Step 3 - PROJECT PROCUREMENT PLAN

Funding has been approved for the procurement.

A market approach and procurement strategy is adopted, defining the contracting arrangements that will be established to deliver the project. The approach to market must be fair, encourage competition, and be consistent with government procurement obligations and agency procedures.

The project procurement plan describes the stages of the project and how it will be managed. It should be consistent with the business case developed in step 2. Obtain Procurement Plan approval prior to proceeding, confirming available funding and resources for managing the procurement. Deviation – if any - from proposed from the business case should also e identified.

• Key Document
  
• M2006-11 Procurement Policy Reforms (Agency Accreditation for G and S)
• Key Guidelines
• Risk Management Guidelines (2006)

Establish governance structure

A project team is appointed and roles and responsibilities allocated. Project governance and reporting structure and communication channels are determined.

The skills and experience of the team must be relevant to what is being procured.

Determine market approach (procurement strategy)

Depending on the nature of the project, the market approach could be a single or multi-staged process. When deciding which method, consider the value, complexity and timing of the project and extent to which an innovative approach is required. Also consider the impact the method chosen will have on both agency and potential suppliers in issuing, responding to and evaluation of tenders.

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

The market approach chosen must be justified and approved. The most common method used for goods and services contracts is an open tender process.

Before any approach to the market is made, the agency must first determine whether it is accredited or permitted by SCCB directions to undertake the particular type of procurement itself. If it is, the agency follows its own internal procedures - which must be consistent with government policy. If not, submit a request to the SCCB to undertake the approach to market.

Prepare project procurement plan

A procurement plan outlines the procurement strategy and market approach, the project brief and tender method. It builds on the business case / investment justification previously developed and includes a governance framework for the tender process and contract management.

It proposes how tenderers will be selected, how the tender process will be managed and who will be responsible. It includes the basis for tender evaluation, and a direct negotiations plan (if direct negotiations are involved).

The procurement plan will also include key performance indicators for the proposed contract.

A Gateway Review Process can be undertaken at the completion of this stage to confirm that the optimal procurement strategy was selected to deliver the project within its budget and time constraints. The review can also assess whether the project is ready to proceed to the execution stage.

Obtain approval to the procurement plan prior to proceeding.