Strategic Procurement Plan (SPP)

Goods / Works /Services

Understanding & Defining the Procurement Need

Summary Overview:
Provide a summary overview of the objective of the
procurement for the intended items or services e.g.
Company profile

procurement objectives;
make or buy decision
Strategic Capability

Strategic Positioning
Business Level 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.

 Source of Competitive Advantage

Strategy Implementation
Implications.

Detailed requirement:
Define in detail, the requirement appropriate given
the nature of the procurement e.g.:
background and description of requirement;
key stakeholders;
linkages with other projects;
timeframes and logistics;
estimated cost; and
current supply arrangements/transition implications.
Consider the establishment of a strategic sole
supplier contract at either an across Government, or
corporate level where appropriate and beneficial to
do so.
Consider the establishment of a Standing Offer
Agreement at either an across Government or
Corporate level where appropriate and beneficial to
do so.
2

Government Requirements
Approvals:
within Ministry accreditation level refer to
Authorized Officer; Ministry of Commerce or

Finance
outside of accreditation level
Where, 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.
3

PPRA Rules 2004 Requirements

Ensure compliance with PPRA Rules 2004
Exceptions to PPRA Rules 2004 (in case of strategic
assets)

Procurement Process to be initiated by the Client

Planning:
Undertake, if required, informal discussions with
potential suppliers.
Undertake, if required, an informal RFI for the
purpose of market research, intelligence gathering
and value addition to intended project profiling by
prospective vendors

Develop a Knowledge Document of the supply

market Undertake market research and articulate key
findings which commensurate with the nature,
complexity and level of risk of the purchase,
including:
market structure, number of suppliers and their
availability for the activity, manufacturers, importers,
distributors, capability, capacity, market domination,
market share; market pricing
level of competition, availability of alternatives,
stability of the market;
supply chain and nature of relationships and
dependencies within the supply market; and
supplier preferencing for the purchaser, size of
acquisition in the marketplace, value of the Clients
business to the supplier.
Briefly describe the strategy for approaching the
market this may consider type of approach (e.g.
IFB or REoI), Contract scope, contract type (e.g.,
Fixed Budget etc) and Contract Methodology (e.g.,
Single Stage Single Envelop etc.), Contract Ts &Cs
etc.
Detail the above considered strategy for approaching
the market and discuss the linkages to market
research findings:

 Single Source or Sole Source contracting, direct

negotiation, limited (selective) tender by prequalification, open competitive bidding through IFB
or REoI;
type of contract;
Methodology of Contract
length of contract; and
plan for a further market intelligence phase of the
procurement if appropriate.
Summarize the consultation with stakeholders and
vendors undertaken for the acquisition, identify any
opportunities to work with other public or corporate
sector entities which may be undertaking similar
procurement activities.
If appropriate, identify how other public or corporate
sector entities currently address the intended
requirement and any opportunities for collaboration.
Detail key activities and time-frames to monitor
progress and achievement of key milestones.
5

Risk Management Strategy

Risk Identification:
Identify the risks associated with the project.
Risk Assessment:
Assess the likelihood and magnitude of the risks.
Risk Mitigation:
Consider and develop strategies for pre-empting and
treating the occurrence of a risk. To the extent
necessary, consult with other public or corporate
sector entities in relation to how similar risks have
been mitigated.
Monitor and Control:
Identify new risks as these emerge, and develop a
plan/strategy to control the same after these have
arisen.
Insurance:
Determine the level of insurance required in order to
address risks identified through the process above.
Ensure specifications and tender documents
accurately reflect these insurance requirements.
6

Specifications / Evaluation Criteria / Standard

Bidding Documents (SBDs)

 Identify the requirement of standard specifications,

The Client may focus on:

forecasting possible issues relating to the
specification;
ensuring specification that allow for a range of
options/solutions and are generic;
ensuring that the specification are capable enough
to allow maximum number of vendors to offer their
solutions;
ensuring that business need and procurement
objectives 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 expected
outcomes.
Identify Technical & Financial Evaluation Criteria
specific to the procurement activity; the evaluation
methodology.
Identify the need for development of the Standard
Bidding Documents for the same, containing
related Terms & Conditions in the Special Conditions
of Contract and Instructions To Bidders for submitting
responsive bids / proposals.

Contract/Supplier Management
Develop and summarize a contract management
strategy, including the components set out in the
such as:
name of contract manager;
key performance indicators and measurement;
payment stages and terms;

delivery (timeframes, location, method, storage etc);

termination;
transition strategies;
Service Level Agreements (SLAs);
variation management process;
conflict resolution;
reporting arrangements;
Indemnification

penalties for non-performance; and

bonuses for good performance etc.

Process Review and System Audit:

Incorporate plans for undertaking a process review to
implement continuous improvements and determine
savings and value achieved.
8

Other Relevant Information