Like many aspects of work, getting the planning correct will help the whole process go smoother, minimising mistakes, reducing duplication of effort and making the experience more satisfying. In procurement terms, the planning process falls into the following main areas:
Depending upon value and complexity of the proposed requirement, it may be appropriate to carry out an option appraisal to help explore possible solutions before deciding on the best way forward. This could explore not only different funding options but also alternative ways of providing the requirement
Have an initial brainstorming session of how best to approach the tender exercise. It could be that this is a minimal exercise given the nature of the requirement, in other cases it may be critical to its success
Determine the appropriate competitive process based on the estimated value and whether it falls below or above threshold. This is important, as it will inform whether you will need to follow only your own internal financial regulations, or whether you will also need to ensure compliance with the Procurement Act
Determine who should be involved in the project team to manage the exercise. The number of people involved will depend on the nature, value and complexity of the requirement. For example, if it is for the replacement of your institution’s stationery contract, then input from most user departments will be useful to gain an insight into the successes and weaknesses of the current contract and to have user-support for the new contract
Set up a timetable agreeing dates by which certain aspects of work will be completed, for example:
The drafting of the specification
Agree the tender closing date and date(s) for tender evaluation supplier meetings and if necessary, interviews
Ensure that these dates are agreed and booked in the panel members’ diaries. The interview date should be advised in the tender documentation so that any suppliers called for interview will already have the date noted in the work plans
For above threshold procurement, build in the necessary time to provide assessment summaries of tenderer’s scored submissions and the eight-business-day standstill period between award decision and contract award
Determine the supplier selection and contract award criteria including the relative weightings for the award criteria.
Consider the aspects of the submissions that you wish to assess and determine how the evaluation will be carried out at each stage
Remember they are separate stages within the competitive process, and criteria from one cannot be used in the other, once a selection criterion has been assessed, it cannot be re-visited
Also, don’t ask for information if you are not going to use it, this causes extra work for the tenderers, and you could leave yourself open to questions or criticism about how or why the information requested was (not) used in the evaluation of the tender submissions
Consider whether you will consider variant bids and how these will be assessed if received. Such bids could, for example introduce environmental dimensions to the tender submissions that would not have been immediately obvious to the project team when brainstorming the initial exercise.
Plan the procurement process - associated risks | ||
Issues | Risks | Solutions |
Inadequate planning | · Poor completion of the procurement process · Inefficient use of staff and other resources | · Consider using a check list to help form strategy for the procurement of the identified requirement · Outline a work plan, highlight key milestones and allocate staff time to facilitate the meeting of these |
Valuation of requirement | · Unrealistic valuation of contract leading to an inappropriate competitive process, leading to risk of legal challenge and/or the inefficient use of resources | · Use a Whole Life Costing Model to explore and identify the operating and end of life costs of the proposed purchase · At the final review stage of a completed project, assess the accuracy of the original estimated value for the requirement. Identify what could have been better |
Project team not identified | · The procurement is not managed appropriately · Buy-in not obtained from main stakeholders | · At the start determine the appropriate personnel to be involved in managing the procurement, giving thought to its value and complexity · If necessary, obtain expenditure information to identify the key users of the proposed supplies or services. Seek representations from within that group to participate in the tender exercise |
No challenge of requirement | · Unnecessary or inappropriate purchase made, and funds used that could have been put to better use | · Ensure that questions are asked when a requirement is proposed. The level of challenge should reflect the value and complexity of the procurement |
No consideration of aggregation opportunity | · Opportunity for leverage (using the purchasing power/value to gain better terms contract) is missed · Lack of willingness to coordinate requirement within the institution leads to wasted resources | · Use of better planning and the development of a culture of aggregation within the department, institution or between institutions · The institution’s senior management must support the procurement function by encouraging a coordinated and aggregated approach to procurement needs |
No option or investment appraisal completed | · Alternative solutions not identified or considered · Opportunity of a better solution is missed or a purchase made when it was not necessary | · An outline business case and an options appraisal should be completed for all procurements above a stated value. The detail in both reflecting the value and complexity of the proposed procurement · The ‘do ‘nothing’ options should always be considered to identify if there is a genuine need for the proposed supplies or services |
Strategic requirements of department and/or institution not considered | · The proposed procurement does not support, or is contrary to current strategic goals | · Review the proposed procurement against the department or institution’s strategic goals and current procurement plan (which should state the known medium to long term plans) · Include this strategic review within the outline business case |
Project timetable not set | · Deadlines slip · Key staff not available for key meetings · Delivery of the supplies or services is later than planned or required · Supplies or services are provided but staff are not appointed to use them | · Prepare a timetable for the project and identify key milestones · Identify risks associated with missing milestones and develop outline strategies to deal with slippages · Ensure key dates are noted in the project team members’ diaries (holding, if necessary, extra days to deal with a higher-than-expected interest in the project) · If future dates are known, consideration should be given to setting up the timetable working backwards from the end date · Planning stage should include discussions with Human Resources to gain an indication of lead times for the appointment of new staff specifically related to the delivery of the proposed procurement |
School / MAT members - the information on this page aligns with the following ISBL Professional Standards: 3.33, 3.34, 3.35, 3.36