Commodity Profile & Strategy for the [Contract / Framework Agreement] for: [insert]

Reference: [insert] Recommended for completion for procurements

falling below the OJEU Threshold and above £50,000. This strategy may still be used for

procurements below £50,000 if deemed appropriate.

Version Name Date Completed Comments

Slide 2

Procurement Decisions & AuthorisationsComplete from the Decision Tree questions prior to completing rest of Strategy

Record & retain decision for audit

trail, abort planned procurement and delete remainder of Strategy slides

Yes

No Requirement to be procured as a Cat C or C1 [insert which

applies]?

Estimated Cost [insert £ value excl VAT]

Budgetary Authority: approval obtained by [insert name & date]

Purchasing Authority: approval of Procurement

Officer to procure the requirement given [insert

name & date].Proceed with completing

Commodity Strategy

Can you utilise an internal,

unused or now surplus to

requirements resource? E.g. AUPO surplus

equipment scheme.

Below is the recommended minimum contents of the Profile & Commodity Strategy. Other slides can be added on a commodity specific basis as appropriate. Further slides are contained in the Scottish Public Sector Toolkit

Contents Slide Number•Version Control 1• Executive Summary 4•Business Requirements 5•Supply Market Overview 6•Risk Analysis - Including Barriers to Change 8• Corporate Social Responsibility 9• ITT Considerations 11• Information re evaluating references, site visits & presentations 12•PQQ Selection Criteria 13•Tender Award & Weighting Criteria 14• Contract Implementation 15•Sign-Off 16

Contents:

Executive Summary – Procurement Officer to complete this slide after completion of the Strategy and prior to forwarding for sign off by the User Group (if applicable).

Current status: [list]

Spend – total versus addressed: [list]

Scope of requirement: [detail]

Recommendations and reasoning: [detail]

Benefits – how much, how, by when?

• Any major barriers to success: [detail]

Business Need and Functional Requirements

XXXXXXXXXXXX

Institution Requirements

Where we are…Where we are…

What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications

Consider the procurement innovation issues for highly complex procurements

What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications

Consider the procurement innovation issues for highly complex procurements

Where we want to beWhere we want to be

NB use of generic specifications – if these don’t exist the Procurement Officer/User Group needs to start working on them as soon as possible

NB use of generic specifications – if these don’t exist the Procurement Officer/User Group needs to start working on them as soon as possible

Supply Market Overview

Market Trends – briefly detail what is happening in the market for the commodity, current and future technologies, changing customer demands, new players, mergers and acquisition

Supply Market Share – briefly detail the key players within the industry, identify size in terms of turnover, sales, number of customers and capacity

NOTE: trends are important - they reveal:

•who is winning/ losing business

•Who is trying to win market share in the UK

•whose business objectives match the sector

•what do profit margins typically look like for the industry

Current Suppliers of [Name of Commodity] to Institution

Current Suppliers of [Name of Commodity]Current Suppliers of [Name of Commodity]

SupplierSupplier SpendSpend Total RevenueTotal Revenue Background on the SupplierBackground on the Supplier

xxxxxx

xxxxxx

xxxxxx

xxxxxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxxxxx xxx xxx xxx xxx xxx xxx

Risk AnalysisRisk Analysis

Description of RiskDescription of Risk

xxx xxx

Probability of Risk

Probability of Risk

High / Medium / Low

High / Medium / Low

Implications to InstitutionImplications to Institution

xxx xxx

xxx xxx

xxxx xxxx

High High

xxxx xxxx

Measures to Minimise / Eradicate Risk

Measures to Minimise / Eradicate Risk xxxx xxxx

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

Risk Analysis for [Name of Commodity] Inc Barriers To Change

Corporate Social Responsibility (CSR)

Procurement Officer & User Group to consider CSR issues relevant to this procurement:

General issues: [list]

PQQ CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by PQQ applicants

ITT CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by tenderers

ITT Statement of Requirements: consider the applicability of the Buy Sustainable-Quick Wins product specifications detailed in SPPN 15/2008. NB: these contain a set of sustainable specifications covering a range of commonly purchased products and are considered best practice

CSR

SMEs, Supported Businesses & Social Enterprises* including Social Issues** & Community Benefits:

barriers to participation identified as: [insert]. The proposal for removing barriers to participation is [detail] e.g. lotting, sub-contracting opportunities, consortium member etc

Further information relating to SMEs is contained in SPPN 2/2009 and SPD Buyer’s Guide. Identification of any social clauses or community benefits relevant to this procurement: [list]

NB: areas may already be adequately covered by the existing PQQ/ITT CSR Questionnaire.

Reserved Contract under Regulation 7 of the EU Procurement Regulations: applicable to the contract/framework agreement?: [Yes/No] and brief reason if not [detail]. Refer to Paragraph 3.5 of the Procurement Manual for guidance.

*refer to Procurement Manual for information on supported businesses and social enterprises.** social issues might broadly be defined as issues which impact on society or parts of society and cover a range of issues including equalities issues (i.e. age, disability, gender, race, religion and sexual orientation), training issues, minimum labour standards and the promotion of small and medium-sized enterprises (SMEs), including black and minority ethnic enterprises and the third sector including social enterprises. Refer to SPPN 03 2008 for community benefits guidance or SPPN 06 2007 for social issues guidance

ITT Considerations (particularly relevant to consider this stage in more detail when the Pre Qualification is not being used)

What is the value of the requirement? How does this inform the procurement process?

Statement of Requirements (SoR): the main areas and issues needing to be inserted into the SoR are: [detail]

IPR: [IPR does/doesn’t apply]. If IPR applies, the impact is [detail]

TUPE: establish if TUPE is likely to apply: [Yes/No]. If yes, obtain the following detail for insertion in

Schedule 4 of the ITT: name(s), sex, employment location of individuals who may be subject to TUPE and consult with the HoP or Human Resources or seek legal advice.

Contract Monitoring & Management: • View the core areas detailed in Schedule 2 of the ITT and detail the KPIs to apply: [insert]

• Will KPIs be for information only? If there are to be consequences if KPIs are not met this should be referenced in the ITT Schedules 2 and 5.

• Detail any other performance indicators or management reports required (other than detailed already in Schedule 3 of the ITT): [insert]

Pricing Strategy: detail the how the commodity will be priced (taking into account whole life costing and cost avoidance).

Can an e-auction be utilised for this commodity? State the period of price stability (e.g. 1 year etc) and the reasoning for this: [insert]

Information re Evaluation of References, Site Visits, and Presentations References:

Ascertaining an applicant’s past experience in terms of “technical or professional ability” can be included in a Pre Qualification Questionnaire (if it is used) as a section criteria using written evidence of past performance which can be objectively evaluated.

  

Site visits:

If a site visit is required before tender return i.e. to be used to inform tenderers more clearly regarding the outputs of the requirement e.g. visit to an Institution's property or visit to a new build, then this is not evaluated.

If a site visit is deemed to be required post tender return and as part of evaluation process (because the information to be ascertained from the site visit directly relates to the subject matter of the Contract or Framework Agreement), this must be detailed as an award criteria in the ITT, be capable of evaluation, and make clear what is being assessed in the site visit.

 

Presentations:

If a presentation is deemed to be necessary as part of tender evaluation and/or bid clarification,  it can only be used for information purposes and cannot be detailed as an award criteria in the advert or ITT and used to evaluate tenders because it is subjective, and not capable of objective evaluation i.e. performance at interview is not an evaluation criteria. 

Evaluation of a presentation’s written output is permissible where as part of bid clarification tenderers are requested to present on common areas in the submitted tenders (which following tender evaluation have been revealed to be areas where clarification would be needed).  These areas cannot be in addition to the award criteria detailed in the advert or ITT. 

Ensure any area of concern remaining after the presentation is followed up in writing as part of bid clarification.

Slide 13

PQQ Selection Criteria (if applicable) Further information OGC Selection/Award criteria PPN

Part A – Background Information

Part B – Conviction of Criminal Offences

Part C – Business Probity

Part D – Technical & Professional Ability

NB - If restricting number of PQQ applicants, the minimum/maximum number able to participate is: [number]. NB: clarify if this number relates to per lot or to the overall framework

Part A - Section not scored – for info only

Part B - If the applicant answers ‘Yes’ to any question they MUST be excluded from the process

Part C - If the applicant answers ‘Yes’ to any question they MAY be excluded from the process

Part D - If minimum standards are set and aren’t met, the applicant should be excluded from the process otherwise use objective scoring criteria to shortlist those applicants meeting minimum standards

Selection Criteria: Criteria:

EXAMPLE

We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

Slide 14

ITT Award & Weighting Criteria Further information OGC Selection/Award criteria PPN

Award Criteria: Award criteria is based on [MEAT/lowest price]

Price Quality Ratio:[insert]

Weighting Criteria:

EXAMPLE

We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

EXAMPLE

Minimum Standards (if used)Service Delivery – Details Requirements PASS/FAIL

Service Delivery – Detail Requirements PASS/FAIL

CSR – Detail Requirements PASS/FAIL

Supplier Stability & Viability – Detail requirements PASS/FAIL

PQR Weighting (%)

Award CriteriaSub-

weighting (%)

In this example the headings below are for six award criteria. All questions to be asked of tenderers in the ITT must relate to this criteria and have corresponding

weighting. Refer to ITT Schedule 5 for further info.

Price 40% - 100%

Quality 60%

Service Delivery, Supplier Capacity & Minimum Standards 20%

Design Scenarios 25%

Staffing 5%

Project Planning & Implementation 25%

Warranty & Support 10%

Supplier Stability & Viability 15%

Contract Implementation – Lead-In Period

Detail what will need to happen, when, and whose responsibility is it to e.g.:

Conduct product trials (if applicable) Start running down stocks of current product ranges (if applicable) Prepare/ complete any required training Clarify supplier change management/ implementation expectations Ensure smooth transition Follow-up on progress

Note requirements for completion later in the process:

Systems updates Savings notification Notification and award letters

Commodity Strategy Sign-Off

Profile & Strategy approved by Head of Procurement/ Budget Holder: Profile & Strategy approved by Head of Procurement/ Budget Holder:

Name:…………..…………………

Date: ……………………………..