Advanced Certificate in Public Procurement

Introduction 

Public procurement is the process in which public agencies acquire various resources inform of services, works and goods supplies either through contracts and tenders primarily for completion of specified needs that include huge infrastructural projects. The key reasons for the acquisition of resources and development of infrastructure are to facilitate delivery of public services. In order to ensure that federal money is secured and used in a proper manner, honesty and fairness have to be considered and implemented. Furthermore, the authorities in charge of contracts must minimize expenditure and ensure efficient use of the allocated resources. 

Procurement Systems and Systems 

Q1. What is the relationship between the procurement function and Organisational objectives? 

As mentioned earlier the key functions of procurement are to acquire goods and services from identified sources. On the other hand, public organizations have various needs and goals to meet which are mostly classified as political or socio-economic goals. Therefore, some of the key objectives of most organizations are to advance their targets while enhancing the value of the available finances. Procurement functions assist organizations to identify their needs increasing their ability to meet the set objectives. Therefore, organizational goals directly impact how procurement is managed. On the other hand, acquisition ensures that Organizations have used allocated resources while ensuring that public services are provided among other objectives. For instance, the use of local supplies contributes to the improvement of the lives of the people within that particular area. Furthermore, Organizations are in a position to make use of the emerging opportunities to increase the set goals while achieving the value for the required and allocated finances. As a result, it will be possible for the organization to achieve its objectives because of the planned procurement easily. Besides, an explicit elaboration of the organizational goals impacts the understanding of the acquisition structure and the market suppliers. Hence the organization’s operational requirements are met and supported. Some of the key areas of objectives that the organization can attend to with the procurement functions include analyzing and understanding the the core requirements concerning goods and services that will help implement the facilitation of public and social needs. Identification of the Organizational needs creates room to purchase the required goods and services at a much favorable price that enhances cost reduction. Besides, the organization will be in a position to identify the right sources that will impact their ability to acquire the right quantity of the resources at the right time hence maximizing the essence of meeting customer needs through the involvement of productive procurement staff members. While most organizations spend close to 80% on goods and services as they try to accomplish their goals, the use of procurement functions ensures that the organizations save its financial resources that can be used to boost its allocation of public services or be placed to meet other required needs. 

An example of a procurement case is the acquisition of electric appliances at the Robert International Airport in Liberia through the help of the Liberian Airports Authority and other partners. The primary reasons were to rehabilitate the Airport which was facing challenges with its power systems that are very critical and essential in the operations of an aviation company. The power challenges that the Airport faced were mainly caused by the old transformers that were in use, and they resulted in the damage of available electrical appliances and equipment. Consequently, the Airport made use of massive amounts of finances leading to it incurring losses. The objectives of the Airport organization about procurement functions were to ensure that the Airport got back on its feet and facilitate air transportation that will serve the government and the citizens either directly or indirectly. 

Recommendations and Conclusion 

To ensure that an organization successfully meets its objectives, it must precisely analyze its needs that will enhance the procurement functions. For example, while the Airport incurred so many losses due to the damages of electric equipment, it is reasonable for the management to purchase quality appliances that can handle power surges and invest in a transformer that transmits electricity and with the right amounts. 

Risk Management 

Q2. What are the main issues that must be considered in risk management planning? 

In the quest to allocate and acquire resources that will be of help in implementing programs that will support and benefit the society, procurement agencies and organizations must be aware of the possible arising risks hence should be in a position to manage them while planning to avoid potential challenges in the future. As defined by the UNDP/PSU (2016), risk management is the systematic utilization of techniques like policy implementation, procedures and practices to identify monitor and analyze possible challenging issues to come up with appropriate solutions. Some of the issues that must be considered in the risk management planning include the ability of procurement agencies, organizations and all other stakeholders to understand the objectives of the organizations. Well-defined organizational objectives will help prevent the risks of failure to accomplish the set goals. Furthermore, individuals involved will be protected from a vulnerability in a bad performance of their duties which will tamper with the operations of the organizations and procurement agencies in the future. Management is another fundamental issue that should be put into consideration in the administration of risks. This should primarily be involved in all the resource that includes human workforce, finances, and the supplies among others. As elaborated in the UNDP, poor risk management of the acquired and allocated resources impacts inadequacy in quality management within the agencies and organizations. 

Consequently, clients may end up unsatisfied with the services provided and supplies which on the other hand, will portray the companies as incompetent and unqualified in service delivery. Such feedback may lead to poor sales of the supplier and loss of loyal clients who may find an alternative dealer. Furthermore, to ensure that there is quality in service allocation, partnering with the right vendors must be put into consideration since it determines the efficiency and effectiveness of operations. For example, some of the key elements that are considered in identifying the right suppliers are the quality of their works, supplies and services that will aid in implementing the set goals. Projects that entails development of infrastructure require quality materials which will not only last long but will also enhance the ability to save money on repairs. Moreover, affordability of the materials from these suppliers have to be weighed in collaboration with quality. Meaning, while quality and cost are essential none of them should contribute to compromising of the other. For instance, while one supplier may be offering a given commodity at a favorable price, the quality may not be up to standards. This will be a hindrance to efficiency and cost reduction since the organization will be forced to purchase the same materials after some time due to poor quality or even use more on reconstruction and repairs. Hence, it is reasonable for the organization to spend on a much higher cost in buying quality supplies and avoid future repairs or replacements which are a logical way to save finances and other resources like labour. 

Security is a critical issue that must be identified to enable the agencies to work with ease and facilitate their programs in a much comfortable environment. In the case of unstable security within the local area, its absence interferes with the plans of the programs which involve their time span allocated to accomplish the duties in which it is an essential aspect of procurement and business operations as a whole. Moreover, the safety of the workers who handle the supplies is as important, and its consideration ensures that they are all safe to deliver their assigned roles. Cases of insecurity hinder proper implementations of the organizational objectives hence risk management should be applied to facilitate quality delivery. Safety in the workplace is essential and a critical aspect that facilitates proper delivery of duties within the organization. 

The state of the economy impacts how procurement is enhanced within the community and how the organizational objectives are promoted. Therefore, in the quest to avoid future challenges, the unexpected economic issues have to be put into consideration so as to have room for possible solutions that will enhance accomplishment of the goals set. Moreover, the economy may either work in favour or against the plans of the organization. Hence, it is important to make available space for either outcome that may enact the relevant solutions to possible challenges. Money being an essential asset in procurement, the economy plays a significant role in its availability because depending on the strength of the currency, agencies may either be in a position to successfully perform or have difficulty in operating with ease. 

In the case of the Roberts International Airport, its name denotes that it is a big facility in the country that serves a vast economy. On matters of risk management, in particular on the need to facilitate electrical challenges that impact the operation of the Airport, the organization to fully understand their objectives that help in the handling of matters that affects it. On the other hand, the scope of the challenge must be put into consideration for purposes of coming up with the right solutions to possible risks that might arise. Some of the challenges the Airport faced was the damage to electrical appliances. The risk to this particular issue is the delay flights because of inconveniences in different departments including the airport tower which facilitates air traffic controls. On the other hand, electricity is a very critical element which contributes to loss of life and damages of other operational tools. The impacts of such occurrences contribute to the waste of company resources that include finances and time. Moreover, other experts have to be hired to help in fixing the issues and challenges faced. 

Recommendations and Conclusion 

As recommended by the Advanced Certificate in Public Procurement, Level 3 book (2016), risk management should be impacted in the early stages of planning the project to enhance possible solutions to arising challenges. Among the steps involved in risk management is the identification of the potential issues that might emerge in the future. To identify potential hazards creates room for the formulation of relevant solutions before the challenge hits the operations of the organization. From the identification of the issues or risks, the organization and the members in charge of implementation will have room to assess the challenges. This will ensure that they analyze the magnitude of the risks which will help develop the ability to figure out ways in which they can formulate possible solutions. After assessing the issue, the agencies are required to monitor the development or the ways in which the issues are affecting the procurement functions. Not only will they be able to avoid hindrances but will also be able to disrupt unwanted and unexpected problems. Continuous reviews are vital since personnel will be able to handle the issues that will impact possible risks and affect their capability in the resolution of challenges. As for the organization and its team members, reviews can be done through frequent meetings that will require each to present their reports that highlight some of the issues they are facing in the fields and their roles. From these meetings, the organization will be in a position to sieve and avoid challenges in the present and in the future which is the most important aspect of risk management. Through the continuous reviews, the procurement agencies and organizations are in a position to mitigate and reduce the adverse effects of the risks faced by the organizations. Moreover, every individual must be involved in risk reduction through integration in everyday practice and training them on the severe issues encountered in the workplace. Besides, as observed earlier each team member together with the management personnel are supposed to consider managing the risks at the initial stages of planning in the procurement to deal and kerb the issues before they get out of hand. 

In case the management of the RIA had planned for possible risks in the future, the issue of operating with a faulty transformer would not have been faced since it would have been considered it before purchasing one. Furthermore, the acquisition of electric appliances would have been incorporated in the company’s objective which would have been helped the company acquire supplies that were durable and of quality which on the other hand would impact the operations of the organization. 

Specifications 

Q3. What are the key steps and considerations in the specification planning process? 

Specifications are defined descriptions that are put into place for the purpose of ensuring that the supplies requested meet the particular standards. Its primary purpose is to provide and obtain quality goods and services that will be in a position to satisfy the needs of the set objectives. The major considerations that have to be put into place while drafting a specification include maximizing the resources allocated while minimizing costs. The essential elements in specifications involve the identification of minimum requirement of particular good or service. Minimum identification ensures that the acquired supplies are up to standard and will positively impact the procurement functions and correctly instruct suppliers on the products needed for completion of the projects. On the other hand, specifications facilitate competitive bids which encourage competition. As a result, the consistency in quality service delivery is supported and nurtured while providing a just reward that is affordable and economical. 

As explained from the book, specification is not a commercial activity but rather a technical one. Hence, every staff member has the role in supporting the professional team in various matters that include vital sourcing information on the trends of prices and availability of commodities. Moreover, they play an essential role in staying in touch with the arising developments within the market that might have an impact on the ongoing projects. A critical technical duty that the staffs get involved in is the connection with suppliers and acquiring the vendor’s help in coming up with relevant specifications while arranging their contacts. Both technical and commercial considerations affect the choices in specifications. Hence, the critical stage in specifications is in reviewing other available options that will impact and satisfy the need. The key policies that affect specifications include the value for money, practicing green procurement and the existence of fairness, integrity and accountability. The responsibilities of specifications are mainly divided among all stakeholders involved and may include the management, the clients, technical staff, financial staff, procurement officials and consumers among others. 

Steps and Consideration in Specification Planning Process 

In the case of processing the specifications, the initial critical step required in identification is a precise definition of the needs and objective of the program by the client. Definition of the needs entails breaking down the requirements which enhance the identification of the functions and performance of everyone involved. Moreover, it aids in discovering inconsistencies within the specified requirements or the possible available options. The needs of the locals as highlighted in the book are the most critical aspects that guide procurement agencies and organizations in the process they may use to implement supply allocation and acquisition. Therefore, needs act as the driver of the set goals and efforts to meet them. As for the RIA, its need for a new transformer is the key element that will help the company come up with specified elements of the new transformer and that of the damaged electric appliances. Input is a key consideration in the process specifications which impacts the activities in the programmes. The management must identify the input of the standard of the particular service or commodity which on the other hand will ensure that the objectives of the organizations are met appropriately. 

Secondly, in the process of planning specification, the organization must put into consideration the allocation of relevant resources that would be used to help in coming up with the right specifications. For instance, an in-house technical specialist is required to aid in writing the specifications. This is primarily because an individual within the organization may be in a better position to understand the needs and objectives identified before the commencement of the work. On the other hand, an outside consultant is needed to help in the proper writing of the specification primarily because of the in – house technical specialist may also need help from a professional and a more experienced individual or team. Moreover, the lack of a consultant may have adverse effects on the projects since some technical specialists may make mistakes and due to the lack of a partner to closely work with, the impact of the mistake done may end up affecting the whole project. Besides a technical specialist and a consultant, procurement requires the availability of a procurement coordinator who in most cases is the expert who can be in a position to guide the two individuals responsible for writing specifications. Coming up with specifications is a critical issue in the projects, hence the involvement of persons who are aware of what is required and how to formulate them. In the quest to allocate the right resources, there must be collaboration between the technical, procurement and other stakeholders for other enormous projects. This step encourages the delivery of a good job in anticipation to be considered for other greater projects while partnering with the right qualified and experienced individuals. 

A critical step in resources allocations is the informalities where it is the responsibility of the buyer to challenge requisition. Various factors may influence the consumer to question the order of certain supplies. Apparently, the buyer understands their needs; hence allocation of a need that is not required may hinder the delivery of an excellent job. With clear specifications, the customer may challenge a requisition that does not meet the written specifications. Furthermore, the cost of the supplies may be a very crucial reason for questioning the request. The Price of commodities plays a significant role in ensuring that expenditure cost is minimized without jeopardizing quality. Therefore, the suppliers will be directed on specified prices of commodities insisting on the value that the organization is willing to spend on. Furthermore, efficient use of the resources available dictates the prices that the organizations can settle for. From the proper writing of the specifications, the organizations and the procurement team also requires a committee team responsible for reviewing and specifying the requirements identified for common user items. As mentioned earlier, the specification is a imperative aspect of procurement, hence having a qualified team of experts will help in the specification planning process that plays a significant role in the project’s foundations. 

From the allocations of resources, the next step is to consider a procurement strategy that is suitable to the project and will help accomplish the objectives set. Under this step, various issues affect the magnitude of the specification. For instance, the issue of the supplier has to be considered since they have to identify whether they’ll work with a single provider or multiple ones. Both options have their pro and cons which assist in critical decision making that directly affects the process of specification planning. Another issue is the identification of the best description of the project which may require either performance, functional or technical description. The purpose of the description is primarily to impact the essence of the specifications identified. Change in technology is an issue that also affects the scope of the specification, hence must regularly be observed. No job can be accomplished without human workforce despite the fact that every other resource is allocated. Hence, the availability of key staffs directly affects the specification. Funding is an essential need for any organization, and therefore the sources involved in funding the project must be identified to help come up with correct specifications. In other instances, the changes within the organization directly affect its requirements and hence influence the scope of the specification. The urgency of the projects is also to be specified in the written plan for efficiency and quick delivery of the services, works or supplies. 

From identifying the right procurement strategy, a balanced approach must be put into consideration to impact the provision of the project in a more efficient manner. Under this step are the goals of the buyer and the supplier(s). Each goal of the purchaser counteracts with that of the buyer, and hence in the case of a budget goal in the balanced approach, the supplier’s goal that is put into consideration is the cost of the supplies. Finances and its availability is an important aspect in this step since as mentioned earlier it affects the scope of specifications which directly affects procurement. Another goal that the buyer may have is the delivery of the supplies depending on some supplies and the distance from the supplier. On the other hand, the vendor's goals that counter with delivery is the commercial practice. It is more likely for a buyer to purchase from a seller who offers delivery services as their business practice for purposes of convenience and minimization of transport costs. An important goal that most buyers have is the quality of the supplies which is an essential aspect that the supplier bases on the expense of the supplies as a counter goal. Ideally, supplies or services of a good and high quality are much costly. 

The final step in specification planning process is the development of the specifications with a timeline to monitor the span of the milestones and the period taken to accomplish it. The major milestones that require identification and monitoring include the analysis of the needs of the project or the program drafted by the organization. Furthermore, the analysis of the risks is put into consideration to enhance the development of relevant solutions that will be helpful to arising challenges. From analyzing the risks, deciding the quality of the requirement is as important and its time span must be allocated to ensure completion of the project at the right time. 

Recommendation and Conclusions 

In consideration of the steps of coming up with the right specifications, RIA can implement the analysis of its objectives, possible risks and enact the use of experts and consultant who will help in the development of precise specifications for the supplies needed. Proper specifications ensure that there is a necessary criterion in weightings which deals with the amount of the supplies required. The final milestone is the drafting and obtaining feedback and approval. 

Supplier Research and Market Analysis 

Q4. Who is responsible for market research and what are its benefits? 

To satisfy organizational needs, a market research has to be conducted. According to the UNDP book, market research refers to the collection and analysis of information and data on the capabilities within the market space. Therefore the key aspects of market research include the identification of the organizational needs or their objectives, collecting and analysis of information, capabilities within the market and the balance between organization’s needs and the market capabilities. It is paramount for the market research to be done continuously during the process of acquisition where the mission statement is highlighted. The main reasons for an early involvement of market studies in the procurement process are to ensure that the information on commercial exercises used to shape the strategies and specifications are provided in the early stages. Early definition and specifications of the market research impact the capability of accomplishing the project. 

In the step of identifying and expressing client needs, the stakeholders involved must analyze the need regarding the demand and the budget of the supplies. Besides in the process of undertaking the research, the organization must identify the availability of resources within the marketplace ensuring that nothing is missing so as to efficiently work on the project. Besides, the applicable terms and conditions must be applied in the process of market research. Among the objectives of the market research is the identification of commercial items which are in a position to meet all the specified requirements and also are flexible in the sense that they can be modified to meet the needs. Moreover, the procurement market research objectives can identify commercial items that can meet the requirements after modification. Another key goal of market research is to get to the most suitable approach to acquiring, distributing and supporting goods and services. Finally, the market research must be in a position to understand sectors that handle matters like insurance, warranties, maintenance, after-sales services, terms & conditions, marking & packaging of goods, lead time and deliveries. Therefore, in the completion of the market research, the important procurement decision would include the capabilities of the suppliers, the attributes of the products and the commercial practices of the industry. 

Who is Responsible? 

Depending on the type of organization, market research is not limited to particular individuals. For instance, as for the case of the agencies managed and services provided by the military, many personnel are involved in conducting market research because they do not have specified individuals for these roles. Participation of each varies with their capabilities and responsibilities hence it is advisable for organizations to incorporate team efforts that will be responsible for the gathering of information in the market research. Therefore, the RIA organization must be in a position to consider the areas that will facilitate success in the whole process of acquisition. In addition, the information that requires investigation of the commercial market and knowledge of the decisions needed in settling for specified products and supplies. The organization can also formulate inquiries that will guide in the identification of the right personnel who will be in a position to handle the market research in an appropriate and efficient manner. For instance, the individuals who can be involved may include technical specialists who depending on the phase and type of the acquisition they can be given the position of a program manager, the project officer or the technical experts. Depending on the position given, the individual may be in able to define and execute the strategies of acquisition or may translate the requirements of the supplies specified hence will be responsible for the exploration of the market research respectively. 

Benefits, Recommendations and Conclusions 

Market research in procurement is a critical need that helps in building the developing the foundation of the plan and objectives of the organization. On the other hand, market research helps in facilitating defined and precise needs of the clients. In the process of undertaking the needs of the user as part of planning, the market research should be in a position to develop an overall procurement strategy. Continuous market research aids in the identification of appropriate solutions and conditions for the procured supplies. Furthermore, a market research that has been conducted correctly and applied in the acquisition of items promotes decentralization and purchase of commercially available items. RIA can make use of all its departments for a quality market research that will facilitate the proper acquisition of electric supplies. 

Bid Evaluation 

Q5. When and how would you conduct a supplier background check? What information would you collect and why? 

Bid evaluation is the use of the lowest recommended price that will be awarded to a contract after comparisons of rates that were proposed for solicited supplies of procurement. In bid evaluation, there must be a clear description of the requirements of the project. On the other hand, the team of the organization must be in a position to settle for the most convenient and appropriate method that would be used in the evaluation. In the process of bid evaluation, every team members must be aware of the defined responsibilities to facilitate a clear way of accomplishing the tasks allocated to them. In support of the work allocations of delegations of duties, the organization can make use of a timetable that not only helps in creating deadline or time span of the tasks to be accomplished but can also show the key activities of each member. 

Conducting a supplier’s background is recommended before the acquisition of the supplies which are critical in enabling the completion of the project. Moreover, the organization is required to identify a suitable supplier or vendors who will be in a position to allocate all the needs of the program to completion. Some of the critical information that requires being collected the cost of the supplies provided by different suppliers. Price is an essential element in procurement, and bid evaluation since one of the major goals of most organizations in service and supply acquisitions is to cut costs without jeopardizing the quality of the supplies needed. The user also needs to know the key performance indicators of the supplier that differentiates them from others. Some of the fulfilment of the suppliers may include the percentage of invoices disputed and the percentage of the satisfied customers who will indicate the reliability or lack of commitment in a particular supplier. Moreover, the client should be in a position to find out the time of response the provider will be using in their services that include facility maintenance. In the case of increased numbers of complaints from other customers, this would be an indication of incompetence and lack of commitment to the supplier’s role of service and goods allocation. In procurement, quality of the supplies accompanies the quantity; hence the weightings are an important aspect in bid evaluation as well as specification. Besides, while considering weightings, the bids will categorize the weights in various criteria that are mandatory. To come with the application evaluation, the procurement agency can be guided by the nature of the purchases and supplies required in the firm which in most cases should be aligned with the policies of procurement that are made use by the organizations. The method of evaluation should be described in the acquisition stage and be in a position to offer and adhere to the allocated rules. The user is also required to treat all proposals in an equitable manner. 

Recommendations & Conclusion 

The procurement manager of the RIA Mr Egon Kuiah (2016) laid out the specifications of the kind of suppliers the company was looking for. Therefore, a background check of the potential supplier would come handy in making sure that they partner with the right suppliers. The purpose of bid evaluation is to ensure that the purchases that were made are correct and up to standards. Hence conducting a background check for the appropriate suppliers will enable the organization to be in a position to acquire the right supplies that are of quality and affordable. Moreover, another purpose is to ensure that the client develops a long-term relationship with the right supplier who will eventually be more of a partner is allocation and acquisition of purchases. The supplier should be in a position to handle the contract from the beginning to the end because of the availability of all resources. The information acquired is meant to compare different suppliers in the market to ensure that the right one is chosen. Background checks of providers are therefore key identifiers of the right suppliers with the right supplies needed by the client. 

Contract Development 

Q6. What are special conditions of the contract, why would you include them and how would you develop them? 

Contract development in procurement is a critical tool that will enhance and support the completion of the projects. It is the agreement between the seller and the buyer. The special core conditions of a contract include the offer from either the buyer or the seller, which for instance may be the seller requesting the consumer to purchase their goods and supplies or it may be the customer approaching the dealer to be providing them with specified products and services. From the offer, depending with who approached who, the parties will consider the offer whether it will favour them or not. Depending on their requirements, the parties will consider the offer and either accept it or decline it. Since before the offer, the clients always conduct market researches, hence they approach a suitable seller whom they are positive they will accept their offers. After acceptance of the offer, the parties enter the phase of creating a legal relationship that enables them to abide by the procurement policies alongside their business deals. Under the creation of the legal relations, each party brings in what they feel will guard them against conditions that might either deter them from reaching their objective. Therefore, they also consider the legalities involved and included in the contract. In case there is a clause they feel not necessary or is denying them some freedom, or it is taking hindering them from reaching some goals then either of the parties may let their voice be heard which will also be put into consideration by the other party. In the creation of the legal relations, the legal capacity of each must also be called into account where each party is also expected to be in a position to legally enter a contract. After the settling of the legal requirements from each party, they will be freely engaged in a consent that satisfies them both. 

The contract in most cases will include detailed information on each and personal contacts that are identified by the government which are the legal requirements. Furthermore, each party will be allocated their roles in the agreement which will be specific on what they will be in charge of. Time, as mentioned earlier, is an essential element in work hence the contract will highlight the lifespan of the contract. Many issues may lead to the dissolution of a contract hence many are the times when certain rules are set to avoid such. On the contrary, the contract may allocate an open ground where either party may choose to exit from the original agreement for reasons that are mostly caused by the other party. 

Other key special conditions that can be considered in the contract depending on whether it is for goods or services may include the warranty of the goods which facilitate a period in which the products allocated can be used and be returned to the seller in case of a default within a period. Other conditions may include the liquidated damages, factory inspection, pre-shipment inspection, individual insurance needs, price adjustment mechanism, and after sales service all which will be considered in the case of goods acquisition. The case of services the conditions discussed may include security requirements, performance security, advance payment conditions, use of organizational assets, intellectual property rights, insurance – consultants a privileged class of travel. The primary purpose of including the special conditions is mainly to make sure that the right goods and services are acquired for the project ahead. They can be developed during the strategic plan of formulating a contract and at the point when each party lays down their goals and needs. Furthermore, it helps in coming up with the exact descriptions of the supplies needed which will facilitate the acquisition to the right resources for the accomplishment of the project designed. 

Recommendations and Conclusions 

As highlighted in the procurement requisition report, the RIA specified the prequalification of the potential supplier among the bidders. Some of the qualities of the companies that had an interest in the Airport’s procurement included a mandate that the firm had to be a registered engineering company with a minimum of five years’ experience and must have worked in an Airport environment among other requirements. Therefore, after conducting a proper background check, RIA must ensure that some of the special conditions in the contract with its potential service provider would include the mentioned specifications. The legal documents of the firm must be presented for official use and compilation of reports. On the other hand, RIA and its potential supplier must leave room for amendments of some clauses and termination of the contract in case some issues arise in the future. 

Contract Management 

Q7. What are some of the critical success factors in contract management and how do they apply to your case? 

In developing a management plan, the parties coming into an agreement with each other for the purpose of formulating a successful contract management may consider laying out the foundation for a plan that will be suitable to each one. For instance, flexibility from each party is necessary since there is need to create room for areas that may require future amendments which will impact the agreements between the parties. Also, each party must openly allocate its business objectives for the other party to understand their needs and commit to meeting them. For the purpose of ensuring that the contract is adhered to fully, it will be necessary for these parties to allocate some of their team members who are equipped with the right skills that will help manage the contract being formulated. Moreover, it may also be necessary for them to consider sub- contractor management for a successful contract engagement. 

For RIA to facilitate a favorable deal that will last and help accomplish the goals of the agreements formulated there must be good communication between the parties which will assist in identifying the needs and goals of each party. On the other hand, each party must consult with their team members and other stakeholders to ensure that they enter the valid business agreement with their contract partners. Consultation can also be a mechanism of conducting a background check of the party that one needs to liaise with up to the completion of the proposed project. Before agreeing and considering an offer to enter a business with a particular party, it is vital to have control measures that will ensure that none of them is duped, but each party is held accountable on what is expected of them to the point of completion. Besides identifying risk factors and finding possible ways to manage them, commitment is an aspect that is required to be put into consideration for the essence of reaching the set goals of each party. Moreover, just like many other steps in procurement and business operations, planning is useful and should be incorporated in the initial stages of the contract. Hence the parties must plan and work on the plan, then verify or check the requirements of the scheme in contract formulation and finally act on it. 

The identified factors of contract success apply to my business in the sense that as an entrepreneur communication is vital and a helpful tool that will enable me together with my business partners have an understanding of our business objectives and requirements. Moreover, it will be easy for us to identify areas that will hinder us from reaching our potential and hence come up with new solutions to possible risks that may arise. In the case of involving skilled team members, it will be a realistic way of delegating important duties to the right individuals within the team and enhancing practical measures that can be looked into. Most importantly is the ability to come up with clear objectives that will help parties understand the needs and goals of our aims. Moreover, the success of a good contract will impact our ability to acquire the right and enough resources that will ensure that the project is completed on time and efficiently. Relationships in a business contract are necessary hence formulating a favorable contract will aid in the compacting of a real and lasting relationship with our suppliers. On the other hand, the ability to incorporate performance management in our business will facilitate monitoring the areas of the contract that needs improvement. The same can be applied to the RIA with good management team members. 

Communication 

Q8. Why and how should you debrief unsuccessful bidders? 

Communication is simply the mechanism of sending and receiving messages which in procurement can also be the practice of sharing ideas and information between two parties who are the sender and the receiver. Communication, as observed earlier is an important element that determines the success of the project and the relationship between supplier, buyers and agencies. For proper communication, both the sender and the receiver must have excellent communication skills that will impact the ability to transmit information from one party to the other. Furthermore, it is a tool that ensures that each party understands the requirements and objectives of the other so as bidders can come up with reasonable prices and commodities that meet the buyer's requirements. As a result, the use of efficient communication may also facilitate success and award of contracts to the right sellers. 

In the case of suppliers placing their bids to be allocated to a contract to ensure that they facilitate the provision of goods and services needed, only the best is considered, and hence the rest have to be dismissed. Communication is essential in this case since the unsuccessful bidders must be informed of the outcome. The main reason for reporting or debriefing unsuccessful bidders on their performance is to enhance transparency or openness which promotes loyalty among buyers and sellers. Furthermore, transparency improves the continuity of a good relationship with the unsuccessful suppliers who may also be encouraged to bid again and again. Bidding is sensitive of business involvement which the individuals or entrepreneurs involved always anticipate a positive outcome. Hence in the case of failure to be allocated a bid, lack of loyalty and proper communication may lead to protests. Therefore, debriefing is one of the strategies used to avoid and deter occurrences of formal protests that are costly and time-consuming. The unsuccessful bidders who are informed of their fate in an appropriate manner will be assisted in assessing and acquiring vital information on the marketplace requirements that will help them do better in other bids. 

Some of the information that can be provided in the debriefing may include the name of the successful supplier. Besides, the date of the contract from the time of commencement to the date of completion is highlighted. Additional information in the debriefing can include ranking, work schedule, delivery, design, equipment or facilities, subcontracting, cost and schedule controls, industrial relations, quality management, and after sales services among other information. Finally, the reasons as to why the offer of the unsuccessful bidder being debriefed did not go through will be provided not to discourage them but to encourage them and help them make amendments to their bids. While it is important to debrief unsuccessful bidders, it is also efficient to inform bidders that debriefing does not in any way lead to changes in contract awarding. 

Some of the key methods being used in debriefing may include the use of letters which may politely address the unsuccessful bidder firstly by appreciating their efforts to submit their tenders and congratulating them on successfully qualifying the initial stages. It is also important to inform them of their inability to get through and wish them well in their future company operations. Another method that can be used to debrief the unsuccessful suppliers is to await their request for debriefing which can either be from one or some of the failed providers. After receiving the request, the organization can verify from the management team who can take up the role of debriefing. After identifying who can take charge of the debriefing the management can then inform the relevant suppliers and develop a schedule in which they can meet for debriefing. From this point, it will be easy for the firm to create or prepare a form and content interview in which it can be used to explain matters to the senior management. The management of the unsuccessful bidders will then have a responsibility take in the information provided and analyze the areas in which they can make corrections for better results in the future bids. 

Recommendations and Conclusions 

RIA can make use of its supplier specifications to come up with a final winner for the bid. The winner should be in a position to meet all the qualifications set. To avoid the damages faced in the previous years, the Airport management should also ensure that the potential supplier has experience working with Airports hence should be confident the repairs and the replacements needed will be of quality and long lasting. 

Introduction to Negotiation 

Q9. How do you plan for negotiations – and how do you execute your talk plan? 

The meaning of negotiation may vary depending on the context in which it is used, but in most cases, it is the process used to reach an agreement which is not only limited to formal meetings hence it can be exercised in any aspect of the proposed contract. In simple terms, it is the willingness of involved parties to compromise or modify their original positions to satisfy both sides. In business, it is the process of reaching an agreement on price or the conditions of a contract through discussions between the buyer and seller. Depending on the context, the buyer and seller can make use of various styles that will impact their ability to come up with a satisfying agreement. 

To come up with the right negotiation plan, one must understand the principles of negotiation. These policies include the ability to know the best alternative to the negotiation agreement mostly denoted as BATNA. The buyer and seller have to know which concessions they are willing to offer and identify the variables that will satisfy each party. While doing so, it is vital and necessary for the parties to focus on the interests of both sides rather than the positions. The negotiation should also be soft on the people involved but emphasize on toughness on the merits included, hence the deal formulated must be fair and not favor one side. 

In the negotiation plan, the strategy must be put into consideration which involves the mechanisms that will be applied to come up with good negotiation steps. Clear objectives of the consultation are essential to the fact that the organization will be aware of what exactly they are looking into working towards. A delegation of duties and responsibilities may be allocated to the relevant individuals who will ensure that firm comes up with the right elements that will help them reach consensus with the other party. The delegated team can also be of help in ensuring that they help come up with the right location and timing that is essential in the negotiation plan. In collaboration with the negotiation strategies, there must be tactics that must be used especially in the choice of negotiation style that can help reach an agreement. The tactics can also be identified by the team responsible for negotiation plans and process including methods of executions. Together with the conduct of negotiation, the concession is considered to enhance good negotiation skills and delivery reaching the point of agreement. In the formulation of the negotiation plan, BATNA is essential, and as explained earlier it is the method of identifying the best alternative in the negotiation agreement. Finding better options that can be used in the negotiation plan is key because good negotiation and communication require flexibility in case amendments are needed to be made. 

To come up with a negotiation plan, the personnel in charge can make use of the negotiation process which includes being inquisitive and avoiding assumptions during the first meeting of the negotiators. In this meeting, variables have to be identified and ensure that both parties stick to facts in order encourage authenticity, and loyalty. The identified variables will be of help in making sure that the parties acquire have access to the whole list of details that are needed in ensuring good negotiation that will lead to a consensus. In the process of obtaining all the information needed during the meeting, the parties can then draft a proposal set the pitch of the agreement. Depending on the variables obtained, the firsthand information gotten will determine the pitch hence the emphasis on sticking to the facts alone. In the proposal, the parties are encouraged to trade and refrain from conceding simply because the reason for coming to an agreement accomplishes the business interests of each party. It is advisable for the parties to insist on working together rather than settling for separate parts of the agreement during the negotiation. In the whole process if both the parties are satisfied with the proposals there is still room to question some of the clauses included in the agreement which they can both agree on amendments or retaining the original proposal. With contentment from both parties and fairness, they can happily close the deal and commence working on whatever project they are looking into. 

Recommendations and Conclusions 

In the formulation of the negotiation plan, some of the tactics that RIA can incorporate may include patience and ability to inquire and need answers on some elements. Other tactics may include recessing, setting deadlines, exercising flexibility, disclosure, inquisitiveness, blanketing and agreeable proposals. To avoid making the same mistakes, RIA can choose to agree with a high profile company that will ensure the provision of quality services and installation of electric appliances. 

Personal Professional Development 

Q10. What are the key elements to consider when planning personal development activities? 

The personal development activity is used for individuals to know and understands themselves regarding their characters which may be a useful tool that can be used to enhance good work ethics that can be essential in matters like conflict resolutions in the workplace. As individuals, there are things we know about ourselves and characters that are so familiar to us since childhood. The information is related to each because they continuously practice the usual habits. One may familiarize with their characters from the information and feedback they learn from others and what other people discuss about them in their absence. The outside world may have information about us because they observe the ways we behave our reactions and hence make use of these factors to analyze and determine our characters. It is from the comments and feedback that one can get knowledge of who they are and hence plan on their personal, professional development. Moreover, while there are things that one can be aware of from the knowledge of whom they are and feedback from others, there is those information that is not known to them which still impacts their personal, professional development in one or the other ways. Therefore, in the process of developing personal development, people and social places are one of the key competitive advantages that an individual can use to plan their personal activities. In the quest to identify one’s strengths and weaknesses, the use of professional procurement officers can enhance personal development whereby one can be able to know the areas that need improvement while maintaining those that are essential. While people and social places have been observed to be one of the core elements in personal development, it is also imperative for the workplace to be used in maintaining a level of competency and an individual’s capabilities. The workplace impacts the professionalism that most of the individuals can adapt to and continuously practice to maintain an organizational culture that directly influences an individual’s routine practices and character development. Moreover, the association with team members enhances the development of some personal habits that may end up developing to characters. Furthermore, job satisfaction may be influenced by the natural aspects of the individual inclusive of the external elements that contribute to job satisfaction. For consistency in personal development, one is expected to commit to a routine of learning from different sources will expand and enhance their capabilities and knowledge. Moreover, continuous learning enlightens an individual in the areas that they may be having difficulty in changing hence they can be in a position to get ideas on how they can be able to make corrections. Professional personal development requires one to focus on the areas that they feel they need improvement on and have gotten feedback from their colleagues and friends. 

After identifying and analyzing the areas in which one can be able to develop and mould they can also make use of the SWOT analysis which helps in formulating goals that will facilitate a compact development of self. The goal should adapt the idea of SMART which requires the goal to be specific and since personal development entails identifying a particular area that needs development. The goals should mainly be defined in a clear manner that the individual can understand and comprehend. Besides it is supposed to be measurable in the sense that the individual should be able to accomplish it without trying too hard of outsourcing resources needed to meet the goals. The ability to measure the goal requires the individuals to understand their capabilities and hence can impact their ability to accomplish the set goals. ‘A’ in the SMART acronym refers to ‘Achievable,’ which entails that the goal should be one that can be handled without difficulty and hence the individual can be able to achieve the set goals. In the desire to develop their professionalism and personal character, the individuals must come up with meaningful or relevant goals that directly and positively affect their position. Finally, time is and has always been an essential tool in every area of procurement which in the development of goals requires creating a timeframe in which the goal should be implemented, worked on and accomplished. 

Recommendations and Conclusions 

With RIA, the use of SMART methodology in setting the goals will require the team members to consider all the business contexts and the challenges that the business faces and clarifies what the goals set are trying to address. In the specification and the measuring areas of the goal, RIA must figure out what they are supposed to accomplish and develop ways in which they can achieve the goals that have been set. With their capabilities and resources allocated RIA should also identify whether or not the goals are achievable. From the point of understanding the goals, needs and problems of the business, it will be possible to figure out whether the goals set are relevant to the business. In the case of lack of relevance, the company can come up with amendments to the goals or come up with better ones that will positively impact the business requirements. In the case that these aims may be relevant, the company and its management team will always have the liberty to move to the next step of working towards meeting the goals. As mentioned earlier, time is critical. Hence a time limit must be set to ensure that the business personnel commit to the set goals and objectives so as to limit diversion and focus on the important objectives. 

Reference 

UNDP/PSU. (2016). Advance Certificate in Public Procurement, Level 3. UNDP/PSU. 

Kuiah, M. E. (2016). INVITATION FOR PREQUALIFICATION (Procurement of Works) for the Rehabilitation of RIA Power System - (IFB No. LAA/RIA/IATA/ICB/001/2015/2016). Harbel, Liiberia: Roberts International Airport.