ASSESSMENT 2

Introduction

The Government of Usquam is well known worldwide for its ethical investment track record made for the public. The Government has always cared about its people and focuses its main objectives on making people’s lives better for good. The Squam Government is one of the most corruption-free states globally, and they successfully prevented corruption in the Public procurement sector. To make people’s lives better, the Government conducts two procurement systems; Procurement conducted by the Government and Procurement conducted by ‘The Fund.’ The definition of Procurement would be; various Ministries, departments, local bodies, other Government entities, public sector enterprises, spend an amount of their tax collection for collecting or importing products, generating new working sectors, and building industries, developing urban sectors to fulfill their responsibilities and duties to the public. The Government thinks of ‘The Fund’ as an asset for developing future generations, so they use it to develop various sectors in the state.

The Government thinks ahead of time for the next generation; that’s why they are trying to reach every corner of the country and give them better prosperity. For the completion of this wise thought, the Government of Usquam has planned to create a racing and test circuits facility for next-generation electric vehicles to act both as a showcase for the emerging Usquami electric vehicle manufacturing industry and as a catalyst for sustainable regeneration in an economically deprived area of the country. The Government chose this particular project as it is good for the environment and the peoples’ income source. When the present era of automobiles is moving into electric cars, the concept of building a racing track for electric vehicles is an excellent decision made by the Government. This will attract racers from all over the world. And the building of an eye-snatching garden will comfort the people of  Usquam and attract tourists, giving an economic boost to its GDP.

The Government plans to hold the next FIA Formula E World Championship in  Usquam. So they plan to make the racing track as soon as possible; within the time limit, the task is almost impossible for the Government, so they asked for help from an external body. In this task, a consultancy farm named Trotters’ Independent AutoSports Consultancy works with the Government. This consultancy farm had also worked with the Government before and offered its assistance, and gained the Government’s trust. In this task, the consultancy will give them all the Government’s assistance.

Task 1. Principles of Sustainable Development in Procurement

The public procurement system in Usquam is divided into two, conducted by the Government and the substantial sovereign Fund, respectively. The substantial sovereign Fund, also known as the Fund, is responsible for satisfying the country’s finance ministry by performing a series of duties. The duties involve providing several services that must be transparent and free of corruption. The Fund has been responsible for carrying out a project that involves creating a motor vehicle circuit facility for racing and testing purposes. The process must also maintain sustainability, and to execute the process, the firm, Trotters’ Independent AutoSports Consultancy, will guide them through it.

Principles of Sustainable Development

It is required to have detailed information on sustainability principles before applying it to the procurement services. The principles of sustainable development focus on the keywords environment and development, which are also the two conflicting notions. The environmental studies reports show that the developed countries face the most related environmental issues. Overpopulation, illiteracy, along with poverty lies responsible for these disasters. The Usquam government bears a good reputation when it comes to ethical investment. The Government consists of a robust procurement policy for manufacturing electric vehicle circuits. The firm suggests that along with a robust procurement policy, the practice of sustainability is equally important. First, it is required to set the objective before conducting the process.

  • Industries, while conducting manufacturing activities, generate a considerable amount of waste. This report is manufacturing electric circuits in motor vehicles. It is a well taken the initiative, thinking about the environment’s safety. The end product would provide environmental safety, but the making process would act as a mild threat to the ecosystem.
  • Sustainable development involves the conservation of resources. The firm would suggest not using up all the resources to make the vehicle circuits. There should not be over utilization of natural resources, or else there will be less sustainability in future projects. Usquam comprises several economically deprived regions, and it is required to regenerate sustainability in those areas.
  • Sustainable development also speaks of bringing equity amongst all the generations regarding the usage and conservation of natural resources. It involves both present meeting needs along with thinking about the future development. Electric vehicle circuit manufacturing, as mentioned in this report, requires the usage of natural resources, but alongside, it is also necessary to save some of it for future purposes. Trotters’ Independent AutoSports Consultancy has taken the responsibility to guide the Fund for proper implementation of sustainability in the given project. The above are the guidelines to be followed in the given project to bring sustainability within the process.

Procurement Process with Sustainability in the racing and test circuit construction area

In business operations, Procurement is considered as a strategic process that helps in meeting goals and objectives, and Procurement with a standard may be called sustainable Procurement. Sustainable Procurement not only thinks about the internal factors but is also concerned about the external ones, that is, the environment. Protecting the environment is one of the most important factors of sustainable development. Hence a business organization with a sustainable procurement policy should be eco-friendly in nature. The Government of Usquam, as mentioned in the report, wants to manufacture circuits for electric vehicles. They, along with manufacturing, also want to serve as a catalyst in regenerating sustainability to the economically deprived region, and that is why it took the help of Trotters’ Independent AutoSports Consultancy.

As per the given case study, like this country, Usaquam has faced sustainable growth in their country’s economy; they now need a sustainable development principle; thus, they can meet with the sustainable growth along with increasing the opportunities for the current and the future generation of that country. This country is famous for its ethical action, and thus they need to adjust and maintain their procurement services while maintaining sustainability. The Government of Usquam wants to improve its electric vehicle manufacturing industry by investing in its Fund. In this case, they need to manage their project that is making the racing and the test circuits for the electric vehicles (Ogunsanya et al., 2019). The sustainable procurement system can help this country to make their track record of the county intact and also can increase the opportunities for their electric car be vehicle industry as well as the future generation. Along with this, the sustainable procurement system can help them to make a transparent relation with the governments and the citizens and help to be free from corruption and discrimination. As the Fund has been collected for the taxes and other licensing extraction, hence the Government of Usaquam wants to invest the Fund in the making of racing and testing circuits, and for this, they need to understand the sustainability opportunities and requirements in the case thus they can manufacture and develop this electric vehicles industry and also can be able to protect the surrounding by sustainable activities.

The sustainability practices are needed for this country related to the electric vehicle project procurements management are the following,

  • This sustainability practice is needed to minimize the damage to the environment by making the test circuit.
  • The resources should be adequately managed; thus, the project can be completed within the allotted budget. It can also help reduce the wastes that can be the reason for the pollution to the environment.
  • As energy and water are limited on the earth, and hence these electric vehicles would be a better option and a sustainable movement to this environment. But the making of the circuits can be the reason for the pollution, and hence that needs to be made by allowing some sustainable steps (Ogunsanya et al., 2019).
  • They should be aware of the use of the resources while making and testing the circuits, as these techniques should be flexible and adapted in these climate change conditions. The technique used should not be the reason for the increasing temperature of the climate.
  • The Usquami electric vehicle manufacturing inductee should involve all their stakeholders along with the vendors, suppliers, and the community as they can improve their services and can maintain sustainability in the supply chain of this organization.

Opportunities and the challenges of the sustainability practices

In the case of the Usquami electric vehicle manufacturing industries, the company needs to grab the sustainability opportunities and also identify the challenges; thus, they can use the Fund with transparency and reduce corruption to maintain their track record. By adopting the following steps

  • This business needs to set its own standard according to its value proposition.
  • They need to provide education and training to their suppliers so that they can understand the importance of the sustainability of the supply chain and can perform the necessary actions.
  • To improve the sustainability practices of these electric vehicles testing circuits, the manufacturing sites should maintain a sustainable environment, and all the project team needs to work with the suppliers as they can promote sustainability in the workplace and throughout the supply chains and also they can share their ideas to deliver the sustainable solutions.

Adoption of Green Public Procurement for Sustainable Development

The Usquam Government already possesses a dual public procurement system in which Procurement is conducted by the Government and by sovereign wealth funds separately. The Fund should follow the procurement principle in their collection procedures to ensure sustainability and development into their long-term management regarding Usquami electric vehicle manufacturing (Tiwari et al., 2019).

Public Procurement constitutes specific strategic functions that are essential to bringing sustainability in procurement performance. Due to the systematic increase of governmental costs, green public Procurement is considered an integral element of sustainability. By interconnecting the different companies and policymakers, the sovereignty fund can potentially attain their shared objective of sustainable development. As the Government of Usquam allows national suppliers in their Procurement, they care about their interest in preferential Procurement. Environmental protection becomes pivotal in the implementation of state-run policies of sustainable Procurement along with economic and social development by encompassing several sustainable standards in the organization. The public procurement rules allow incorporation of specific environmental data concerning the Fund’s objectives to their procurement procedures and contradicting authorities.

This electric vehicles manufacturing industry should consider the following sectors from where they can start their sustainability practices,

  • They should communicate with their clients and need to communicate with them to share the benefits of maintaining sustainability in the workplace, and thus the procurement process can be maintained and can ensure the procurement procedures.
  • They need to engage more stakeholders and the customers; thus, they can share their sustainability ideas with all the stakeholders and can be able to achieve their sustainability goals by meeting the aim and objectives.
  • Maintaining the supply chain is a critical need, and hence they need to manage sustainability. For this, they need to understand the market behaviors and the supply chain requirements to manage sustainable practices.
  • They should take steps and use the resources that can ensure the water and the energy-saving activities and can manage the energy-efficient product procurements  (Tiwari et al., 2019).

Task 2 Procurement Approaches

The Usaqami government aspires to construct a world-class grandstand racing spectrum and test circuit facilities that shine its electric vehicle manufacturing industry and make it stand at one of the top positions in the world. There are many reasons for the Usaqami government to approach the Autosports consultancy firms as the Government has leaned chiefly towards the governmental procurement procedure. Although Government has fund authorities that are competently and constantly serving for the governmental projects considering the nature of this project, the Fund needs proper and constant guidance as it is also expected to enhance the condition of deprived section of the country. Investments in the racing vehicle spectrum will account for a significant amount of economic activity of the Usquam government. Considering the high demands of the EV users has been increased in recent years in the country, and it is expected to make good value to the government fund, and therefore the Government has come to a conclusion to construct racing and test circuits facilities. The chosen consultancy firm has added some value elements to fund procurement policy and practices that have been discussed above, which beliefs to eliminate the unnecessary cost for construction of grandstand spectrum, pit lane facilities, and public area. The firm has selected appropriate modeling of Procurement for services that guarantee the accuracy of information, transparency, and liability. 

There are several approaches or methods for service and work Procurement that the Fund can implement to ensure that it meets all its requirements. The methods include restricted tendering, open tendering, two-stage tendering, request for proposal, single-source Procurement, and request for quotations. Each of these methods has distinct benefits and ways of Procurement that can be effective if implemented with the correct requirements. The Fund can analyze each of these methods and decide on a single approach, or multiple approaches combined that best suit their needs. Several business organizations implement these approaches to acquire their procurement needs effectively in an optimized manner.

Open Tendering

Open tendering is the approach of Procurement in which the services and goods are acquired at the lowest possible price. Such a kind of bidding is highly competitive as it provides new suppliers opportunities to acquire the tender by offering competitive pricing. The Fund can organize open tendering for the best suppliers with the best prices to ensure that the Fund procures the best services and goods for the construction of the testing and racing circuits from the best suppliers in the country. Such tendering may require the Fund to advertise such tendering locally, allow all kinds of bidders qualified for the tender, develop measures for objective evaluation, and have a coherent and unbiased technical specification (Aimable et al., 2019).

Restricted Tendering

Restricted tendering is also known as selective tendering, in which only a selected number of service providers or suppliers are given the opportunity to bid for the tender. The bidding in this kind of approach is also competitive similar to the open tendering, with the only difference being that the number of participants is limited. The benefit of such a procurement approach is that it ensures that only the best performing and well-established firms are hired for providing the services and goods needed. The Fund can select only the best agencies to procure the services and goods for the development of the racing and testing circuits (Oo and Yan, 2018).

Request for Proposal

The Request For Proposal is the kind of approach in which several agencies send a proposal document to the procurement team of another organization seeking a service provider or goods supplier. The proposal includes two separate envelopes, including the project proposal in the first envelope and a financial component in the second envelope. The first envelope contains a document that explains why the agency is best for the required project. The approval or rejection of the first envelope will allow the opening of the second envelope that will provide the financial envelope. The proposal with the best qualifications and price must be selected for the project (Mylrea et al., 2019).

Two-Stage Tendering

The two-stage tendering is a procurement approach very similar to the RFP approach; however, there remain two procedures in this kind of approach. The RPF approach is implemented in the first procedure in which the Fund will receive a two envelope proposal containing the qualifications and the financial components. The proposal will also describe the complete technical solution that will be implemented for meeting the requirements (Takhtravanchi and Pathirage, 2018). Once both the financial and proposals are approved, the firm is selected for the project. In the second procedure, the proposal provided does not provide a complete technical solution but only a part of the solution in the first stage. The financial component of the proposal is submitted only when the best bidder is selected based on the first proposal. The bidder is then contracted based on the financial and technical proposals (Takhtravanchi and Pathirage, 2018). The second procedure allows modification to be done in the proposal based on the client’s needs, which in this case would be the Fund. The disadvantage of this approach is that it is time-consuming and thus cannot be done if time limits restrict the procurement team of the Fund.

Single-Source Procurement

Single-source Procurement is the kind of approach in which the Fund can acquire the services and goods from a single provider or supplier, respectively. Such an approach must only be implemented during specific conditions, such as in case of emergencies (El-Sawalhi and El Agha, 2017).

Request for Quotation

This is considered the least complex approach for Procurement that the Fund can implement. This approach is made for small-valued services and goods that do not require formal drafted proposals or paperwork (Hasim et al., 2018). However, this kind of approach is not suggested for the procurement operations of the Fund.

The consultancy farm presents the design and construction plan of the spectator, pit lane facilities, along a broadcasting center; the estimated cost of this individual will be around £354. The consultancy firm also presented a rough worksheet to support the numbers and explain them more accurately. A worksheet is necessary as it contains the requirements of the place where the race track is going to be built, the cost, and the estimated time to build this. Without a rough sheet, the exact picture of the race track is not possible.

To attract world-class racers building an advanced pit lane best approach. F1 crews can change all four wheels in less than two seconds, but a good pit start is more than about tyers swap; anytime lost in the way in or out could be the difference between victory and defeat. Focusing on this advanced pit lane could help a racer calculate his performance; an advanced pit lane with the latest TV- Graphic uses live timing data and sensors both in the car and on the track to calculate the time lost or gained by the drivers on the pits. It will show who is pushing hard on entry, who was quicker in the pit lane, including the stoppages, who is fastest to get back up the speed at the other end, and how these stages add up to show their total performance measured in seconds. Using this new insight, the audience, as well as the racers, will be able to see who is risking the most at the speed limit line, who is best in getting in or out of the box, and who is really the master of pit lane performance. 

An advanced pit lane helps the drivers to point out the mistakes they made and how to improve them in the next match. This one-time investment project is both beneficial for the country and the people as once the project is done, the racer and the race lover from all over the world will be drawn to this track.

In detail, the challenge is significant, and without essential construction experience, this is not possible; there is no time to think twice. To pull of this prestigious racing event, they would need to build a 5.2-kilometer world-class race track never seen before, the main grandstand along with ten temporary stands to seat more than 100,000 cheering speed enthusiasts, a three-story cantilever pit building with around 45 garages, a race control room where the race director and the officials can monitor the race with hawk-eyes and conduct the proceeding, state of the art media center to cater to more than 600 media persons equipped with giant video walls carrying the live feed of the race, fully furnished team buildings where the team owners management and drivers can unwind before and after the race.

To construct all this, the Government should choose a trusted private constructing company who will provide all of it at the best price, not more than £354m. A well-known private construction company has both experience and technology along with the best construction equipment to do this project within the time period and the price.

Now for another task, the Government should approach for an open tendering, The design and building of landscaped gardens at the three main public entry or exit points of the circuit. Government should approach building the landscaped gardens at the exit gates. The benefit of making it at the outside of the exit gate is that the exhaust audience of the race could enjoy the eyes claiming a view and get along with nature. This approach will attract more and more audiences and other people. As it is a showcase project, the Government should pass a tender for all the contractors within their price range. The expanse of this project should not cross the work’s value of £850,000. Within this price range, the constructor has to deliver his best creativity.

Justification

Creating the race track within the time limit and cost only Restricted Tendering will give the Government accepted results. If the Government goes for an open Tendering for this project, many new contractors may claim to finish the projects before the time and with less cost. But this will affect the quality of the projects, and the experienced contractors may also face challenges new for them, which will cost valuable time.

On the other hand, the Government should also give an opportunity to the new contractors to embrace themselves, so they should go for an Open Tendering for constructing landscaped gardens with three conditions 1st the cost should not exceed £850,000, and the project should be done in time; lastly, they should present a 3D view of the project.

Recommendation

The trust also recommends preparing a backup plan for the projects, if in the middle of the projects the contractors face issues and cannot complete within the time or face any other challenges, like shortage of equipment or labor or materials, and an outside body should be present to assist them in time of need. To deal with this kind of issue, the Government can go for Single-Source Procurement.

Conclusion

At the end of the report, it can be concluded that the Government of Usquam made a futuristic and beneficial decision for the public of Usquam, especially for the urban citizens, as they would benefit most from this project. The Government can not do these projects all by itself, as both of the projects are enormous, and The Government body can not monitor all the small details that need to be done all by itself; they need support from an outside Government body, so they came to Trotters’ Independent AutoSports Consultancy. The company is well known for its accuracy of information, transparency, liability, and appropriate advice to well-known national and international organizations. The company maintained its reputation around the world. The company highlighted some valuable points to fund procurement policy and practices. And also reduces unnecessary elements and gives the Government accurate finance reports based on the actual investigation. They also gave a detailed rough sheet about the projects and suggested to the Government how to approach them. The company also calculated the estimated cost value of both projects. The company also advised The Government to install the latest equipment on the race track for broadcasting the race.

Reference List

Aimable, N., Osunsan, O.K., Florence, I., Comet, K.F. and Sarah, N., 2019. Procurement planning on value for money among selected districts in Southern Province, Rwanda. Journal of Research in Business and Management, 7(1), pp.34-40.

Mylrea, M.E., Rotondo, J.A. and Gourisetti, S.N.G., 2019. Guide on Cybersecurity Procurement Language in Task Order Requests for Proposals for Federal Facilities (No. PNNL-28661). Pacific Northwest National Lab.(PNNL), Richland, WA (United States).

Takhtravanchi, M. and Pathirage, C., 2018. Knowledge integration challenges and critical success factors within construction traditional procurement system. Knowledge and Performance Management, 2(1), pp.24-37.

El-Sawalhi, N.I. and El Agha, O., 2017. Multi-attribute utility theory for selecting an appropriate procurement method in the construction projects. Journal of Construction in Developing Countries, 22(1).

Hasim, S., Fauzi, M.A., Yusof, Z., Endut, I.R. and Ridzuan, A.R.M., 2018, October. The material supply chain management in a construction project: A current scenario in the procurement process. In AIP Conference Proceedings (Vol. 2020, No. 1, p. 020049). AIP Publishing LLC.

Lăzăroiu, G., Ionescu, L., Uță, C., Hurloiu, I., Andronie, M. and Dijmărescu, I., 2020. Environmentally responsible behavior and sustainability policy adoption in green public Procurement. Sustainability, 12(5), p.2110.

Ogunsanya, O.A., Aigbavboa, C.O., Thwala, D.W. and Edwards, D.J., 2019. Barriers to sustainable Procurement in the Nigerian construction industry: an exploratory factor analysis. International Journal of Construction Management, pp.1-12.

Tiwari, S., Wei, C.S. and Mubarak, M.F., 2019. Sustainable Procurement: a critical analysis of the research trend in supply chain management journals. International Journal of Business Performance and Supply Chain Modelling, 10(3), pp.266-282.

Oo, B.L. and Yan, Y., 2018, April. Procurement of construction services: a case study on bidding competition in Singapore public sector contracts. In IOP Conference Series: Earth and Environmental Science (Vol. 140, No. 1, p. 012113). IOP Publishing.

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