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Tender Management Plan

Name of ProjectReference No. ________________

Date of Release: ________________

[Title of Ministry]

Version No. 1 [Remove before public release]

Ministry of _______________________________________ Request for Tender No. __________

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Revision History

Revision No. Prepared By Description Date

1 Doug Rankin Initial draft 19 September 2013

Document Acceptance

Action Name Signed Date

Tender Management Plan Page 1 of 23


Glossary and Definitions

The Manual Cook Islands Government Financial Policies and Procedures ManualRFT Request for Tender

Tender Management Team The group of people responsible for the management of the tender process including advertising, evaluation and notification.



Table of ContentsGLOSSARY AND DEFINITIONS........................................................................................................................................... 2

AUTHORISATIONS (COMMON)......................................................................................................................................... 4

INTRODUCTION (REMOVE FROM THE FINAL DOCUMENT).................................................................................................5

PROCUREMENT OUTCOME (COMMON)............................................................................................................................ 5

STAKEHOLDERS (COMMON)............................................................................................................................................. 6

GOVERNING THE PROCUREMENT (COMMON).................................................................................................................. 6

MARKET ANALYSIS (FOR SIMPLE PROCUREMENTS THREE QUOTES MAY BE ADEQUATE)...................................................6

METHOD OF PROCUREMENT............................................................................................................................................ 7

EXPRESSIONS OF INTEREST...........................................................................................................................................................7OTHER MEANS OF TESTING THE MARKET.........................................................................................................................................7

RISK ASSESSMENT (COMMON)......................................................................................................................................... 8

PANEL ARRANGEMENT................................................................................................................................................................8

PROBITY (COMMON)........................................................................................................................................................ 9

APPROACHING THE MARKET (COMMON)......................................................................................................................... 9

EVALUATION (COMMON)................................................................................................................................................. 9

APPENDIX A................................................................................................................................................................... 11

TENDER PROCESS MAP.............................................................................................................................................................11TENDER PROCESS OUTLINE........................................................................................................................................................12

APPENDIX B................................................................................................................................................................... 15

TENDER CHECKLIST...................................................................................................................................................................15

APPENDIX C................................................................................................................................................................... 17

PRELIMINARY RISK ASSESSMENT.................................................................................................................................................17RISK RATINGS..........................................................................................................................................................................18

APPENDIX D................................................................................................................................................................... 19

EVALUATION CRITERIA..............................................................................................................................................................19Standard Conditions........................................................................................................................................................19Special Conditions...........................................................................................................................................................20Risk..................................................................................................................................................................................20

APPENDIX E................................................................................................................................................................... 21

TENDER EVALUATION PLAN........................................................................................................................................................21



Authorisations (Common)

Item ApprovedY or N

Approver’s Signature Approver’s Name Date

Tender Management Team

Method of Procurement

Method of Approaching the Market

Evaluation Criteria

Evaluation Plan



Introduction (Remove from the final document)

This document is intended to assist officials in the planning and evaluation of tenders and provide key decision-makers with the information necessary to approve various elements of the procurement process. You only need to complete the details relevant to your procurement, but some sections are common to every type of procurement. Those sections have been annotated (Common) accordingly.

This Plan should be submitted to the appropriate authority for approval before the Tender process is commenced. At agreed intervals throughout the Tender process, you should inform the approving authority of progress with the Tender. Any change to membership of the Tender Management Team should be agreed with the approving authority before new members commence.

It will assist you to identify the need, ensure that your objectives and priorities are clear and that you have a clear path to achieving the desired outcome. You are guided on how to populate the components of the Tender Management Plan (TMP) through a series of callout boxes. These boxes should be removed when you have inserted the information being sought for that section of the document.

Procurement Outcome (Common)


In determining the objectives of your procurement, you should consider what it is you actually need, the purpose for which it is required and how you will inform the supplier of your requirement. Things you should consider include:

- How do you define the goods/works/services you require?- Is it a ‘whole’ item you require or can a supplier provide a part of your requirement?- What is the intended life of the item – is it a consumable or is it a works that will have a long

‘in service’ life?- Are there any industry standards or licensing requirements that govern the item(s) to be supplied?- When, where and for what period of time do you require the item(s)?- How critical is the timeliness of supply and the quality of the item(s) delivered?- Are there any special conditions attached? For example, are the works to be delivered in the Outer

Islands? Is there a particular time of the year in which these services are required?- Is there an existing supply arrangement and how will this request impact on that arrangement?- Who are the key stakeholders and what do they expect?- What are the needs of your clients and what are their priorities?- Are other projects or activities impacted by this request?

If this is something you purchase regularly or it is common to a number of Ministries, there might be value in establishing a Panel Arrangement or coordinating your request with other Ministries. The Method of Procurement Section identifies the options you should consider in determining your preferred procurement process.


Stakeholders (Common)

Governing the Procurement (Common)

Market Analysis (For simple procurements three quotes may be adequate)


Identify the key stakeholders and their role in the procurement process. Explain how they will be engaged and when. This should include approving authorities within your Ministry, other Government agencies, technical advisors and potential suppliers.

Clause 4.4 of the Manual sets out the requirements for a Tender Management Team. The Tender Management Team is responsible for administering, conducting and evaluating Tenders. Within the team sits the Evaluation Committee and the other team members perform Secretariat functions during the Tender process.

In this Section, you should identify the team membership and seek agreement to the proposed team composition. Membership may change subsequent to the initial approval of this Tender Management Plan, but such changes should only be implemented following agreement with the appropriate delegate.

To ensure that you achieve Value for Money (VfM) through your procurement process and reduce the risk of financial loss or litigation for the Government, it is necessary to have an approval and review regimen built into the Tender Management Plan.

There are a number of templates available from the Procurement website, www.procurement.gov.ck that will assist you in following the correct procedure and obtaining the relevant authorities to proceed.

Do you have a good understanding of the market’s ability to meet this requirement? Is there a range of local and overseas suppliers that you know operate in this market and are likely to respond to your request? You should consider an Open Tender by default. However, if you know there is a limited market for your requirement, you might consider a Closed Tender, but this should be a matter of last resort. An Expression of Interest (discussed below) should be used to inform your decision to pursue a Closed Tender.

See the following page for further options for determining the state of the market.

http://www.procurement.gov.ck/


Method of Procurement (Common)


Expressions of InterestIf you have not been to the market recently for this or similar requirements, it might be appropriate to consider an Expression of Interest. This could be undertaken through formally advertising in the media or merely conducting an information session with interested suppliers.

The benefits of an Expression of Interest is that you engage with suppliers in a non-binding manner and seek their advice on the appropriateness of your specifications or proposed technologies. Technologies are constantly changing and a technique that you have used before may no longer be the best means of meeting your need. This process allows you to test that view.

Conducting an Expression of Interest can make suppliers aware of your impending requirement and allow them to plan for the Tender process. This could significantly enhance the number and quality of responses to your request.

Other means of testing the marketYou can research the market through a number of sources other than an Expression of Interest. Some of these include:

- Professional bodies and/or consultants.- Consulting with other Ministries.- Searching the internet.- Industry bodies or research organisations.- Colleagues and/or internal specialists.

Having determined your requirement and researched the market, the next step is to determine the method of your procurement. While the default position is to conduct an Open Tender, the results of your market research and/or Expression of Interest could indicate that a Closed Tender or a Panel Arrangement is more appropriate.

See the following page for more options.


Risk Assessment (Common)

A preliminary risk assessment has been conducted for this procurement. Attachment C reflects the issues canvassed and the outcome of the individual assessments. The overall opinion is that this procurement represents [insert the overall risk rating].

A more comprehensive Risk Assessment will be conducted as part of the evaluation process consistent with the Tender Evaluation Plan.


Panel ArrangementIf you have a regular need for the same goods/works/services, using a Panel Arrangement can significantly reduce your effort in approaching the market. For example, the supply of bitumen might vary through a year depending on funds available, work programs and external factors such as weather. There might also be a limited number of suppliers with no guarantee that one supplier would always be able to meet your requirement when you want.

In such circumstances, approach the market openly, determine the suppliers that meet your Evaluation Criteria and enter into a Panel Arrangement with them. The suppliers contract with you to supply the bitumen of an agreed standard under the terms of the Tender. The contract could be for a two or three year period, with or without options to extend and have a fixed price over the period of the contract or an agreed factor for price variation.

When you have a requirement for bitumen within the period of the Panel Arrangement, you simply check the ability of the suppliers to meet your needs within the desired timeframe, select the preferred supplier and raise a purchase order under the terms of the previously agreed contract. Where membership of the Panel Arrangement is small and they are equally rated for price, quality and reliability, you should endeavour to spread the work evenly amongst the suppliers.


Probity (Common)

No gifts or entertainment of any nature will be permitted between any parties involved throughout the tender process, including: tenderers or potential tenderers, tender team members, evaluation team members, the Head of Ministry, or any other member or organisation that may have an involvement with any aspect of the tender process.

Approaching the Market (Common)

Evaluation (Common)

A Tender Evaluation Plan has been prepared to govern the selection of the preferred supplier for this requirement. Details of the Evaluation Criteria and the Tender Evaluation Plan can be found at Appendices C and D respectively.


It is important for potential suppliers to perceive that procurement takes place in a genuine, open and transparent environment. Honesty, integrity and ethical behaviour should be a fundamental component of your procurement process.

Completing this Tender Management Plan and adhering to its processes is an essential part of these probity requirements. If there are any other probity arrangements specific to this procurement, they should be identified in this section.

Sections 2, 3 and 3A of the Manual set out the conditions for approaching the market in the form that you have chosen. The default position is Open Tender with bids open for a minimum period of 10 working days (Clause 4.6.1.1). Advertisements should be placed in at least 3 different media: local newspapers, local television, Ministry notice boards, the Procurement website, or through the distribution of flyers etc.

Check the Manual for the precise arrangements that apply to your proposed method.

In this Section, you should clearly articulate how you intend to approach the market, explain why you wish to depart from standard processes (if indeed you do so) and how responses to the request will be handled. For example:

“An Open Tender process will be used with advertisements appearing in the local newspaper, on local television and on the Procurement website. Bids will remain open for a period of 10 working days closing at 4:00 pm on Friday 30 September 2013. Management of the Tender Box will be in accordance with the processes set out in the Tender Evaluation Plan.”


APPENDICES



APPENDIX A Procurement Process Map


Budget Appr

Legal Technical and Financial review 5 days

What do you want to buy? Scan the Market / Inform Private Sector 10 / 20 days

Capital Plan 1st July Up-date Tender Website

Over 30k Under 30k 30k

Open or Closed

Open 30k

Get templates Simplified Templates

Approach selected suppliers 10 to 15

Quotes

Evaluate Tenders and prepare reports 7 days

Evaluate/ document

Tender Committee approval 5 days

HOM

Award Contract Update website

Approach Market 10 -15 days

Closed

Agency Annual Business/ Procurement Plan 30 Jan

YES

NO

NO

YES

HOM Approval

Tender committee approval to proceed 5 days


Tender Process Outline

1. What do you want to buy?Determine the goods and/or services that you wish to obtain. Are there any special requirements that relate to this procurement such as delivery time, location, etc? Environmental, social and community requirements will also need to be considered and may influence your procurement process.

2. Scan the Market. Inform private sector of your pending project or procurement.

Contact the Cook Islands Chamber of Commerce (CICC) who will act on your behalf to inform local suppliers of any goods and or services that you require. They will identify potential suppliers, determine an estimated cost of the service or goods required and may identify errors/omissions in your technical specifications. Allow for between 10 and 20 working days for this part of the process. The time will be determined by the complexity of the procurement.

Use existing networks

You may also wish to scan the local press and information sources, industry networks and/or the internet to source other estimates. How broad the market may determine the procurement route you take.

Expression of interest

If there is inadequate information on the market’s ability to meet this requirement, consider conducting an Expression of Interest (EoI). This may extend the procurement process, but it will reflect market interest in meeting your requirements and may identify errors/omissions in your technical specifications.

This process should be completed and included in your annual business and procurement plans for each year.

3. Agency Annual Business Procurement Plan. Business plan information

Budgeted procurement and projects for the upcoming financial year(s) are to be included in your business plan. Your budget should include procurement management fees if required, technical support and time frames of when identified procurements will proceed. Your agencies capacity and ability to complete the procurement process or implement budgeted projects will also need to be considered before undertaking any projects.

The business and procurement plans need to identify all $30,000+ projects and procurements for each financial year from all funding sources.

Budget Approval

Once budget approval has been received to proceed with your procurement you will need to populate a spreadsheet with all of the relevant information.

An example is given below. This will be made available by CIIC on request. Just fill in the following sections; Agency, Type of Tender, Recipient, Funding Source, Quarter, Project title, and Amount

Tender Category Tender ID Agency

Status of Tender

Type of Tender

RecipientFunding Source

Recommended Contractor/s, Service Provider/s

QuarterContract end date

Project Title

Amount (VAT ex)

11 categories

Tender committe

Your agency

Going to

Open or

Who the procuremen

Capex or Aid

Quarter that it

Title of project

Estimated cost



to chose from

e to supply name marke

tClosed t is for Funded goes to

market

from cap plan

This information will then be uploaded onto the MFEM procurement website by CIIC and readied to be advertised in local papers.

Procurement under $30,000

All procurement for goods or services that have been purchased and are between $3000 and $29,995 will be uploaded onto the website at the end of each quarter. Your agency will be requested to provide this information will be requested by CIIC before the end of each quarter.

4. Establish your Governance Arrangements.Tender Management and Tender Evaluation Teams

Establish Tender Management and Tender Evaluation Teams (the Evaluation team should include at least two of the Tender management team members). The teams must have the appropriate skill sets within them to match the complexity of the procurement.

Open or closed tenders

Determine the processes to be followed according to the type of procurement eg Open Tender, Closed Tender, Simple Procurement (for items < NZD$30,000).

5. Observe the Probity Requirements.No gifts or entertainment of any nature will be permitted between the parties involved throughout the tender process including: tenderers or potential tenderers, tender team members, evaluation team members, the Head of Ministry, or any other member or organisation that may have an involvement with any aspect of the tender process.

Negotiations must not take place between the Tender Team and the prospective suppliers during the advertising stage. Any queries of clarification must be responded to in writing. The same information must be made available to any potential tenderer.

6. Get the templates.Preparing your documents

The standard Request for Tender (RFP) template can be tailored according to the complexity of the procurement, but some sections are mandatory for all procurements. Similarly, the Tender Management Plan and Tender Evaluation Report templates can be modified according to the type of procurement.

7. Get the Authority to Proceed.Before you can go to the market, you need to obtain the authority to proceed from the appropriate delegate.

Legal Technical and Financial Review

Once your tender management plan, templates and contracts have been completed then you will need to submit these to Crown Law for Review. Once they have been reviewed then they can be submitted to the tender committee for approval to proceed. In obtaining permission, you should provide them with details of the procurement process in the form of a Tender Management Plan.

8. Approach the Market.Go to the market in the form to match your procurement. For an Open Tender this requires advertising in the local newspaper(s). Advertisements should appear a minimum of 5 times in total by way of at least 3



different sources of public media services. Refer to 4.6.1.3 of Part D, Section 3 of the Cook Islands Government Financial Policies & Procedures. Different processes apply for Closed Tenders and Simple Procurements.

9. Evaluate the Responses and Document the Results.Even a Simple Procurement should be documented. This will ensure delegates and suppliers have confidence in your procedures and your integrity. Templates for the evaluation process and reporting of that process are available.

Tender Evaluation Panel

A panel is required to evaluate the tenders over $30,000. The members that make up this panel will be determined by the type and technical nature of the procurement. Expert(s) may be required to assist with some of the more technical procurements. Once the panel has reached a decision a Tender Report is forwarded to the Tender Committee for final approval.

Tender Committee

The tender committee will give you the authority to enter into contract negotiations.

For all Open and Closed Tenders, the Tender Committee must approve the proposed supplier before you can enter into contract negotiations. For Simple Procurements, the Head of Ministry must approve the purchase.

10. Confirm the Contract.Inform Crown Law

It is important that Crown Law is informed of any contract negotiations. Although a draft Contract accompanies Open and Closed Tenders, specific details of the Contract can only be confirmed once the preferred supplier has been identified. If there are any variations to the contract Crown Law will need to assess the contract and identify any possible issues.

In some circumstances, the failure to negotiate an acceptable Contract may result in the second-ranked supplier being invited to enter Contract Negotiations. It is only when the Contract has been signed by both parties that you can issue the Letter of Acceptance and formally advise the unsuccessful tenders.

11. Notify the Outcome.In addition to advising unsuccessful tenderers of the outcome, they must be offered the opportunity of a debrief if they wish to do so. Similarly, they should be referred to the Ombudsman if they wish to lodge a complaint about your process. All successful tenders should be notified in the media, complete with Contract Price, as soon as practicable after the Contract has been formally awarded.

Website Update

Once the contract has been awarded, inform CIIC of the awarded tender information and they will update the website.

12. Manage the Contract.Active management of the Contract is critical. Suppliers should not receive progressive and/or full payments under the Contract unless they have delivered the required goods/services to the agreed standards specified in the Contract within agreed delivery times.



APPENDIX B

Tender ChecklistUtilise this Checklist to assist you to apply this procedure. If at any point you answer NO, stop the tender process, take steps to remedy the situation and when the answer becomes YES, continue.

Activity Yes No

Has a Market Analysis been carried out by the Chamber of Commerce for the supply of your goods or services?

Has the Tender Documents been reviewed by appropriate personnel at MFEM i.e. Tender Secretariat prior to advertising stage?

Has the Tender Secretariat endorsed an ‘Internal Checklist’ (Attachment 3) and submitted this back to that Ministry/Crown Agency upon 2 working days of receiving all ‘draft’ documentation, prior to the advertising stage of this tender?

Has Appropriation to carry out this tender been confirmed to ensure sufficient funds are available to complete the Contract?

Has Appropriation details been provided in Tender Documents to the Tender Committee along with supporting documents to evidence this?

Has a tender team been established, and do they consist of persons with the appropriate expertise?

Have all members of the tender team or persons opening tenders provided statements advising as to whether or not they have any conflicts of interest? If any conflicts of interest have been identified, have steps been taken to resolve those issues?

Has all the preparatory work detailed in 3.5 of the procedure been completed?

If it is a purchase tender has sufficient time been allowed for Tender Committee review?

Have all the necessary tender specifications documents been prepared?

Have the tender specifications documents been examined by professionalexpertise?

Has the evaluation criteria and evaluation been established and is it clear?

Have all applicable sections of the tender specifications documents been completed?



Activity Yes No

Has the tender been advertised in the local media, allowing at least 10working days for submissions?

Does the tender advertisement have all the information specified in 3.6.1.1?

Has a secure “Tender Box” been prepared for the proposals?

Have the tenders been opened immediately after the close of tenders, inthe presence of any two witnesses who have dated and numberedthe tenders, listed the tenderer details and signed these details?

Has an evaluation team been set up consisting of members with appropriate expertise?

Have the members of the evaluation team been given the appropriate documents to familiarise themselves with the tender?

Have the evaluation team members declared any conflicts of interest?

If so, have steps been taken to resolve these issues?

Has an appropriate method been adopted for the evaluation process?

Have the tenders been evaluated using the evaluation criteria alreadydocumented?

Has the tender and all appropriate documentation been passed onto theTender Committee, attached to the completed Tender Report?

Are there any deviations during the tender process from the Policy?

Approval notification from BTIB, for foreign company to carry on business within the Cook Islands.

Letter of approval obtained from the Financial Secretary?



APPENDIX C

Preliminary Risk Assessment

Preliminary RiskAssessment

This Preliminary Risk Assessment should be used to determine the fundamental risk profile of any procurement as part of developing the Tender Management Plan. Risk should be reassessed regularly throughout the procurement process. The Evaluation Plan has a more detailed risk assessment tailored to the nature of the procurement.

Why assess procurement risk?

The Risk Profile of procurement should reflect the nature of the procurement being undertaken. Procurement effort should, in turn, match the risk profile of procurement. As procurement risk increases, procurement processes demand more rigour and detail.

The risk ratings in the table on the following page will help you to determine the appropriate procurement process for your requirement.


Ministry:

Contact Officer:

Phone:

Email:


Risk Ratings

Risk FactorRisk

L M H

Impact

Potential for negative impact on the reputation of the Ministry or the Government

Potential for negative impact on the capability of the organisation

Potential for poor supplier performance

Potential difficulty in replacing works/goods/service

Complexity

Potential for delivery of works/goods/services to not meet requirements

Potential for procurement process errors (for example, if you this is a new requirement that you have never purchased before)

Overall Costs:

Potential for increase in procurement costs

Overall Risk Profile


Select Low, Medium or High ratings against each risk factor. Consider the likelihood and

The overall risk profile is the rating with the most checks. In case of a tie, select the highest rating.


APPENDIX D

Evaluation Criteria

The Evaluation Criteria has been drawn from the Statement of Requirements, Standard Conditions and Special Conditions as articulated in the RFT. In accordance with clause 4.7.5 of the Manual, Tenders that did not meet the Standard Conditions are deemed non-compliant.

Standard Conditions

Criterion CompliesYes or No

1. Tender is completed in the format contained in Appendix ___ of the RFT.

2. Tenders must be deposited in the required form in the Tender Box by the closing time specified in the RFT

3. Proposal and related documentation must be in the English language.

4. Tenderers must tender to provide the whole of the works/goods/services specified in the RFT. (In some circumstances Tenderers may be able to tender for part of the requirement. This criterion should reflect the conditions of the RFT.)

5. Tenders must be presented in hard copy format only.6. All prices must be in NZ dollars and inclusive of freight landed

in Raratonga.


The Evaluation Criteria must be established at the outset and included in the Tender documents so potential suppliers know how their proposal will be assessed. If for any reason the Evaluation Criteria is changed prior to the Closing of Tenders, all prospective respondents should be advised accordingly. This may be done by directly contacting those who have collected tender documents or reserved a set of documents for collection or by advertising in the same media used to advertise the Tender.

The Evaluation Criteria should be divided into two sections, Standard Conditions and Special Conditions. Both of these criteria must align with the Conditions of Tendering included in the RFT.

Standard Conditions are mandatory and failure to comply with any of these requirements will result in automatic exclusion from the evaluation process.

The Evaluation Criteria shall use a ‘Weighted Scoring’ method to ensure that Value for Money (VfM) can be assessed taking into account all factors weighted according to their importance in respect of the Statement of Requirements. This is illustrated below.


Special Conditions

A Weighted Criteria methodology will apply to the evaluation of the Special Conditions of this RFT. The assignment of weightings is based on the following principles:

The Special Conditions that reflect the critical elements of the project will be assigned a weight Weightings will reflect the relative importance of each criterion Scores will be based on the information provided in the submitted Tender Non-price criteria will not have a value exceeding 40%.

Risk

The Evaluation Committee will conduct a Risk Assessment for each Tender submitted. This will identify the most significant risks presented by the Tender and consider the Likelihood of the risk occurring; the consequence of that risk; and a risk mitigation strategy. In conclusion, the mitigated risk will be determined to form an overall measure of the risk represented by each Tender.

The Risk Mitigation Strategy may include the inclusion of specific clauses in the executed contract. Therefore, a Tender considered to be High Risk might still be selected subject to the Tenderer’s willingness to accept the proposed contract amendments.


The table below is indicative only. You should ensure that the criterion reflect the Statement of Requirements and Special Conditions contained in the RFT. You must consider the relative importance of each criterion and apply an appropriate weight.

Clauses 4.8.3 and its various sub-clauses of the Manual provide further guidance on how you should weight these criteria.

Criteria Weight%

Non-Price Criteria1. Locally established company 52. Locally supplied resources (labour and/or materials) 53. Relevant skills 104. Past Performance 55. Technical Skills 106. Resources 57. Management Skills 5Total Non-Price Elements 40Price 60

TOTAL WEIGHTING 100