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Three Ways to Make Procurement Records Tell a Story

Jorge Lynch 6 Comments

When building a procurement record-keeping system you must consider what documents should be placed on file, and how easy reviewer of those records will be able to reconstruct the entire procurement process in order to understand exactly how it was carried out from beginning to end.

One of the ways to do this is to ensure that procurement records are placed on file in such a manner that they give a complete picture of the entire procurement process.

Here are 3 ways to ensure procurement records tell a story.

1. Keep a record on each step of the procurement process

The procurement requisition and approval triggers the start of the procurement process. This must be kept on file along with records of the solicitation documents, the evaluation and selection process, contract negotiations and award, up to contract close out.

2. Keep record of any relevant communication carried out during the process

Important documents created during the procurement process must be kept on file for reference. There are solicitation documents, announcements, evaluations reports, contracts, and so on. There are also communications between the entities and individuals participating in the process: procurement officers, approving authority, evaluation panel members, and others. Keeping a record of such communication is very important to understand how the procurement process was undertaken.

3. Ensure records are placed on file in the order in which they occurred

Finally, common practice is to keep paper-based procurement records in reverse chronological order (the most recent record placed on top of the last). But placing them on file in the sequence in which they occurred helps to rebuild the story from start to finish sverige-ed.com.

What other ways can you think of to ensure procurement records tell a story?

Leave a comment.

Filed Under: Record Keeping

Deciding on a Procurement Method

Jorge Lynch 1 Comment

During the requirement identification stage, the entity with the need determines when they want the goods delivered, services rendered or construction works completed. It is important to consult with the procuring entity at this early stage in order to determine the most appropriate procurement method for their specific need.

The procurement method should be determined at this early stage because of the impact it has on the procurement lead-time, and also to ensure that the responsible entity is able to set realistic timeframes and expectations for contract award in the initial stages of development and definition of their procurement requirement.

This simple exercise of obtaining the assistance of the procuring entity early on helps to avoid disappointments, unrealistic expectations and frustrations when, due to poor planning, it is impossible to meet expectations set during the requirement definition phase.

At this stage of the process, it is also important to decide if a competitive or non-competitive procurement method will be used osterreichische-apotheke.com. The complexity of a requirement, procurement category, and monetary value are all important factors to consider when deciding on the procurement method.

A decision to use a particular procurement method must be based on the stipulations of the procurement rules.

 

 

Filed Under: Procurement Methods

On Contract Suspension

Jorge Lynch 2 Comments

It is important to distinguish between the suspension of a contract (the temporary cessation of contract performance), and the suspension of a supplier, contractor or services provider. The former may be invoked by either party to a contract for specific reasons defined in the terms and conditions of the contract, such as Force Majeure. The latter is a decision made by the purchaser to suspend the other party from participating in the bidding process (debarment) or from signing a contract with the for a stipulated period of time as a result of a breach of contract or other offenses stipulated in the public procurement rules.   Contracts should contain a provision for either party to suspend or terminate the contract under certain conditions. Grounds for suspension or termination of a contract are usually stipulated in the General Conditions of the Contract.

A contract suspension does not necessarily lead to termination. The reasons must be contemplated in the contract. An example of a situation that could lead to contract suspension is the temporary inability of a supplier, contractor or service provider to comply with the contract terms and conditions for reasons beyond their control (Force Majeure).

Whenever any deficiencies are observed during contract administration, the first step is to verbally address the issue with the other party. If results are unsatisfactory after this verbal notification, then it should be communicated formally and the other party given a certain period of time to remedy (cure) the defect. If the deficiency is not remedied within the stipulated timeframe, contract suspension or termination should be considered after taking into account other available remedies.

Contract suspension should be considered before contract termination, because one of the main objectives of procurement is to award contracts in order to satisfy particular requirements https://cheska-lekarna.com. Additionally, the cost implications (considering time lost and other dependent procurement requirements), of having to re-tender to select another supplier, contractor or service provider, should also be carefully considered before quickly deciding on contract termination prior to exhausting all other possible measures.

What are your views on contract suspension?

Leave a comment.

Filed Under: Contract Administration

Contract Administration Planning

Jorge Lynch 1 Comment

Considered primarily immediately after contract award, it is ideally during the selection process that the contract administrator should be identified and allowed to participate in the preparation of the contract administration plan.

A contract administration plan contains all the details of the contract necessary for monitoring contractor’s, supplier’s or service provider’s performance over the life of the contract.

A contract administration plan also identifies all deliverables due over the life of the contract and how inspection and reporting on the contract will be carried out, and by whom lien.

The contract administrator must be familiar with all contract milestones and terms and conditions in order to properly monitor and evaluate performance, and identify any instances of non-compliance as they may arise.

Finding a quick resolution to any discrepancies identified during contract implementation, helps to avoid undue delay in contract completion.

Filed Under: Contract Administration

The Bid Security and Its Purpose

Jorge Lynch 20 Comments

A bid security is an amount of money that may be calculated as a percentage of the budget estimate of a procurement requirement or a percentage of a bidder’s bid price. It is used by the client as protection against bidders withdrawing their bids prior to the end of their bid validity period, or for refusing to sign the contract.

The bid security is intended to deter bidders from withdrawing their bids because they would otherwise forfeit the bid security amount to the client. It gives the client some assurance that the selected bidder will sign the contract or otherwise forfeit their bid security.

[Read more…] about The Bid Security and Its Purpose

Filed Under: Bid Security

Five Questions on Delays in the Procurement Process

Jorge Lynch 6 Comments

1.      What are delays in the procurement process?

Delays in the public procurement process are any constraint that prevents procurement events from taking place in accordance with the procurement plan and schedule.

2.      What causes delays in the procurement process?

Some common causes of delays in the procurement process are:

  • Failure to properly plan all procurement events and to use the appropriate procurement method.
  • Requesting entity fails to submit procurement requests on time consistent with the procurement plan and schedule.
  • Technical specifications, scope of work or terms of reference prepared later than scheduled.
  • Procuring Entity receives incomplete technical specifications, scope of work or terms of reference.
  • Evaluation panel not formed in time to begin the evaluation process as scheduled.
  • Evaluation Panel taking more time than allotted to evaluate bids or proposals.
  • Protracted contract negotiations.
  • Reviewing and approving authority taking more time that allotted to review and comment on documents sent for approval.

3.      Why is it important to avoid delays in the procurement process?

Avoiding delays in the procurement process not only saves time and money, it also permits the timely award of contracts. A delayed contract award could cause a chain reaction of delays on other dependent procurements. This is especially important in project procurement management because it could delay the completion of the project.

4.      Who is responsible for avoiding delays in the procurement process?

All stakeholders: the procuring entity, evaluation panel members, approving authority, requesting entity, etc., involved in the bidding, evaluation and selection phase are responsible for making every effort to avoid delays in the procurement process. No single department can do this. It has to be a collaborative effort.

5.      What can be done to minimize delays in the procurement process?

To minimize delays in the procurement process it’s important to ensure:

  • A realistic determination is made of the availability of a market to satisfy the need.
  • The appropriate procurement method is assigned to the requirement because this is important for estimating the procurement lead-time.
  • The need for external assistance to prepare the technical specifications, scope of work or terms of reference of the requirement has been considered.
  • An evaluation panel with the proper technical skills is identified, selected and approved early enough and is available to begin the evaluation process on schedule.
  • The approving authority will be available and is committed to reviewing and approving procurement documents within an agreed timeframe.

What are your thoughts on delays in the public procurement process?

Leave a comment southafrica-ed.com.

Filed Under: Procurement Process

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