PROCUREMENT STRATEGY

Summary of Requirement

This should summarise the nature of the procurement. Background including future developmentsWhat is being purchased - scope of work, related work that is not included, optional work that could be beneficially provided by the supplier.Objectives of the procurement. The business case (see the section on Business Cases, SPD Toolkit) can be incorporated or attached as an annex.

Customer/Contract Manager

This is the customer who has generated the requisition. The intended contract manager should also be identified and this may be the ‘customer’ or someone else in the same division.

Estimated contract value/available budget

This should show the estimate of the contract value over the whole life of the contract and the budget available to cover the goods/works or in a service contract the contract duration.

Duration of contract

The contract period, e.g. for a cleaning contract it may be 2 years or for a consultancy the duration would be the period from contract commencement to the delivery of the final output etc include any options to extend the contract beyond the core period.

Market capability

This should include an evaluation of the competitive environment including suppliers. Capability and capacity to meet your requirements and those of the rest of the public sector.

Sustainable Development

This should include consideration of sustainable development issues pertinent to the procurement, and an assessment of the extent to which goods and services can be manufactured used and disposed of in ways which reduce resource use, energy use, travel and pollution. Where there may be significant Sustainable Development issues associated with the procurement, relevant stakeholders (e.g. Accommodation - Environmental Management, Environment Group and Sustainable Development) should be consulted at the earliest opportunity

Risks

This should identify the relevant risks involved. Possible risks include - Business Risk e.g. supplier’s failure to deliver may have a significant affect on government policy.Service/Operational Risk should be managed by party best placed to do so e.g. design, build, finance, operate.External Risk e.g. Legislation (does the Transfer of undertakings (Protection of Employment) apply); innovative product; limited number of providers.Implications of FOI

Procurement Process

How the procurement process is conducted in terms of

Project Team - representation from key stakeholders Procurement Options - Relate to procurement priorities; capability and capacity of

suppliers; single supplier vs. multiple suppliers option. Procurement Route - How EU rules apply; collaborative opportunities including OGC

contracts; Open, Restricted, Negotiated procedures; Strategic partnering arrangements; non-Competitive Action

Advertising - SE internet, OJEU, GO, press, trade journals, Potential Suppliers Database (link) etc.

Structuring of the Invitation to Tender document - What documents will comprise the tender (for SPD staff - UCMS format). Expected distribution. ETS

Criteria for tender evaluation - most economically advantageous tender/ lowest price. Subject to complexity of project, it may be desirable to expand on specific criteria at this stage.

Contract management arrangements - Contract Type, Form of Contract (recompetition), Review periods, Payment Mechanisms (EASEbuy as applicable for SE contracts), Incentives and Rewards.

N.B. If Non-Competitive Action (NCA) is being proposed, supporting evidence is required.

Pricing strategy

The pricing arrangement should be set out, e.g. fixed price, daily rate, target pricing, schedule of rates, arrangements for optional costs, payment stages, effect of e-procurement/e-trading etc. Pricing strategy should aim to incorporate all foreseeable costs.

Tender Evaluation Team

This sets out who is in the project team, what their roles and responsibilities are including any particular strengths and weaknesses.

Timetable

This should show all the main tasks and milestone dates for the completion of such tasks. SPD should use UCMS action list as a guide.