Strategy Document
Project Name _______________________
Project Number __________________
Date
Prepared by _______________________
1.
/
/
Version
Introduction
1.1 Background
1.2 Contract Funding
2.
Relationship with other
projects
3.
Research and analysis
3.1 Internal Analysis
The history/current situation and business environment
of the procurement activity
Provide details of confirmed funding source (i.e.
Business Case on File)
Are there any other projects that this project impacts
or impacts on this project or are required to support
this project?
Why is there a need for the project? What is driving the
requirement?
Business case
Policy directive
If there is history in DoE with the services or goods,
provide details in terms of spend details, supplier
performance, client / customer satisfaction, risks.
What are the future requirements or expectations?
Consider the same elements if there is history or future
needs or expectations within other areas of NSW
Government to identify risks or opportunities.
.
3.2 External Analysis
What are other Government or Education facilities
doing in this space in Australia and globally? Are there
learnings that can be shared?
Are there any Government contracts or schemes (If not
in NSW / Federally that should be used or leveraged?)
If so, provide contract / scheme name / details.
What is the capability and maturity of the supply
market (e.g. is this a traditional supply market or
comprise of NGOs, not for profits, small or minority
businesses or Commonwealth funded markets such as
NDIS frameworks etc?)
What is known re the positioning, e.g. maturity and
market share of the organisations in this market?
Department of Education – Procurement Solutions Directorate
Strategy Document – DOC15/832298 V1, 30 November 2015
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Strategy Document
4.
Procurement Strategy
Based on what the business expects to achieve from
this solution, as well as the current market environment
– the procurement strategy indicates the method by
which to create the best market environment so the
objective may be best contested and delivered. Refer
to the Procurement Manual for more details and to
help guide the options.
The drivers will be unique to each project, and depend
on whether the category is people, equipment or
buildings and the level and types of risks involved below are some examples only:
- Bundling products, services or building projects or
unbundling typically bundled products,
components or services.
- Decentralising the market, fostering SME growth
and / or strengthening supplier capability.
5.
Sourcing Strategy
5.1 Market Engagement
NB: Any changes required to any
element of this document as a
result of input from early
engagement or from part 1 of a 2
part process – updates should be
made to a new version of this
document and changes approved
under PWP01 delegation.
How do we engage with suppliers? What is the best
way to approach the market? What approach best
meets the procurement strategy?
Is an initial engagement required (e.g. SME
Opportunity Statement, RFI or briefings) to better
inform budget and subsequent RFT or RFP?
Is an EOI required to identify and shortlist interested
and capable parties?
Or will this be an RFQ under a contract or scheme, or
an open or select RFP/RFT or a Direct Negotiation?
Explain Rationale and attach any workings
5.2 Tender Tool
6.
If there is a legitimate reason for not using approved
tool (CRS), this needs to be documented.
Criteria for Supplier Selection
6.1 Evaluation Drivers
(General Weighting Scheme)
What are the core elements needed to be assessed to
determine the most capable, value-for-money
supplier(s) and address products or service
requirements?
Primary considerations for evaluation in relation to the
business objective and procurement strategy, may
include for example:
Price. Customer service, Distribution network, Capacity
and capability to supply/deliver outcomes, eSolutions
requirements, product quality, Implementation/
transition management, Innovation, Scalability/
flexibility, Time, Operating cost, SME/NGO opportunity,
Aboriginal participation, Other.
Please explain rationale and attach and workings
Specify price / non price weightings and explain
rationale.
Provide details if SMEs are not considered.
Department of Education – Procurement Solutions Directorate
Strategy Document – DOC15/832298 V1, 30 November 2015
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Strategy Document
6.2 Supplier Selection
Strategy
Pre-determine the number of suppliers to be selected,
based on the procurement strategy / risks to meet the
overall objective. E.g.
Single Source, Multiple, Panel - Please explain
rationale and attach and workings
On what basis will these be selected?
E.g. minimum non price score of x to qualify, then top x
overall weighted scoring supplier/s (per region /
category / overall / other).
7.
Business Opportunities
7.1 SME opportunity
If a SME Opportunity statement or engagement
occurred in version 1 (refer 5.1), please include any
feedback or changes here. E.g. What initiatives and
requests from the SME market have been considered
for development in this strategy?
7.2 Business Obligation
What business opportunity are we offering the market?
What level of business and financial obligation is to be
offered to the market as part of the procurement
solution strategy? Is supplier price competition going
to be addressed at tender or at purchase? Is business
going to be restricted to optimise leverage opportunity
or open to optimise market competition? Is a solution
being provided or a support service?
Commitment, Access, Restricted access,
Accreditation, Qualification – Please explain rationale
and attach and workings
8.
Purchase / Payment Strategies
8.1 Ordering Strategy
Identify the fundamental process for purchasing from
this contract?
Is it an ongoing requirement or a one-off purchase?
Requirements will vary based on project e.g. Purchase
orders raised by a single business unit for service
milestones or product catalogue orders generated by
all schools. Ensure this is well defined and achievable
from the outset.
If a catalogue order is required, ensure the appropriate
strategy is designed and included as part of the RFX
and sufficient lead time allowed for catalogue build /
implementation (this can take 6 months depending on
the scope / supplier capability)
Department of Education – Procurement Solutions Directorate
Strategy Document – DOC15/832298 V1, 30 November 2015
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Strategy Document
8.2 Payment Strategy
Who holds the money? Is supply coordinated /
program-delivered? Is it supply scheduled or as
required?
Is it a central payment of will it be paid by site; if by site
is it suitable for pcard? How will supplier/s invoice?
SSC / schools direct?
Will payment terms need to vary from standard 30
days? If so, why?
Include Comments / details.
9.
Contract Management Strategy
9.1 Contract Type
Specify the name of the Contract, Agreement, Order to
be attached to the RFX.
9.2 Contract / Supplier
Management
Based on sensitivity / risk, this contract and supplier
relationship will managed on which basis?
Strategic – meet at least monthly
Tactical – meet quarterly or 6 monthly
Operational - meet 6 monthly or annually
9.3 Administration
Responsibility
Who will be the contract manager and have the
operational responsibility for administering the
contract?
Ensure the appropriate Executive Director has
nominated and acknowledged the resource and
commitment requirement to manage this contract
ongoing.
10.
Benefits Realisation (gross)
List the expected benefits (tangible and non-tangible):
If a savings are one of the benefits indicate anticipated
value and how this will be derived. Include
calculations.
11.
External reporting & process
requirements
Contract Disclosure,
Consultant or Contractor Selection,
Consultant or Contractor performance Report,
SME Participation Plan
APIC Participation Plan and Status Report
Department of Education – Procurement Solutions Directorate
Strategy Document – DOC15/832298 V1, 30 November 2015
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