Annex D: UKQ 8: key Factors & Considerations
Complete the table below by giving at least 2 examples of factors or considerations that can influence procurement decisions for
each listed stage or activity in the procurement process. Describe a situation in which each factor consideration would change
the decisions made. In your answer, consider legislative, policy and business requirements .
Key factor or consideration
Stage/Activity
Supply market analysis 1.Limited responses
2.Projects of concern- Bad scorecard reports, ,
How can we have a good relationship?
Procurement planning 1.Complex- Get funds-go to investment
committee
Time- specific documents
When = time/or not ready in time
Request for tenders 1.Handling tenders clarification documents-
tender evaluation process & questions- Maintain probity, point
of contact-record documentation
2.Availability of subject matter experts/the
right people in the team
Contract 1.The right person- Establish relationship with
management tender/ effective in role/knowledgeable
2.Budget- Performance review; KPIs
Example of impact on procurement decisions
Commercial competition is less/monopoly Ability to
achieve value for money could be affected
Not completing specified tasks, not working correct
hours, quality work performance poor, not meeting
KPIs, VFM affected, also builds poor relationships.
No funds no procurement
Not being able to meet acquisition schedule;
having to extend existing contracts into extra
time.
Failure to maintain proper, transparent
records would cause problems in the event of
a tender challenge
Lack of availability couls lead to poor decision
making
Lack of contract management skill could
result in more disputes and a less effective
contract
Good budget management will keep the
work on track, the Contractor should have
good cash flow. If KPIs are met then the
 project will be on time and on schedule and
both parties will benefit.
Stakeholder consultation & relationship 1.Well defined SOW-understand what tender Ensures both parties understand the
management needs, regular consultation to manage &make requirement and are working toward the
sure on same page & need still there same outcome.
2.Good working relationship and ongoing Ensures problems are solved before they
consultation with Contractor via formal and become serious – no surprises.
informal meetings, emails and conversations.
Record Keeping 1.TER & SER Correct delegate on sign off & Archive Act 1983 & Privacy Act 1988
approval (ETP & section 23) requirements met. Transparency of tender
process ensured.
2.Security of tender documents Probity/fairness ensured
Negotiations 1.Offer definition improvement Results in shorter Negotiation Period and
activities(ODIA)- Decision to be made in hopefully greater assurance that the right
planning stage, tender to understand what decision has been made, because it has been
defence require tested prior to contract award.
2.Lead Negotiatior- the right person with the Results in a tighter contract and better
right skills to get the best outcome for understanding of negotiated outcomes for
Defence/Gov. Negotiator to record reasoning future contract managers.
behind negotiated position
Risk management 1.Risk assessment The types of risk and who needs to manage
them might influence the contract price
2.Treat & monitor risks Treatment and monitoring of risk takes
resources and can result in higher contract
prices.