19/04/23UNCLASSIFIED

The Lean Sourcing Process

Pippa Bass, Deputy Director, Procurement Capability and Process Improvement

Background• At the end of 2010 the Minister for the Cabinet Office, Francis Maude,

announced a “Lean Review” to uncover wasteful practices and unnecessary complexity in the Government’s procurement process and to suggest actions to rectify them.

• The objective was to examine how the procurement process can be accelerated within UK central government to make doing business with government faster and cheaper for buyer and supplier.

• The 6 week study investigated two examples of recent procurement: both competitive dialogue for ICT services in central departments.

• The study found that there were significant savings to be made in time and cost by working in a more efficient and effective way.

Lean Review FindingsFive Key Themes

Lean Review Output

Phase Two

• One of the study outputs was a proposed new way of managing competitive dialogue procurements, based on lean principles and within the existing legal framework, that eliminates waste and unnecessary sequential activity.

• From this starting point, the Cabinet Office has developed a “standard solution” - a suite of tools aimed at procurement practitioners for the sourcing stages of competitive dialogue, restricted, and open procurement routes.

Standard Solution

Policy Business Need & Baselining Market Analysis & Sourcing Strategy Supplier Identification Execution of Sourcing Strategy Finalise Contract Managing the contract & Supplier

Handing off to contract & supplier management

Activity: Outputs: Activity: Outputs: Activity: Outputs: Activity: Outputs: Activity Output: Activity: Output: Activity Outcome:Analyse business needs (SOP 1.1)

Intial make or buy consderations and intial thinking on approach to market (Covered by SOP 1.1)

Sound understanding of business outcomes required

Run an Industry boot camp to conduct Market Analysis to identify requirements and what is available, using market specialists if appropriate (SOP 3.1)

MI updated Create OJEU notice and gain approval (SOP 4.1)

OJEU notice is published

Bidders pack published via web / e-sourcing system

Complete evaluation of responses and agree ranked list (SOP 6.1)

Undertake assurance to ensure the team are ready to progress to dialogue (SOP 6.2)

Appropriate suppliers shortlisted Hold Dialogue Boot Camps (the number of dialogues will depend on the complexity of the specified outcome, number of bidders, workstreams) (SOP 7.1)

Conduct immediate Evaluation & Feedback (SOP 7.1)

Mutual understanding of final solution

Evaluate BAFOs / tenders (SOP 8.1)

Finalise terms & conditions of contract (SOP 8.2)

Final tenders / BAFOs received & evaluatedSuccessful bidder chosen

Contract finalised

Sign Contract (SOP 9.1) Contract signed

Operational Imperatives e.g. Expiring Contracts

Conduct initial market research (SOP1.2)

Conduct benchmarking vs current provision (SOP 1.3)

Baseline of current provision and cost Internal decision to make or buy (SOP 3.2)If 'Buy' then use decision tool to identify the most appropriate procurement route

MI updatedFinalise & issue the invitation to participate in dialogue (ITPD) (SOP 6.3)

Dialogue invite issued (ITPD) including:~ Requirement~ Outline Solution Template~ Draft joint statement of intent & revised project plan ~ Refined T&Cs with draft schedules

Negotiation of contract (key terms and principles)( SOP 7.1)

Facilitate the undertaking of due diligence (SOP 7.2)

Draft final contract issued (including finally agreed solution).

Gain approval to award decision (SOP 8.3)

Issue alcatel letter (notify of standstill period) (SOP 8.4)

Debrief Suppliers

Update Full Business Case

Standstill (Alcatel) letter issued

Suppliers receive feedback

Approved Full Business Case updated

Publish contract award notice on TEDPublish contract on Contracts Finder

Contract published unredacted on e-sourcing system or stored in appropriate document management systemContract published on Contracts FinderMI Updated

Write 1st draft of the strategic outline business case (SOP 1.4)

First draft Strategic Outline Business Case (SOBC) including draft of outcomes and first draft of project plan.

Write procurement strategy and get approval (SOP 3.3)

Procurement strategy agreed including:~ Outcomes defined~ Procurement procedure~ Standard T&Cs

Conduct supplier feedback (SOP 6.4)

All suppliers receive feedback where requested / appropriate

Formerly close dialogue & invite Best & Final Offers (BAFOs) / nvitation toSubmit Tender (ITST) (SOP 7.3)

Dialogue Closed & invitation to submit Best and Final Offers (BAFOs) issued

Write and publish a project specific Prior Information Notice (SOP 1.5) & check pipeline of sourcing projects has been updated & published

Project Specific Prior Information Notice (PIN) published (Requirements, scale & contract value)Updated pipeline of sourcing projects published on departmental website

Understand & agree requirements, scale & value

~ Initial negotiation strategy (what is in and out of dialogue)~ Scale and Value~ Contract Management Strategy~ Selection Criteria & Methodology

Refine project plan

Finalise bootcamp logistics (SOP 6.5)

Plan dialogue sessions (SOP 6.6)

MI updated

Bootcamp logistics finalised

Dialogue plan in place

Draft Full Business Case (SOP 7.4) Full Business Case drafted

Update Business Case (From Stategic Outline Business Case to Outline Business Case) (SOP 3.4)

Create Bidders Pack (SOP 3.5)

Outline Business Case updated

Bidders Pack agreed including:~ Standard selection criteria~ Extended selection criteria (tech/prof capability)

~ Prospectus (inc. requirements)~ First draft Ts&Cs~ Evaluation strategy & criteria~ Explicit guidelines on timelines, security~ Timescales / Project Plan

Carry out assurance & obtain approval to proceed (SOP 3.6 )

Approval to proceed

Activity: Outputs:Set up and run web-based Q&A facility (SOP 5.1)

Suppliers have increased understanding of requirementWeb pages recording all clarifications with suppliers

Real time evaluation of supplier returns (SOP 5.2) against selection criteria:1) Pass / Fail2) Qualitative Scored

Incomplete ranked list based on responses received before deadline

Create an Invitiation to Participate in Dialogue (ITPD) (SOP 5.3)

1st draft ITPD created including:~ Requirement~ Outline Solution Template~ Draft joint statement of intent & revised project plan ~ Refined T&Cs with draft schedules~ Evaluation stratgey & criteria

10 days

Approvals plan in place

Create project performance hub (SOP 2.2)Complete team skills assurance (SOP 2.3)Establish & brief Project Board (SOP 2.4)

Establish dialogue boot camp logistics (SOP 2.7)

Establish industry boot camp logistics (SOP 2.6)Venues secured

6) Finalisation of Supplier Identification

Activity: Establish a cross disciplined team (SOP 2.1)

Purpose - Choose the supplier and finalise the contract

Room, plan, communication strategy etc in place

1 week1 week

Project Board in place & understand objectives, evaluation Strategy agreed with end participantsMI updated

Purpose - To identify a potential list of qualified suppliers

Purpose - To identify a potential list of qualified suppliers

Dedicated team in place

2 weeks

Purpose: To have an agreed outcome focused contract in place at the best possible price from the chosen supplier

4) Supplier Identification (OJEU)

Policy Decision - Perception of Need

Date set for contract renewal

8) Finalisation of Contract

Purpose - Formal signature of contract

Purpose - To publish requirements through a contract notice in the

supplement to the Official Journal of the European Union

30 days

SCOPE

9) Contract Signature7) Execution of Sourcing Strategy through Competitive Dialogue

2 weeks

Purpose - Licensed sourcing team is set up for success, all associated stakeholders are clear on requirements

5) Supplier Identification

4 - 6 weeks

Outputs:

Establish what approvals will be required & when (SOP 2.5)

Proposed Future State map for Government Sourcing Process (Competitive Dialogue)

3) Market Analysis & Sourcing Strategy

Harmonious Relationship

Contract Management

Delivery plan & governance

0 days

2) Mobilisation

1) Business Need Identification & Baselining

Purpose - To ensure identification & clear articulation of the business need

Purpose - To understand what the market can provide & identify sourcing strategy

6 weeks1 week2 weeks

Purpose - The best outcome based solution established through fact based negotiations

System allowing potential bidders to access bidders pack (e-sourcing System )Govt/Dept.

30 Days

30 days from issue of OJEU

10 Days

10 days from Contract Aw ard to Contract signature

BIQ

BIQ

BIQ

KEY

BIQ= Built in quality

= Specialist Legal support

= Treasury

Govt/Dept.

E-sourcing tools OJEU compliant

System allowing department to evaluate returns from bidder (e-sourcing System)

E-soucing tools OJEU compliant

Log interest electronically in the sourcing opportunity

complete Selection criteria electronically

Receive timely feedback and invitation to attend dialogue

Attend dialogue boot camps and receive transparent & timely feedback & issue solutions

Agree and sign contract

BIQ

System updated detailing the final details and contract published

E-sourcing tools OJEU compliant

What - The M ake/Buy/Internal decision w as correct - and procurem ent approach correctly identified

What - OJEU , Bidder aw areness, technical evaluation all m eet agreed standard

What - Evaluation results ready to proceed to dialogue

What - The team are in place and ready to proceed

ActivityOpportunity to refine delivery plan and complete contract management plan, with briefing slides including rationale for negotiation

BIQ

What - Dialogue boot cam ps are standard, ready for contract negotiations

Database advertising all sourcing opportunities (Contracts Finder & Tenders Electronic Daily)

E-sourcing tools OJEU compliant

TimelineThe timeline is dependant upon the size, the complexity and the risk of the procurement.

A depiction of the supplier journey, the touch points with the department and the places where deselection occurs.

What - Productive use of 30 day OJEU period Bidders fully understand the requirem ents enabling them to subm it optim um bid or dese lect

BIQ

e-sourcing System

E-sourcing tools OJEU compliant= Business

Case

E-sourcing tools OJEU compliant

Database advertising sourcing opportunities (Contracts Finder & Tenders Electronic Daily)Departmental website

Govt/Dept.

BIQ

What - Contract, final business case and evaluation to agreed standard

Visual Management in Procurement

Project Performance Hub Guidance V1.0

Use for the duration of Project

Visual Management in Procurement

Project Performance Hub Guidance V1.0

Use for the duration of Project

Project Performance Hub

1.4 Standard Information Layout

Inputs OutputsProcesses

Team CharterA4Standard Template #33

Skills MatrixA4Standard Template #22

Team Meeting ClocksA4Standard Template #35

Comms Plan (Internal)A4Standard Template #7

Project CharterA3Standard Template #17

KPI Chart –QualityA4See KPI Package

Timeline TrackerA4Standard Template #36

Team BarometerA4Standard Template #32

Team ContactsA4Standard Template #34

Team Meeting AgendasA4Standard Template #10 & 38

Stakeholder MapA3Standard Template #20

Comms Plan (External)A4Standard Template #6

Supplier Interest TrackerA4Standard Template #29

KPI Chart –CostA4See KPI Package

KPI Chart –TimescaleA4See KPI Package

KPI Chart –CapabilityA4See KPI Package

Project TIPA0Standard Template #19

Daily TasksFlip ChartStandard Template #9

3CA4Standard Template #1

Risk LogA4Standard Template #21

Success RegisterA4Standard Template #26

Supplier Relationship BarometerA4Standard Template #30

Weekly PlannerFlip ChartStandard Template #37

Project Performance Hub

1.4 Standard Information Layout

Inputs OutputsProcesses

Team CharterA4Standard Template #33

Skills MatrixA4Standard Template #22

Team Meeting ClocksA4Standard Template #35

Comms Plan (Internal)A4Standard Template #7

Project CharterA3Standard Template #17

KPI Chart –QualityA4See KPI Package

Timeline TrackerA4Standard Template #36

Team BarometerA4Standard Template #32

Team ContactsA4Standard Template #34

Team Meeting AgendasA4Standard Template #10 & 38

Stakeholder MapA3Standard Template #20

Comms Plan (External)A4Standard Template #6

Supplier Interest TrackerA4Standard Template #29

KPI Chart –CostA4See KPI Package

KPI Chart –TimescaleA4See KPI Package

KPI Chart –CapabilityA4See KPI Package

Project TIPA0Standard Template #19

Daily TasksFlip ChartStandard Template #9

3CA4Standard Template #1

Risk LogA4Standard Template #21

Success RegisterA4Standard Template #26

Supplier Relationship BarometerA4Standard Template #30

Weekly PlannerFlip ChartStandard Template #37

Lean Procurement Project Key Performance Indicators

Lead / turnaround time

May 2011 V1.0

UNCLASSIFIED

Lean Procurement Project Key Performance Indicators

Lead / turnaround time

May 2011 V1.0

UNCLASSIFIED

0

50

100

150

200

250

300

350

400

450

500

Turnaround time working days - OJEU to contract signature

Planned

Actual

Competitve Dialogue Average

0

50

100

150

200

250

300

350

400

450

500

Turnaround time working days - OJEU to contract signature

Planned

Actual

Competitve Dialogue Average

A policy decision has taken place and there is a perception of need

oryou have an operational imperative

– e.g. an expiring contract

Start Analyse the business needs so that you have a sound understanding of

business outcomes required

Is your requirement covered by Government's Central

Procurement Programme?

Refer to departmental policy. Ensure opportunity is advertised on Contracts

Finder &/or is on the Dynamic Marketplace

NO

NO

Refer to the Government Procurement Service

YES

Is your requirement covered by Government's Central Procurement

Programme?

YESYES

Is your requirement covered by an existing departmental contract?

NO

Use pre-existing departmental arrangement

YES

Is your requirement fully covered by EU Rules (e.g. Not a Part B Service or exempt on security grounds)?

NO

Refer to UK Regulations and follow the Rules to the extent

to which they apply

NO

YES

Write & publish a project specific Prior Information Notice (PIN)

Hold Industry boot camp to identify requirements and what is available,

using market specialists if appropriate

Is the value of the requirement above EU threshold?

Now that you are clearer about the requirement & have spoken to the market:

1) Are you able to objectively define the technical means capable of satisfying your needs or objectives? And/or

2) Are you able to objectively specify the legal and/or financial make up of the project?

Use the Competitive Dialogue Procedure

YES

Does your business case contain evidence that the market for your requirement is very large and that

your evaluation strategy and criteria are complex?

Note - this should be routinely challenged with consideration

given to whether the requirement can be simplified or broken up –i.e. to enable greater use of the

open procedure in line with Government policy.

Use the Restricted ProcedureUse the Open Procedure

YESNO

YES

There is a government commitment to move towards greater use of the

Open Procedure, see:http://www.cabinetoffice.gov.uk/co

ntent/sme-contracts

This tree assumes you will not be using the Negotiated

Procedure

Will the use of Open or Restricted allow the

award of the contract?

NO

NO

Date 14-Jun-11

Version 1.0

Procedure Open

Stage 2

Process Step Operation Key Points: Risks Quality Ease

2

Plan out the utilisation of the resources and develop a detailed understanding of the costs to deploy them.

Create a performance hub

Operate a performance hub using the standard document set.

Obtain a space to use as the project performance hub that is large enough to display project documentation on walls, screen panels and host meetings with stakeholders

Ensure that the room is large enough to host the team. This space will also benefit from conference facilities (telephone / video conferencing)

Identify and obtain a space to host a performance hub

Develop a staged resource plan aligned to the activities in the TIP which identifies the planned utilisation of the cross disciplined team and the associated costs of doing so.

Identify sources of management information (MI) that will provide data to measure project cost performance and other aspects of performance using the standard set of Key Performance Indicators (KPIs).

Use the standard document set (on a daily basis) to run project activities in line with the plan. Manage risks and the delivery of benefits through performance measurement.

Examples/Diagrams

3

1

Use the Project Performance Hub Guidance to create the team hub in line with the visual management standard.

Display and deploy the standard product set contained within the library of standard documents. This will include a Team Implementation Plan (TIP) based on the standard template – which sets out the activities to be carried out throughout each stage of the project.

2.2 Create a project performance hub

Visual Management in Procurement

Project Performance Hub Guidance V1.0

Use for the duration of Project

The Standard Solution enables the execution of the lean sourcing process. It provides a suite of tools that you can use to execute the sourcing process from business need identification and baselining through to contract award & signature.

Standard Operating Procedures (SOPs) A set of high level desk instructions describing the best known method for carrying out the activities described in the value stream map

Visual ManagementA way of displaying information to drive the performance of the process & specific parts of the process

Team Implementation Plan (TIP)An action plan showing who will do what and when in specific functions and processes

KPIsPerformance indicators to measure turnaround times, cost of running procurements, resource capability & indicative supplier costs of bidding

Procurement Route Decision Tree

A tool to assist procurement professionals to think through and identify the most appropriate procurement route for their requirement.

Future State Value Stream MapThe Value Stream Map (VSM) is a route map showing what should happen (activities) and the corresponding outputs for each stage of the procurement process. The VSM sits at the centre of the standard solution.

The VSM covers the stages of procurement from policy through business need identification & baselining, market analysis & sourcing strategy, supplier identification, execution of sourcing strategy, finalising contract and handing off to contract management.

Policy Business Need & Baselining Market Analysis & Sourcing Strategy Supplier Identification Execution of Sourcing Strategy Finalise Contract Managing the contract & Supplier

Handing off to contract & supplier management

Activity: Outputs: Activity: Outputs: Activity: Outputs: Activity: Outputs: Activity Output: Activity: Output: Activity Outcome:Analyse business needs (SOP 1.1)

Intial make or buy consderations and intial thinking on approach to market (Covered by SOP 1.1)

Sound understanding of business outcomes required

Run an Industry boot camp to conduct Market Analysis to identify requirements and what is available, using market specialists if appropriate (SOP 3.1)

MI updated Create OJEU notice and gain approval (SOP 4.1)

OJEU notice is published

Bidders pack published via web / e-sourcing system

Complete evaluation of responses and agree ranked list (SOP 6.1)

Undertake assurance to ensure the team are ready to progress to dialogue (SOP 6.2)

Appropriate suppliers shortlisted Hold Dialogue Boot Camps (the number of dialogues will depend on the complexity of the specified outcome, number of bidders, workstreams) (SOP 7.1)

Conduct immediate Evaluation & Feedback (SOP 7.1)

Mutual understanding of final solution

Evaluate BAFOs / tenders (SOP 8.1)

Finalise terms & conditions of contract (SOP 8.2)

Final tenders / BAFOs received & evaluatedSuccessful bidder chosen

Contract finalised

Sign Contract (SOP 9.1) Contract signed

Operational Imperatives e.g. Expiring Contracts

Conduct initial market research (SOP1.2)

Conduct benchmarking vs current provision (SOP 1.3)

Baseline of current provision and cost Internal decision to make or buy (SOP 3.2)If 'Buy' then use decision tool to identify the most appropriate procurement route

MI updatedFinalise & issue the invitation to participate in dialogue (ITPD) (SOP 6.3)

Dialogue invite issued (ITPD) including:~ Requirement~ Outline Solution Template~ Draft joint statement of intent & revised project plan ~ Refined T&Cs with draft schedules

Negotiation of contract (key terms and principles)( SOP 7.1)

Facilitate the undertaking of due diligence (SOP 7.2)

Draft final contract issued (including finally agreed solution).

Gain approval to award decision (SOP 8.3)

Issue alcatel letter (notify of standstill period) (SOP 8.4)

Debrief Suppliers

Update Full Business Case

Standstill (Alcatel) letter issued

Suppliers receive feedback

Approved Full Business Case updated

Publish contract award notice on TEDPublish contract on Contracts Finder

Contract published unredacted on e-sourcing system or stored in appropriate document management systemContract published on Contracts FinderMI Updated

Write 1st draft of the strategic outline business case (SOP 1.4)

First draft Strategic Outline Business Case (SOBC) including draft of outcomes and first draft of project plan.

Write procurement strategy and get approval (SOP 3.3)

Procurement strategy agreed including:~ Outcomes defined~ Procurement procedure~ Standard T&Cs

Conduct supplier feedback (SOP 6.4)

All suppliers receive feedback where requested / appropriate

Formerly close dialogue & invite Best & Final Offers (BAFOs) / nvitation toSubmit Tender (ITST) (SOP 7.3)

Dialogue Closed & invitation to submit Best and Final Offers (BAFOs) issued

Write and publish a project specific Prior Information Notice (SOP 1.5) & check pipeline of sourcing projects has been updated & published

Project Specific Prior Information Notice (PIN) published (Requirements, scale & contract value)Updated pipeline of sourcing projects published on departmental website

Understand & agree requirements, scale & value

~ Initial negotiation strategy (what is in and out of dialogue)~ Scale and Value~ Contract Management Strategy~ Selection Criteria & Methodology

Refine project plan

Finalise bootcamp logistics (SOP 6.5)

Plan dialogue sessions (SOP 6.6)

MI updated

Bootcamp logistics finalised

Dialogue plan in place

Draft Full Business Case (SOP 7.4) Full Business Case drafted

Update Business Case (From Stategic Outline Business Case to Outline Business Case) (SOP 3.4)

Create Bidders Pack (SOP 3.5)

Outline Business Case updated

Bidders Pack agreed including:~ Standard selection criteria~ Extended selection criteria (tech/prof capability)

~ Prospectus (inc. requirements)~ First draft Ts&Cs~ Evaluation strategy & criteria~ Explicit guidelines on timelines, security~ Timescales / Project Plan

Carry out assurance & obtain approval to proceed (SOP 3.6 )

Approval to proceed

Activity: Outputs:Set up and run web-based Q&A facility (SOP 5.1)

Suppliers have increased understanding of requirementWeb pages recording all clarifications with suppliers

Real time evaluation of supplier returns (SOP 5.2) against selection criteria:1) Pass / Fail2) Qualitative Scored

Incomplete ranked list based on responses received before deadline

Create an Invitiation to Participate in Dialogue (ITPD) (SOP 5.3)

1st draft ITPD created including:~ Requirement~ Outline Solution Template~ Draft joint statement of intent & revised project plan ~ Refined T&Cs with draft schedules~ Evaluation stratgey & criteria

10 days

Approvals plan in place

Create project performance hub (SOP 2.2)Complete team skills assurance (SOP 2.3)Establish & brief Project Board (SOP 2.4)

Establish dialogue boot camp logistics (SOP 2.7)

Establish industry boot camp logistics (SOP 2.6)Venues secured

6) Finalisation of Supplier Identification

Activity: Establish a cross disciplined team (SOP 2.1)

Purpose - Choose the supplier and finalise the contract

Room, plan, communication strategy etc in place

1 week1 week

Project Board in place & understand objectives, evaluation Strategy agreed with end participantsMI updated

Purpose - To identify a potential list of qualified suppliers

Purpose - To identify a potential list of qualified suppliers

Dedicated team in place

2 weeks

Purpose: To have an agreed outcome focused contract in place at the best possible price from the chosen supplier

4) Supplier Identification (OJEU)

Policy Decision - Perception of Need

Date set for contract renewal

8) Finalisation of Contract

Purpose - Formal signature of contract

Purpose - To publish requirements through a contract notice in the

supplement to the Official Journal of the European Union

30 days

SCOPE

9) Contract Signature7) Execution of Sourcing Strategy through Competitive Dialogue

2 weeks

Purpose - Licensed sourcing team is set up for success, all associated stakeholders are clear on requirements

5) Supplier Identification

4 - 6 weeks

Outputs:

Establish what approvals will be required & when (SOP 2.5)

Proposed Future State map for Government Sourcing Process (Competitive Dialogue)

3) Market Analysis & Sourcing Strategy

Harmonious Relationship

Contract Management

Delivery plan & governance

0 days

2) Mobilisation

1) Business Need Identification & Baselining

Purpose - To ensure identification & clear articulation of the business need

Purpose - To understand what the market can provide & identify sourcing strategy

6 weeks1 week2 weeks

Purpose - The best outcome based solution established through fact based negotiations

System allowing potential bidders to access bidders pack (e-sourcing System )Govt/Dept.

30 Days

30 days from issue of OJEU

10 Days

10 days from Contract Award to Contract signature

BIQ

BIQ

BIQ

KEY

BIQ= Built in quality

= Specialist Legal support

= Treasury

Govt/Dept.

E-sourcing tools OJEU compliant

System allowing department to evaluate returns from bidder (e-sourcing System)

E-soucing tools OJEU compliant

Log interest electronically in the sourcing opportunity

complete Selection criteria electronically

Receive timely feedback and invitation to attend dialogue

Attend dialogue boot camps and receive transparent & timely feedback & issue solutions

Agree and sign contract

BIQ

System updated detailing the final details and contract published

E-sourcing tools OJEU compliant

What - The Make/Buy/Internal decision was correct - and procurement approach correctly identified

What - OJEU, Bidder awareness, technical evaluation all meet agreed standard

What - Evaluation results ready to proceed to dialogue

What - The team are in place and ready to proceed

ActivityOpportunity to refine delivery plan and complete contract management plan, with briefing slides including rationale for negotiation

BIQ

What - Dialogue boot camps are standard, ready for contract negotiations

Database advertising all sourcing opportunities (Contracts Finder & Tenders Electronic Daily)

E-sourcing tools OJEU compliant

TimelineThe timeline is dependant upon the size, the complexity and the risk of the procurement.

A depiction of the supplier journey, the touch points with the department and the places where deselection occurs.

What - Productive use of 30 day OJEU period Bidders fully understand the requirements enabling them to submit optimum bid or deselect

BIQ

e-sourcing System

E-sourcing tools OJEU compliant= Business

Case

E-sourcing tools OJEU compliant

Database advertising sourcing opportunities (Contracts Finder & Tenders Electronic Daily)Departmental website

Govt/Dept.

BIQ

What - Contract, final business case and evaluation to agreed standard

What’s Different - OverviewSourcing Process

Publish a project specific PIN to warm the market up and advertise the industry engagement event

Business need &

baselining

Market analysis & sourcing

strategySupplier identification

Execution of sourcing strategy

Finalise contract

Mobilisation

Establish a performance hub and use visual management to drive the process

Industry boot camp to capture the suppliers’ views on your requirement, on the viability, and on possible delivery options and where appropriate to facilitate meetings between suppliers to explore the potential for the establishing consortia, partnering arrangements and / or subcontracting opportunities.

Pre-OJEU readiness - the preparation and subsequent publication of a bidders pack at OJEU including requirements, draft terms and conditions, selection criteria, evaluation strategy and criteria and procurement timescales. This transparency allows suppliers to make informed decisions as to whether they wish to bid.

Execution of sourcing strategy - for the competitive dialogue procedure this means: the elimination of lengthy proposal documents, the use of an outline solution template to replace the ISOP stage and use of the draft contract as the basis of the dialogue.

Driven by visual management

Driven by visual management

What’s Different for Competitive Dialogue procurements – Focus on Dialogue

Supplier identification Execution of sourcing strategy through dialogue

Invitation to participate in dialogue (ITPD) includes:Outline Solution TemplateDraft Contract

No ISOP

An outline solution template is issued with the ITPD and bidders are given two weeks to complete the template.

At the beginning of the first dialogue bidders present the outline solution.The presentation and template are evaluated and the authority may down select at this point.

There are no further proposal documents.

The draft contract is used as the vehicle for the dialogue so the detailed solution emerges in the form of contract schedules.All bidders are on site for dialogue with continual access to the client, time boxed dialogue sessions are run using a dialogue plan established back at the sourcing strategy stage.Evaluation takes place throughout the dialogue, rather than at the end as a separate activity and bidders are given feedback.Before closing the dialogue the draft contract is reviewed with bidders at the final session in each case.At the invitation to submit final tender the draft contract is issued to all remaining bidders with final terms and conditions and they are invited to submit their final solution and final price in the form of the final contract. Only simple clarifications of the final tender (mistakes, omissions, options, variant bids etc) take place after the dialogue has closed.

Current Activity• Working with Departments on live procurement projects known as

“pathfinders” to test and refine the process.

• Piloting a training programme to explain how the lean principles are incorporated into the new Standard Solution, and evaluating prior to further roll out.

• Developing a ‘lean’ sourcing manual for the Minister of the Cabinet Office to launch in January – the principles of continuous improvement will mean the Standard Solution is available on-line to government procurement teams.

• Executing a communications plan to ensure procurers, suppliers and other key stakeholders are aware of the work and ready for roll out.