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Defining Requirements

Procurement Requisition Processing

Jorge Lynch Leave a Comment

Once the procurement plan is prepared and approved, the requesting entities should begin submitting their requirements accordingly to the procuring entity for processing. When a procurement requisition is submitted, the first step in processing the request for procurement action is to determine exactly what is required. Although a general idea would already exists as a result of the requirements determination and procurement planning phases, it is at this point that the completed technical specifications or terms of reference should be sent to the procuring entity to start the procurement requisition process. The procuring entity in turn reviews the technical specification or terms of reference for completion. 
 
There must be sufficient detail in the description of the requirement to ensure that all prospective bidders or service providers have essentially the same understanding of the requirement. If the specifications are clear, and prepared in accordance with procurement procedures, the solicitation process can begin; if not, the procuring entity must seek clarification in order to finalize the solicitation documents accordingly. 
 
The proper description of the procurement requirement is essential to beginning the procurement process. If done correctly, it avoids disappointments and waste of resources resulting from purchasing goods and services that fail to fulfill the purpose intended because of improperly prepared technical specifications or terms of reference.
 
Completing the technical specifications and terms of reference later than scheduled will have an adverse impact on the execution of the procurement plan and the award of the contract, which in turn will cause delays in acquiring the goods and services.
 
It is important for the procuring entity, in coordination with the requesting entity, to determine in advance if technical expertise will be required to draft the technical specifications or terms of reference and if this expertise exists in-house or will also have to be procured. 
 
This exercise needs to be undertaken during the requirement determination phase, because if the expertise for preparing the technical specification or terms of reference must be hired, this in itself creates a procurement requirement that needs to be considered in the procurement planning process. This, consequently, will also require its own technical specifications or terms of reference completed and contract awarded far enough in advance for the hired individual to prepare the  technical specifications or terms of reference in time for the solicitation documents of the requirement in question to be prepared and the procurement process initiated as forecasted on the procurement plan. 
 
Independent of the technical expertise existing in-house, when technical specifications or terms of reference are unclear or lacking in other important elements, the procuring entity must seek clarification in an effort to resolve any apparent discrepancies before completing the solicitation documents. 
 
Ideally, the requesting entity should maintain an open dialogue with the procuring entity while preparing their technical specifications and terms of reference. Sharing informal versions and getting feedback from the procuring entity up until the final version is ready for formal submission. Doing this helps prevent rejection of the technical specifications or terms of reference for additional information, risking delaying the procurement process due to late submission of this most important document, without which the procurement process cannot begin.
 
When the procuring entity receives the technical specifications or terms of reference in a manner suitable for requesting offers, and with the proper fiscal authorization to commit the allocated funds, the procuring entity can begin preparing the solicitation documents southafrica-ed.com.

Filed Under: Defining Requirements, Procurement Process, Procurement Requisition

12 Questions to Ask When Defining Requirements for Civil Works Procurement

Jorge Lynch Leave a Comment

When defining requirements for civil works procurement, the following are 12 questions to consider:

  1. What is required: a new construction, renovation, or repair?
  2. Why?
  3. Where?
  4. Is there in-house capacity to undertake the requirement or does it need to be contracted out?
  5. Do we have design and engineering capability in-house sverige-ed.com?
  6. Do we want the design and supervision done by one entity or by separate entities?
  7. Who will develop the technical specifications, drawings and bill of quantities?
  8. When does the requirement need to be satisfied?
  9. What is the procurement lead-time?
  10. How much funding is required?
  11. Are there sufficient funds available?
  12. Are there qualified contractors available in the market?

Filed Under: Defining Requirements, Procurement Categories

19 Questions to Ask When Defining Requirements for Services Procurement

Jorge Lynch Leave a Comment

When defining requirements for the procurement of services, the following are 19 questions to consider:

  1. What type of service do we need?
  2. Why is the service needed?
  3. When?
  4. What are the details of the service required?
  5. Who can best describe the service required?
  6. Who can provide the service?
  7. Has the service been required before? If so, how was the requirement satisfied?
  8. Can it be provided in-house?
  9. Is external expertise needed to assist with the definition of the  requirement and with the evaluation, selection and contract administration?
  10. Is there local expertise available to provide the required service or is there a need for international expertise?
  11. Is the service expected to be one-off or continuous?
  12. What is the expected duration of the service sverige-ed.com?
  13. If, outsourced, what’s the procurement lead-time?
  14. What is the budget?
  15. Are there funds available?
  16. Are there budgetary constraints to obtaining the service?
  17. What procurement method is best suited to for soliciting this type of service?
  18. What type of contract would be most appropriate for this type of service?
  19. What entity would be responsible for contract administration?

Filed Under: Defining Requirements, Procurement Categories

Market Study in Public Procurement

Jorge Lynch Leave a Comment

A market study (also known as market analysis, market assessment, market sounding, market research, etc.) is useful when defining requirements; preparing budgets; choosing procurement method; planning and scheduling the procurement of goods, services and works; evaluation of bids/proposal, and sometimes to justify contract amendments osterreichische-apotheke.com.
 
The extent of a market study is dependent on, and determined by, the degree of complexity and monetary value of the requirement.
 
A market study can be done using the internet and/or by soliciting information potential suppliers, consultants or service providers. It can be done in-house, or by hiring a specialized firm to carry-out the study.
 
The minimum expected results of a market study are: the identification, interest and availability of suppliers, contractor or services providers, their technical capability and financial capacity, and price trends.
 
It is very useful to develop a template for recording and filing the results of a market study, and for future use when procuring similar goods, services or works from similar market.
 
The following are useful sources of information on Market Study:
 
Template for Market Study Report, OECD Procurement Toolbox
 
Supply Market Analysis, courtesy of the Scottish Government
 

Filed Under: Defining Requirements, Market Study, Procurement Process

20 Questions to Ask When Defining Requirements for Goods Procurement

Jorge Lynch 4 Comments

When defining requirements for the procurement of goods, the following are 20 questions to consider:
.
  1. What do we need?
  2. Why?
  3. How many?
  4. When?
  5. What quality?
  6. For stock or immediate use?
  7. If for stock, do we have sufficient storage space?
  8. Where?
  9. Can we get the goods from another government entity?
  10. If not, can we make them?
  11. Who will make them?
  12. Do we buy them?
  13. Have we bought them before?
  14. Any known sources?
  15. What’s the cost?
  16. Are there funds available?
  17. Any funding constraints lien?
  18. Do we have the technical specifications?
  19. If not, who will prepare them?
  20. How long will it take to get the goods (procurement lead-time)?

Filed Under: Defining Requirements, Procurement Categories

Procurement Requirement Determination

Jorge Lynch Leave a Comment

The first step in the public procurement process is to identify requirements. All procurement requirements begin with the perception of a need. The need to cross a body of water could create a requirement to build a bridge, a ferry, or other transportation systems.

At this stage it is necessary to clearly define the need, and this may be done by way of a study to determine the best mode to cross the body of water (given the present situation and forecasted future need), then the type of bridge to be constructed, or a comparative cost/benefit analysis to determine the best solution between a bridge and other alternatives.

The study should include if the need can be satisfied in-house or contracted out, quantification of the initial budgetary estimate, and an idea of the procurement lead-time.

The conformation of the study team should be multidisciplinary in order to address the different questions to be answered to facilitate a comprehensive understanding of the need so as to clearly define the actual requirement.

The role of procurement practitioners at this stage is primarily to estimate the procurement lead time given the most appropriate procurement method that would be suitable for such a requirement.

Of course, the perceived need is not always as complex as in the example above. There are also needs for goods and services, and those should also undergo an analysis to clearly define requirements.

At the end of the requirements definition stage, a clear determination of the terms of reference, technical specifications or statement of work (depending on the procurement category) should be possible, including an estimate of the budget, and, most importantly, the procurement lead-time.

This requirement definition analysis is essential not only for new procurement requirements, and project initiation and concept development, but also for requirements needed for maintaining existing operations sverige-ed.com.

Filed Under: Defining Requirements, Procurement Process

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