Procurement And Contracts Essay


Review the Case Study (New Royal Adelaide Hospital Auditor General Report).



This article will describe the main five issues related to New Royal Adelaide Hospital which was highlighted in the report as presented by the Auditor General for the year 2015. This report had elaborated the main five issues through which the escalation of service to the stakeholders of the hospital can be ensured with broader aspect of community to be the aspired recipient in macro level (McMahon, 2015).

Main five issues

Main five issues as identified through the report of the Auditor general dated 30.06.2015 related to New Royal Adelaide Hospital are given in the chart. We will elaborate them with point wise presentation to understand the role of them in the construction, completion and dedicating this to the community for a broader interest of the nation.

Project governance, Assurance and Reporting Arrangement (Section 5.1.4)

Previous recommendations by an independent consultant of April 2015 is followed up with emphasis on governance, commissioning of operation, procurement with new enhanced ICT program along with PPP relationship and resource utilization with inference that those areas were taken good or reasonable development by taking care of the previous suggestions, with some areas with restricted progress (Eda, 2007).
The domain of assurance framework is to be improved to assure accomplishment of program and progress.
SA Health was yet to complete project business case with development of critical process for monitoring business plan whole life costs of clinical equipment which restricted the governance committee to assess the project which attracts need of improved reporting by the project director of SA Health.

Budget Monitoring and Financial Management

This area attracts on the following domains:
Budgetary control and financial management.
Documentation of budgetary forecasts with variance derivation of budget vs. actual expenditure.
Policy guidance lacks about contingency information.
Evaluation of budget regarding ICT domain by considering inadequate funding with resulting cost pressure(Sheffield, 2016).
Need proper documentation supporting request for funding in 2014 to the Cabinet.

Risk and Assurance management

This area attracts following areas to be assessed:
Proper assessment of risks of the project with strategies to minimize them.
Requirement of improvement of process to approve changes to information of risks by emphasizing changes to the Committee(Nap, 2016).
Assurance management by ensuring consistency of information as per supporting risk registers.

ICT Functional, Procurement and Contractual dependencies
New RAH ICT Program for initiatives to coordinate with ICT enterprise to find out strategic plans of multiple level of maturity with completion
Requirement for development and subsequent strategic acquisition to ensure procurement of ICT services with enhanced level prudence with effective and efficient utilization of resources
Several areas of contract management for new RAH ICT procurement need to be improved.


Confusion between RAH and Project Company regarding scope, timing and cost of the project related to procurement is resolved by mitigating risks.
Proper reports submitted to the State Procurement Board regarding clinical equipments.
Improper report to the Committee regarding clinical equipment installation.
Insufficient information to the Committee about the status and basic risks regarding procurement and installation of resources in the State Committee.


Eda. (2007). Public-Private Partnership (PPPs) to connect Schools to the Net – A National Model in Switzerland. Retrieved May 06, 2017, from Eda:

McMahon, P. (2015). New Royal Adelaide Hospital report: November 2015. Victoria Square: Service SA.

Nap. (2016). Managing ICT Risk. Retrieved May 06, 2017, from Nap:

Sheffield. (2016). Financial and Budget Management Good Practice Guidance. Retrieved May 06, 2017, from Sheffield:

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