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Warranty Service Contract 'Western General' - DOC - DOC

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					        Department of Health
        Government of Western Australia

        HealthSupply WA




                      PROCUREMENT PLAN

                                                                                TITLE


                                   TOTAL ESTIMATED WHOLE OF LIFE VALUE:
                                   EQUIPMENT COST                                     $
                                   CONSUMABLE COST                                    $
                                   SERVICE & MAINTENANCE (5 YEARS)                    $
                                   GST                                                $
                                   TOTAL GST-INCLUSIVE                                $
                                   CONTRACT VALUE


                                                  PREPARED BY: CONTACT OFFICER'S NAME
                                                               CONTACT OFFICER’S TITLE
                                                              INSERT HEALTH UNIT NAME


I CERTIFY THAT THIS PROCUREMENT PLAN IS IN ACCORDANCE WITH WESTERN AUSTRALIAN
GOVERNMENT AND STATE SUPPLY COMMISSION SUPPLY POLICIES AND GUIDELINES, MINIMISES RISK
AND ENSURES THE PURCHASE PROVIDES A VALUE FOR MONEY OUTCOME.


 PROCUREMENT PLAN AUTHORISED BY:          PROCUREMENT PROCESS RECOMMENDED BY:
 SIGNED:                                  SIGNED:


 AUTHORISED OFFICERS NAME                 ROD SCOTT
 AUTHORISED OFFICERS TITLE                DIRECTOR TENDERING & CONTRACTING
 HEALTH SERVICE NAME                      HEALTHSUPPLY WA
 DATE:                                    DATE:




Procurement Plan                                                           FEBRUARY 2005
HealthSupply WA                                          Procurement Plan                                                                       Title


                                   TABLE OF CONTENTS

       Edit/Select All/F9 to update Table of Contents.

1.     PRELIMINARY INFORMATION                                                                                                                      3
1.1                Background ................................................................................................................... 3
1.2                Estimated Contract Value ............................................................................................. 3
1.3                Funding Availability ....................................................................................................... 3
1.4                Contract Term ............................................................................................................... 3
1.5                Principal to the Contract ................................................................................................ 3
1.6                Previous or Similar Contracts ....................................................................................... 3
1.7                Special Requirements ................................................................................................... 4
1.8                Specifications ................................................................................................................ 4
1.9                Quality Assurance Requirements ................................................................................. 4
1.10               Local Content ................................................................................................................ 4

2.     RESEARCH AND ANALYSIS                                                                                                                        5
2.1                Market Research ........................................................................................................... 5
2.2                Side Benefits ................................................................................................................. 5
2.3                Options .......................................................................................................................... 5
2.4                Impact Analysis ............................................................................................................. 6
2.5                Environmental Issues .................................................................................................... 6

3.     PROCUREMENT STRATEGY                                                                                                                         7
3.1                Contract Strategy .......................................................................................................... 7
3.2                Procurement Method..................................................................................................... 7
3.3                Evaluation Criteria ......................................................................................................... 7
3.4                Evaluation Committee ................................................................................................... 8
3.5                Procurement Timetable ................................................................................................. 8

4.     CONTRACT OPERATION                                                                                                                           9

5.     CONTRACT ADMINISTRATION                                                                                                                      9
5.1                Managing the Contract .................................................................................................. 9
5.2                Service Agreements ...................................................................................................... 9
5.3                Performance Review ................................................................................................... 10




Procurement Plan                                                                                                                    FEBRUARY 2005
HealthSupply WA                       Procurement Plan                                      Title

1.      PRELIMINARY INFORMATION

1.1     Background

In this section include general background information such as:
why are you pursuing this procurement;
what has prompted this action;
what do you hope to achieve;
any unique circumstances which may affect the procurement;
how the goods or services are used by your organisation; and
any prior actions that have been taken which may affect the purchase.
For an equipment purchase, if the life of the machine is greater than five (5) years plus the
warranty period, seek exemption from the State Supply Commission for a longer service and
maintenance period before proceeding with the procurement plan.
For complex or strategic procurements a copy of the approved business case should
accompany the procurement plan.

1.2     Estimated Contract Value

Provide an estimate of the total value of the proposed contract (inclusive of GST) over its full
potential life (inclusive of all extension options). For equipment procurements, remember to
include the cost of post-warranty service and maintenance over the life of the equipment if
this is to be provided by the successful tenderer and any consumables specific to the
equipment.

1.3     Funding Availability

With the exception of “standing offer” arrangements funding needs to be confirmed prior to
proceeding with the procurement plan. Provide information regarding the source of the
confirmed funding.

If leasing is to be considered include a statement that leasing may be considered therefore a
purchase versus rental assessment will be carried out in accordance with Department of
Treasury and Finance Provision of Common Use Rental Facility Contract No. 1699.

1.4     Contract Term

Indicate when the proposed contract is required to commence, the initial contract term and
any extension options that will be available to Health. Where the total contract term exceeds
five (5) years, confirm that the State Supply Commission has approved a longer term as
required under the Commission‟s Open and Effective Competition policy. A copy of the
approval letter must accompany the procurement plan.

1.5     Principal to the Contract

Indicate who will be the Principal to the proposed contract.

1.6     Previous or Similar Contracts

Provide the following details about any previous procurement of identical or similar
goods/services:



Procurement Plan                                                                    FEBRUARY 2005
HealthSupply WA                        Procurement Plan                                        Title

contract number, title, date awarded, term (if a period contract), suppliers, value;
the procurement methodology          (eg.   public   expressions   of   interest,   requests    for
tender/proposals etc.);
an assessment of the good and bad points of the previous procurement - including
suggestions for improvements and details of problems which arose both with the supplier
and with the contract; and
major differences between the proposed procurement and the previous procurement.

1.7     Special Requirements

In this section detail special requirements to be incorporated in this procurement, which may
include such items as:
how many goods or how often services are used;
delivery requirement and required response times;
support services required from the supplier, such as maintenance, training, spare parts;
in-aid equipment or services to be supplied by the client, such as secretarial support, site
offices, or access to client owned equipment;
expected service and efficiency levels; and
site specific requirements, such as access, equipment checks, security.

1.8     Specifications

Detail the specifications, who wrote or selected the specification and the reasons for their
selection. Types of specifications include:
functional - which outline the proposed function or role to be played by the product in helping
the end-user achieve the desired capability;
performance - which detail the required performance characteristics, including, if appropriate,
maximum and minimum performance criteria, and methods of measuring performance;
design - where the specification contains full and complete design and manufacture
information for a good or service; and
commercial - where the specification contains reference to accepted industry standards of
design, construction, or performance. Commercial specifications include references to
product licences issued by Standards Australia and other similarly referenced products
standards such as the British Pharmacopoeia.

1.9     Quality Assurance Requirements

Indicate the method of assuring quality including the reasons for this selection. Examples
include internationally recognised quality systems (such as AS/NZS ISO 9001:2000 or
equivalent); and compliance with Government Regulations (such as Therapeutic Goods
Administration requirements) and Product Standards (such as Australian Standards or
equivalent) etc. Refer to the State Supply Guidelines for Assuring Quality in Government
Purchasing which can be obtained from the State Supply Commission Internet site
http://www.ssc.wa.gov.au/pol_guide/supp0136/index.html or HealthSupply WA on telephone
9346 2459.

1.10    Local Content

Indicate the measures to be used to ensure that Buy Local policy requirements are
addressed. For example:



Procurement Plan                                                                       FEBRUARY 2005
HealthSupply WA                          Procurement Plan                                         Title

     provide adequate notice of the procurement opportunity via the early tender facility on the
      Government Contracting Information Bulletin Board;
     ensure the contract size and scope is consistent with the supply capacity of local
      industry;
     consult with local industry in the preparation of the tender invitation document;
     provide information to local industry in relation to possible consortium bids;
     hold pre-tender briefings to raise local industry awareness and understanding of the
      requirement;
     in consultation with the Local Content Unit, Department of Industry and Resources,
      ensure that an appropriate local content qualitative evaluation criterion is included in the
      tender invitation document with a minimum weighting of 20%;
     apply price preferences to bids in accordance with the Buy Local policy;
     monitor contract commitments in relation to the Buy Local policy; and
     incorporate provision to terminate the contract for breach caused by the contractor‟s
      failure to deliver on Buy Local commitments.

2.      RESEARCH AND ANALYSIS
2.1      MARKET RESEARCH

Indicate the potential suppliers (large/small, Western Australian, eastern states, overseas),
availability of goods or services, Australian equivalents, new products or technology, level
and type of competition in the marketplace (eg. is there a price leader, do suppliers compete
on non-pricing matters more than price), any industry standard practices that should be taken
into account. Consult with stakeholders, other divisions of HealthSupply WA and other
agencies (local and interstate) etc. to gather market intelligence.

2.2      SIDE BENEFITS

Show how the procurement can be used to achieve other benefits for WA Health and/or the
WA economy, such as:
assisting small business;
regional or industry development;
value adding;
offsets or import replacement;
product/supplier rationalisation leading to better value for money outcomes; or
aggregation of buying power leading to better value for money outcomes.

2.3      OPTIONS

What options will be built into the procurement methodology. What are the costs and
benefits of each of those options? Some options that could be considered are:
contract type (eg. panel, period, primary/secondary, sole supplier);
contract scope (eg. single user, multiple user, Whole of Health);
contract period (eg. life of type, variable numbers of months or years, fixed quantity over
time);
contract application (eg. should it be exclusive or not?); and


Procurement Plan                                                                          FEBRUARY 2005
HealthSupply WA                         Procurement Plan                                 Title

financial (eg. outright purchase, leasing, build-own-operate, build-own-operate-transfer,
timing of payments).

2.4     IMPACT ANALYSIS

Any potential adverse effects from the procurement should be identified and where relevant a
risk management plan should be developed and attached to the procurement plan.
Contingency plans or mitigation processes to deal with those effects should be identified.
Areas to consider include:

   staffing implications;
   industrial relations;
   local business impacts;
   public relations;
   transition issues;
   conflicts of interest;
   safety to patients, Health employees etc.; and
   commercial and political risk to Government.
2.5     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 may
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
To support the environment, the following initiatives will be incorporated to minimise the
environmental impact of procurement: (for example)

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.

The specification will give consideration to environmental standards, codes or legislation
where appropriate.

Information will be sought from suppliers on the environmental impact of the tendered goods,
services and associated processes (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 Environmental Procurement Policy.




Procurement Plan                                                                 FEBRUARY 2005
HealthSupply WA                         Procurement Plan                                        Title

3.     PROCUREMENT STRATEGY

3.1     Contract Strategy

This area should address the format and structure of the procurement. Key questions to be
addressed include:

 what is the intended or preferred final contract structure (eg. sole contractor, multiple
  contractors or a combination of sole/multiple contractors)?
what General Conditions of Contract should apply? The most common options available
include:
                Western Australian Government Health Supply Council General Conditions
                 of Contract for the Supply of Goods / Services / Engagement of Consultants;
                Government Information Technology Conditions; or
what special conditions apply (eg. price variation, insurance requirements, warranties and
indemnities)?
how will value for money objectives be achieved and how will achievement be measured?
what is the preferred pricing structure (eg. firm price for part or all of the contract period; fixed
price with rise and fall provisions etc.)?
what pricing options will be sought (eg. outright purchase, operational lease, service and
maintenance costs etc.).

3.2     Procurement Method

Identify how the procurement will be advertised – it is mandatory to advertise tenders in a
newspaper with statewide circulation [eg. The West Australian] and on the Government
Contracting Information Bulletin Board. For regional procurements, indicate how regional
suppliers will be notified of the tendering opportunity (eg. will the tender be advertised in
relevant regional newspapers)?

Indicate whether a single or two stage tendering process will be utilised and the reasons for
this decision. Examples include:
public tendering by means of a single stage Request for Tender or Request for Proposals;
and
multi-stage tendering (ie. invitation of expressions of interest followed by restricted
tenders/proposals);
Identify whether a pre-tender briefing will be held and if it is to be mandatory or non-
mandatory. If attendance is mandatory, this should be included as a compliance evaluation
criterion and the tender should clearly indicate the consequence of non-attendance.

3.3     Evaluation Criteria

Identify how the evaluation will be conducted. Key issues include:
state all selection criteria, listing them under „Compliance‟; „Qualitative‟ and „Value for Money‟
headings;
consider policies that require inclusion based on value eg. priority access, counter trade;
indicate the weighting for each qualitative criterion and the scoring matrix to be used in
assessing offers against the qualitative criteria;
confirm that the weightings will be included in the tender invitation document.



Procurement Plan                                                                        FEBRUARY 2005
HealthSupply WA                       Procurement Plan                                      Title

indicate the evaluation methodology to be used, ie. How will offers be evaluated against the
compliance and qualitative criteria?
identify the factors to be considered in determining the best value for money outcome, eg.
whole of life costing, application of price preferences as per the Buy Local Policy,
transitioning cost, sole supplier discounts, firm pricing, assessment of risk etc.
For two stage tendering processes, the evaluation criteria to be utilised for each stage must
be identified.

3.4     Evaluation Committee

Identify the representatives (list their name, position and Health Unit) who will be responsible
for undertaking the evaluation, identifying their expertise to demonstrate the committee can
cover all facets of the evaluation process including technical, financial, clinical, contractual
etc. The HealthSupply WA contracts officer should normally facilitate evaluation committee
meetings.

3.5     Procurement Timetable

Identify the critical milestones in the procurement process in the table below. Remember to
include/make allowance for:

 endorsements required for procurement plans (above $750,000)                     and    tender
  recommendations (above $1 million) by the State Tenders Committee;
 approvals required for procurement plans and tender recommendations by the State
  Supply Commission and Health Supply Contracts Committee/Government Health Supply
  Council respectively;
 early tender advice on the Government Contracting Information Bulletin Board;
 tender advertising, pre-tender briefing and closing dates,
 tender evaluation period;
 anticipated date of contract award, and
 date of commencement of contract (for period contracts).


      MILESTONE                                                       TARGET DATE

      Review of Procurement Plan by HealthSupply WA                                Allow 3 days
      Tendering & Contracting Management Team

      Procurement Plan endorsed by the State Tenders             Deadline for submissions is 12
      Committee                                                   days before the meeting date

      Procurement Plan approved by the State Supply            Allow 2 days after State Tenders
      Commission                                                       Committee endorsement

      Advertise Request for Tender                                  Advertisements need to be
                                                                   placed the Friday before the
                                                                   Wednesday advertising date

      Close Request for Tender                                      Tenders should be open a
                                                                   minimum of three (3) weeks

      Recommendation

      Recommendation approved by the Government                 Allow at least one (1) to two (2)


Procurement Plan                                                                    FEBRUARY 2005
HealthSupply WA                       Procurement Plan                                   Title

      Health Supply Contracts Committee/Council                                         weeks

      Recommendation endorsed by the State Tenders            Deadline for submissions is 12
      Committee (over $1 million)                              days before the meeting date

      Implementation complete and contract start date               For period contracts only



4.      CONTRACT OPERATION
For period contracts only.

Describe how the contract is to operate. If the contract is a consolidated arrangement
covering more than one health service, will it be mandatory or optional? If a panel
arrangement could occur, will purchases be limited to below $50,000 or has an exemption
been sought from the State Supply Commission to allow purchases from the panel above
$50,000 (refer State Supply Commission Policy Common Use Contracts and Agency
Specific Panel Contracts)? A copy of the exemption approval letter must accompany the
procurement plan. For purchases from the panel contract valued below $50,000, confirm that
the panel will be accessed in accordance with the State Supply Commission policy on
Common Use Contracts and Agency Specific Panel Contracts.

5.     CONTRACT ADMINISTRATION

5.1     Managing the Contract

Confirm that a contract management plan will be prepared in accordance with State Supply
Commission policy (mandatory for all contracts above $250,000).

Identify the responsibilities and method of managing the contract after it has been awarded,
including:

 who is responsible for managing and reporting on both contractor and contract
  performance?

 what is the frequency of reporting and who will receive and review reports?

 what are the proposed dispute resolution procedures?

 will there be any incentives for the contractor to perform to a higher standard and, if so,
  who will be responsible for approving the reward?

 will there be any disincentives if the contractor performs below standard and, if so, who
  will be responsible for approving the imposition of those disincentives?

 what are the triggers for contract termination and who can exercise those triggers?

 what is HealthSupply WA‟s role in managing the contract at a corporate level and
  operationally.

5.2     Service Agreements

The measures and data collection arrangements required to assess the contractor‟s
performance during the course of the contract should be identified.




Procurement Plan                                                                 FEBRUARY 2005
HealthSupply WA                       Procurement Plan                                       Title

5.3     Performance Review

The measures and data collection arrangements required to assess the overall procurement
process should be identified. Issues that could be considered include:

 did the contract achieve the client‟s objectives and, if not, why weren‟t they achieved?
 what improvements can be effected for the next contract? and
 was the procurement finalised on time and within budget?




Procurement Plan                                                                   FEBRUARY 2005

				
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