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.
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