Académique Documents
Professionnel Documents
Culture Documents
PROCUREMENT PROCESS
(Version 2 December 2006)
1.
2.
3.
4.
Purchasing documentation
5.
6.
Evaluating offers
7.
8.
Negotiations
9.
Contract management
10.
11.
Disposals
1.
Likely consequences
Action
Understatement of the
need
Purchase of unsuitable
product or service
Money wasted
Need not satisfied
Overstatement of the need
Misinterpretation of user
needs
Greater expense
Poor competition
Totally unacceptable
purchase or not most
suitable product or service
Time lost
Increased costs
Possible downtime
Insufficient funding
Impractical timeframe
Probity issues
Increased procurement
costs
Misuse of resources
Most suitable product not
obtained
Unethical conduct
Obtain appropriate
approvals before
undertaking process
Improve planning
Improve forecasting,
planning and consultation
with users
Improve communication
with potential tenderers
Implement best practice
policies, guidelines and
practices
Maintain ethical
environment
Improve training of
personnel
Risk
Likely consequences
Action
Put suitable controls and
reviews in place
Consider using a probity
adviser
Improve communication
with potential tenderers
2.
Likely consequences
Action
Narrow definition or
commercial specification
(eg. use of brand name)
Fewer alternatives
Increased costs
Definition of inappropriate
product or service
Biased specification
Inadequate statement of
requirements
Implement a control
mechanism to review
specification before release
Variety of offers
Be familiar with
requirements
Insufficient responses
Products offered not
meeting needs
Difficult to evaluate
3.
Ensure specification is
consistent with needs
analysis
Likely consequences
Action
Improve procurement
planning processes
Improve market knowledge
Seek industry participation
Use Industry Capability
Network Tasmania
(ICNTAS)
Selecting inappropriate
method
Improve implementation of
procurement policies,
Risk
Likely consequences
Action
4.
Purchasing documentation
Risk
Likely consequences
Action
Use standard
documentation prepared by
Crown Law
Select appropriate
documentation for
purchase type (ie. goods,
services, goods and
services, or information
technology related)
Improve tender planning
Assess and allocate risks
appropriately
Consult with Crown Law
Use commercially
acceptable terms
Provide staff with
appropriate tender planning
and procurement skills
Providing inadequate
information
5.
Likely consequences
Action
Failure to adequately
address enquiries from
tenderers
Implement standardised
procedures for responding
to enquiries
Risk
Likely consequences
Action
management training and
experience
Respond in a timely
manner to enquiries
Allow adequate time for
tenderers to respond
Actual or perceived
favouritism in providing
information
As above
Withdrawal of offers
Insufficient number of
responses
Reduced competition
Increased costs of products
or services
6.
Evaluating offers
Risk
Likely consequences
Action
Inconsistent evaluations
Improve tender
assessment and evaluation
processes
Maintain, audit and review
evaluation procedures
Ensure that Evaluation
Committee members
declare any conflicts of
interest
Breaches of security
Claims of unethical or
unfair practices
Additional costs
Improve tender
documentation
Delay in delivery
Decision made on
subjective grounds
7.
Likely consequences
Action
Selecting an inappropriate
supplier
Risk
Likely consequences
Action
commercial expertise
Improve evaluation
procedures
Improve evaluation criteria
and clearly identify them to
tenderers in tender
documents
Reject unacceptable offers
Perform financial, technical
and company evaluations
before awarding contract
Procurement Review
Committee to review tender
and selection process prior
to awarding contract
Selecting inappropriate
product
8.
Negotiations
Risk
Likely consequences
Action
Contract disputes
Improve communication,
including ensuring that
Conditions of Contract form
part of the Request for
Tender
Delivery delays
Cost variations
Reduction in value for
money
Purchase of less suitable
product
Inefficient use of resources
Deadlock on details of
agreement
Delays in delivery
Need to restart
procurement
Possible cost of legal
action
Failure to secure
mandatory conditions
Look at alternatives to
share risk
Distinguish between
essential and non-essential
goals and requirements
Establish baseline before
negotiations
Distinguish essential goals
from others
Risk
Likely consequences
Action
Consider variations to
contract
Provide negotiators with
adequate training
Failure to secure
agreement in relation to
Crown Contracts
Confidentiality Policy
Unfair or onerous
requirements on the
tenderer in the contract
conditions
Contract disputes
Invalidity of contract
Legal action
Poor supplier/customer
relationship
Inadvertently creating a
contract without the
delegates prior approval
9.
Contract disputes
Legal action
Negotiate commercial
terms
Terms should be fair and
reasonable
Check final draft of contract
with successful tenderer
Poor supplier/customer
relationship
Procedure in place to
ensure delegates approval
obtained first
Committing to other
associated work prior to
main contract existing
Contract management
Risk
Likely consequences
Action
Cost overruns
Unwillingness of the
supplier to accept the
contract
Delays in delivery
Contract disputes
Need to restart
procurement
Risk
Likely consequences
Action
Ensure good record
keeping and
documentation
Inadequately administering
the contract
Cost increases
Failure of contract
Full benefits not achieved
Delivery of unsatisfactory
product
Contract/supply disputes
Commencement of work by
the supplier before contract
is exchanged or letter of
acceptance issued
Unauthorised increase in
scope of work
Unanticipated cost
increases
Contract disputes
Loss of commercial
opportunity
Unwarranted reliance on
supplier for product support
Failure to meet liabilities of
third parties (eg. royalties
or third party property
insurance)
Legal action
Damage to the agencys
professional reputation
Delays in delivery
Downtime
Liability disputes
Include appropriate
packaging instructions in
specification
Agree on insurance cover
for supplier to provide
Accept delivery only after
inspection
Know when title of goods is
transferred to buyer
Fraud
Misuse of resources
Legal action
Disruption to procurement
activities
Progress on project
disrupted
Maintain an ethical
environment
Follow and maintain fraud
control procedures
Include requirement in
specification and ensure
Risk
Likely consequences
Action
Less expertise
compliance in post-tender
negotiation
Know the market
Accept risk and manage
possible delay
Likely consequences
Action
Failure to evaluate
procurement and
management processes
Failure to improve
procurement and
management processes
Develop systematic
evaluation methods,
techniques and evaluation
criteria
Agree on performance
criteria (with supplier and
customer)
11. Disposals
Risk
Likely consequences
Action
Inadequate tender
management
Acknowledgment: This checklist is based on a checklist developed by, and has been reproduced
with the permission of, the NSW Department of Public Works and Services.