What is a procurement plan?
A procurement plan documents the necessary components to support the procurement activity. The plan draws together each of the earlier planning tasks to provide the best way to proceed and how to achieve value for money outcomes.
A procurement plan can also be called a procurement business case or a tender strategy.
What is an evaluation plan?
The evaluation plan sets out how to evaluate offers. Evaluation plans describe:
- methods that will be used to evaluate offers
- techniques to support the evaluation
- resources allocated to the evaluation
- timing to complete the evaluation
The evaluation plan:
- is written around the evaluation criteria
- provides structure and direction to the process of selecting the best offer
- defines responsibilities for tasks within the evaluation
- supports all probity, ethical and legal obligations
- forms part of the audit trail
The evaluation plan is prepared before approaching the market. This demonstrates that the evaluation is not biased or influenced by any of the offers.
How to prepare a procurement plan
Step 1: Document the findings
Document the findings from the earlier planning tasks:
- Define the need
- Analyse the market
- Plan for procurement-related policies
- Determine the procurement method
- Analyse risks
- Plan for probity
- Plan to engage suppliers
- Plan for evaluation
- Plan for contract management
- Plan for asset disposal
For goods and services, complete a procurement business case. Go to step 2.
For construction, record the findings in the tender strategy. Go to step 3.
Step 2: Goods and services - Prepare a procurement business case
Check to see if the Agency has a procurement business case template. The template will describe the level of detail required to gain approval. If there is a template use it.
If not, review the creating a procurement business case guide. The scope of the business case depends on the complexity of the procurement. A simple, low risk, low value purchase may only need a description of the business need and price. The business case for a highly complex procurement may need to assess a range of detailed delivery options.
Use the procurement business case structure tool – goods and services to understand what needs to be include in the business procurement case.
The level of detail will reflect the level of complexity identified in determine the procurement method section.
Complete the relevant document. Go to step 4.
Step 3: Construction - Prepare a tender strategy
Record the findings in the tender strategy. Refer to Instruction 3.1.1.
Go to step 4.
Step 4: Plan for end of contract review
Contract reviews are an important step to ensure clarity, mitigate risks, and protect the interests of both buyers and suppliers to manage contract performance. Deciding what to review at the end of a contract should be included in the procurement plan.
Consider reviewing the:
- planning process
- the invitation to market documents
- sourcing process
- delivery of services
- ongoing need for the services
The type and depth of the review will depend on the contract, considering the:
- nature
- scope
- level of risk
- complexity
Step 5: Consult with stakeholders
The Project or Procurement Officer is responsible for the preparation of the procurement plan and consultation with the relevant stakeholders.
Seek endorsement for the procurement plan.
Depending on the size and complexity of the procurement, stakeholders may include:
Procurement advisor
Procurement advisor is responsible for:
- reviewing the procurement plan
- advising on suitable procurement strategies
- providing advice on approval processes required, and
- overseeing approval processes.
Project Sponsor
Project sponsor is responsible for:
- approval of the procurement plan
Project team members
Project team members are responsible for:
- contribute to the preparation of the procurement plan
Subject matter experts
Subject matter experts are responsible for:
- specialist input to the procurement plan
Step 6: Seek approval
Seek approval for the procurement plan.
Approval will vary depending on the type and nature of the procurement.
Address Agency rules when seeking approval to proceed to the creating the documents to approach the market.
Consider:
Manage probity and conflicts of interest
Manage probity – consider issues raised at Probity issues by stage and task.
Conflicts of interest can arise during this task. Identify, declare and manage these.
Address Agency rules
Consult with your Agency’s procurement team for advice on meeting:
- procurement rules and policies
- Agency specific rules and policies
Follow Agency specific rules on when to seek an approval and who can give the approval.
Follow Agency specific rules for recording decisions and storing records.
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