Strategic Procurement Plan (SPP) oods / !orks /Ser"ices
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#nders #nderstan tandin ding g $ %e&ini %e&ining ng the the Proc Procure uremen mentt 'eed 'eed Summar "er"iew* Provide a summary overview of the o!jective of the procurement for the intended items or services e.g. •
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Company profile " procurement o!jectives# ma$e or !uy decision Strategic Capa!ility " Strategic Positioning %usiness &evel Competitive Strategy
Quadrant-1 Low Value/ Low Risk
Quadrant-2 Low Value/ High Risk
Quadrant 1 High Value/ Low Risk
Quadrant 1 High Value/ High Risk
Cleaning equipment and office utility supplies, uniforms, stationery, hardware etc.
Specialist chemicals, safety equipment, waste disposal / treatment, electrical services, maintenance services, restricted imports etc.
Personal computers and ancillaries, printing services, travel facilitation, office equipment, etc.
major IT / ICT projects, software development, outsourced services, specialist medical equipment, classified equipment weaponry construction etc.
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Source of Competitive 'dvantage " Strategy Implementation Implications. %etailed re+uirement* (efine in detail, the requirement appropriate given the nature of the procurement e.g.) " !ac$ground and description of requirement# " $ey sta$eholders# " lin$ages with other projects# " timeframes and logistics# " estimated cost# and " current supply arrangements/transition implications. Consider the esta!lishment of a strategic sole supplier contract at either an across *overnment, or corporate level where a,,ro,riate and !eneficial to do so. Consider the esta!lishment of a Standing +ffer 'greement at either an across *overnment or Corporate level where a,,ro,riate and !eneficial to do so.
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o"ernment Re+uirements 'pprovals) " within inistry accreditation level - refer to 'uthoried +fficer# inistry of Commerce or
inance " outside of accreditation level 0here, in progressing the SPP, a process deviates from the plan, document the justification for that deviation and gain approval for the deviation from the original approval authority or from the appropriate authority approved in the SPP.
PPR. Rules 20 Re+uirements 1nsure compliance with PP2' 2ules 3445 16ceptions to PP2' 2ules 3445 7in case of strategic assets8
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Procurement Process to e initiated the lient
Planning* 9nderta$e, i& re+uired, informal discussions with potential suppliers. 9nderta$e, i& re+uired, an informal R34 for the purpose of mar$et research, intelligence gathering and value addition to intended project profiling !y prospective vendors
(evelop a 5nowledge %ocument of the supply mar$et 9nderta$e mar$et research and articulate $ey findings which commensurate with the nature, comple6ity and level of ris$ of the purchase, including) " mar$et structure, num!er of suppliers and their availa!ility for the activity, manufacturers, importers, distri!utors, capa!ility, capacity, mar$et domination, mar$et share# mar$et pricing " level of competition, availa!ility of alternatives, sta!ility of the mar$et# " supply chain and nature of relationships and dependencies within the supply mar$et# and " supplier preferencing for the purchaser, sie of acquisition in the mar$etplace, value of the Client:s !usiness to the supplier. %riefly descri!e the strateg for approaching the mar$et; this may consider type of approach 7e.g. 436 or R7o48, Contract scope, contract type 7e.g., i6ed %udget etc8 and Contract ethodology 7e.g., Single Stage Single 1nvelop etc.8, Contract Ts Cs etc. (etail the a!ove considered strategy for approaching the mar$et and discuss the lin$ages to mar$et research findings)
" Single Source or Sole Source contracting, direct negotiation, limited 7selective8 tender !y pre< qualification, open competitive !idding through I% or 21oI# " type of contract# " ethodology of Contract " length of contract# and " plan for a further mar$et intelligence phase of the procurement if appropriate. Summarie the consultation with sta$eholders and vendors underta$en for the acquisition, identify an y opportunities to wor$ with other pu!lic or corporate sector entities which may !e underta$ing similar procurement activities. 4& a,,ro,riate, identify how other pu!lic or corporate sector entities currently address the intended requirement and any opportunities for colla!oration. (etail $ey activities and time
Risk 8anagement Strateg
Risk 4denti&ication* Identify the ris$s associated with the project. Risk .ssessment* 'ssess the li$elihood and magnitude of the ris$s. Risk 8itigation* Consider and develop strategies for pre
S,eci&ications / 7"aluation riteria / Standard 6idding %ocuments (S6%s)
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Identify the requirement of standard s,eci&ications, The Client may focus on) " forecasting possi!le issues relating to the specification# " ensuring specification that allow for a range of options/solutions and are generic# " ensuring that the specification are capa!le enough to allow ma6imum num!er of vendors to offer their solutions# " ensuring that !usiness need and procurement o!jectives are reflected in the specifications. Considering that the specifications meet the performance and conformance requirements and related reference industrial standards for achieving efficiency, efficacy, intended outputs and e6pected outcomes. Identify Technical inancial 7"aluation riteria specific to the procurement activity# the evaluation methodology. Identify the need for development of the Standard 6idding %ocuments for the same, containing related Terms Conditions in the Special Conditions of Contract and Instructions To %idders for su!mitting responsive !ids / proposals.
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ontract/Su,,lier 8anagement (evelop and summarie a contract management strategy, including the components set out in the such as) " name of contract manager# " $ey performance indicators and measurement# •
payment stages and terms# " delivery 7timeframes, location, method, storage etc8# " termination# " transition strategies# " Service &evel 'greements 7S&'s8# " variation management process# " conflict resolution# " reporting arrangements#
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Indemnification " penalties for non
Process Re"iew and Sstem .udit* Incorporate plans for underta$ing a process review to implement continuous improvements and determine savings and value achieved. @
ther Rele"ant 4n&ormation
