SCMS Templates for Cat Man Arrow

Step 5 Source and Implement Contracts

Agree SLA’s

Task – Step 5 Stage 1 - Confirm Service Level Requirements

Description –If a service is needed then this should be translated into a form of Service Level Requirement thatcan be written into the tender document.

Action Help – What you need to complete this task.

Earlier steps and discussions with stakeholders will have outlined what goods or service provision is required. The Service Level Requirement will be the basis of the Service Level Agreement.

Procedural Guidance

Confirm in the Remarks field that (if required) a Service Level Requirement has been prepared.

Agree KPI’s

Task – Step 5 Stage 2 - Confirm Key Performance Indicators (KPI’s)

Description – Ensure that Key Performance Indicators have been formulated and can be amalgamated into the specification.

Action Help – What you need to complete this task.

Earlier steps and discussions with stakeholders will have identified the key requirements of the desired outcome. These KPI’s will form the basis of a specification – then they will provide tender evaluation criteria and eventually form the measures for contract management.

Link – Building sustainability into Tendering

Procedural Guidance

Confirm in the Remarks field that KPI’s have been prepared.

Specification

Task – Step 5 Stage 3 - Prepare the Specification(RFQ’s if required)

Description – The specification will include Service Level Requirements and Key Performance Indicators and will be the main element of the tender that the supplier will be focusing on. Alternatively Request for Quotes (RFQ) can be asked for.

Action Help – What you need to complete this task.

The specification should be outcome based and not overly prescriptive. This will encourage the supplier to be more creative with their solutions. Remember that suppliers can only be evaluated on those elements nominated as award criteria. Be clear about how you allocate any weighting that should be applied. If required RFQ can be launched via SCMS system.

Procedural Guidance

Confirm in the Remarks field that a specification has been produced (and RFQ if required).

Pre-Qualification Questionnaire (PQQ)

Task – Step 5 Stage 4 - Prepare a Pre-Qualification Questionnaire if required

Description – The PQQ is a means of assessing the financial standing, technical capability and capacity of a supplier.

Action Help – What you need to complete this task.

The PQQ is the first part of the 2-stage Restricted Process. This process can be used whether a tender falls under the EU Procurement Directives or not. PQQ’s should be forwarded to suppliers requesting one.

Link –Model PQQ Document – G Drive

Procedural Guidance

Confirm in the Remarks field that, if required, aPQQ has been prepared and sent to those suppliers requesting one .

PQQ Debriefing Guidance

Task – Step 5 Stage 5 -Prepare PQQ de-briefing documents

Description – It is good Procurement practice to debrief suppliers whether they have been successful or not.

Action Help – What you need to complete this task.

The benefits of debriefing suppliers at PQQ stage are: (1) to sustain the reputation of the Council as a fair and open organisation (2) to help unsuccessful suppliers to improve the quality of future PQQ’s.

Procedural Guidance

Confirm in the Remarks field that, if required, the PQQ has been prepared.

Invitation to Tender (ITT)

Task – Step 5 Stage 6 - Prepare an Invitation to Tender (ITT) and send to suppliers.

Description – The ITT is an invitation to suppliers to make a formal bid in response to a Council requirement.

Action Help – What you need to complete this task.

If using a Restricted Process, then the ITT will follow the PQQ stage. If an Open Procedure is used then just the ITT will be sent to all suppliers who express an interest. This process can be used whether a tender falls under the EU Procurement Directives or not.

Link –Model ITT Document – G Drive

Procedural Guidance

Confirm in the Remarks field that the ITT has been prepared and sent to suppliers.

ITT Pricing Guidance

Task – Step 5 Stage 7 - Ensure Whole Life Costing is used for the Pricing Schedule

Description – Whole Life Costing is the total cost of all components involved in the delivery of the contract for the full term of the contract.

Action Help – What you need to complete this task.

A comprehensive schedule of all relevant costs will ensure that the true cost of the contract will be established. It will also ensure that the cost element will be fairly evaluated.

Procedural Guidance

Confirm in the Remarks field that a whole life pricing schedule has been prepared.

ITT Evaluation Strategy

Task – Step 5 Stage 8 - Decide Evaluation Strategy

Description – When evaluating a tender based on sustainability criteria, it is usual to award on a Most Economically Advantageous Tender (MEAT) basis.

Action Help – What you need to complete this task.

The award criteria should be relevant to the subject matter of the contract. The evaluation should be based only on the award criteria and weightings cited in the specification in the tender document.After deciding who will be on the evaluation panel, plan a framework of elements (that reflect the award criteria) that can be used to evaluate each supplier.

Procedural Guidance

Confirm in the Remarks field that anITT Evaluation Strategy has been prepared.

Scoring the Evaluation

Task – Step 5 Stage 9 - Scoring the Evaluation

Description – A method for scoring the evaluation and converting those scores via a matrix to reflect weightings.

Action Help – What you need to complete this task.

Each panel member should have a copy of relevantelements listed under each award criterion. The issues can be scored 0 to 5 (see Procurement Guide) from the tender submissions and an average worked out for each of the award criteria. Comments made about the criteria can form the basis of feedback to the supplier. The award criteria averages of each panel member can themselves be averaged to arrive at a score for each of the criteria. These scores can then be entered into an XL spreadsheet that can apply weightings.

Link - Procurement Guide – Intranet

Procedural Guidance

Confirm in the Remarks field that the Evaluation has been undertaken and completed.

ITT Letter Alcatel

Task – Step 6 Stage 10 - Alcatel 10 day Stand-still Period

Description – For EU tenders only. After a supplier has been selected, there is a mandatory 10 day period to allow unsuccessful suppliers to challenge the decision.

Action Help – What you need to complete this task.

Complete the letter on the web-link and send it to all suppliers. If no appeal is received within the 10 days, then the contract can be signed with the successful supplier.

Procedural Guidance

If Alcatel is applicable, confirm in the Remarks field that all suppliers have been sent an Alcatel letter.

ITT Debriefing

Task – Step 5 Stage 11 - Debrief Suppliers after ITT

Description – It is good Procurement practice to debrief all suppliers after a tender process.

Action Help – What you need to complete this task.

Complete and send debriefing letters to all suppliers (see template on SCMS).

Benefits of debriefing include:

  • To establish and sustain the reputation of the public sector as a fair, honest, open and ethical customer;
  • To offer unsuccessful suppliers the opportunity to learn any lessons by understanding the strengths and weaknesses of their tender bid with the view that this will assist them to be more successful in the future.

Link – Debriefing letter template on SCMS site

Procedural Guidance

Confirm in the Remarks field that all suppliers have the Evaluation has been undertaken and completed.

Implementation Plan

Task – Step 5 Stage 12 -Draft Contract Implement Plan

Description – After appointing a supplier/provider, make an implementation plan to show how the contract will be delivered.

Action Help – What you need to complete this task.

The implementation plan should detail how the contract will be delivered but it will also ensure that an agreed set of activities/roles and responsibilities will take place within a planned timetable.

Procedural Guidance

Confirm in the Remarks field that the Implementation Plan has been completed.

Gateway Check

Task – Step 5 Gateway Check

Description – Ensure that all stages in Step 5 (Source and Implement Contracts) have been addressed.

Action Help – What you need to complete this task.

Sufficient information should have been entered in the remarks field to satisfy requirements specified in Step 5. Supporting evidence should be cited even if it is filed outside the SCMS system. The contract/project should be on schedule; if it isn’t then the cause of delay should be reported and any risks identified. The contract/project should be re-scheduled if necessary and all stakeholders informed.

Procedural Guidance

Confirm in the Remarks field that Step 5 has been approved and any required actions communicated to the appropriate person(s).

Action Assigned

Action by – Mark Ellis

Reminder - Yes

December 20081