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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?

ASSESSMENT

FM4.21 UNDERSTANDING PROCUREMENT AND CONTRACT MANAGEMENT IN FACILITIES MANAGEMENT

Credit Value: 3

Maximum word count for this unit:         7,000 words

The following assessment tasks have been designed to enable you to demonstrate your knowledge and understanding of this unit. 

All tasks must be completed

It is an important aspect of the assessment that you can demonstrate the application of acquired knowledge to appropriate examples of facilities management.  You should therefore read the individual tasks carefully in conjunction with the relevant assessment criteria in the unit specification.  Where practical examples are required by a task you must provide them in your answer.  You should also pay careful attention to the additional guidance (shown in red italics) in the unit specification as this indicates the appropriate level of knowledge required to successfully demonstrate the assessment criteria. 

Each task shows the Learning Outcomes(s) and Assessment Criteria in the unit specification that the task has been designed to assess.  You should answer each task as it has been set.  Compare your answer for each task against the assessment criteria shown to ensure that they have been fully addressed by your answer(s).

Individual tasks must be completed within the word count shown.

(NB. The word count limits shown for individual tasks are provided to ensure that they receive appropriate weighting in your assessment.  Please note however that word counts are a limit and not a target).

Task 1 – Contract and procurement strategy

This task assesses part of Learning Outcomes 01 and the whole of Learning Outcome 02. Your answer must address the Assessment Criteria in the following table.

Unit

Learning Outcome

Assessment Criteria

FM4.21

01

1.1, 1.5, 1.6,

FM4.21

02

2.1, 2.2, 2.3, 2.4

Task 1 comprises six questions: You may address questions separately or combine them into a single answer for this task.  Your answer in either case must fully address the assessment criteria in the table shown above

Word count limit: 3,000

  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?
  2. Explain the relationship between “cost to the organisation” and “importance to the organisation” 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)
  3. Identify appropriate types of contract 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).
  4. Using examples, explain how procurement can be facilitated by the use of standard contract forms.
  5. Describe different roles and responsibilities involved in the procurement of facilities goods and services.  Explain how an organisation can maintain the integrity of its procurement processes.
  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

This task assesses the remainder of Learning Outcome 01. Your answer must address all of the Assessment Criteria in the following table.

Unit

Learning Outcome

Assessment Criteria

FM4.21

01

1.2, 1.3, 1.4

Task 2 comprises six questions: You may address questions separately or combine them into a single answer for this task. Your answer in either case must fully address the assessment criteria in the table shown above

Word count limit: 1,400

FM4.21 UNDERSTANDING PROCUREMENT AND CONTRACT MANAGEMENT IN FACILITIES MANAGEMENT

  1. Select a facilities service that represents high cost and high importance to your organisation (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. Explain the separate stages of a full tendering exercise for the facilities service described in Task 2a (from specifying requirements through to contract mobilisation)
  3. Describe how you can identify and invite suitable prospective suppliers to tender for this contract
  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.
  5. Explain the factors to be considered in evaluating the choice of successful tender.
  6. Using examples, explain the role of framework contracts and agreements in meeting high-value procurement requirements in facilities management.

Task 3 – Specifying requirements

This task addresses the whole of Learning Outcome 03.  Your answers must address the Assessment Criteria shown in the following table:  

Unit

Learning Outcome

Assessment Criteria

FM4.21

03

3.1, 3,2, 3.3, 3.4

Task 3 comprises four questions:  You may address questions separately or combine them into a single answer for this task.  Your answer in either case must fully address the assessment criteria in the table shown above.

Word count limit:  1,700

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

This task addresses the whole of Learning Outcome 04.  Your answers must address the Assessment Criteria shown in the following table:  

Unit

Learning Outcome

Assessment Criteria

FM4.21

04

4.1, 4.2

Task 4 comprises three questions:  You may address questions separately or combine them into a single answer for this task.  Your answer in either case must fully address the assessment criteria in the table shown above.

Word count limit:  900

  1. Explain the elements that make up typical costs of facilities goods and services.
  2. Explain the relationship between “cost” and “value” in evaluating procurement decisions.
  3. Explain how facilities managers can use various stages of a full tendering exercise to ensure procurement delivers “best value” for the organisation

Word count summary

Task

Word limit

Task 1

3,000

Task 2

1,400

Task 3

1,700

Task 4

900

Maximum word count for unit

7,000


NOTES TO LEARNERS

  1. Remember to always reference each page of your assessment with the Cohort Reference Number and your IWFM Membership Number.
  2. Complete your assessment by addressing each task and assessment criteria by typing directly into the text boxes
  3. Any text which has been copied MUST be accurately referenced to the original source (e.g. Harvard Referencing).  Any text which is copied and not referenced is deemed as plagiarism which may result in your work being voided (please refer to the IWFM Malpractice Policy & Procedure).  You will be asked to sign a statement to the effect that your assessment is your own work before submission to IWFM for marking.
  4. When presenting your assessment please use font size 12.
  5. Please ensure every page is correctly numbered                                                                                 

FM4.21 UNDERSTANDING PROCUREMENT AND CONTRACT MANAGEMENT IN FACILITIES MANAGEMENT

 


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