Government of Western Australia
Department of Your Dept Name here
Procurement Plan
[Products and services procurement templates - procurement
plan]
TITLE:
[Insert the Title]
Agency:
[Insert Public Authority Name Here]
OR Use Contract Authority for CUA and 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
PROCUREMENT PLAN
Table of Contents
1. SUMMARY OF PROPOSED PROCUREMENT ............................................... 4
1.1
1.2
1.3
1.4
1.5
1.6
1.7
1.8
BACKGROUND ....................................................................................
SCOPE ................................................................................................
CONTRACT COMMENCEMENT DATE .................................................
NUMBER OF CONTRACTORS .............................................................
CONTRACT TERM ...............................................................................
FUNDING.............................................................................................
ESTIMATED CONTRACT VALUE .........................................................
CONTRACT AUTHORITY OR CUSTOMER OR CONTRACT
AUTHORITY AND CUSTOMER [Edit to suit option used below] ............
1.9
REQUEST AND GENERAL CONDITIONS ............................................
1.10 APPROVAL TO PROCEED ..................................................................
4
4
4
4
4
5
5
5
5
5
2. CURRENT CONTRACT ARRANGEMENTS .................................................... 6
2.1
2.2
2.3
2.4
2.5
2.6
SUPPLY ARRANGEMENTS .................................................................
CONTRACT COMMENCEMENT AND EXPIRATION .............................
CURRENT CONTRACTORS ................................................................
CONTRACT/CUA VALUE .....................................................................
STRENGTHS AND WEAKNESSES OF CURRENT
CONTRACT/ARRANGEMENT ..............................................................
2.5.1 STRATEGIES TO ADDRESS WEAKNESSES ...........................
PREVIOUS CONTRACT ISSUES .........................................................
6
6
6
6
6
6
7
3. PROPOSED PROCUREMENT TIMETABLE ................................................... 8
3.1
KEY PROPOSED DATES ..................................................................... 8
4. RISK ANALYSIS ............................................................................................ 9
5. BUY LOCAL POLICY ....................................................................................10
5.1
5.2
5.3
PLANNING THE PURCHASE ..............................................................10
5.1.1 LOCAL BUSINESS CAPACITY ................................................10
5.1.2 LOCAL CONTENT ..................................................................10
5.1.3 EARLY TENDER ADVICE .......................................................11
5.1.4 REGIONAL SKILLS & ECONOMIC DEVELOPMENT ...............11
5.1.5 BUILDING LOCAL INDUSTRY ................................................11
INVITE AND RECEIVE OFFERS .........................................................11
EVALUATION .....................................................................................11
5.3.1 PRICE PREFERENCES ..........................................................11
5.3.2 VALUE FOR MONEY ..............................................................11
6. PROCUREMENT RESEARCH ......................................................................12
6.1
6.2
6.3
ALTERNATIVE PROCUREMENT OPTIONS ........................................12
NUMBER OF RESPONDENTS ............................................................12
STAKEHOLDER RESEARCH ..............................................................12
6.3.1 INDUSTRY .............................................................................12
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6.4
6.5
6.6
6.7
6.8
6.3.2 PUBLIC AUTHORITY ..............................................................12
6.3.3 OTHER ...................................................................................12
PROPOSED PROCUREMENT SYSTEMS APPROACH .......................13
SUSTAINABILITY ISSUES ..................................................................13
SPECIFICATION TYPE .......................................................................13
QUALITY REQUIREMENTS ................................................................14
PRICE RESEARCH .............................................................................14
7. PROCUREMENT METHODOLOGY AND STRATEGY ...................................15
7.1
7.2
7.3
7.4
7.5
7.6
7.7
7.8
7.9
PROCUREMENT METHOD .................................................................15
PROCUREMENT OBJECTIVE – VALUE FOR MONEY ........................15
EVALUATION PROCESS AND REQUIREMENTS................................15
7.3.1 EVALUATION PROCESS ........................................................15
7.3.2 PRE-QUALIFICATION REQUIREMENTS ................................15
7.3.3 COMPLIANCE AND DISCLOSURE REQUIREMENTS .............16
7.3.4 QUALITATIVE REQUIREMENTS ............................................16
INSURANCE REQUIREMENTS ...........................................................17
EVALUATION RATING SCALE ...........................................................17
PRICE .................................................................................................19
7.6.1 PRICING MODEL ....................................................................19
7.6.2 PRICE VARIATIONS ...............................................................20
BUYING RULES ..................................................................................20
REQUEST BRIEFING SESSION .........................................................20
EVALUATION COMMITTEE ................................................................20
8. CONTRACT MANAGEMENT .........................................................................21
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
GOVERNANCE ...................................................................................21
CONTRACT MANAGEMENT PLAN .....................................................21
PERFORMANCE REQUIREMENTS ....................................................21
TRANSITION ......................................................................................22
CONTRACT REVIEW ..........................................................................22
RISK MANAGEMENT ..........................................................................22
BUY LOCAL MANAGEMENT ...............................................................22
CUSTOMER/CLIENT REFERENCE GROUP .......................................23
PROMOTION AND MARKETING .........................................................23
BUYERS GUIDE .................................................................................23
APPLICATIONS FROM NEW SUPPLIERS ..........................................23
ADDING/REMOVING PRODUCTS ......................................................23
APPENDIX A – RISK REGISTER .......................................................................25
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1.
SUMMARY OF PROPOSED PROCUREMENT
1.1
BACKGROUND
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 – crossreference to other sections within the Plan if relevant.
1.2
SCOPE
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) nonmandatory, provide details as to when approval was provided and discuss the
impact on SSC policies including prior approval received.
1.3
CONTRACT COMMENCEMENT DATE
The proposed contract commencement date is [insert date].
1.4
NUMBER 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]
1.5
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].
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1.6
FUNDING
Not applicable to CUA
The availability of appropriate funding has been confirmed by (name and title of
senior officer eg Director or equivalent).
1.7
ESTIMATED CONTRACT VALUE
The estimated contract value, including all extension options, is $xx.
equates to $xx per annum.
This
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.
1.8
CONTRACT AUTHORITY OR CUSTOMER OR CONTRACT
AUTHORITY AND CUSTOMER [Edit to suit option used below]
[use for CUA/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).
1.9
REQUEST AND GENERAL CONDITIONS
The Request Conditions and General Conditions of Contract [August 2012] will
apply to this requirement.
1.10
APPROVAL TO PROCEED
Approval to proceed with the procurement has been provided by (name and title
of senior officer eg Director or equivalent).
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2.
CURRENT CONTRACT ARRANGEMENTS
2.1
SUPPLY 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.
2.2
CONTRACT 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.
2.3
CURRENT CONTRACTORS
The current contract provider(s) is/are [Insert contractor names].
2.4
CONTRACT/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.
2.5
STRENGTHS
AND
WEAKNESSES
CONTRACT/ARRANGEMENT
OF
CURRENT
The strengths of the current contract/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 current contract/arrangement are [insert weaknesses eg
insufficient policy compliance, high transaction costs, poor contract
management/administration lack of supplier feedback, no local supplier].
2.5.1
STRATEGIES 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
[E.G.:
Lack
of
responses
Request][Insert weakness]
[DRAFT/FINAL]
STRATEGY TO ADDRESS
to [E.G.: See section 4.3][Insert details]
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2.6
[Insert weakness]
[Insert details]
[Insert weakness]
[Insert details]
[Insert weakness]
[Insert details]
PREVIOUS 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.
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3.
PROPOSED PROCUREMENT TIMETABLE
3.1
KEY PROPOSED DATES
The key dates for the proposed procurement are as follows:
add/delete as applicable
STAGE
TARGET DATE
Early Tender Advice notification
Procurement Plan submitted for Department of Finance
(Finance) submission 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
Client/approval of Request document
Request advertised
Request briefing
Request closes
Request evaluation and recommendation
STRC endorsement of Evaluation Report
Evaluation Report approval by Accountable Authority
Contract negotiations
Contract commencement date
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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].
[OR Option 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]
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5.
BUY LOCAL POLICY
The following provides an overview of the Buy Local Policy 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
Policy (especially pages 31-32) should be made for further consideration of the
issues.
The
Buy
Local
Policy
may
be
found
at
http://www.ssc.wa.gov.au/policies02.asp?id=19
For guidance in relation to interpretation of the Buy Local Policy contact the
Industry Participation Team, Department of Commerce, The West Centre, 1260
Hay Street, West Perth 6005, tel 6251 2550/2511.
Approval to vary the weighting of the Buy Local Policy, Local Content Clause, or
use of an alternative strategy in a specific purchase or contract, must be secured
prior to the finalisation of the Procurement Plan from the Local Content Advisory
Committee, c/- the Industry Participation Team, Department of Commerce, The
West Centre, 1260 Hay Street, West Perth 6005, tel 6251 2550/2511. A
minimum of five (5) working days should be allowed for this process.
5.1
PLANNING THE PURCHASE
5.1.1
LOCAL 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.
Local businesses have the capacity to meet the contract size and scope
requirements, based on:
5.1.2

previous, similar or current contracts – did local businesses respond;

discussions with relevant industry associations and/or 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.
LOCAL 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.
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:

[DRAFT/FINAL]
The majority of the products, materials and services and the degree the
contract outcomes are anticipated to be sourced locally;
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
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).
5.1.3
EARLY TENDER ADVICE
An early tender advice notice [shall be]/[has been] placed on Tenders WA for this
proposed procurement.
5.1.4
REGIONAL SKILLS & ECONOMIC DEVELOPMENT
For regional contracts with a value of over $750,000, the Procurement Plan must
address how regional skills and economic development will be maximised via the
procurement process.
5.1.5
BUILDING LOCAL INDUSTRY
Only to be included if an Industry Participation Plan is required – please discuss
with the Building Local Industry Policy Advisory Committee c/- the Industry
Participation Team, Department of Commerce, The West Centre, 1260 Hay
Street, West Perth 6005, tel 6251 2550/2511. For our purposes, an industry
participation plan is required where the contract value exceeds $20 million or
where the value of capital equipment exceeds $1 million.
Unless otherwise exempted by the Building Local Industry Policy Advisory
Committee, the Contract Authority/Customer and Contractor will develop an
Industry Participation Plan which will outline a project specific approach to the use
of competitive local suppliers and other economic/industry objectives.
5.2
INVITE AND RECEIVE OFFERS
The Request mailing list will include local businesses.
5.3
EVALUATION
5.3.1
PRICE PREFERENCES
Price preferences (including regional and imported content impost) will be applied
where applicable.
5.3.2
VALUE 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.
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6.
PROCUREMENT RESEARCH
6.1
ALTERNATIVE PROCUREMENT OPTIONS
[only applicable to agency specific contracts]
Confirmed that no alternative procurement options exist including an existing
CUA or CUA under development.
OR
A CUA exists or is under development of similar supply requirements, however,
confirmed with (name & title of CUA procurement manager) that the public
authority specific requirements could not be met under this CUA.
6.2
NUMBER OF RESPONDENTS
It is anticipated that X respondents will 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.
6.3
STAKEHOLDER 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
6.3.1
6.3.2
6.3.3
INDUSTRY

Research undertaken

Current relationships/delivery mechanisms

Impact of the CUA or contract on industry, particularly in regional areas.
PUBLIC 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.
OTHER

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.
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6.4
PROPOSED PROCUREMENT SYSTEMS APPROACH
[CUA ONLY]
In consultation with the Procurement Systems and Standards Directorate, outline
the method(s) by which customers will procure from the CUA.
This includes examining alternatives for online purchasing and online
data/catalogues and their integration with existing systems and buyer/industry
processes. (Note that buying rules should not be presented here – they are
presented at Section 7.7).
The procurement systems approach chosen for this CUA is (insert preferred
approach) because it meets the buyer’s needs in these ways:

6.5
List reasons
SUSTAINABILITY ISSUES
The Plan should identify and address sustainability issues – the level of effort
expended to minimise the impact of procurement should be commensurate with
the nature of the purchase. The sustainability issues may include:

Use of recycled or recovered materials;

Product reusability and/or recyclability;

Durability;

Energy efficiency and consumption;

Water efficiency;

Waste prevention;

End of life disposal method;

Environmental health issues;
To support sustainability, the following initiatives will be incorporated: (for
example)
a).
The qualitative requirements will provide a positive advantage to products,
services and/or processes that minimise environmental impact eg Qualitative
requirements will give preference to recycled or recovered materials
b).
The specification will give consideration to standards, codes or legislation
where appropriate
c).
Information will be sought from suppliers on the environmental impact of
products, services and process tendered (eg accreditation, practices,
recycled content, durability and reuse options, hazardous material content,
energy efficiency, waste prevention, water efficiency)
For further information regarding sustainability impact issues, refer to the State
Supply Commission’s Sustainable Procurement Policy.
6.6
SPECIFICATION TYPE
The
type
of
specification
utilised
will
be
technical/performance
orientated/functional as the requirements [insert reason for choice eg must be
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highly detailed and complex/require outcome based performance/can/cannot be
accurately described in sufficient detail].
6.7
QUALITY REQUIREMENTS
The quality requirement for this contract will be [x].
Other standards and/or competencies to be adhered to include [insert other
standards eg customer service, servicing/maintenance, training].
If there exists a Quality Assurance Standard for this particular good or service
then include the following
The Quality Assurance [x] is the standard in this particular industry and therefore,
will have no impact upon small business.
6.8
PRICE RESEARCH
Outline the different pricing mechanisms available and their suitability and
suggest the most appropriate alternative.
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7.
PROCUREMENT METHODOLOGY AND STRATEGY
7.1
PROCUREMENT METHOD
The proposed procurement method will be a one/two stage process of a/an
EOI/ITRI followed/by Public Tender/including a Reverse Auction.
State why this method 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 noncontract options for the products/services provision.
7.2
PROCUREMENT OBJECTIVE – VALUE FOR MONEY
The objective of this procurement is to focus on and achieve, best value for
money – that being the best outcome for the State as a whole considering price
and other, non-cost factors, in addition to the requirement for the Public Authority.
To achieve this objective, the information provided by respondents in relation to
the following:
a).
Pre-Qualification Requirements;
b).
Compliance and Disclosure;
c).
Qualitative Requirements; and
d).
Price schedule requirements.
as outlined in Section 7 will be utilised to help determine best value for money.
7.3
EVALUATION PROCESS AND REQUIREMENTS
7.3.1
EVALUATION PROCESS
A recommendation will be made based on an assessment of:
a). Pre-Qualification Requirements;
b). Compliance and Disclosure;
c).
Qualitative Requirements; and
d). Price schedule requirements.
[or]
Insert evaluation process details eg if the evaluation process includes interviews,
presentations or shortlisting.
7.3.2
PRE-QUALIFICATION REQUIREMENTS
The proposed pre-qualification requirement/s are as follows:
(insert requirement)
(insert requirement)
Failure to comply with any of the above-mentioned pre-qualification requirements
will eliminate the Respondent from further consideration.
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7.3.3
COMPLIANCE AND DISCLOSURE REQUIREMENTS
The proposed compliance and disclosure requirements are as follows:
a).
Compliance with the Head Agreement;
b).
Compliance with the Customer Contract;
c).
Compliance with the General Conditions/Schedules; and
d).
Disclosures:

Participants (including sub-contracting)

Criminal Convictions

Conflict of Interest

Competitive Neutrality

Professional Standards Scheme

Small Business

Software Licence Agreements
The Contract Authority or Customer reserves the right to reject any Offer that
does not properly address any of the Compliance and Disclosure Requirements.
7.3.4
QUALITATIVE REQUIREMENTS
The proposed qualitative requirements are as follows [include sub-elements for
the requirements]:
a)
(Insert qualitative requirements) - (insert weighting)%;
b)
(Insert qualitative requirements) - (insert weighting)%; and
c)
(Local content) – 20%. [include relevant Buy Local sub-criterion - refer to
page 30 of the Buy Local Policy for the Buy Local sub-criterion list]
As per the Buy Local Policy requirements, the local content requirement will have
a weighting of 20% [minimum 20% weighting unless otherwise approved by the
Local Content Advisory Committee – any proposed reduction should firstly be
discussed with the Local Content Unit].
The United States Free Trade Agreement (AUSFTA), Chile Free Trade
Agreement (ACI-FTA), Korea-Australia Free Trade Agreement (KAFTA), JapanAustralia Economic Partnership Agreement (JAEPA) and Australia and New
Zealand Government Procurement Agreement (ANZGPA) include a range of
specific commitments for procurement. The main commitment that impacts the
standard tender process is the use of preference schemes (ie Local content
criteria and Buy Local policy).
Therefore, when a bid is received from:

A business that is located in another state or territory of Australia, or in New
Zealand under the ANZGPA;

A business that is located in the United States (when the purchase is a
“covered procurement” under the AUSFTA;

A business that is located in Chile (when the purchase is a “covered
procurement” under the ACI-FTA;

A business that is located in Korea (when the purchase is a “covered
procurement” under the KAFTA; or
[DRAFT/FINAL]
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
A business that is located in Japan (when the purchase is a “covered
procurement” under the JAEPA,
the local content weighted selection criteria will not be evaluated during the
qualitative assessment. Should the local content criterion not be evaluated, the
20% weighting will be divided proportionately across the remaining criteria.
7.4
INSURANCE REQUIREMENTS
The proposed insurance requirements are as follows:
7.5
a).
Public Liability Insurance for an amount of not less than [$20 million] for any
one occurrence and unlimited in the aggregate;
b).
Products Liability Insurance for an amount of not less than [$20 million] for
any one occurrence and limited in the aggregate to [$20 million];
c).
Professional Indemnity insurance for an amount of [between $1 million - $5
million (dependent on level of risk)] for any one occurrence;
d).
Workers’ Compensation Insurance for an amount of not less than $50 million
for any one occurrence; and
e).
Motor Vehicle Third Party insurance for an amount of not less than $30m (for
any one occurrence and unlimited in the aggregate) and Compulsory Third
Party insurance.
EVALUATION RATING SCALE
A rating scale of 0-9 will be used for evaluating each submission. Panel
members will be required to score each response to the qualitative requirements.
The rating scale and a description for the range of scores is shown in the table
below.
The rating scale to be used to score is shown below:
SCORE
DESCRIPTION
The response does not address the qualitative requirement
OR
0
The Evaluation Panel is not confident that the respondent:
 Understands the contract requirements covered by this qualitative
requirement; and/or
 Will be able to satisfactorily meet the qualitative requirement(s)
The Evaluation Panel has some reservations whether the respondent:
 Understands the contract requirements covered by this qualitative
requirement; and/or
3
 Will be able to satisfactorily complete the contract requirements covered by
this qualitative requirement.
If Minor concern: rate higher (4).
If Major concern: rate lower (1 or 2).
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The Evaluation Panel is reasonably confident that the respondent
5
 Understands the contract requirements covered by this qualitative
requirement; and/or
 Will be able to satisfactorily complete the contract requirements covered by
this qualitative requirement to a reasonable standard.
The evaluation panel is confident that the Respondent
6
 Understands the Request requirements covered by this qualitative
requirement; and / or
Will be able to satisfactorily complete the Request requirements covered by this
qualitative requirement to a reasonable standard.
The Evaluation Panel is confident that the respondent:
7
 Understands the contract requirements covered by this qualitative
requirement; and/or
 Will be able to satisfactorily complete the contract requirements covered by
this qualitative requirement to a good standard.
The evaluation panel is confident that the Respondent:
8
 Understands the Request requirements covered by this qualitative
requirement; and / or
Will be able to satisfactorily complete the Request requirements covered by this
qualitative requirement to a high standard.
The Evaluation Panel is confident that the respondent:
9
 Understands the contract requirements covered by this qualitative
requirement; and/or
 Will be able to satisfactorily complete the contract requirements covered by
this qualitative requirement to a very high standard.
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If Buy Local was a separate qualitative criterion include the rating scale table as
shown below – if not, delete it.
The rating scale to be used to evaluate the Buy Local qualitative requirement is
shown below:
SCORE
DESCRIPTION
The response does not address the Buy Local requirement
0
OR
The Evaluation Panel is not confident that the respondent will be able to
satisfactorily meet the specified requirement(s)
The response offers minimal benefits in relation to the Buy Local Policy.
3
OR
The evaluation panel has some reservations whether the respondent will be
able to satisfactorily meet the specified requirements.
The response offers a reasonable or average level of benefits in relation to the
Buy Local Policy.
5
OR
The evaluation panel is reasonably confident that the respondent will be able to
satisfactorily meet the specified requirements to a reasonable standard.
The response offers a high or above average level of benefits in relation to the
Buy Local Policy.
7
AND
The evaluation panel is confident that the respondent will be able to
satisfactorily meet the specified requirements to a high standard.
The response offers a very high level of benefits in relation to the Buy Local
Policy.
9
AND
The evaluation panel is completely confident that the respondent will be able to
satisfactorily meet the specified requirements to a very high standard.
7.6
PRICE
7.6.1
PRICING MODEL
Respondents will be required to complete a price schedule requesting prices for
each of the following components of the procurement [eg for a products contract,
supply, deliver, installation and commissioning]. Prices will be submitted on a
lump sum/hourly rate/cost per item price structure.
To ensure that a fair comparison of prices can be made, estimated/actual hours,
quantities will be provided in the Request document.
In comparing respondent’s prices, a whole of life cycle cost approach will be
taken.
If lease vs outright purchase is an option include the following information:
Respondents will provide prices based on outright purchase and operational
lease basis.
If outright purchase and lease options exist:
a)
Competitive prices for equipment and finance will be obtained when leasing;
b)
A comprehensive analysis of the outright purchase versus lease prices will
be undertaken by financial experts as part of the evaluation process; and
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c)
Financial and legal advice will be sought when entering into the lease
agreement.
7.6.2
PRICE VARIATIONS
The Contractor’s prices will be fixed/variable. [If variable explain the permitted
price variations and the method in which suppliers must apply for price variations]
7.7
BUYING RULES
[Panel Contracts and CUA Only]
Explain the buying rules.
7.8
REQUEST BRIEFING SESSION
A mandatory/non-mandatory request briefing will be held during the request
advertisement period. The purpose of the briefing session will be to outline and
clarify the basis and details of the proposed contractual framework.
7.9
EVALUATION COMMITTEE
An evaluation panel made up of the following people will evaluate responses:
a).
Title and agency;
b).
Title and agency;
c).
Title and agency; and
d).
Title and agency.
Include also the name of any independent panel members, especially for
incumbent supplier contracts. Eg probity auditor, legal advisor, facilitator etc.
The evaluation panel should include a range of skills and experience relevant to
the nature of the purchase and include a panel member with an appropriate
amount of procurement expertise. Ideally the Contract Authority’s / Customer’s
Representative (contract manager) should participate as a member of the
evaluation panel.
Non-public servants should not be voting panel members.
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8.
CONTRACT MANAGEMENT
8.1
GOVERNANCE
[use for CUA / Group Buys]
The Department of Finance, as the Contract Authority, will retain the rights and
responsibilities for risk management, performance management, dispute
resolution, extensions, variations, reviews and termination issues relating to the
standing offers established pursuant to the request process.
Detail the proposed structure and/or strategy for managing the standing offers
including the Contract Authority Representative’s name and position title (contract
manager).
Where Public Authorities and other specified parties buy off the standing offers
they will retain the rights and responsibilities for risk management, performance
management, dispute resolution, extensions, variations, reviews and termination
issues relating to the contract/s formed.
[use for Agency Specific requests]
The (accountable authority title and public authority name), as the Customer, will
retain the rights and responsibilities for risk management, performance
management, dispute resolution, extensions, variations, reviews and termination
issues relating to the contract/s established pursuant to the request process.
Detail the proposed structure and/or strategy for managing the contract/s
including the Customer Representative’s name and position title (contract
manager). If a contract management team will be appointed provide details on
team members’ positions, roles and responsibilities.
[use for Agency Specific Panels]
The (accountable authority title and public authority name), as the Contract
Authority and Customer, will retain the rights and responsibilities for risk
management, performance management, dispute resolution, extensions,
variations, reviews and termination issues relating to the Panel Arrangement and
the contracts established pursuant to the request process.
Detail the proposed structure and/or strategy for managing the Panel
Arrangement and contract/s including the Contract Authority/Customer
Representative’s name and position title (contract manager). If a contract
management team will be appointed provide details on team members’ positions,
roles and responsibilities.
8.2
CONTRACT MANAGEMENT PLAN
Finance/(public authority name) will develop a contract management plan in
accordance with the State Supply Commission Procurement Planning, Evaluation
Reports and Contract Management policy.
8.3
PERFORMANCE REQUIREMENTS
The proposed contract management performance requirements for the contract
are:
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a).
Key Performance Indicators
The criteria that will be used to measure the performance of the contractor
are as follows:
Detail KPI’s to be included to monitor performance and to ensure outcomes
are achieved.
If KPI’s are not being specified provide details about how contractor
performance will be measured.
b).
Reporting
The contractor/s will be required to provide Finance/(public authority name)
with the following reports:
List proposed reporting requirements eg. the type and frequency of reports
required.
Expand on CUA reporting requirements if relevant.
c).
Meetings
The proposed meeting requirements to be included are as follows:
List proposed meeting requirements eg. type and frequency of meetings
required.
8.4
TRANSITION
Detail any contract start up issues and/or any transition in and out issues. Provide
details of the proposed strategy for managing these issues.
8.5
CONTRACT REVIEW
Formal reviews of the contract will be undertaken by the contract manager prior to
contract extension and expiry to ensure outcomes are being achieved and value
for money claims are validated.
8.6
RISK MANAGEMENT
Identified risks (refer Appendix A – Risk Register) and any new risks that arise
during the contract will be actively reviewed and managed, and where required,
after contract expiration (e.g extended professional indemnity insurance
requirements).
8.7
BUY LOCAL MANAGEMENT
Procedures will be put in place to:
a).
Actively monitor and manage the ongoing requirement, commitments and
obligations of the contractor (private sector provider) to maximise local
content participation; and
b).
Obtain regular buy local progress reports from the contractor against stated
contract outcomes – including the use of local suppliers and subcontractors.
[May not be applicable to CUA’s]
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8.8
CUSTOMER/CLIENT REFERENCE GROUP
[CUA ONLY]
The contract manager may establish forums to regularly discuss contract issues
and ensure that high levels of supplier performance and customer satisfaction are
maintained. This may be achieved through establishing a Customer/Client
Reference Group (CRG) consisting of representatives from Finance and key
stakeholder public authorities.
Where applicable the contract manager will ensure that the reference group is
kept aware of the status of this contract by effective control of due processes
such as performance, disputes strategy and change management.
8.9
PROMOTION AND MARKETING
[CUA ONLY]
Promotion and marketing is critical to the implementation and continued success
of this contract. Finance will employ several strategies in order to promote the
contract. These include:

Launch of the contract with appropriate media communications;

Briefings to public authorities, both following contract award and subsequent
needs, to inform buyers about the contract and provide tips for ‘smarter
buying’;

Development of brochures for public authority distribution;

Maintenance of regular communications with key contact personnel to provide
advice about contract changes; and

Development of a Buyers Guide to support the contract.
In addition, whole of government publications that have a wide audience base will
be evaluated as tools for raising awareness about the new contract.
8.10
BUYERS GUIDE
[PANEL CONTRACTS AND CUA ONLY]
A Buyers Guide will define the buying rules and processes buyers are required to
follow to procure products under the Contract. A summary of the contact details
for each Supplier will be included in the Buyers Guide for this contract.
8.11
APPLICATIONS FROM NEW SUPPLIERS
[PANEL CONTRACTS AND CUA ONLY]
Describe the approach that will be taken when non-contracted suppliers apply to
join the Panel or CUA.
8.12
ADDING/REMOVING PRODUCTS
[PANEL CONTRACTS AND CUA ONLY]
Describe the approach that will be taken when products are to be added and/or
removed from the Panel Contract or CUA.
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APPENDIX A – RISK REGISTER
[Insert a risk register here.
There is no single risk register or table that must be used in this section. The Risk Register provided in the Department of Finance ‘Risk
Workbook’ template can be used, or any other risk register, table or other means of documenting risk.
As a minimum, this appendix should describe the risks identified, along with their ratings and treatment strategies. ]
The Appendix title can be edited as appropriate.]
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