5th PASET Forum: Benchmarking Initiative for SSA Universities
The 5th PASET Forum highlights the history, objectives, and importance of benchmarking initiative for Sub-Saharan African universities, aiming to enhance performance and decision-making through standardized data and metrics.
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Procurement in Action Session 6: Developing your Procurement Strategy Presented by: Procurement Policy Development Department Date: November 22, 2022 1
schedule Session 1: September 14, 2022 Annual Annual Procurement Procurement Planning Planning Session 2: September 20, 2022 Market Market Research Research Report Report and and Analysis Analysis Session 3: October 18, 2022 Identifying Identifying Requirements Requirements and and Developing Developing Specifications Specifications Session 4: : October 20, 2022 Procurement Procurement Methods Methods and and Procedures Procedures and and Supply Supply Contracts Contracts Session 5: : November 15, 2022 Evaluation Evaluation Methodology Methodology and and Contract Contract Management Management Plan Plan Session 6: : November 22, 2022 Developing Developing the the Procurement Procurement Strategy Strategy
FOR EACH PROCUREMENT Conduct Market Research Procurement Strategy Development Form Solicitation Document Evaluation & Award Procurement Proceedings Contract Management
FOR EACH PROCUREMENT Market Research Report (MRR) Specifications, Terms of Reference, Scope of Works Conduct Market Research Procurement Strategy Development Form Solicitation Document Procurement Proceedings Evaluation & Award Contract Management
FOR EACH PROCUREMENT Conduct Market Research Analysis and conclusions from MRR Identify Procurement Risks Develop Procurement Strategy Procurement Strategy Development Form Procurement Method Evaluation Methodology, Criteria, Scores Selection Method Contract Management Plan Solicitation Document Evaluation & Award Procurement Proceedings Contract Management
FOR EACH PROCUREMENT Conduct Market Research Analysis and conclusions from MRR Identify Procurement Risks Develop Procurement Strategy Procurement Strategy Development Form Procurement Method Evaluation Methodology, Criteria, Scores Selection Method Contract Management Plan Solicitation Document Evaluation & Award Procurement Proceedings Contract Management
FOR EACH PROCUREMENT Conduct Market Research Analysis and conclusions from MRR Identify Procurement Risks Develop Procurement Strategy Procurement Strategy Development Form Procurement Method Evaluation Methodology, Criteria, Scores Selection Method Contract Management Plan Solicitation Document Evaluation & Award Procurement Proceedings Contract Management
FOR EACH PROCUREMENT Conduct Market Research Analysis and conclusions from MRR Identify Procurement Risks Develop Procurement Strategy Procurement Strategy Development Form Procurement Method Evaluation Methodology, Criteria, Scores Selection Method Contract Management Plan Solicitation Document Evaluation & Award Procurement Proceedings Contract Management
AGENDA 1 Defining the Procurement Strategy Completing the Procurement Strategy Development Form Case Study and Review 2 3 Quiz 4 5 Question & Answer Feedback Survey 6 7 9
1. Defining the Procurement Strategy 10
What is a Procurement Strategy? A procurement strategy is a detailed for ensuring the timely supply of goods, works and services that are critical to an organization's ability to meeting its core business business objectives objectives. detailed plan plan 11
PURPOSE OF THE PROCUREMENT STRATEGY The purpose of identifying and selecting an appropriate procurement strategy is to find the best best way way to to satisfy satisfy the the needs needs of of the manner that promotes the achievement of the objects objects of of the the Act Act. the end end- -user user in a 12
Components of the Procurement Strategy? ANNUAL PROCUREMENT PLAN (STRATEGIC LEVEL) SUPPLY CONTRACTS 4 MARKET RESEARCH 1 DEVELOPING SPECIFICATIONS EVALUATION METHODS 2 5 PROCUREMENT PROCUREMENT STRATEGY STRATEGY (OPERATIONAL (OPERATIONAL LEVEL) LEVEL) PROCUREMENT METHODS & PROCEDURES CONTRACT MANAGEMENT 6 3 13
2. Procurement Strategy Development Form (PSDF) 15
Approval Page High High- -risk/high risk/high- -value Procurement Strategy value Procurement Strategy for the for the Procurement of: Procurement of: Compensation Survey and Job Evaluation Consultancy Services Procurement Request Reference: Procurement Request Reference: Assigned Procurement Officer: Assigned Procurement Officer: Name Brandon Williams Signature Date 20th October 2021 Strategy Strategy D Development evelopment T Team Name eam M Members embers: : Signature Date 20th October 2021 Aaron Rogers 20th October 2021 Josh Allen 20th October 2021 Alex Morgan 16
Approval Page Request for Approval of Strategy (Date): 21st October 2021 The Named Procurement Officer and the Accounting Officer are hereby requested to approve this high- risk/high-level Procurement Plan including the attached Specifications/Terms of Reference/ Scope of Works. Approved Approved: Christina Lewis Derrick Henry Named Procurement Officer Named Procurement Officer Accounting Officer Accounting Officer Date: Date: 22nd October 2021 22nd October 2021 17
Executive Summary GUIDE: GUIDE: a)Background, Scope, Link between this procurement requirement and business objectives b)Procurement objectives, findings of market research and analysis c) Procurement strategy options considered, Recommended Procurement Strategy 18
Requirement Analysis GUIDE GUIDE: : a) a) Definition Definition goods/service/works goods/service/works of of the the MODEL ANSWER: a) Definition of the goods/service/works b) Summary of findings of needs Analyse Company s X operating environment and assess its staffing levels and the adequacy of its job descriptions as it relates to fulfilling its mandate and strategic objectives. c) Spend Analysis Examine the external job market and identify suitable comparators. d) Cost breakdown Develop and recommend appropriate compensation packages designed to attract and retain a high-performing cadre of staff. e) Current supply/contractual issues f) Specification requirements issues of 19
Requirement Analysis GUIDE GUIDE: : a) Definition goods/service/works of the MODEL ANSWER: b) Summary of findings of needs b) b) Summary Summary of of findings findings of of needs needs Company X recognises cost for this type of service is based on the number of consulting days required and number of positions under review. c) Spend Analysis d) Cost breakdown e) Current issues supply/contractual f) Specification of requirements issues 20
Requirement Analysis GUIDE GUIDE: : a) MODEL ANSWER: Definition goods/service/works of the c) Spend Analysis b) Summary of findings of needs Company X has no procurement history for this item. c) c) Spend Spend Analysis Analysis d) Cost breakdown e) Current issues supply/contractual f) Specification of requirements issues 21
Requirement Analysis MODEL ANSWER: GUIDE GUIDE: : a) d) Cost breakdown Based on the market research the estimated cost of the Compensation Survey and Job Evaluation Consultant Services to meet the needs of Company X range between TT$170,000 and TT$600,000. No. No. Activity/Work Activity/Work Deliverable Deliverable Definition goods/service/works of the b) Summary of findings of needs No. of Days No. of Days Amount Amount c) Spend Analysis 1 Project Planning and Mobilisation Inception Report 2 days d) d) Cost Cost breakdown breakdown Details and summary of data collected from comparator organisations report on the final survey findings 2 Compensation Survey 20 days e) Current issues supply/contractual f) Specification of requirements issues 22
Requirement Analysis GUIDE GUIDE: : a) Definition goods/service/works of the MODEL ANSWER: b) Summary of findings of needs e) Any current supply/ contractual issues N/A c) Spend Analysis d) Cost breakdown e) e) Current Current issues issues supply/contractual supply/contractual f) Specification of requirements issues 23
Requirement Analysis GUIDE GUIDE: : a) Definition goods/service/works of the MODEL ANSWER: b) Summary of findings of needs f) Specification of requirements issues c) Spend Analysis Research and analysis were conducted by the Project Team comprising to mitigate the occurrence of any specification of requirement issues: Extensive desk-top research was conducted Telephone conversations with suppliers in the industry d) Cost breakdown e) Current issues supply/contractual f) f) Specification Specification of of requirements issues issues requirements 24
Stakeholder Analysis a) Identify key stakeholders and their respective needs and issues: INTERNAL STAKEHOLDERS INTERNAL STAKEHOLDERS NEEDS NEEDS Summary Report Obtain an established pay structure Review and re-development of job descriptions STAKEHOLDERS STAKEHOLDERS Board Board ISSUES ISSUES Outcome may not meet expectations Management Management Staff Staff EXTERNAL STAKEHOLDERS EXTERNAL STAKEHOLDERS Access to internal documents Local Local Suppliers Suppliers and and Foreign Foreign Confidentiality Policy Input from Company X representatives 25
Stakeholder Analysis b) Analyse the potential impact of stakeholders stakeholders influences on the procurement objectives: Awarded Supplier Board of Directors Management & Staff 26
Market Analysis GUIDE: GUIDE: Market structure MODEL ANSWER: There are many firms in this market for the Compensation Survey and Job Evaluation Consultancy services offering a similar but not identical product. Degree and type of competition between suppliers Nature and quality of the supply chain In analysing the market using the Supplier Preferencing Model it was determined that Company X can be viewed as a Development customer by suppliers in this industry. This means that the value of the account and its attractiveness is considered high as potential supplier interest is strong. Alternative goods or services Entity's value as a customer Results of any market sounding 27
Preferred Procurement Strategy Recommendation 1. 1. Procurement Procurement Method bidders identified through market research. Method Limited Limited Bidding Bidding Bids issued directly to a selected number of 2. 2. Selection Selection Method Method - - Least Open and evaluate technical proposals Reject proposals failing to meet minimum score Return financial proposal - unopened Open financial proposals that meet/exceed minimum score Winner = lowest priced financial proposal of responsive bidders Least Cost Cost Selection Selection 28
Preferred Procurement Strategy Recommendation Evaluation Criteria: Evaluation Criteria: Min Min Score Score Max Max Score Score No. No. Qualification Criteria Qualification Criteria Proven experience of the Proponent as evidenced by its number of years experience and projects completed of a similar nature and complexity. 1. 20 50% Main Criterion a) Ten (10) years experience in human resources management, with at five (5) years experience in providing consultancy services in job evaluation and compensation. (10 pts) b) Completion of three (3) contracts in the provision of Compensation Survey and Job Evaluation Consultancy Services over the last five (5) years. (5 pts) c) Human resources consulting experience with organisations of a similar nature either locally or internationally. (5 pts) 29
Preferred Procurement Strategy Recommendation Evaluation Criteria: Evaluation Criteria: Min Min Score Score 50% Max Max Score Score 20 No. No. Qualification Criteria Qualification Criteria Proven experience of the Proponent as evidenced by its number of years experience and projects completed of a similar nature and complexity. 1. a) Ten (10) years experience in human resources management, with at five (5) years experience in providing consultancy services in job evaluation and compensation. ( (10 b) Completion of three (3) contracts in the provision of Compensation Survey and Job Evaluation Consultancy Services over the last five (5) years. ( (5 5 pts) c) Human resources consulting experience with organisations of a similar nature either locally or internationally. . ( (5 5 pts) pts) 10 pts) pts) pts) Sub-Criteria 30
Preferred Procurement Strategy Recommendation Evaluation Criteria: Evaluation Criteria: Min Min Score Score 50% Max Max Score Score 20 No. No. Qualification Criteria Qualification Criteria Proven experience of the Proponent as evidenced by its number of years experience and projects completed of a similar nature and complexity. 1. a) Ten (10) years experience in human resources management, with at five (5) years experience in providing consultancy services in job evaluation and compensation. (10 pts) b) Completion of three (3) contracts in the provision of Compensation Survey and Job Evaluation Consultancy Services over the last five (5) years. (5 pts) c) Human resources consulting experience with organisations of a similar nature either locally or internationally. (5 pts) Scores 31
Preferred Procurement Strategy Recommendation Evaluation Criteria: Evaluation Criteria: Min Min Score Score 50% Max Max Score Score 20 No. No. Qualification Criteria Qualification Criteria Proven experience of the Proponent as evidenced by its number of years experience and projects completed of a similar nature and complexity. a) Ten (10) years experience in human resources management, with at five (5) years experience in providing consultancy services in job evaluation and compensation. (10 pts) b) Completion of three (3) contracts in the provision of Compensation Survey and Job Evaluation Consultancy Services over the last five (5) years. (5 pts) c) Human resources consulting experience with organisations of a similar nature either locally or internationally. (5 pts) 1. The contract for the provision of the services will be awarded to the Consultant that achieved at least the minimum Technical Proposal score of 75%, and had submitted the lowest evaluated commercial proposal, will be considered the top-ranked proponent. 32
Analysis using a SWOT Framework LR/LV Helpful Helpful Harmful Harmful To achieving the objective To achieving the objective (attributes of the procuring entity) Internal Origin Internal Origin Strengths Strong Strategy Development Team Significant Market Research conducted Weaknesses Time implementation schedule) Overspecification ( lockout specs) delays (Actual vs Estimated (attributes of the external context) Opportunities Internal capacity building Building supplier relationships. Threats Failure of offers to meet requirement needs External Origin External Origin 33
Risk Management Plan LR/LV Likelihood Likelihood Low Low Medium Medium High High Minor Minor Manage and monitor risks Accept risks Accept, but monitor risks Moderate Moderate Impact Impact Risks may be worth accepting with monitoring Management effort worthwhile Management effort required Significant Significant Considerable management required Must Manage and monitor risks Extensive management essential 34
Risk Management Plan Risk Risk Likelihood Likelihood Impact Impact Action required to Action required to eliminate/minimise/mitigate eliminate/minimise/mitigate risk risk Risk owner Risk owner Anticipated Anticipated date for date for action action Action Action plan plan update update Time delays Improve communication with successful internal stakeholders. HR Procurement and Medium Moderate proponent, Overspecification Conduct market research to obtain a comprehensive understating available in the market. HR Procurement and Medium Significant of what is Failure of offers to meet requirement needs Medium Significant Ensure the Solicitation HR Procurement and document/Scope of Services is clear and understandable 35
Negotiation Plan LR/LV Negotiation the process by which agreements are reached, by parties with different and potentially divergent interests... (Chartered Institute of Purchasing & Supply, 2012 Negotiation is a useful tool for ensuring that: the needs of the procuring entity are met; and the value for money advantages that have been sought are achieved. Negotiation Plan Highlights the issues for negotiation Sets the parameters under which to negotiate Identifies the relevant strategies to be employed. 36
When is Negotiation Permitted? Procurement Procedure Application Method of Invitation Solicitation Document # of Envelopes Selection Criteria Request Proposals with negotiations for Solution for requirement involves negotiations to adequately procurement need Two Technical Commercial), one before the other. (Separate Public notice Direct solicitation - (RFP) ITB RFP and - MEAT - consecutive satisfy the - Solution for requirement involves negotiations to adequately procurement need Two Technical Commercial), one before the other. (Separate Public notice Direct solicitation - Competitive Negotiations ITB RFP and - MEAT - satisfy the - 37
Negotiation Plan MODEL ANSWER: MODEL ANSWER: Overall Strategy Focus on the outcome Team Roles & Responsibilities Head HR and Administration and Assigned Procurement Officer Negotiation Objectives Align timelines and deliverables to Company X s needs Tactics Positive and ethical collaborative Concessions Office accommodation and assigned staff. Payment terms Conduct of Negotiation Location and timing - Head Office at 10:00 am on December 4, 2021 BATNA Move to the next qualified proposal or conduct in-house. Next Steps To be determined 38
Key Procurement Performance Measures LR/LV MODEL ANSWER: MODEL ANSWER: GUIDE GUIDE: : Procurement performance will be measured utilizing the following: Programmatic goals and objectives of the entity Value for money Annual Procurement Plan & Schedule Implementation Plan 39
Contract Management Plan LR/LV MODEL ANSWER MODEL ANSWER Contractor Obligations as per agreed deliverables Procurer s Obligations Reporting requirements To Head HR; Inception Report; Progress Report; Completion Report with due dates. Contract Administration Contract start date January 10, 2022 Contract completion date April 12, 2022 Options for contract extension include:- Only 1 extension permitted Extension should not exceed 1 month Reasons for extension must be documented and approved Contract Term and Extension Options Contract Close Checklist of deliverables; approved and signed off by Head HR and Accounting Officer. Out 40
Key Contract Delivery Performance Measures MODEL ANSWER: MODEL ANSWER: GUIDE GUIDE: : Performance will be monitored according to the following KPIs: Strategic and operational performance measures Key Performance Area KPI Description KPI Measurement 1. Delivery a) On-time Delivery Provide contractually obligated deliverables and outcomes agreed dates contractually deliverables as per mutually agreed plans On time delivery obligated of Scope on Quality b) Documentation of deliverables Information managed stored communicated) in line with expectations defined in contract or as agreed between the parties is Deliverables uploaded to knowledge system according to agreed timeframe. Supporting/ documents (templates, weekly reports, minutes of meetings, training manual, progress etc.) (shared, Timeliness and working uploaded status Cost Other as required project 41
Implementation Plan LR/LV MODEL ANSWER: MODEL ANSWER: GUIDE: GUIDE: Multi Multi- -disciplinary teams and membership: disciplinary teams and membership:- - Strategy Development Head HR; Assigned Procurement Officer; Capacity Development Officer. Evaluation Committee Head HR (Chair); Snr Legal Officer; Financial Specialist; Assigned Procurement Officer; Negotiation Team Head HR & Assigned Procurement Officer; Contract Administration Head HR Resources Roles and Responsibilities Stakeholder Goals Tools Timetable Communication Plan All Staff Introduce project; manage expectations Newsletter; Emails Bi-monthly Executive Management Share progress made Meeting Monthly Board of Directors Keep informed Project Briefs Monthly Implementation Schedule (on the next slide) Project Teams Review project status and progress/delays/changes Meetings; Emails Weekly ad hoc 42
Implementation Schedule MODEL ANSWER: MODEL ANSWER: # Process Planned Completion Actual Completion 1 Commence strategy development Aug-Sept 2021 28 Sept 2021 2 Market Analysis Aug-Sept 2021 20 Sept 2021 3 Complete Terms of Reference 18 Oct 2021 20 Oct 2021 4 Approval - High Value/Risk PSDF 20 Oct 2021 22 Oct 2021 5 Issue Solicitation Documents 25 Oct 2021 26 Oct 2021 6 Tender Evaluation 3 Dec 2021 5 Dec 2021 7 PDAC Review 22 Dec 2021 22 Dec 2021 8 Contract Award 28 Dec 2021 29 Dec 2021 9 Performance of Contract 10 Jan 2022 10 Jan 2022 10 Contract Completion date 12 April 2022 12 April 2022 43
Executive Summary MODEL ANSWER: a) Background Company X was established in 2002 for the purpose of regulating public sector procurement throughout the country. Accordingly, in order to facilitate the initial recruitment of key staff, a compensation and benefits plan was established utilising salary data available in 2002. GUIDE: GUIDE: a) a) Background, Background, Scope, this this procurement procurement requirement and and business business objectives objectives Scope, Link Link between between requirement MODEL ANSWER: a) Scope to develop formal job evaluation exercise with a view to adopting a more fit-for-purpose compensation and benefits plan that incorporates competitive pay with targeted and valued benefits for its 33 staff members (provide breakdown). b) Procurement objectives, findings of market research and analysis c) Procurement strategy options considered, Procurement Strategy Recommended MODEL ANSWER: a) Business Objective Review and update the organisation s structure and compensation assessment in alignment with 2021 Strategic Plan. Procurement Activity - Compensation Survey and Job Evaluation Consultancy Services 44
Executive Summary MODEL ANSWER: b) GUIDE: a) Background, between requirement objectives Scope, procurement and business Link Low-risk/relatively high-value procurement activity based on market research findings. Accordingly, this activity could be placed in the leverage quadrant of Company X s Portfolio Matrix. The objective of this procurement would be to minimise transaction costs and purchase price. this b) b) Procurement Procurement objectives, of of market market research objectives, findings research and and analysis findings analysis c) Procurement strategy options considered, Procurement Strategy Recommended 45
Executive Summary MODEL ANSWER: c) GUIDE: GUIDE: a) Background, between requirement objectives Scope, procurement and business Link Procurement Method Limited Bidding Evaluation Method - Least Cost Selection The contract for the provision of the services will be awarded to the Consultant that achieved at least the minimum Technical Proposal score of 75%, and had submitted the lowest evaluated commercial proposal, will be considered the top-ranked proponent. this b) Procurement objectives, findings of market research and analysis c) c) Procurement Procurement strategy considered, considered, Procurement Procurement Strategy strategy options Recommended Recommended Strategy options 46
Key Principles in Developing your Procurement Strategy All terms and conditions, should be completed and clearly framed. Ensure it is fully aligned with the overall Mandate and Strategy of the Organization. Clear and complete documentation of the process. Development of the strategy by a cross- functional team. Procedure for receipt of bids should be in a manner that gives confidence that the process is secure. Funding of the acquisition must be confirmed in advance Fairness to all potential suppliers /contractors must be reflected. Review by PDAC in accordance with the approved strategy. 47
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