PROCUREMENT PLAN Title: Agency: (Public Authority Name) or Department of Treasury & Finance [for Group Buy or CUA] Contract Authority: Approved by: ………………….……………………….. /………/2008 (name of public authority’s accountable authority or delegate) (title) State Tender Review Committee Endorsed Date: /2008 PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 2 of 24 DTF VERSION 010108 TABLE OF CONTENTS 1 SUMMARY OF PROPOSED PROCUREMENT 4 1.1 BACKGROUND...........................................................................................4 1.2 SCOPE..........................................................................................................4 1.3 CONTRACT COMMENCEMENT DATE .................................................4 1.4 NUMBER OF CONTRACTORS................................................................4 1.5 CONTRACT TERM.....................................................................................4 1.6 FUNDING .....................................................................................................4 1.7 ESTIMATED CONTRACT VALUE...........................................................4 1.8 CONTRACT AUTHORITY.........................................................................5 1.9 CONTRACT CONDITIONS.......................................................................5 1.10 APPROVAL TO PROCEED ......................................................................5 2 CURRENT CONTRACT ARRANGEMENTS ...........................................6 2.1 SUPPLY ARRANGEMENTS.....................................................................6 2.2 CONTRACT COMMENCEMENT AND EXPIRATION..........................6 2.3 CURRENT CONTRACTORS....................................................................6 2.4 CONTRACT/CUA VALUE..........................................................................6 2.5 STRENGTHS AND WEAKNESSES OF CURRENT CONTRACT/AGREEMENT...................................................................................6 2.6 PREVIOUS CONTRACT ISSUES............................................................6 3 PROPOSED PROCUREMENT TIMETABLE...........................................7 3.1 KEY PROPOSED DATES .........................................................................7 4 RISK ANALYSIS......................................................................................8 4.1 IDENTIFIED RISKS....................................................................................8 4.2 STRATEGIES TO MANAGE THE RISKS...............................................8 5 BUY LOCAL POLICY ..............................................................................9 5.1 PLANNING THE PURCHASE...................................................................9 5.1.1 LOCAL BUSINESS CAPACITY........................................................9 5.1.2 LOCAL CONTENT..............................................................................9 5.1.3 EARLY TENDER ADVICE...............................................................10 5.1.4 REGIONAL SKILLS & ECONOMIC DEVELOPMENT................10 5.1.5 COUNTERTRADE ............................................................................10 5.1.6 BUILDING LOCAL INDUSTRY.......................................................10 5.2 INVITE AND RECEIVE OFFERS...........................................................10 5.3 EVALUATION............................................................................................11 5.3.1 PRICE PREFERENCES..................................................................11 5.3.2 VALUE FOR MONEY.......................................................................11 PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 3 of 24 DTF VERSION 010108 6 PROCUREMENT RESEARCH...............................................................12 6.1 ALTERNATIVE PROCUREMENT OPTIONS.......................................12 6.2 NUMBER OF RESPONDENTS..............................................................12 6.3 STAKEHOLDER RESEARCH ................................................................12 6.3.1 INDUSTRY.........................................................................................12 6.3.2 PUBLIC AUTHORITY.......................................................................12 6.3.3 OTHER................................................................................................12 6.4 PROPOSED PROCUREMENT SYSTEMS APPROACH...................13 6.5 ENVIRONMENTAL ISSUES ...................................................................13 6.6 SPECIFICATION TYPE ...........................................................................14 6.7 QUALITY ASSURANCE REQUIREMENTS.........................................14 6.8 PRICE RESEARCH..................................................................................14 7 PROCUREMENT METHODOLOGY AND STRATEGY.........................15 7.1 PROCUREMENT METHOD....................................................................15 7.2 PROCUREMENT OBJECTIVE – VALUE FOR MONEY....................15 7.3 EVALUATION REQUIREMENTS OR CRITERIA................................15 7.3.1 PRE-QUALIFICATION REQUIREMENTS....................................15 7.3.2 COMPLIANCE AND DISCLOSURE REQUIREMENTS.............16 7.3.3 COMPLIANCE CRITERIA ...............................................................16 7.3.4 QUALITATIVE (REQUIREMENTS OR CRITERIA).....................17 7.4 INSURANCE REQUIREMENTS.............................................................17 7.5 EVALUATION RATING SCALE..............................................................18 7.6 PRICE .........................................................................................................20 7.6.1 PRICING MODEL..............................................................................20 7.6.2 PRICE VARIATIONS........................................................................20 7.7 BUYING RULES........................................................................................20 7.8 REQUEST BRIEFING SESSION ...........................................................21 7.9 EVALUATION COMMITTEE...................................................................21 8 CONTRACT MANAGEMENT.................................................................22 8.1 CONTRACT MANAGEMENT PLAN......................................................22 8.2 RISK MANAGEMENT ..............................................................................22 8.3 BUY LOCAL MANAGEMENT .................................................................22 8.4 KEY PERFORMANCE INDICATORS ...................................................22 8.5 CUSTOMER/CLIENT REFERENCE GROUP......................................22 8.6 PROMOTION AND MARKETING ..........................................................23 8.7 BUYERS GUIDE .......................................................................................23 8.8 PERFORMANCE REVIEW......................................................................23 8.9 APPLICATIONS FROM NEW SUPPLIERS .........................................24 8.10 ADDING /REMOVING PRODUCTS .....................................................24 PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 4 of 24 DTF VERSION 010108 1 SUMMARY OF PROPOSED PROCUREMENT 1.1 BACKGROUND State why the procurement is required and expected outcomes. If a Business Case was prepared in support of the procurement and pertinent issues were raised, make reference to those issues under this heading – cross-reference to other sections within the Plan if relevant. 1.2 SCOPE Provide summary /overview of the project requirements and any special user requirements. Where approval has been provided to make a CUA (or part of a CUA) non-mandatory, provide details as to when approval was provided and discuss the impact on SSC policies including prior approval received from SSC. 1.3 CONTRACT COMMENCEMENT DATE The proposed contract commencement date is xx. 1.4 NUMBER OF CONTRACTORS A single /panel contractor(s) will be appointed. 1.5 CONTRACT TERM The proposed contract term is xx years. There are xx year extension options available at the complete discretion of the (Contract Authority). 1.6 FUNDING Not applicable to CUA The availability of appropriate funding has been confirmed by (name and title of senior officer eg Director or equivalent). 1.7 ESTIMATED CONTRACT VALUE The estimated contract value, including all extension options, is $xx. This equates to $x per annum. Provide an explanation of the basis for the price estimate eg based on existing contract expenditurePROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 5 of 24 DTF VERSION 010108 1.8 CONTRACT AUTHORITY The Contract Authority will be (title and name of public authority). 1.9 CONTRACT CONDITIONS Delete the conditions not applicable The General Conditions of Contract for the Supply of Goods and/or Services (April 2007) or The General Conditions of Contract for the Supply of ICT Goods and/or Services (April 2007) or The General Conditions of Contract for Supply of Goods (1996) or Provision of Services (1996), or General Conditions of Contract for Engagement of Consultants – Management (1996) will apply to this requirement. 1.10 APPROVAL TO PROCEED Approval to proceed with the project has been provided by (name and title of senior officer eg Director or equivalent). PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 6 of 24 DTF VERSION 010108 2 CURRENT CONTRACT ARRANGEMENTS 2.1 SUPPLY ARRANGEMENTS The (current /previous) (contract /arrangement) for the provision of the insert good /service title was by means of Public Tender. Give a brief summary of the performance of the contract. If no previous contract existed, explain how the goods/services have been historically purchased. 2.2 CONTRACT COMMENCEMENT AND EXPIRATION The current contract commenced on xxxx. The contract expiration date is /was xxxx. 2.3 CURRENT CONTRACTORS The current contract provider(s) is /are xxxx. 2.4 CONTRACT/CUA VALUE A total of $x has been paid under the contract/CUA. This equates to $x per annum. 2.5 STRENGTHS AND WEAKNESSES OF CURRENT CONTRACT/AGREEMENT The strengths of the current contract/arrangement are [insert strengths eg established good supplier relationship, excellent performance delivery, great customer service, local content benefits, eg local business supplier, job creation]. The weaknesses of the current contract/arrangement are [insert weaknesses eg insufficient policy compliance, high transaction costs, poor contract management /administration lack of supplier feedback, no local supplier]. 2.6 PREVIOUS CONTRACT ISSUES Option 1 – No significant problems have arisen during the term of the contract. OR Option 2 – The key issues that arose from this contract and its impact were as follows: a) Implementation; b) Price; and c) Performance reviews. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 7 of 24 DTF VERSION 010108 3 PROPOSED PROCUREMENT TIMETABLE 3.1 KEY PROPOSED DATES The key dates for the proposed procurement are as follows: add /delete as applicable STAGE TARGET DATE Procurement Plan submitted for DTF submission to STRC DTF approval of variance from CUA policy [CUA only if applicable] STRC endorsement of Procurement Plan Request documentation completed Draft Request advertised for industry comment [CUA only] Pre-Tender Industry Forum [CUA only] Client/approval of Request document Request advertised Request briefing Request closes Request evaluation and recommendation STRC endorsement of Evaluation Report Contract negotiations Contract awarded Contract commencement date PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 8 of 24 DTF VERSION 010108 4 RISK ANALYSIS 4.1 IDENTIFIED RISKS The project risk rating allocated to this contract is low, moderate, significant or high. Option 1 (If low or moderate risk rating) – The proposed new contract(s) should not put the Government /public authorities /supplier at any undue risk (include next sentence if applicable). Furthermore, the proposed contract is not new to government and contracted procurement of this service/product is currently being successfully used by (insert public authority). OR Option 2 (If significant or high risk rating) – The risks (or impact) associated with this /these contract(s) can be summarised as [delete irrelevant risks]: a) Insert safety risks – client /public and employees; b) Insert commercial risks to government – cost of failure, disputation, safety, impact on government procurement; c) Insert financial risks – will appropriate financial checks be carried out; d) Insert political risk to government – loss of confidence; e) Insert risks associated with the management of multiple contractors; f) Insert conflicts of interest; g) Insert any social ramifications for local communities; and h) Buy local risks – limited /no local business capacity, limited /no local content. 4.2 STRATEGIES TO MANAGE THE RISKS Strategies to manage the risks identified include: [include if contract allocated a high or significant risk rating and elaborate as appropriate] a) Contractual provisions eg termination ease? Hand-over issues; b) Contract management (refer Section 8 requirements); and c) Performance measures. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 9 of 24 DTF VERSION 010108 5 BUY LOCAL POLICY The following provides an overview of the Buy Local Policy issues that need to be considered as part of the Procurement Plan. The level and type of information provided depends on the nature of the procurement. Further reference to the Policy (especially pages 31-32) should be made for further consideration of the issues. References are made in ( ) to pages of the Policy where further information is available. Questions in relation to the Policy, or this section, should be referred to the Local Content Unit. 5.1 PLANNING THE PURCHASE 5.1.1 LOCAL BUSINESS CAPACITY Based on ………. local businesses have the capacity to meet the contract size and scope requirements. What research has been undertaken to examine the level of capability of local businesses to meet the procurement requirements: • Based on previous, similar or current contracts – did local businesses respond; • Discussions with relevant industry associations; • Number of potential local business respondents; • Research undertaken by public authority and/or DTF; • Specification /Scope of works is generic; • Can respondents respond for all or some of the required goods /services; and • Potential for local industry development. 5.1.2 LOCAL CONTENT Based on ………….. the anticipated level of local content for this contract is as follows: What research /processes have or will be undertaken to examine how to maximise the level of local content: • Local content related to the source of the goods materials and services and the degree to which local suppliers and subcontractors are used to deliver the contract outcomes (5,6); PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 10 of 24 DTF VERSION 010108 • Eg 1 – local Western Australian supplier who sources goods from elsewhere and who will undertake repairs and maintenance locally – Eg 2 – local Western Australian supplier who will source all required services from within Western Australia; • What do you anticipate will be undertaken in Western Australia – eg goods manufactured, repairs and maintenance, services provided etc; • Local content needs to be considered at a number of levels – regional, Western Australia and Australia; • What is the level of local content for previous, similar or current contracts; and • Will an Industry Participation Plan be required? (for further information, contact the Local Content Unit at DOIR – ph: 9222 5216) 5.1.3 EARLY TENDER ADVICE An early tender advice notice shall be /has been placed on the WA Government Contracting Information Bulletin Board in relation to this proposed procurement. 5.1.4 REGIONAL SKILLS & ECONOMIC DEVELOPMENT For regional contracts with a value of over $750,000, the Procurement Plan must address how regional skills and economic development will be maximised via the procurement process (31). 5.1.5 COUNTERTRADE For contracts with a total anticipated imported value of greater than $5,000,000, the procurement plan must outline counter trade opportunities. 5.1.6 BUILDING LOCAL INDUSTRY Only to be included if an Industry Participation Plan is required – please discuss with the Local Content Unit. The Contract Authority and Contractor will develop an Industry Participation Plan which will outline a project specific approach to the use of competitive local suppliers and other economic /industry objectives. 5.2 INVITE AND RECEIVE OFFERS The Request mailing list will include local businesses. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 11 of 24 DTF VERSION 010108 5.3 EVALUATION 5.3.1 PRICE PREFERENCES Price preferences (including regional and imported content impost) will be applied where applicable. 5.3.2 VALUE FOR MONEY Benefits from purchasing from local businesses and the level of local content, will be recognised in assessments of value for money and assessing responses against State local industry development objectives. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 12 of 24 DTF VERSION 010108 6 PROCUREMENT RESEARCH 6.1 ALTERNATIVE PROCUREMENT OPTIONS [only applicable to agency specific contracts] Confirmed that no alternative procurement options exist including an existing CUA or CUA under development. OR A CUA exists or is under development of similar supply requirements, however, confirmed with (name & title of CUA contract manager) that the public authority specific requirements could not be met under this CUA. 6.2 NUMBER OF RESPONDENTS It is anticipated that X respondents will be received, based on [insert reason eg previous experience in contracting for this good /service, industry size etc]. The majority of respondents are likely to represent big /medium /small firms from Western Australia /the Eastern states /overseas. 6.3 STAKEHOLDER RESEARCH All relevant stakeholders have been consulted in relation to this proposed procurement. A summary of the stakeholder research is as follows: NB: sub-sections listed below have a CUA focus 6.3.1 INDUSTRY • Research undertaken by DTF • Current relationships /delivery mechanisms • Impact of the CUA on industry, particularly in regional areas. 6.3.2 PUBLIC AUTHORITY • Summarise potential usage of different public authorities • Outline their current buying arrangements and any impact on these arrangements the new CUA may have. 6.3.3 OTHER • Research undertaken by DTF (please specify eg schools, local council, community groups, special clients – disabled, seniors) PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 13 of 24 DTF VERSION 010108 • Current relationships /delivery mechanisms • Impact of the CUA on these groups, particularly in regional areas. • CUA’s in other Australian states. 6.4 PROPOSED PROCUREMENT SYSTEMS APPROACH [CUA ONLY] In consultation with the Procurement Systems and Standards Directorate, outline the method(s) by which customers will procure from the CUA. This includes examining alternatives for online purchasing and online data/catalogues and their integration with existing systems and buyer/industry processes. (Note that buying rules should not be presented here – they are presented at Section 7.7). It is a requirement of this step that you obtain documented signed approval of the approach from the Director of the Procurement Systems and Standards Directorate. The procurement systems approach chosen for this CUA is (insert preferred approach) because it meets the buyers needs in these ways: • List reasons …… 6.5 ENVIRONMENTAL ISSUES The Plan should identify and address environmental impact issues – the level of effort expended to minimise the environmental impact of procurement should be commensurate with the nature of the purchase. The environmental impact issues to be considered include: • Use of recycled or recovered materials; • Product reusability and/or recyclability; • Durability; • Energy efficiency and consumption; • Water efficiency; • Waste prevention; • End of life disposal method; and • Environmental health issues PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 14 of 24 DTF VERSION 010108 To support the environment, the following initiatives will be incorporated to minimise the environmental impact of procurement: (for example) a) The selection criteria will provide a positive advantage to goods, services and/or processes that minimise environmental impact eg Selection criteria will give preference to recycled or recovered materials b) The specification will give consideration to environmental standards, codes or legislation where appropriate c) Information will be sought from suppliers on the environmental impact of goods, services and process tendered (eg accreditation, practices, recycled content, durability and reuse options, hazardous material content, energy efficiency, waste prevention, water efficiency) For further information regarding environmental impact issues, refer to the State Supply Commission’s Sustainable Procurement Policy. 6.6 SPECIFICATION TYPE The type of specification utilised will be technical /performance orientated /functional as the requirements [insert reason for choice eg must be highly detailed and complex /require outcome based performance /can/cannot be accurately described in sufficient detail]. 6.7 QUALITY ASSURANCE REQUIREMENTS The Quality Assurance requirement for this contract will be x. The Quality Assurance x is the standard in this particular industry and therefore, will have no impact upon small business. Other standards and /or competencies to be adhered to include [insert other standards eg customer service, servicing /maintenance, training]. 6.8 PRICE RESEARCH Outline the different pricing mechanisms available and their suitability and suggest the most appropriate alternative. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 15 of 24 DTF VERSION 010108 7 PROCUREMENT METHODOLOGY AND STRATEGY 7.1 PROCUREMENT METHOD The proposed procurement method will be a one /two stage process of a /an EOI followed /by Public Tender /including a Reverse Auction. State why this method was chosen eg best method to achieve a value for money outcome, achieve regional purchasing objectives, used in past successfully for similar services /goods. This should be a business case type analysis and may be several pages long. It should include details of all contract structure and non-contract options for the goods /services provision. 7.2 PROCUREMENT OBJECTIVE – VALUE FOR MONEY The objective of this procurement is to focus on and achieve, best value for money – that being the best outcome for the State as a whole considering price, economic, environmental and social benefits, in addition to the requirement for the Public Authority. To achieve this objective, the information provided by respondents in relation to the following: a) Pre-Qualification Requirements; b) Compliance and Disclosure Requirements OR Compliance Criteria c) Qualitative Requirements OR Qualitative Criteria; and d) Price schedule requirements. as outlined in Section 7 will be utilised to help determine best value for money. 7.3 EVALUATION REQUIREMENTS OR CRITERIA [Choose either Evaluation Requirements or Evaluation Criteria text below] 7.3.1 PRE-QUALIFICATION REQUIREMENTS The proposed pre-qualification requirement /s are as follows: a) (insert requirement) b) (insert requirement) PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 16 of 24 DTF VERSION 010108 Failure to comply with any of the above-mentioned pre-qualification requirements will eliminate the Respondent from further consideration. 7.3.2 COMPLIANCE AND DISCLOSURE REQUIREMENTS The proposed compliance and disclosure requirements are as follows: a) Compliance with the Special Conditions b) Compliance with the General Conditions c) Disclosures: • Participants (including sub-contracting) • Criminal Convictions • Conflict of Interest • Competitive Neutrality • Professional Standards Scheme • Small Business The Contract Authority may reject any Offer that does not properly address and satisfy any of the compliance and disclosure requirements. OR 7.3.3 COMPLIANCE CRITERIA The proposed compliance criteria are as follows: a) Compliance with the Request Conditions and the General Conditions of Contract referred to in the Request; b) Compliance with the Specification; c) Compliance with Relevant Western Australian Government Policies ie “Private Sector Procuring for Public Authorities Policy”); d) Financial Capacity to Perform the Proposed Contract; e) Sub-Contracting; PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 17 of 24 DTF VERSION 010108 f) Conflict of Interest; g) Quality Assurance; h) Insurance Coverage; i) Attendance at Mandatory Tender Briefing; and j) Industry Participation Plan. The Contract Authority may reject any Offer that does not properly address and satisfy any of the compliance criteria. 7.3.4 QUALITATIVE (REQUIREMENTS OR CRITERIA) The proposed (qualitative requirements or qualitative criteria) are as follows [include sub-elements for the requirements/criteria if applicable]: a) (Insert qualitative requirements or criteria); b) (Insert qualitative requirements or criteria); and c) (Local content). [include relevant Buy Local sub-criterion -refer to page 30 of the Buy Local Policy for the Buy Local subcritterio list] As per the Buy Local Policy requirements, the local content requirement/criterion will have a weighting of 20% [minimum 20% weighting unless otherwise approved by the Local Content Advisory Committee – any proposed reduction should firstly be discussed with the Local Content Unit]. State the weightings for each qualitative requirement/criterion, or that each requirement/criterion has equal weighting. 7.4 INSURANCE REQUIREMENTS The proposed insurance requirements are as follows: a) Public Liability Insurance for an amount of not less than [$5 million] for any one occurrence and unlimited in the aggregate; b) Products Liability Insurance for an amount of not less than [$5 million] for any one occurrence and limited in the aggregate to [$5 million]; c) Professional Indemnity insurance for an amount of not less than [$1 million] for any one occurrence; PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 18 of 24 DTF VERSION 010108 d) Workers’ Compensation Insurance for an amount of not less than $50 million for any one occurrence; and e) Motor Vehicle Third Party insurance for an amount of not less than $20m (for any one occurrence and unlimited in the aggregate) and Compulsory Third Party insurance. 7.5 EVALUATION RATING SCALE A rating scale of 0-9 will be used for evaluating each submission. Panel members will be required to score each response to the (qualitative requirements or qualitative criteria). The rating scale and a description for the range of scores is shown in the t able below. ‘In between’ scores such as 2, 4, 6 and 8 are acceptable. The rating scale to be used to score is shown below: SCORE DESCRIPTION 0 The response does not address the (qualitative requirement or criterion) OR The Evaluation Panel is not confident that the respondent: Understands the contract requirements covered by this (qualitative requirement or criterion); and /or Will be able to satisfactorily meet the (qualitative or criterion) requirement(s) 3 The Evaluation Panel has some reservations whether the respondent: Understands the contract requirements covered by this (qualitative requirement or criterion); and /or Will be able to satisfactorily complete the contract requirements covered by this (qualitative requirement or criterion). If Minor concern: rate higher (4). If Major concern: rate lower (1 or 2). 5 The Evaluation Panel is reasonably confident that the respondent: Understands the contract requirements covered by this (qualitative requirement or criterion); and /or Will be able to satisfactorily complete the contract requirements covered by this (qualitative requirement or criterion) to a reasonable standard. 7 The Evaluation Panel is confident that the respondent: Understands the contract requirements covered by this (qualitative requirement or criterion); and /or Will be able to satisfactorily complete the contract requirements covered by this (qualitative requirement or criterion) to a high standard. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 19 of 24 DTF VERSION 010108 9 The Evaluation Panel is completely confident that the respondent: Understands the contract requirements covered by this (qualitative requirement or criterion); and /or Will be able to satisfactorily complete the contract requirements covered by this (qualitative requirement or criterion) to a very high standard. If Buy Local was a separate qualitative criterion include the rating scale table as shown below – if not, delete it. The rating scale to be used to evaluate the Buy Local qualitative (requirement or criterion) is shown below: SCORE DESCRIPTION 0 The response does not address the Buy Local (requirement or criterion). OR The evaluation panel is not confident that the respondent will be able to satisfactorily meet the (specified or criterion) requirements. 3 The response offers minimal benefits in relation to the Buy Local Policy. OR The evaluation panel has some reservations whether the respondent will be able to satisfactorily meet the (specified or criterion) requirements. 5 The response offers a reasonable or average level of benefits in relation to the Buy Local Policy. OR The evaluation panel is reasonably confident that the respondent will be able to satisfactorily meet the (specified or criterion) requirements to a reasonable standard. 7 The response offers a high or above average level of benefits in relation to the Buy Local Policy. AND The evaluation panel is confident that the respondent will be able to satisfactorily meet the (specified or criterion) requirements to a high standard. 9 The response offers a very high level of benefits in relation to the Buy Local Policy. AND The evaluation panel is completely confident that the respondent will be able to satisfactorily meet the (specified or criterion) requirements to a very high standard. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 20 of 24 DTF VERSION 010108 7.6 PRICE 7.6.1 PRICING MODEL Respondents will be required to complete a price schedule requesting prices for each of the following components of the procurement [eg for a goods contract, supply, deliver, installation and commissioning] …………… Prices will be submitted on a lump sum /hourly rate /cost per item price structure. To ensure that a fair comparison of prices can be made, estimated /actual hours, quantities will be provided in the Request document. In comparing respondent’s prices, a whole of life cycle cost approach will be taken. If lease vs outright purchase is an option include the following information: Respondents will provide prices based on outright purchase and operational lease basis. If outright purchase and lease options exist: a) Competitive prices for equipment and finance will be obtained when leasing; b) A comprehensive analysis of the outright purchase versus lease prices will be undertaken by financial experts as part of the evaluation process; and c) Financial and legal advice will be sought when entering into the lease agreement. The DTF Common Use Rental Facility will be utilised to assist with this process. 7.6.2 PRICE VARIATIONS The Contractor’s prices will be fixed /variable. [If variable explain the permitted price variations] 7.7 BUYING RULES [Panel Contracts and CUA Only] Explain the buying rules. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 21 of 24 DTF VERSION 010108 7.8 REQUEST BRIEFING SESSION A mandatory /non-mandatory request briefing will be held during the request advertisement period. The purpose of the briefing session will be to outline and clarify the basis and details of the proposed contractual framework. 7.9 EVALUATION COMMITTEE An evaluation panel made up of the following people will evaluate responses: a) Title and organization /agency; b) Title and organization /agency; c) Title and organization /agency; and d) Title and organization /agency. Include also the name of any independent panel members, especially for incumbent supplier contracts. Eg probity auditor, legal advisor, facilitator etc. PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 22 of 24 DTF VERSION 010108 8 CONTRACT MANAGEMENT 8.1 CONTRACT MANAGEMENT PLAN DTF /(public authority name) will maintain the overall management of the standing offers [for CUA’s] /Contract [for Public Authority contracts] formed as a result of the request process. DTF /(public authority name) will develop a contract management plan in accordance with SSC Procurement Planning and Approval Policy. The (title and name of public authority) as the Contract Authority will retain the rights and responsibilities for major dispute resolution, extensions, variations and termination issues. 8.2 RISK MANAGEMENT [include risk management strategies to be employed to manage the Contract if significant or high risk identified in Section 4] 8.3 BUY LOCAL MANAGEMENT Procedures will be put in place to: a) Actively monitor and manage the ongoing requirement, commitments and obligations of the contractor (private sector provider) to maximise local content participation; and b) Obtain regular buy local progress reports from the contractor against stated contract outcomes – including the use of local suppliers and subcontractors. [May not be applicable to CUA’s] 8.4 KEY PERFORMANCE INDICATORS The criteria that will be used to measure the performance of the contractor are as follows: a) Customer satisfaction; b) Delivery; and c) Costs. Feedback will be provided to the contractor through [insert method eg reports, regular interviews, contractor liaison, site visits] Expand on CUA reporting requirements if relevant. 8.5 CUSTOMER/CLIENT REFERENCE GROUP [CUA ONLY] PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 23 of 24 DTF VERSION 010108 The Contract Manager may establish forums to regularly discuss contract issues and ensure that high levels of supplier performance and customer satisfaction are maintained. This may be achieved through establishing a Customer/Client Reference Group (CRG) consisting of representatives from DTF and key stakeholder public authorities. Where applicable the Contract Manager will ensure that the reference group is kept aware of the status of this contract by effective control of due processes such as performance, disputes strategy and change management. 8.6 PROMOTION AND MARKETING [CUA ONLY] Promotion and marketing is critical to the implementation and continued success of this contract. DTF will employ several strategies in order to promote the contract. These include: • Launch of the contract with appropriate media communications; • Briefings to public authorities, both following contract award and subsequent needs, to inform buyers about the contract and provide tips for ‘smarter buying’; • Development of brochures for public authority distribution; • Maintenance of regular communications with key contact personnel to provide advice about contract changes; and • Development of a Buyers Guide to support the contract. In addition, whole of government publications that have a wide audience base will be evaluated as tools for raising awareness about the new contract. 8.7 BUYERS GUIDE [PANEL CONTRACTS AND CUA ONLY] A Buyers Guide will define the buying rules and processes public authorities are required to follow to procure goods under the Contract. A summary of the contact details for each Supplier will be included in the Buyers Guide for this contract. 8.8 PERFORMANCE REVIEW [CUA ONLY] PROCUREMENT PLAN PROVISION OF xxxx DRAFT /FINAL 24 of 24 DTF VERSION 010108 DTF will undertake regular performance reviews and be responsible for terminating any contract. Performance reviews will include but not be limited to: • Review of quarterly reports submitted by the suppliers; • Issue and analyse customer satisfaction surveys; • Receive and analyse customer complaints; and • Meetings with the suppliers to resolve any performance issues and discuss strategies to improve buying arrangements. 8.9 APPLICATIONS FROM NEW SUPPLIERS [PANEL CONTRACTS AND CUA ONLY] Describe the approach that will be taken when non-contracted suppliers apply to join the Panel or CUA. 8.10 ADDING /REMOVING PRODUCTS [PANEL CONTRACTS AND CUA ONLY] Describe the approach that will be taken when products are to be added and/or removed from the Panel Contract or CUA.