REQUEST DOCUMENT
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Procurement Plan
[Products and services procurement templates - procurement plan]
TITLE:
[Insert the Title]
PUBLIC AUTHORITY:
[Insert Public Authority Name Here]
ORUse Contract Authority for CUA and regional group buy only
Contract Authority:
Department of Finance
Approved by:
...... /...... /201
[Insert name of public authority’s accountable authority or delegate]
[Insert Title]
If for a procurement activity that is $5 million or more insert the following:
State Tender Review Committee Endorsed
Date://201
[DRAFT/FINAL]Page 1 of 30Finance version 011018
PROCUREMENT PLAN
Table of Contents
1.SUMMARY OF PROPOSED PROCUREMENT
1.1BACKGROUND
1.2SCOPE
1.3CONTRACT COMMENCEMENT DATE
1.4NUMBER OF CONTRACTORS
1.5CONTRACT TERM
1.6FUNDING
1.7ESTIMATED CONTRACT VALUE
1.8CONTRACT AUTHORITY OR CUSTOMER OR CONTRACT AUTHORITY AND CUSTOMER [Edit to suit option used below]
1.9REQUEST AND GENERAL CONDITIONS
1.10APPROVAL TO PROCEED
1.11OFFICE OF DIGITAL GOVERNMENT SUPPORT
2.CURRENT CONTRACT ARRANGEMENTS
2.1SUPPLY ARRANGEMENTS
2.2CONTRACT COMMENCEMENT AND EXPIRATION
2.3CURRENT CONTRACTORS
2.4CONTRACT/CUA VALUE
2.5STRENGTHS AND WEAKNESSES OF CURRENT CONTRACT/ARRANGEMENT
2.5.1STRATEGIES TO ADDRESS WEAKNESSES
2.6PREVIOUS CONTRACT ISSUES
2.7PREVIOUS PROCUREMENT PROCESS ISSUES
3.PROPOSED PROCUREMENT TIMETABLE
3.1KEY PROPOSED DATES
4.RISK ANALYSIS
5.BUY LOCAL POLICY AND WESTERN AUSTRALIAN INDUSTRY PARTICIPATION STRATEGY
5.1PLANNING THE PURCHASE
5.1.1LOCAL BUSINESS CAPACITY
5.1.2LOCAL CONTENT
5.1.3EARLY TENDER ADVICE
5.1.4REGIONAL SKILLS & ECONOMIC DEVELOPMENT
5.1.5PARTICIPATION PLAN
5.2EVALUATION
5.2.1PRICE PREFERENCES
5.2.2VALUE FOR MONEY
6.PROCUREMENT RESEARCH
6.1ALTERNATIVE PROCUREMENT OPTIONS
6.1.1PROCUREMENT STRATEGIES CONSIDERED
6.2NUMBER OF RESPONDENTS
6.3STAKEHOLDER RESEARCH
6.3.1INDUSTRY
6.3.2PUBLIC AUTHORITY
6.3.3OTHER
6.4PROPOSED PROCUREMENT SYSTEMS APPROACH
6.5SUSTAINABILITY ISSUES
6.6SPECIFICATION TYPE
6.7QUALITY REQUIREMENTS
6.8PRICE RESEARCH
6.9GATEWAY
7.PROCUREMENT METHODOLOGY AND STRATEGY
7.1PROCUREMENT METHOD
7.2PROCUREMENT OBJECTIVE – VALUE FOR MONEY
7.3EVALUATION PROCESS AND REQUIREMENTS
7.3.1EVALUATION PROCESS
7.3.2PRE-QUALIFICATION REQUIREMENTS
7.3.3COMPLIANCE AND DISCLOSURE REQUIREMENTS
7.3.4QUALITATIVE REQUIREMENTS
7.4INSURANCE REQUIREMENTS
7.5EVALUATION RATING SCALE
7.6PRICE
7.6.1PRICING MODEL
7.6.2PRICE VARIATIONS
7.7BUYING RULES
7.8REQUEST BRIEFING SESSION
7.9EVALUATION COMMITTEE
8.CONTRACT MANAGEMENT
8.1GOVERNANCE
8.2CONTRACT MANAGEMENT PLAN
8.3CONTRACT MANAGER
8.3.1CONTRACT MANAGER
8.3.2CONTRACT MANAGEMENT TEAM[Delete if no contract management team]
8.3.3CONTRACT HANDOVER
8.4PERFORMANCE REQUIREMENTS
8.5TRANSITION
8.6CONTRACT REVIEW
8.7RISK MANAGEMENT
8.8WAIPS MANAGEMENT AND REPORTING
8.9CUSTOMER/CLIENT REFERENCE GROUP
8.10PROMOTION AND MARKETING
8.11BUYERS GUIDE
8.12APPLICATIONS FROM NEW SUPPLIERS
8.13ADDING/REMOVING PRODUCTS
APPENDIX A – RISK REGISTER
[DRAFT/FINAL]Page 1 of 30Finance version 011018
PROCUREMENT PLAN
1.SUMMARY OF PROPOSED PROCUREMENT
1.1BACKGROUND
State why the procurement is required and expected outcomes.
If a Business Case was prepared in support of the procurement and pertinent issues were raised, make reference to those issues under this heading – cross-reference to other sections within the Plan if relevant.
1.2SCOPE
Provide summary/overview of the project requirements and any special user requirements.
Where approval has been provided to make a CUA (or part of a CUA) non-mandatory, provide details as to when approval was provided and discuss the impact on SSC policies including prior approval received.
1.3CONTRACT COMMENCEMENT DATE
The proposed contract commencement date is [insert date].
1.4NUMBER OF CONTRACTORS
A single contractor will be appointed.
OR
A single contractor will be appointed for each discreet part of the procurement.There will be [number] discreet parts to the procurement.
[Where a project is structured to be performed in discreet parts and is tendered in one tender and a separate individual contractor,potentially, will be appointed for each discreet part then this is not a panel of contractors.Include details in relation to the number of discreet parts of the project]
OR
A panel of contractors will be appointed.
[If a panel of contractors is to be appointed, include detail in relation to numbers of Orders likely to be placed; a breakdown of the likely value of Orders (eg 50% of Orders are likely to be under $5000); and if there are categories, the number of Orders for each category and the value of each category]
1.5CONTRACT TERM
[Please consider the contract term carefully. While the SSC Open and Effective Competition policy states Accountable Authority approval is required for a contract term longer than five years, there are many factors to consider when determining a contract term.Consideration of these factors could influence the deliberation for a longer than five year contract term.
These include:
- upfront investment by suppliers;
- life cycle of product being delivered;
- the market and whether volatile;
- future Departmental needs and
- efficacy of previous contract term.]
The proposed contract term is [insert number of years] years.
There are [insert number of years] year extension options available at the absolute discretion of the [Department of Finance (Finance) OR name of public authority].
Provide an explanation of the factors considered, and what influence those factors had on determining the proposed contract term. The explanation is required for all proposed contract terms.
1.6FUNDING
Not applicable to CUA
The availability of appropriate funding has been confirmed by (name and title of senior officer eg Director or equivalent).
1.7ESTIMATED CONTRACT VALUE
The estimated contract value, including all extension options, is $xx. This equates to $xx per annum.
Provide an explanation of the basis for the contract value eg based on existing contract expenditure; market research; budget availability; projected agency demand; any pricing or usage trends.
1.8CONTRACT AUTHORITY OR CUSTOMER OR CONTRACT AUTHORITY AND CUSTOMER[Edit to suit option used below]
[use for CUAs / regional group buys only] The Contract Authority will be the Director General, Department of Finance, as delegate of the State Supply Commission.
OR
[use for Agency Specific requests] The Customer will be the (Accountable Authority title and name of Public Authority).
OR
[use for Agency Specific Panels] The Contract Authority and Customer will be the (Accountable Authority title and name of Public Authority).
1.9REQUEST AND GENERAL CONDITIONS
The Request Conditions and General Conditions of Contract [October 2018] will apply to this requirement.
1.10APPROVAL TO PROCEED
Approval to proceed with the procurement has been provided by (name and title of senior officer eg Director or equivalent).
1.11OFFICE OF DIGITALGOVERNMENT SUPPORT
[FOR ICT PROCUREMENTS ONLY]
[Agencies must gain support for all ICT Procurement Activity from the Office of DigitalGovernment prior to submitting the procurement plan to STRC. Please forward information about how this ICT purchase will meet the Government's Digital Strategy to the Executive Director, GovNext Service Broker (GSB) at .]
The Office of DigitalGovernment has been consulted about this procurement and[supports / does not support]the approach.
2.CURRENT CONTRACT ARRANGEMENTS
2.1SUPPLY ARRANGEMENTS
The [current]/[previous][contract]/[arrangement] for the provision of the [insert product/service title] was by means of Public Tender.
Give a brief summary of the performance of the contract. If no previous contract existed, explain how the products/services have been historically purchased.
2.2CONTRACT COMMENCEMENT AND EXPIRATION
The current contract commenced on [insert date]. The contract expiration date is/was[insert date].
Insert further detail in relation to whether the contract was terminated prior to the expiration date or whether there were extensions beyond term and if so, the extended term and value.
2.3CURRENT CONTRACTORS
The current contract provider(s) is/are[Insert contractor names].
2.4CONTRACT/CUA VALUE
A total of $xxxx has been paid under the contract/CUA.
Insert further detail about the current spend – whether it is increasing or decreasing; how the actual spend is tracking against the awarded value; and any other trends with respect to the contract price.
2.5STRENGTHS AND WEAKNESSES OF CURRENT CONTRACT/ARRANGEMENT
The strengths of the currentcontract/arrangement are [insert strengths eg established good supplier relationship, excellent performance delivery, great customer service, local content benefits, eg local business supplier, job creation].
The weaknesses of the currentcontract/arrangement are [insert weaknesses eg insufficient policy compliance, high transaction costs, poor contract management/administration lack of supplier feedback, no local supplier].
2.5.1STRATEGIES TO ADDRESS WEAKNESSES
The weaknesses identified are addressed as outlined in the following table: [insert weaknesses as identified above and how the weakness is being address through the procurement strategy or proposed contractual arrangement. Add/delete rows as required.]
WEAKNESS / STRATEGY TO ADDRESS[Insert weakness] / [Insert details]
[Insert weakness] / [Insert details]
[Insert weakness] / [Insert details]
[Insert weakness] / [Insert details]
2.6PREVIOUS CONTRACT ISSUES
Option 1 – No significant problems have arisen during the term of the contract.
OR
Option 2 – The key issues that arose from this contract and their impact were as follows:(include information about how these issues were addressed)
a)Implementation;
b)Price; and
c)Performance reviews.
2.7PREVIOUS PROCUREMENT PROCESS ISSUES
Option 1
There were no significant issueswith the previous procurement process to form the current contract.
OR
Option 2
The key issues that arose during the previous procurement process and their impact were as follows:(include information about how these issues have been addressed for this procurement process)
a)[Insert details ie lack of or minimal bids received, excessively long procurement process];
3.PROPOSED PROCUREMENT TIMETABLE
3.1KEY PROPOSED DATES
The key dates for the proposed procurement are as follows:
Edit as applicable
STAGE / TARGET DATEEarly Tender Advice notification
Procurement Plan submitted to STRC
STRC endorsement of Procurement Plan
Procurement Plan approval by Accountable Authority
Request documentation completed
Draft Request advertised for industry comment
Pre-Tender Industry Forum
Approval of Request document
Request advertised
Request briefing
Request closes
Request evaluation and recommendation
Evaluation Report submitted to STRC
STRC endorsement of Evaluation Report
Evaluation Report approval by Accountable Authority
Contract negotiations
Contract commencement date
Contract Management Plan submitted to STRC
STRC notingof Contract Management Plan
Contract Management Plan approval by Accountable Authority
4.RISK ANALYSIS
[Select the most appropriate option below]
[Option 1]The proposed new contract(s) should not put the Government/public authorities/supplier at any undue risk [Include next sentence if applicable]. Furthermore, the proposed contract is not new to government and contracted procurement of this service/product is currently being successfully used by [insert public authority].
[OROption 2]A number of risks were identified in the proposed procurement.
See Appendix A for identified risks, along with their ratings and management strategies.
[Note: risks must be attached, regardless of risk rating]
5.BUY LOCAL POLICY AND WESTERN AUSTRALIAN INDUSTRY PARTICIPATION STRATEGY
The following provides an overview of the Buy Local Policyand Western Australian Industry Participation Strategy(WAIPS) issues that need to be considered as part of the Procurement Plan. The level and type of information provided depends on the nature of the procurement. Further reference to the Buy Local Policy and theWAIPSshould be made for further consideration of the issues. The Buy Local Policy may be found at on WAIPS and its implementation may be found at: contact the Industry Link Advisory Service at the Department of Jobs, Tourism, Science and Innovation, telephone 9222 0722.
Prior to the finalisation of the Procurement Plan and with respect to:
- Buy Local Policy requirements, approvalto use an alternative strategy in a specific purchase or contract regarding price preferences must be secured; and
- WAIPS Participation Plan requirements, approval to not include the Participation Plan as a weighted qualitative requirement must be sought and a decision obtained.
The above approvals and exemptions are to be sought from the Local Content Advisory Committee, c/- the Industry Participation Team at the Department of Jobs, Tourism, Science and Innovation, telephone 9222 0779, email: . A minimum of fifteen (15) working days should be allowed for either of these processes.
5.1PLANNING THE PURCHASE
5.1.1LOCAL BUSINESS CAPACITY
Describe what research has been undertaken to examine the level of capability of local businesses to meet the procurement requirements. Some examples are provided, below. Please adapt, delete and/or add more dot points as appropriate. Note WAIPS requirements such as consultation with Local Content Advisors and contract structure and buying rules if CUA or panel contract with state-wide delivery points to provide opportunities for regional industry participation.
Local businesses have the capacity to meet the contract size and scope requirements, based on:
- previous, similar or current contracts – did local businesses respond;
- discussions with the Industry Link Advisory Service (Department of Jobs, Tourism, Science and Innovation) and with Local Content Advisors (Regional Development Commissions, Department of Primary Industries and Regional Development)
- discussions with relevant industry associations,the Industry Capability Network Western Australia;
- a number of potential local business respondents;
- research undertaken by public authority and/or Finance;
- generic nature of the specification/scope of works;
- flexibility for respondents to respond to all or some of the required products/services; and
- a potential for local industry development.
5.1.2LOCAL CONTENT
Describe what research/processes have or will be undertaken to examine how to maximise the level of local content. Also indicate the anticipated level of local content.Local content should be examined at a number of levels; regional, Western Australian and Australia.
Note WAIPS requirements such as consultation with Local Content Advisors and contract structure and buying rules if CUA or panel contract with state-wide delivery points to provide opportunities for regional industry participation.
Some examples are provided, below. Please adapt, delete and/or add more dot points as appropriate.
The anticipated level of local content for this contract is as follows:
- The majority of the products, materials and services and the degree the contract outcomes are anticipated to be sourced locally;
- A local Western Australian supplier is likely to source the products from elsewhere, but is likely to undertake repairs and maintenance locally;
- A local Western Australian supplier is likely to source all required services from within Western Australia;
- A local supplier may (insert manufacture the goods, provide the repair and/or maintenance services etc) in Western Australia; and
- (Insert other example).
This estimation is based on:
- the level of local content for previous, similar or current contracts; and
- (insert results of other research).
5.1.3EARLY TENDER ADVICE
An early tender advice notice [shall be]/[has been] placed on Tenders WA for this proposed procurement.
5.1.4REGIONAL SKILLS & ECONOMIC DEVELOPMENT
For regional contracts with a value of over $500,000, the Procurement Plan must address how regional skills and economic development will be maximised via the procurement process.
5.1.5PARTICIPATION PLAN
Unless otherwise exempted by the Minister for Jobs or their delegate, the Contract Authority/Customer must include the Participation Plan as a weighted criterion. The decision to weight the Participation Plan at 10% or 20%, rests with the procuring agency, and should be made on the basis of the existence of a competitive market for the goods or services.The Procurement Plan must address why a 10% or 20% weighting has been selected.
The Minister for Jobs may identify certain projects or procurements as having strategic importance to Western Australian economy and declare these to be a ‘Strategic Project’. If this is the case, indicate this here inclusive of any additional local commitments and any upward variation to the qualitative requirement weighting as prescribed by the Minister for Jobs.
The Participation Plan will be included as a qualitative requirement with a [10% OR 20%] weighting and Respondents will be required to complete the Participation Plan annexure. (insert details to selection of applicable weighting)
5.2EVALUATION
5.2.1PRICE PREFERENCES
Price preferences (including regional and imported content impost) will be applied where applicable.
5.2.2VALUE FOR MONEY
Benefits from purchasing from local businesses and the level of local content, will be recognised in assessments of value for money and assessing responses against State local industry development objectives.
6.PROCUREMENT RESEARCH
6.1ALTERNATIVE PROCUREMENT OPTIONS
6.1.1PROCUREMENT STRATEGIES CONSIDERED
Provide details of the procurement strategies considered (eg. Single Stage or Two Stage, Open Tender, pre-qualification, leasing, public/private partnerships, source from internal resources, source from other public sector agencies, not source, or whether a CUA exists or is under development but is not suitable for this requirement), benefits analysis for each option, and which option is preferred.
State why the preferred option was chosen eg best method to achieve a value for money outcome, achieve regional purchasing objectives, used in past successfully for similar services/products. This should be a business case type analysis and may be several pages long. It should include details of all contract structure and non-contract options for the products/services provision.
6.2NUMBER OF RESPONDENTS
It is anticipated that [insert number]responseswill be received, based on [insert reason eg previous experience in contracting for this product/service, industry size etc].
The majority of respondents are likely to represent big/medium/small firms from Western Australia/the Eastern states/overseas.
6.3STAKEHOLDER RESEARCH
All relevant stakeholders have been consulted in relation to this proposed procurement.
A summary of the stakeholder research and feedback is as follows:
NB: sub-sections listed below have a CUA focus
6.3.1INDUSTRY
- Research undertaken
- Current relationships/delivery mechanisms
- Impact of the CUA or contract on industry, particularly in regional areas.
6.3.2PUBLIC AUTHORITY
- Summarise potential usage of different public authorities if a CUA or if an agency specific contract, details of other agencies who use the good or service and their experiences
- Outline current buying arrangements and any impact on these arrangements the new CUA or contract may have.
6.3.3OTHER
- Research undertaken (please specify eg schools, local council, community groups, special clients – disabled, seniors)
- Current relationships/delivery mechanisms
- If a CUA the impact of the CUA on these groups, particularly in regional areas.
- CUA’s or contracts in other Australian states or the private sector.
6.4PROPOSED PROCUREMENT SYSTEMS APPROACH