Table of Contents
Executive summary 1
PART A: Procurement context 2
PART B: Key risks in nRAH 4
Risks in Procurement Management 4
Inaccurate Reporting 5
Underestimated Benefits of nRAH 5
Ineffective Management 6
Completion Delay 6
Risk Mitigation & Learnings 6
PART C: Summary of Best Practice & Key Findings 8
Key Findings 8
This report deals with the favors of Public Private Partnership agreement in the new Royal Adelaide Hospital (nRAH) case study in the context of procurement and its drawbacks due to the improper analysis of outsourcing companies. This project was chosen since the benefit is for the public, also it deals with the reputation of the government and the private organizations. Meeting deadlines and the cost factors are basic since such delays cause hindrance for public who need basic health amenities. The project had failed in various areas due to a number of reasons which are explained in detail, in the section below the risks are outlined briefly describing the majority of risks that were observed in the nRAH project. The report deals with the risk mitigating methods that could have been implemented to make this project successful. The key finding and some recommendations made in order to encourage an effective project and procurement management. At the end there is also a discussion on finding the best practice identification improving the procurement process which could have mitigated the risks that occurred in this project.
Procurement management is defined as the process of buying a product or service which is not decided to be produced within the organization due to various factors. The process of procurement is planning, conducting, controlling and closing procurements. The procurement management may be considered as easy or complex depending upon the nature of the project. For example, a construction project or a software developing project may involve many processes and procedures whereas buying a pre-existing item from the market such as lathe machine for carpentry, involves very minimal procurement steps.
New Royal Adelaide Hospital (nRAH) is considered to be the iconic infrastructure project in South Australia with implementation many new advanced features and appeared to be one of the sustainable hospitals in Australia for the next 100 years (McBean, 2015). It is also received as an expensive project which is more looked like a hotel rather than a hospital.
In this given New Royal Adelaide Hospital (nRAH) case study, SA health Pty. Ltd. went for a Public Private Partnership (PPP) agreement with government to develop and renovate the hospital in order to promote enhanced and sustainable service which includes installation of new equipment and non-medical services. Over $1.8 billion dollars were initially funded for this new RAH project. This project is audited and reviewed by a team of auditor-general from state government to effectively analyze...