PROCUREMENT PLAN
Objective: In order to facilitate the procurement objectives, the procurement plan must address all
the business, management, technical and other significant considerations that will control the
procurement. The specific content of plans will vary, depending on the nature, circumstances, and
stage of the acquisition. In preparing the plan, the planner must follow the applicable instructions in
this document, together with the University’s procurement procedures and the Queensland
Procurement Policy (QPP).
Business and management issues - The Procurement Plan should describe the contractual
aspects of the Procurement program and management activities:
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Executive Summary
Needs Analysis
Cost, Budgeting, and Funding
Scope
Administration
Market Analysis
Supplier
Engagement Plan
Evaluation Criteria
Other considerations - The procurement plan should discuss topics such as safety, environmental
impact, privacy impact, and security as judged appropriate to the actual acquisition process:
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Environmental Considerations
Risk Management
Participants in Procurement Plan Developments - The acquisition plan should list the individuals
who participate in preparing the acquisition plan and their detailed contact information (e.g Finance
Manager, Researcher).
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Project Governance, Financial Delegation and Stakeholders
Approval
Milestones for the Acquisition Cycle - The procurement plan should finally include a time-based
procurement milestone chart showing the major events of the procurement process in chronological
order e.g., procurement plan approval, procurement request (PR) package preparation e.g.,
Request for Proposals (RFP), Invitation for Bids (IFB), issuance of synopsis and solicitation,
contract/bid Award.
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Action Plan
INSTRUCTIONS TO COMPLETE THE UQ PROCUREMENT PLAN
1. Executive Summary
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Provide a background of the Project, Objectives of the Project, Benefits and Risks of the
Procurement, All Parties of Interest and History pertaining to how the project came into
effect.
2. Needs Analysis
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Introduce the plan by a brief statement of need. Summarise the technical and contractual
history of the procurement. Discuss feasible procurement alternatives (can you use an
alternative material/service?). Provide the business requirements, key issues and how
the product/service is linked to the organisational strategy (for a period of 12 months
minimum).
3. Cost, Budgeting and Funding
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Include budget estimates, explain how they were derived, and discuss the schedule for
obtaining adequate funds. Set forth the established cost goals for the procurement and
the rationale supporting them.
4. Scope
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Define the work that needs to be accomplished to deliver a product, service, or result
with the specified features and functions of the procurement. Also define any out of
scope considerations.
Specify the required capabilities or performance characteristics of the goods or the
performance standards of the services being acquired and state how they are related to
the need.
5. Administration
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Product or Service Descriptions
Explain the choice of product or service description types (including performance-based
acquisition descriptions) to be used in the purchase.
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Sources
Indicate the prospective sources of supplies or services that can meet the need.
Consider required sources of supplies or services identifiable through databases
including the University database of contracts and other procurement instruments.
Address the extent and results of the market research and indicate their impact on the
various elements of the plan.
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Spend Analysis
Provide breakdown of cost per Business Unit (including Shared Purchases per B/U).
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Processes
What is the order fulfillment process from need identification to payment of invoice?
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Delivery or performance-period requirements.
Describe the basis for establishing delivery or performance-period requirements. Explain
and provide reasons for any urgency if it results in concurrency of
development/production or constitutes justification for not providing for full and open
competition.
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Management Information Requirement.
Discuss what management system will be used by the Faculty/Division to monitor the
contractor’s/product efforts on a seasonal and yearly basis eg. KRA/KPI?
6. Market Analysis
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Market Trends.
Provide information regarding the project – Technology, New Products/Services, New
Markets, New Entrants, Environmental considerations.
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Size.
Total size of the market (by value for the project/product/service).
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Market Competition.
Suppliers – Monopoly, Oligopoly, Free Market.
7. Environmental Considerations
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Discuss all applicable environmental and energy conservation objectives/impact
associated with the procurement. If applicable, provide proposed resolution of
environmental issues and any environmentally-related requirements to be included in
solicitations and contracts.
8. Supplier
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Identify the key suppliers. Detail their expertise, ownership structure, size, operating
locations, environmental and social accountability responsibilities.
Describe the Testing phase if applicable, for major system/mechanical purchases.
Product or service descriptions. Explain the choice of product or service description types
(including performance-based acquisition descriptions) to be used in the purchase.
Provide details for the after purchase service arrangements/agreements.
9. Engagement Plan
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Describe how the supply market will be sought, promoted, and sustained throughout the
course of the procurement. Eg: Direct Negotiation, RFQ, eTender
Determine if the procurement should be classified Limited (for specialised
product/services), Selective (pre-qualified suppliers/contractors) or Open (Free Market).
Provide your strategy for obtaining the best outcome?
When urgency of the requirement dictates a particularly short delivery or performance
schedule, certain priorities may apply. If so, specify the method for obtaining and using
priorities and the reasons for them.
Discuss any consideration given to make-or-lease programs, if appropriate.
Describe how competition will be sought, promoted, and sustained for spares and repair
parts.
If open competition is not contemplated, discuss why open competition cannot be
obtained.
When a Tender is required, the procurement plan must discuss:
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How the pre-award Invitation to Bid will be considered in the source selection
decision;
Use of multiyear contracting options, or other special contracting methods; any special
clauses, special solicitation provisions; whether equipment will be acquired by lease or
purchase and any other contracting considerations.
Provide rationale if a performance-based purchase will not be used or if a performancebased acquisition for services is contemplated on other than a firm-fixed-price basis.
For information technology purchases, how the capital planning and investment control
requirements will be met;
10. Action Plan
o Discuss the source-selection procedures for the purchase/service, including, but
not limited to:
 Key Tasks and Actions
 Timing for submission and evaluation of proposals
 Selection Process
 Performance based purchase/service and multiyear contracting
 Contract Execution
o Key Milestones for the procurement cycle. Address the step by step process of the
plan including Authorisation requirements and Yearly appraisal review.
11. Evaluation Criteria
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What methodology will be used for assessing Quotes and Bids?
What are the evaluation criteria and weightings? Eg.:
 Specification
 Compliance to Conditions of Contract
 Price
 Risk Management, etc.
How will each criterion be assessed? And by whom?
Discuss the source-selection procedures for the purchase/service, including the timing
for submission and evaluation of proposals, and the relationship of evaluation factors to
the attainment of the procurement objectives.
Discuss any University information, such as manuals, drawings, and test data, to be
provided to prospective offers and contractors. Indicate which information that requires
additional controls to monitor access and distribution (e.g., technical specifications,
maps, building designs, schedules, etc.), as determined by the Faculty/School.
Describe how the contract will be administered.
In contracts for services, include how inspection and acceptance corresponding to the
scope of work performance criteria will be enforced.
12. Risk Management
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Provide details pertaining to all risk factors for the purchase/service eg:
 Non-compliance of Contract
 Non adherence to Specification criteria
 Warranties
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Technical compatibility with existing systems
 State all significant conditions affecting the purchase, such as:
 Requirements for compatibility with existing or future systems or programs;
 Any known cost, schedule, and capability or performance constraints.
 Discuss technical, cost, and schedule risks and describe what efforts are
planned or underway to reduce risk and the consequences of failure to
achieve goals. If concurrency of development and production is planned,
discuss its effects on cost and schedule risks.
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Mitigation Measures
 The assumptions determining contractor or agency support, both initially and over
the life of the purchase, including consideration of contractor or agency
maintenance and support for contracts to be performed in a designated
operational area;
 The reliability, maintainability, and quality assurance requirements, including any
planned use of warranties;
 The requirements for contractor data (including repurchase data) and data rights,
the estimated cost, and the use to be made of the data;
 Standardisation concepts, including the necessity to designate, in accordance
with agency/university procedures, technical equipment as “standard” so that
future purchases of the equipment can be made from the same manufacturing
source.
OH & S
 Discuss any potential Occupational Health and Safety issues if applicable.
Security Considerations
 For acquisitions dealing with classified matters, discuss how adequate security
will be established, maintained, and monitored. For information technology
acquisitions, discuss how agency information security requirements will be met.
For purchases requiring routine contractor where physical access to a Universitycontrolled facility and/or routine access to a University-controlled information
system, discuss how University requirements for personal identity verification of
contractors will be met.
Transition Planning
 Test and evaluation. Describe the test program of the contractor. Describe the
test program for each major phase of a major system purchase. If concurrency is
planned, discuss the extent of testing to be accomplished before production
release.
Other Issues/Considerations
 Discuss, as applicable:
 Standardisation concepts;
 Foreign sales implications;
 Any other matters not covered elsewhere.
13. Project Governance, Financial Delegation and Stakeholders
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List the individuals who participated in preparing the procurement plan. Also include
designates on the selection panel and their role and responsibility for the purchase.
14. Approval
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Ensure the Procurement Plan has been reviewed by all members of the Evaluation Panel
and approved by the Financial Delegation.