Instructions for use of this document: Guidelines for drafting this document are in italics. Each Purchase Recommendation will need to be customised according to the nature, complexity and value of the procurement.

[Name of Public Authority]

Purchase Recommendation

[Procurement Description]

[Date]

Table of Contents

1.Executive Summary

2.Purchase Recommendation Details

3.Link to the Acquisition Plan

4.Supply Market Approach

5.Invitation Response Summary

6.Offer Evaluation

7.Negotiations

8.Contractual Arrangements

9.Risk and Insurance

10.Contract Management/Implementation

11.Other Information

12.Recommendation

Attachment One: Consolidated Scoring and Comments

Attachment Two: Detailed Price List

Sign Off

Purchase Recommendation Prepared by:

Signed: ______Name: ______

Date: ______Position: ______

Evaluation Team Endorsement:

Signed (Chair): ______Name: ______

Date: ______Position: ______

TeamMember Name / Signature / Date

Work Unit Director – Endorsement:

Signed: ______Name: ______

Date: ______Position: ______

Procurement Unit – Endorsement:

Signed: ______Name: ______

Date: ______Position: ______

Procurement Approval of Purchase Recommendation:

☐Approved

☐Endorsed for consideration by the State Procurement Board

☐Conditions related to approval:

......

......

☐Not approved

Signed: ______Name: ______

Date: ______Position: ______

  1. Executive Summary

Title of Procurement
Department / Section
File/Reference Number
Brief Description of Purchase
Date Acquisition Plan was approved
Recommended Supplier/s
Approving Delegate
Contact Person Details / Name:
Title:
Phone:
Email:
Procurement Method Undertaken / ☐Request for Quotation
☐Invitation for Expression of Interest
☐Invitation to Supply
☐Direct Negotiation
☐Competitive Dialogue
☐Other ...... / ☐Single
☐Selective
☐Open
☐Multi- Stage
Contract Type / (Tick one or more as applicable)
☐One Off Purchase
☐One Off Purchase with maintenance options
☐Period Contract
☐Panel Contract
☐Pre-qualification
☐Other (please detail) ......
Contract Term / Base Contract Term:
Options:
Total Contract Term:
Contract Value (GST Inclusive) / Base Contract Value:
Options:
Total Contract Value:
Budget (GST inclusive) / $
Pricing Information / ☐Fixed Maximum
☐Exchange Rate Variable
☐Fixed
☐CPI Variable
☐Other (please detail) ......
Total Savings Achieved / $
Description of Savings and how achieved (market approach, negotiation etc)
Contract Coverage / ☐Metropolitan Adelaide
☐Regional South Australia
☐Statewide
☐Other
Location of Supplier’s office / ☐Metropolitan Adelaide
☐Regional South Australia
☐Other Australian States and New Zealand
☐Overseas countries (excluding New Zealand)
(Please note if the Adelaide office of a large national supplier is responsible for undertaking the contract work, then the location of the supplier is Metropolitan Adelaide).
Contract Disclosure / Is this contract subject to contract disclosure as per Premier and Cabinet Circular 27?
☐Yes
☐No
Contract Execution Delegate
Additional Information
  1. Purchase Recommendation Details

Provide a clear description of the purchase, the recommended supplier and the contract to be entered into.

Provide details of costs including the cost structure of the preferred supplier’s offer and a final estimate of the contract costs/s over the total contract term, including any extension options.

Compare the final contract value and the budget for the procurement as per the acquisition plan and discuss implications and reasons of discrepancies.

Confirm that funds are available.

  1. Link to the Acquisition Plan

Discuss the procurement objectives identified in the acquisition plan and how these have been achieved by entering into the recommended contract.

Confirm that the procurement process undertaken was in accordance with the approved Acquisition Plan and Evaluation Plan or, if this is not the case, document any amendments from the approved plans.

Document deviations, any approvals obtained for the deviations, including (butnot limited to) any changes in:

  • the composition of the evaluation team;
  • the evaluation methodology;
  • the method of approaching the market;
  • timeframes;
  • procurement scope; and
  • potential term varied from acquisition plan approval.
  1. Supply Market Approach

Describe the activities undertaken in the supply market approach phase, including:

  • any pre-invitation meetings or briefings with suppliers;
  • the supply market approach used;
  • date and times bids were opened and closed;
  • clarifications issued during theinvitation call period; and
  • any extensions to the invitation call period and the reasons for this.

Document any late offers received and the outcome.

  1. Invitation Response Summary

Name the suppliers and the value of each offer (including options) when initially opened.

Name of Supplier / Evaluation Score / Ranking / Offer Value $ (GST inclusive) / Final Value $ (GST inclusive)
  1. Offer Evaluation

Provide a brief description of the evaluation process including the name of the evaluation team members. Confirm that there were no conflicts of interest or how conflicts were resolved.

Provide brief details of the evaluation methodology and criteria (including weightings and scoring methodology) against which offers were evaluated.

Provide a summary of each supplier’s capability and weaknesses. Include a detailed evaluation report in the AttachmentOne to a level that enables accurate debriefing and feedback to suppliers.

Summarise information related to requests for clarification, site visits, referee checks, demonstrations and any other discussions with suppliers.

Provide a shortlist of suppliers, scores and reasons for shortlisting. Also provide reasons for not shortlisting suppliers.

Provide any additional information used to arrive at the final value for money conclusions.

Summarise value-for-money calculations.

Document any financial viability checks undertaken.

  1. Negotiations

Describe any negotiations undertaken, and the outcome of these discussions, including:

  • post-invitation risks identified and mitigation strategies developed;
  • terms and conditions agreed to or negotiated which vary the approved acquisition plan, the specification or the contract; and
  • a summary of final offer costs and benefits (for example, cost reductions or value adds) achieved by negotiations.

Refer final detailed Price List in Attachment Two.

Describe any savings and how they were achieved.

  1. Contractual Arrangements

Document any legal advice received, particularly for high value and high risk non-standard contracts.

Describe the proposed contract terms, conditions and arrangements, including:

  • pricing and payment arrangements including price variation clauses and processes;
  • contract adjustment mechanisms;
  • management of currency issues attached to pricing;
  • provision for variations to scope during the life of the contract;
  • how poor performance will be managed;
  • performance indicators and how they will be measured; and
  • intellectual property and use of proprietary products etc.

Document Industry Participation Policy requirements.

  1. Risk and Insurance

Describe:

  • insurance requirements;
  • limitation of liability requirements;
  • if securities are required and details (bank guarantees, retention sums);
  • the impact, if any, on departures from the specified deliverables and commercial requirements; and
  • any critical issues and risks associated with the recommendation(s).

Identify any critical issues and risks associated with the recommendation.

  1. Contract Management/Implementation

Outline how deliverables are to be managed and implemented

Outline contract management structure/arrangements/governance arrangements and whether a contract management plan has been/is to be developed.

Document person(s) responsible for managing the contract and key mechanisms to be established.

Outline

  • how implementation will be managed including whether an implementation plan is required.
  • communication strategies with key stakeholders and users; and
  • transition in and out arrangements.

Document contract commencement date.

  1. Other Information

Identify any other issues or information relevant to the procurement.

  1. Recommendation

Describe the recommendation to award a contract(s), including:

  • purpose of the contract
  • scope and type of contract;
  • brief description of the goods and or/services;
  • recommended supplier(s) and parties to the contract; and
  • contract value and period.

Attachment One: Consolidated Scoring and Comments

Evaluation Criteria 1: specify
Weighting for criteria = %
Supplier Name / Agreed Score / Weighted Score / Comments (reason for score)
Supplier One
Supplier Two
Supplier Three
Supplier Four
Supplier Five
Supplier Six
Evaluation Criteria 2: specify
Weighting for criteria = %
Supplier Name / Agreed Score / Weighted Score / Comments (reason for score)
Supplier One
Supplier Two
Supplier Three
Supplier Four
Supplier Five
Supplier Six
Evaluation Criteria 3: specify
Weighting for criteria = %
Supplier Name / Agreed Score / Weighted Score / Comments (reason for score)
Supplier One
Supplier Two
Supplier Three
Supplier Four
Supplier Five
Supplier Six
Evaluation Criteria 4: specify
Weighting for criteria = %
Supplier Name / Agreed Score / Weighted Score / Comments (reason for score)
Supplier One
Supplier Two
Supplier Three
Supplier Four
Supplier Five
Supplier Six
Evaluation Criteria 5: specify
Weighting for criteria = %
Supplier Name / Agreed Score / Weighted Score / Comments (reason for score)
Supplier One
Supplier Two
Supplier Three
Supplier Four
Supplier Five
Supplier Six

Attachment Two: Detailed Price List

Purchase Recommendation1Version 2.1 December 2016