The Lean Sourcing Process
Pippa Bass, Deputy Director, Procurement Capability and
Process Improvement
UNCLASSIFIED
09/04/2015
Background
• At the end of 2010 the Minister for the Cabinet Office, Francis Maude,
announced a “Lean Review” to uncover wasteful practices and
unnecessary complexity in the Government’s procurement process
and to suggest actions to rectify them.
• The objective was to examine how the procurement process can be
accelerated within UK central government to make doing business
with government faster and cheaper for buyer and supplier.
• The 6 week study investigated two examples of recent procurement:
both competitive dialogue for ICT services in central departments.
• The study found that there were significant savings to be made in
time and cost by working in a more efficient and effective way.
Lean Review Findings
Five Key Themes
Lean Review Output
Phase Two
• One of the study outputs was a proposed new way of managing
competitive dialogue procurements, based on lean principles and
within the existing legal framework, that eliminates waste and
unnecessary sequential activity.
• From this starting point, the Cabinet Office has developed a “standard
solution” - a suite of tools aimed at procurement practitioners for the
sourcing stages of competitive dialogue, restricted, and open
procurement routes.
Standard Solution
Standard Operating
Procedures (SOPs)
A set of high level
desk instructions
describing the best
known method for
carrying out the
activities described in
the value stream
map
The Standard Solution enables the
execution of the lean sourcing
process. It provides a suite of tools
that you can use to execute the
sourcing process from business
need identification and baselining
through to contract award &
signature.
Procurement Route Decision Tree
A tool to assist
procurement
professionals to
think through
and identify the
most
appropriate
procurement
route for their
requirement.
500
Start
A policy decision has taken place
and there is a perception of need
or
you have an operational imperative
– e.g. an expiring contract
Analyse the business needs so that
you have a sound understanding of
business outcomes required
NO
Is the value of the requirement above
EU threshold?
Is your requirement covered
by Government's Central
Procurement Programme?
NO
YES
Refer to departmental
policy. Ensure opportunity
is advertised on Contracts
Finder &/or is on the
Dynamic Marketplace
Policy
Business Need & Baselining
Refer to the Government
Procurement Service
YES
Is your requirement fully covered by
EU Rules (e.g. Not a Part B Service
or exempt on security grounds)?
NO
Note - this should be routinely
challenged with consideration
given to whether the requirement
can be simplified or broken up –
i.e. to enable greater use of the
open procedure in line with
Government policy.
There is a government commitment
to move towards greater use of the
Open Procedure, see:
http://www.cabinetoffice.gov.uk/co
ntent/sme-contracts
1)
2)
NO
Finalise Contract
Team Contacts
A4
Standard
Template #34
Comms Plan
(Internal)
A4
Standard
Template #7
Comms Plan
(External)
A4
Standard
Template #6
3C
A4
Standard
Template #1
Risk Log
A4
Standard
Template #21
Success
Register
A4
Standard
Template #26
Supplier
Relationship
Barometer
A4
Standard
Template #30
Team Meeting
Agendas
A4
Standard
Template #10 &
38
Daily Tasks
Flip Chart
Standard Template #9
Timeline
Tracker
A4
Standard
Template #36
Supplier
Interest Tracker
A4
Standard
Template #29
KPI Chart –
Quality
A4
See KPI
Package
KPI Chart –
Cost
A4
See KPI
Package
KPI Chart –
Timescale
A4
See KPI
Package
KPI Chart –
Capability
A4
See KPI
Package
Weekly Planner
Flip Chart
Standard Template #37
Managing the contract & Supplier
E-sourcing tools OJEU
compliant
E-sourcing tools OJEU
compliant
E-soucing tools OJEU
compliant
e-sourcing System
System allowing
department to
evaluate returns from
bidder (e-sourcing
System)
30 Days
System updated
detailing the final
details and contract
published
10 Days
Govt/Dept.
Contract Management
Project Performance Hub
Harmonious Relationship
30 days from issue of OJEU
3) Market Analysis & Sourcing Strategy
Purpose - To ensure identification & clear
articulation of the business need
Purpose - To understand what the market
can provide & identify sourcing strategy
Activity:
Outputs:
Run an Industry boot camp to conduct MI updated
Market Analysis to identify
requirements and what is available,
using market specialists if appropriate
(SOP 3.1)
Outputs:
Sound understanding of business
outcomes required
4) Supplier Identification (OJEU)
Purpose - To publish requirements
through a contract notice in the
supplement to the Official Journal of
the European Union
Activity:
Create OJEU notice and gain
approval (SOP 4.1)
6) Finalisation of Supplier
Identification
Activity:
Complete evaluation of responses
and agree ranked list (SOP 6.1)
10 days from Contract Award to
Contract signature
7) Execution of Sourcing Strategy
through Competitive Dialogue
8) Finalisation of Contract
Purpose - The best outcome based
solution established through fact based
negotiations
Purpose - To identify a potential list of
qualified suppliers
Outputs:
OJEU notice is published
Bidders pack published via web / esourcing system
Outputs:
Appropriate suppliers shortlisted
Activity
Hold Dialogue Boot Camps (the
number of dialogues will depend on
the complexity of the specified
outcome, number of bidders,
workstreams) (SOP 7.1)
Undertake assurance to ensure the
team are ready to progress to
dialogue (SOP 6.2)
Purpose - Choose the supplier and
finalise the contract
Output:
Mutual understanding of final
solution
MI updated
Conduct initial market research
(SOP1.2)
Baseline of current provision and cost
Internal decision to make or buy (SOP
3.2)
If 'Buy' then use decision tool to
identify the most appropriate
procurement route
First draft Strategic Outline Business
Case (SOBC) including draft of
outcomes and first draft of project
plan.
Write procurement strategy and get
approval (SOP 3.3)
Procurement strategy agreed including:
~ Outcomes defined
~ Procurement procedure
~ Standard T&Cs
Understand & agree requirements,
scale & value
~ Initial negotiation strategy (what is in
and out of dialogue)
~ Scale and Value
~ Contract Management Strategy
~ Selection Criteria & Methodology
Finalise & issue the invitation to
participate in dialogue (ITPD) (SOP
6.3)
Update Business Case (From Stategic
Outline Business Case to Outline
Business Case) (SOP 3.4)
Outline Business Case updated
Create Bidders Pack (SOP 3.5)
Bidders Pack agreed including:
~ Standard selection criteria
~ Extended selection criteria (tech/prof
capability)
BIQ
9) Contract Signature
Activity
Opportunity to refine
delivery plan and
complete contract
management plan, with
briefing slides including
rationale for negotiation
Purpose - Formal signature of contract
Activity:
Output:
Evaluate BAFOs / tenders (SOP 8.1) Final tenders / BAFOs received &
evaluated
Successful bidder chosen
Finalise terms & conditions of
contract (SOP 8.2)
Contract finalised
Activity
Sign Contract (SOP 9.1)
Outcome:
Contract signed
Gain approval to award decision
(SOP 8.3)
Publish contract award notice on
TED
Publish contract on Contracts
Finder
Contract published unredacted on
e-sourcing system or stored in
appropriate document
management system
Contract published on Contracts
Finder
MI Updated
What - OJEU, Bidder awareness,
technical evaluation all meet agreed
standard
Conduct supplier feedback (SOP
6.4)
Refine project plan
Finalise bootcamp logistics (SOP
6.5)
Will the use of Open or
Restricted allow the
award of the contract?
Negotiation of contract (key terms
and principles)( SOP 7.1)
Draft final contract issued (including
finally agreed solution).
Standstill (Alcatel) letter issued
Issue alcatel letter (notify of
standstill period) (SOP 8.4)
Facilitate the undertaking of due
diligence (SOP 7.2)
Suppliers receive feedback
Debrief Suppliers
Update Full Business Case
All suppliers receive feedback
where requested / appropriate
Formerly close dialogue & invite Best Dialogue Closed & invitation to
& Final Offers (BAFOs) / nvitation
submit Best and Final Offers (BAFOs)
toSubmit Tender (ITST) (SOP 7.3)
issued
MI updated
Draft Full Business Case (SOP 7.4)
Approved Full Business Case
updated
What - Contract, final business case
and evaluation to agreed standard
BIQ
Full Business Case drafted
Bootcamp logistics finalised
Dialogue plan in place
What - Evaluation results ready to
proceed to dialogue
~ Prospectus (inc. requirements)
~ First draft Ts&Cs
~ Evaluation strategy & criteria
~ Explicit guidelines on timelines,
security
~ Timescales / Project Plan
BIQ
What - Dialogue boot camps are
standard, ready for contract
negotiations
Purpose - To identify a potential list of
qualified suppliers
Activity:
Set up and run web-based Q&A
facility (SOP 5.1)
What - The Make/Buy/Internal decision
was correct - and procurement approach
correctly identified
BIQ
YES
Dialogue invite issued (ITPD)
including:
~ Requirement
~ Outline Solution Template
~ Draft joint statement of intent &
revised project plan
~ Refined T&Cs with draft
schedules
BIQ
5) Supplier Identification
Carry out assurance & obtain approval Approval to proceed
to proceed (SOP 3.6 )
Outputs:
Suppliers have increased
understanding of requirement
Web pages recording all
clarifications with suppliers
Real time evaluation of supplier
Incomplete ranked list based on
returns (SOP 5.2) against selection responses received before deadline
criteria:
1) Pass / Fail
2) Qualitative Scored
Create an Invitiation to Participate 1st draft ITPD created including:
in Dialogue (ITPD) (SOP 5.3)
~ Requirement
~ Outline Solution Template
~ Draft joint statement of intent &
revised project plan
~ Refined T&Cs with draft
schedules
~ Evaluation stratgey & criteria
NO
Use the Competitive
Dialogue Procedure
BIQ
What - Productive use of 30 day
OJEU period
Bidders fully understand the
requirements enabling them to
submit optimum bid or deselect
2) Mobilisation
This tree assumes you will
not be using the Negotiated
Procedure
Purpose - Licensed sourcing team is set up for success, all associated stakeholders are clear on requirements
Activity:
Establish a cross disciplined team (SOP 2.1)
Create project performance hub (SOP 2.2)
Complete team skills assurance (SOP 2.3)
Establish & brief Project Board (SOP 2.4)
Establish what approvals will be required & when (SOP 2.5)
Outputs:
Dedicated team in place
Room, plan, communication strategy etc in place
MI updated
Project Board in place & understand objectives, evaluation Strategy agreed with end participants
Approvals plan in place
Establish industry boot camp logistics (SOP 2.6)
Establish dialogue boot camp logistics (SOP 2.7)
Venues secured
What - The team are in place and
ready to proceed
BIQ
YES
Planned
Actual
150
Competitve Dialogue
Average
100
50
0
Turnaround time working days - OJEU to contract
signature
Receive timely
feedback and
invitation to attend
dialogue
complete Selection
criteria electronically
0 days
Timeline
The timeline is dependant upon the size,
the complexity and the risk of the
procurement.
250
200
Log interest
electronically in the
sourcing opportunity
A depiction of the supplier journey, the
touch points with the department and
the places where deselection occurs.
Use the Restricted Procedure
300
UNCLASSIFIED
Execution of Sourcing Strategy
E-sourcing tools OJEU
compliant
System allowing potential
bidders to access bidders
pack (e-sourcing System )
Plan dialogue sessions (SOP 6.6)
350
May 2011
V1.0
Supplier Identification
E-sourcing tools OJEU
compliant
Activity:
Analyse business needs (SOP 1.1)
Intial make or buy consderations and
intial thinking on approach to market
(Covered by SOP 1.1)
Write and publish a project specific
Project Specific Prior Information
Prior Information Notice (SOP 1.5) &
Notice (PIN) published (Requirements,
check pipeline of sourcing projects has scale & contract value)
been updated & published
Updated pipeline of sourcing projects
published on departmental website
400
Lead / turnaround time
Skills Matrix
A4
Standard
Template #22
Outputs
Project TIP
A0
Standard Template #19
= Treasury
= Business
Case
Database advertising
all sourcing
opportunities
(Contracts Finder &
Tenders Electronic
Daily)
Write 1st draft of the strategic outline
business case (SOP 1.4)
450
Lean Procurement Project
Key Performance Indicators
Stakeholder
Map
A3
Standard
Template #20
= Built in
quality
Conduct benchmarking vs current
provision (SOP 1.3)
YES
NO
Project Charter
A3
Standard
Template #17
Handing off to contract & supplier management
Conduct immediate Evaluation &
Feedback (SOP 7.1)
Operational
Imperatives e.g.
Expiring Contracts
Does your business case contain
evidence that the market for your
requirement is very large and that
your evaluation strategy and criteria
are complex?
Use the Open Procedure
Processes
Team
Barometer
A4
Standard
Template #32
Team Meeting
Clocks
A4
Standard
Template #35
Delivery plan & governance
Date set for contract
renewal
Govt/Dept.
Refer to UK Regulations and
follow the Rules to the extent
to which they apply
Are you able to objectively define the technical means capable of satisfying
your needs or objectives? And/or
Are you able to objectively specify the legal and/or financial make up of the
project?
Inputs
Team Charter
A4
Standard
Template #33
= Specialist
Legal support
Now that you are clearer about the requirement & have spoken to the market:
Write & publish a project specific
Prior Information Notice (PIN)
Hold Industry boot camp to identify
requirements and what is available,
using market specialists if
appropriate
1.4 Standard Information Layout
KEY
BIQ
1) Business Need Identification &
Baselining
Use pre-existing
departmental arrangement
NO
YES
Market Analysis & Sourcing Strategy
Policy Decision Perception of Need
NO
Is your requirement covered by an
existing departmental contract?
Use for the duration of
Project
E-sourcing tools OJEU
compliant
Govt/Dept.
YES
Project Performance Hub
Guidance V1.0
Proposed Future State map for Government Sourcing Process (Competitive Dialogue)
Purpose: To have an agreed outcome focused contract in place at the best possible price from the chosen supplier
SCOPE
Database advertising
sourcing opportunities
(Contracts Finder &
Tenders Electronic
Daily)
Departmental website
YES
Is your requirement covered by
Government's Central Procurement
Programme?
Visual Management in
Procurement
4 - 6 weeks
Attend dialogue boot camps and receive
transparent & timely feedback & issue
solutions
2 weeks
2 weeks
30 days
1 week
KPIs
Performance
indicators to
measure turnaround
times, cost of
running
procurements,
resource capability
& indicative supplier
costs of bidding
Agree and sign contract
2 weeks
6 weeks
10 days
1 week
Visual Management
A way of displaying information
to drive the performance of the
process & specific parts of the
process
1 week
Team
Implementation
Plan (TIP)
An action plan
showing who will
do what and
when in specific
functions and
processes
Future State Value Stream Map
Proposed Future State map for Government Sourcing Process (Competitive Dialogue)
Purpose: To have an agreed outcome focused contract in place at the best possible price from the chosen supplier
SCOPE
The Value Stream Map (VSM) is a
route map showing what should
happen (activities) and the
corresponding outputs for each stage
of the procurement process. The VSM
sits at the centre of the standard
solution.
Policy
Business Need & Baselining
Market Analysis & Sourcing Strategy
Supplier Identification
Execution of Sourcing Strategy
Managing the contract & Supplier
= Built in
quality
= Specialist
Legal support
E-sourcing tools OJEU
compliant
= Treasury
Database advertising
sourcing opportunities
(Contracts Finder &
Tenders Electronic
Daily)
Departmental website
E-sourcing tools OJEU
compliant
= Business
Case
E-sourcing tools OJEU
compliant
Govt/Dept.
Database advertising
all sourcing
opportunities
(Contracts Finder &
Tenders Electronic
Daily)
Policy Decision Perception of Need
E-sourcing tools OJEU
compliant
E-sourcing tools OJEU
compliant
E-soucing tools OJEU
compliant
System allowing potential
bidders to access bidders
pack (e-sourcing System )
e-sourcing System
System allowing
department to
evaluate returns from
bidder (e-sourcing
System)
30 Days
System updated
detailing the final
details and contract
published
10 Days
Govt/Dept.
Contract Management
Harmonious Relationship
Delivery plan & governance
Date set for contract
renewal
30 days from issue of OJEU
1) Business Need Identification &
Baselining
Govt/Dept.
3) Market Analysis & Sourcing Strategy
Purpose - To ensure identification & clear
articulation of the business need
Purpose - To understand what the market
can provide & identify sourcing strategy
Activity:
Analyse business needs (SOP 1.1)
Outputs:
Sound understanding of business
outcomes required
Activity:
Run an Industry boot camp to conduct
Market Analysis to identify
requirements and what is available,
using market specialists if appropriate
(SOP 3.1)
Baseline of current provision and cost
Internal decision to make or buy (SOP
3.2)
If 'Buy' then use decision tool to
identify the most appropriate
procurement route
Intial make or buy consderations and
intial thinking on approach to market
(Covered by SOP 1.1)
Outputs:
MI updated
4) Supplier Identification (OJEU)
6) Finalisation of Supplier
Identification
Purpose - To publish requirements
through a contract notice in the
supplement to the Official Journal of
the European Union
Purpose - To identify a potential list of
qualified suppliers
Activity:
Create OJEU notice and gain
approval (SOP 4.1)
Outputs:
OJEU notice is published
Activity:
Complete evaluation of responses
and agree ranked list (SOP 6.1)
Bidders pack published via web / esourcing system
10 days from Contract Award to
Contract signature
7) Execution of Sourcing Strategy
through Competitive Dialogue
8) Finalisation of Contract
Purpose - The best outcome based
solution established through fact based
negotiations
Outputs:
Appropriate suppliers shortlisted
Activity
Hold Dialogue Boot Camps (the
number of dialogues will depend on
the complexity of the specified
outcome, number of bidders,
workstreams) (SOP 7.1)
Dialogue invite issued (ITPD)
including:
~ Requirement
~ Outline Solution Template
~ Draft joint statement of intent &
revised project plan
~ Refined T&Cs with draft
schedules
Negotiation of contract (key terms
and principles)( SOP 7.1)
Undertake assurance to ensure the
team are ready to progress to
dialogue (SOP 6.2)
Purpose - Choose the supplier and
finalise the contract
Output:
Mutual understanding of final
solution
9) Contract Signature
Activity
Opportunity to refine
delivery plan and
complete contract
management plan, with
briefing slides including
rationale for negotiation
Purpose - Formal signature of contract
Activity:
Output:
Evaluate BAFOs / tenders (SOP 8.1) Final tenders / BAFOs received &
evaluated
Successful bidder chosen
Finalise terms & conditions of
contract (SOP 8.2)
Contract finalised
Activity
Sign Contract (SOP 9.1)
Outcome:
Contract signed
Gain approval to award decision
(SOP 8.3)
Publish contract award notice on
TED
Publish contract on Contracts
Finder
Contract published unredacted on
e-sourcing system or stored in
appropriate document
management system
Contract published on Contracts
Finder
MI Updated
Conduct immediate Evaluation &
Feedback (SOP 7.1)
Operational
Imperatives e.g.
Expiring Contracts
MI updated
Conduct initial market research
(SOP1.2)
Conduct benchmarking vs current
provision (SOP 1.3)
Finalise & issue the invitation to
participate in dialogue (ITPD) (SOP
6.3)
Write 1st draft of the strategic outline
business case (SOP 1.4)
First draft Strategic Outline Business
Case (SOBC) including draft of
outcomes and first draft of project
plan.
Write procurement strategy and get
approval (SOP 3.3)
Procurement strategy agreed including:
~ Outcomes defined
~ Procurement procedure
~ Standard T&Cs
Write and publish a project specific
Prior Information Notice (SOP 1.5) &
check pipeline of sourcing projects has
been updated & published
Project Specific Prior Information
Notice (PIN) published (Requirements,
scale & contract value)
Updated pipeline of sourcing projects
published on departmental website
Understand & agree requirements,
scale & value
~ Initial negotiation strategy (what is in
and out of dialogue)
~ Scale and Value
~ Contract Management Strategy
~ Selection Criteria & Methodology
Update Business Case (From Stategic
Outline Business Case to Outline
Business Case) (SOP 3.4)
Outline Business Case updated
Create Bidders Pack (SOP 3.5)
Bidders Pack agreed including:
~ Standard selection criteria
~ Extended selection criteria (tech/prof
capability)
BIQ
What - OJEU, Bidder awareness,
technical evaluation all meet agreed
standard
Conduct supplier feedback (SOP
6.4)
Refine project plan
Finalise bootcamp logistics (SOP
6.5)
Plan dialogue sessions (SOP 6.6)
Standstill (Alcatel) letter issued
Issue alcatel letter (notify of
standstill period) (SOP 8.4)
Suppliers receive feedback
Debrief Suppliers
Update Full Business Case
All suppliers receive feedback
where requested / appropriate
Formerly close dialogue & invite Best Dialogue Closed & invitation to
& Final Offers (BAFOs) / nvitation
submit Best and Final Offers (BAFOs)
toSubmit Tender (ITST) (SOP 7.3)
issued
MI updated
Draft Full Business Case (SOP 7.4)
Approved Full Business Case
updated
What - Contract, final business case
and evaluation to agreed standard
BIQ
Full Business Case drafted
Bootcamp logistics finalised
Dialogue plan in place
What - Evaluation results ready to
proceed to dialogue
BIQ
~ Prospectus (inc. requirements)
~ First draft Ts&Cs
~ Evaluation strategy & criteria
~ Explicit guidelines on timelines,
security
~ Timescales / Project Plan
Carry out assurance & obtain approval
to proceed (SOP 3.6 )
Draft final contract issued (including
finally agreed solution).
Facilitate the undertaking of due
diligence (SOP 7.2)
BIQ
What - Dialogue boot camps are
standard, ready for contract
negotiations
5) Supplier Identification
Purpose - To identify a potential list of
qualified suppliers
Approval to proceed
Activity:
Set up and run web-based Q&A
facility (SOP 5.1)
What - The Make/Buy/Internal decision
was correct - and procurement approach
correctly identified
BIQ
Outputs:
Suppliers have increased
understanding of requirement
Web pages recording all
clarifications with suppliers
Real time evaluation of supplier
Incomplete ranked list based on
returns (SOP 5.2) against selection responses received before deadline
criteria:
1) Pass / Fail
2) Qualitative Scored
Create an Invitiation to Participate 1st draft ITPD created including:
in Dialogue (ITPD) (SOP 5.3)
~ Requirement
~ Outline Solution Template
~ Draft joint statement of intent &
revised project plan
~ Refined T&Cs with draft
schedules
~ Evaluation stratgey & criteria
BIQ
What - Productive use of 30 day
OJEU period
Bidders fully understand the
requirements enabling them to
submit optimum bid or deselect
2) Mobilisation
Purpose - Licensed sourcing team is set up for success, all associated stakeholders are clear on requirements
Activity:
Establish a cross disciplined team (SOP 2.1)
Create project performance hub (SOP 2.2)
Complete team skills assurance (SOP 2.3)
Establish & brief Project Board (SOP 2.4)
Establish what approvals will be required & when (SOP 2.5)
Outputs:
Dedicated team in place
Room, plan, communication strategy etc in place
MI updated
Project Board in place & understand objectives, evaluation Strategy agreed with end participants
Approvals plan in place
Establish industry boot camp logistics (SOP 2.6)
Establish dialogue boot camp logistics (SOP 2.7)
Venues secured
What - The team are in place and
ready to proceed
BIQ
Log interest
electronically in the
sourcing opportunity
A depiction of the supplier journey, the
touch points with the department and
the places where deselection occurs.
Receive timely
feedback and
invitation to attend
dialogue
complete Selection
criteria electronically
0 days
Timeline
The timeline is dependant upon the size,
the complexity and the risk of the
procurement.
The VSM covers the stages of
procurement from policy through
business need identification &
baselining, market analysis &
sourcing strategy, supplier
identification, execution of sourcing
strategy, finalising contract and
handing off to contract management.
Finalise Contract
KEY
BIQ
4 - 6 weeks
Attend dialogue boot camps and receive
transparent & timely feedback & issue
solutions
2 weeks
2 weeks
30 days
1 week
Agree and sign contract
2 weeks
6 weeks
10 days
1 week
1 week
Handing off to contract & supplier management
What’s Different - Overview
Sourcing Process
Business
need &
baselining
Market analysis
& sourcing
strategy
Supplier identification
Execution of
sourcing strategy
Mobilisation
Publish a
project specific
PIN to warm
the market up
and advertise
the industry
engagement
event
Establish a performance
hub and use visual
management to drive the
process
Pre-OJEU readiness - the
preparation and subsequent
publication of a bidders pack at
OJEU including requirements,
draft terms and conditions,
selection criteria, evaluation
strategy and criteria and
procurement timescales. This
transparency allows suppliers to
make informed decisions as to
whether they wish to bid.
Industry boot camp to capture the suppliers’
views on your requirement, on the viability, and
on possible delivery options and where
appropriate to facilitate meetings between
suppliers to explore the potential for the
establishing consortia, partnering arrangements
and / or subcontracting opportunities.
Driven by
visual
management
Execution of sourcing
strategy - for the
competitive dialogue
procedure this
means: the
elimination of lengthy
proposal documents,
the use of an outline
solution template to
replace the ISOP
stage and use of the
draft contract as the
basis of the dialogue.
Driven by visual
management
Finalise contract
What’s Different for Competitive Dialogue
procurements – Focus on Dialogue
Supplier identification
Execution of sourcing strategy through dialogue
Invitation to participate in
dialogue (ITPD) includes:
Outline Solution Template
Draft Contract
At the beginning of the first dialogue bidders present the outline
solution.
The presentation and template are evaluated and the authority may
down select at this point.
No ISOP
There are no further proposal documents.
An outline solution template is
issued with the ITPD and bidders
are given two weeks to complete
the template.
The draft contract is used as the vehicle for the dialogue so the detailed
solution emerges in the form of contract schedules.
All bidders are on site for dialogue with continual access to the client,
time boxed dialogue sessions are run using a dialogue plan established
back at the sourcing strategy stage.
Evaluation takes place throughout the dialogue, rather than at the end
as a separate activity and bidders are given feedback.
Before closing the dialogue the draft contract is reviewed with bidders at
the final session in each case.
At the invitation to submit final tender the draft contract is issued to all
remaining bidders with final terms and conditions and they are invited to
submit their final solution and final price in the form of the final contract.
Only simple clarifications of the final tender (mistakes, omissions,
options, variant bids etc) take place after the dialogue has closed.
Current Activity
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Working with Departments on live procurement projects known as
“pathfinders” to test and refine the process.
Piloting a training programme to explain how the lean principles are
incorporated into the new Standard Solution, and evaluating prior to
further roll out.
Developing a ‘lean’ sourcing manual for the Minister of the Cabinet
Office to launch in January – the principles of continuous
improvement will mean the Standard Solution is available on-line to
government procurement teams.
Executing a communications plan to ensure procurers, suppliers
and other key stakeholders are aware of the work and ready for roll
out.