Step 1 - NEEDS ANALYSIS

The first step is to identify and define the need. Poor identification of needs may lead to sub-optimal assets being procured, and wasted time, effort and costs.

Having defined the need, all options for satisfying that need are evaluated. Where the preferred solution is to procure goods and/or services, the procurement process proceeds through steps 2 to 6.

• Key Documents
• TC08-11 Results and Services Plans (RSPs)
• TC08-7 Revised Project Size/Risk Thresholds for the Submission of Business Cases and Gateway Reports
• Key Guidelines
• TPP08-5 Guidelines for Capital Business Cases

Define the need

The initial catalyst to purchase a good or service is either the the agency’s Results and Services Plan.

Identify options to satisfy the need

Each delivery option is explored and evaluated to determine which option will best meet the identified need and adequately address risk management issues. Options include:

• Using existing resources within the agency
• Collaboration with another agency
• Demand Management
• Procurement.

Justify decision to procure

If the need cannot be met through the earlier service delivery options, a new good or service needs to be purchased.

If the goods or service is available under a SCCB State Contract, agencies must use the contract.

Under the Gateway Review Process, a Strategic Review may be undertaken at the completion of this stage to test whether the procurement solution is the optimum means for providing the service outcomes. Strategic Gateways are required for projects over $10 million and meeting the other project commencement, publication and risk assessment specified in the NSW Treasury Circular TC08-7.

All procurement projects should be captured in the agency’s corporate procurement plan.