract mobilization)

2.3 Describe how you can identify and invite suitable prospective suppliers to tender for this contract.

2.4 What type of contract will be awarded by the tendering exercise in Task 2b? Explain why this is the most appropriate contract type for this service.

2.5 Explain the factors to be considered in evaluating the choice of successful tender.

2.6 Using examples, explain the role of framework contracts and agreements in meeting high-value procurement requirements in facilities management.

Task 3 – Specifying requirements

3.1 Describe the scope of the specification to be used for the contract tendered in Task 2. Explain the benefits of well-defined specifications to the procurement of facilities goods and services.

3.2 Describe the process you would use to prepare this specification (including the who/what/why of consultation).

3.3 Explain the extent to which it will be an “input” or “output” specification. Differentiate between the two types and provide reasons for your choice.

3.4 Describe the scope of standard terms and conditions in a typical contract for the supply of facilities goods or services. Explain their purpose and effect on the contracting parties together with their advantages and disadvantages

Task 4 – Procurement cost

4.1 Explain the elements that make up typical costs of facilities goods and services.

4.2 Explain the relationship between “cost” and “value” in evaluating procurement decisions.

4.3 Explain how facilities managers can use various stages of a full tendering exercise to ensure procurement delivers “best value” for the organization.