Procurement Management

BPM213

Procurement Management

Tutor-Marked Assignment One

January 2023 Presentation

BPM213 Tutor-Marked Assignment One

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 2 of 4

TUTOR-MARKED ASSIGNMENT ONE (TMA01) This assignment is worth 10% of the final mark for BPM213 Procurement Management. The cut-off date for this assignment is 2 April 2023, 2355 hrs. Note to Students: You are to include the following particulars in your submission: Course Code, Title of the TMA, SUSS PI No., Your Name, and Submission Date. Submit your solution document in the form of a single MS Word file on or before the cut-off date shown above. This TMA covers materials studied in Study Unit 1, 2 and 3. You should review these materials in both your textbook and the unit notes before beginning the assignment. In addition, you will find it necessary to perform additional research in order to provide better answers to the questions. Based on the three case situations provided under Appendix, answer the following questions: Question 1 – Contractual Arrangements (a) In each case, recommend and justify to the client a suitable type of contractual

arrangement for the project and describe its procedures. (24 marks)

(b) Indicate the advantages and disadvantages in using your proposed choice in Case 2

only. (8 marks)

Question 2 – Tendering Procedures, Prequalification of Contractor, Tender Evaluation and Award (a) Recommend a suitable tendering method for Case 2, justify your choice of selection,

and describe its procedures. (12 marks)

(b) Indicate the merits and demerits of your recommended tendering system for Case 2.

(16 marks)

(c) Based on the Quality-Fee Method (QFM) (issued on 1 June 2022) guidelines mentioned below, propose and elaborate how they can be adopted for the evaluation of tenders in Case 1:

BPM213 Tutor-Marked Assignment One

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 3 of 4

(i) The recommended weighting used for evaluating the components of fee and

quality; (ii) How the Consultants’ Performance score (CP-score) of each tenderer is

derived under the quality attributes; (iii) The two-envelope system of tender submission; (iv) The method of reducing fee diving; and (v) The method of shortlisting the tenderers for this project.

(20 marks)

Question 3 – Public Private Partnership The Government’s decision to take over the ownership and management of the Sports Hub from the private consortium of four companies demonstrated the potential risks faced by stakeholders in the implementing the Public Private Partnership (PPP) approach. Discuss the challenges generally faced by stakeholders in implementing the PPP approach.

(20 marks)

In attempting Question 3, candidates are advised to read up the following materials: Chew, H.S. & Yeoh, G. ‘Sports Hub: 'an isolated case'; other public-private partnerships in Singapore have worked well: Analysts’. CNA Singapore. 15 June 2022. Retrieved from: https://www.channelnewsasia.com/singapore/sports-hub-public-private-partnerships- singapore-government-2745756 Ong, Justin (2022). ‘The Sports Hub nightmare – what went wrong according to insiders, and can the Government run it better?’ CNA Singapore. 20 Jun 2022 06:06am. Retrieved from: https://www.channelnewsasia.com/sport/premier-league-starhub-early-bird-rates-extended- jun-30-2757661 ‘Government Objectives: Benefits and Risks of PPPs’. World Bank Group (US), Public- Private-Partnership Legal Resource Centre. Monday, 31 October 2016; retrieved from: https://ppp.worldbank.org/public-private-partnership/overview/ppp-objectives Public Private Partnership Handbook version 2, The Ministry of Finance, Singapore, March 2012; retrieved from: https://www.mof.gov.sg/docs/default- source/policies/procurementprocess/ppphandbook2012.pdf Chia, Y. M. ‘PPP: Promised partnerships (can) prosper’, The Straits Times, 25 Dec. 2014, Singapore: Singapore Press Holdings. Retrieved from: http://www.straitstimes.com/opinion/ppp-promised-partnerships-can-prosper Ling Han (2016). ‘The Problem with PPPs in Singapore’. The Diplomat, 26 September 2016. Retrieved from: https://thediplomat.com/2016/09/the-problem-with-ppps-in-singapore/

BPM213 Tutor-Marked Assignment One

SINGAPORE UNIVERSITY OF SOCIAL SCIENCES (SUSS) Page 4 of 4

Appendix Case 1 - Building works for public housing at Tengah Park A public housing authority is calling for tender for building works at Tengah Park at the western region of Singapore. The scope of works involved the construction of more than 1,000 dwelling units with a neighbourhood centre, an eight-storey car park block and common green including contingency works. The estimated value of the contract is $380,000,000. To support this project, the authority has decided to award separate contracts to consultancy firms to provide project management, architectural, structural, mechanical and electrical design and quantity survey consultancy services to support this project. Case 2 - Construction of MRT station A local transport authority is calling for tender for the construction of a Mass rapid Transit (MRT) station under the Cross Island Line-Punggol Extension located in the north eastern part of Singapore. The contract is valued at around $1.1 billion. Tenders for this contract will only be considered from a pre-qualification of tenderers who have suitably extensive experience in such works in major projects. Construction works for this station is expected to start in the first quarter of 2023, with passenger service targeted to commence in 2032. When completed, the station will improve transport accessibility for nearby residents. Safety measures, such as ground improvement works, will be implemented before the start of construction of earth retaining structure and excavation works at the worksite. Traffic diversions to facilitate the construction works will be carried out in phases so that any inconvenience to residents and motorists is minimised. Due to the heavy schedule and the project complexity, the authority intends to keep contractual links as simple as possible and leave the project co-ordination to the contractor. Case 3 - Building repairs for a local town council A local town council is calling for tenders for the repairs of water seepage through external wall and bin chute, ceiling and roof leakage, spalling concrete, façade finishes for three divisions under the Bukit Batok Constituency. The contract period is three years with an option to renew for another year. Bidders are required to quote a plus or minus rate off a set of fixed schedule of rates provided by the council.

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