Strategic Procurement Plan | Academic Help for Students & Researchers

Business introduction and operation, service or project

Executive Summary (Describe and use the table)

Procurement Targets

Analyse key issue (Describe – if needed summarise using the table)

Policy context

Market Analysis, supplier analysis, spend analysis

Opportunity analysis

Project Service Delivery requirement

Risk analysis

agency capability and management arrangements

Procurement option evaluation process and outcomes

STAKEHOLDER ENGAGEMENT PLAN

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Assessment Task 1: Strategic Procurement Plan

This assessment task requires you to formulate an organisation’s strategic procurement goals and take action to gain support for strategic procurement directions. Further, it requires ensuring that the organisation’s strategic procurement direction is aligned with that of the government.

You are required to produce a Procurement Strategy, the attached template may be used as a starting point. Note: You should append a Stakeholder Engagement Plan to the Procurement Strategy. A sample template for the Stakeholder Engagement Plan follows.

Your produced Procurement Strategy should be systematic and comprehensive and address the following:

Executive Summary

Analyse key issues

Policy context

market analysis, Supplier analysis, spend analysis

Opportunity analysis

Project service delivery requirements

risk analysis

Agency capability and management arrangements

Procurement option evaluation process and outcomes

Stakeholder engaement plan

A brief introduction about what your business and the business model is, industry, if it is public, private or PPP.

(Summary should include:

Procurement objectives (SMART)*, preferred procurement delivery method, any strategies to mitigate risks, the evaluation methodology, an outline of the preferred procurement strategy, demonstrating that the preferred procurement strategy is appropriate for this investment; contractual issues)

*Specific (simple, sensible, significant).

Measurable (meaningful, motivating).

Achievable (agreed, attainable).

Relevant (reasonable, realistic and resourced, results-based).

Time bound (time-based, time limited, time/cost limited, timely, time-sensitive)

Procurment Objectives:

You can change the procurement objcetives according to your objectives.

Procurement objective	Description	Priority	Ranking	Discussion
Risk management	Extent to which the delivery model supports effective risk management and mitigation	High/Med/Low	Higher priority – higher ranking	Explain why the objective has been given its particular ranking>
Time – time to market	Extent to which the delivery model facilitates rapid selection of contractors
Time – delivery speed/time to completion	Extent to which the delivery model facilitates rapid delivery
Innovation – outcomes	Extent to which the delivery model maximises opportunities for innovation in project outcomes
Innovation – delivery	Extent to which the delivery model maximises opportunities for innovation in delivery method and approach
Certainty – cost	Extent to which the delivery model provides the State with certainty regarding cost outcomes
Certainty – time	Extent to which the delivery model provides the State with certainty regarding time outcomes

AssignmentTutorOnline

Develop targets or key performance indicators (KPIs) for your organisation’s procurement objectives. Targets may be value based, time based, qualitative or quantitative, or outcome or output focused. Defining high level procurement targets is at the discretion of the organisation. (Describe or use a table format)

Procurement Function	Description – how it can be achieved/how many/quality	Due date if applicable

Please add more rows if needed

Project objectives and description

Outline the key project objectives including:

Government policy and service delivery objectives.

Describe the primary benefits arising from addressing the problem(s) including:

Type and level of benefits (social, economic, environmental etc.);

beneficiaries; and

How benefits arise from solving the problem(s).

Describe dis-benefits that might or will arise from the investment.

Note: This section should deal with benefits associated with dealing with the problem; they should not pre-suppose any specific intervention or project option. For example, if the problem is increasing prisoner numbers or overcrowded prisons, the benefits should not presume that the solution is to build a new prison.

Describe the project, including scope, characteristics and timing including:

any unique project characteristics;

procurement staging, for example, will the procurement process be simply the selection of a provider, or will it also include a preliminary stage to identify a preferred solution or technology;

project components that can be bundled or procured separately;

time dependencies, for example, closure of other infrastructure;

project duration and estimated schedule; and

Likely impacts on users and stakeholders.

Identify the preferred technical solution.

Key Issue	Description	Technical solution

Describe the government policies that impact on or influence the procurement, including:

how policy implications will be managed throughout the procurement;

the ability of each procurement method to address policy requirements;

probity risks and ethical issues

Outline how the project priorities align with other departmental and broader government projects and operations including:

interfaces with other governmental projects, including location and timing synergies.

Please make sure you describe about the internal organization policies as well.

Part 4A: Market Analysis

Provide an analysis of the market capability and capacity to meet the procurement objectives. Evidence presented in this section should demonstrate:

the ability of the market to deliver the project objectives and produce what is needed;

general market capacity and expected interest in this project;

the opportunity and need to influence and develop markets;

market familiarity with the type of project;

the market’s familiarity doing business with government; and

market access to suppliers and resources, noting any expected supply anomalies in the availability of skills, materials or components.

Part 4B: Supplier Analysis

Obtain a high level overview of your organisation’s suppliers to determine and ‘segment out’ those that are strategically important to your organisation and/or that account for a significant proportion of your overall spend. Identify top suppliers by category and not just by spend, to ensure critical suppliers are not missed. You can use the following table to summarise the supplier analysis:

Identify any opportunities (additional to intended benefits) that may arise during procurement and project delivery, and outline any strategies to capitalise and manage their potential.

Describe the expected outcomes:

What factors will determine whether the procurement has been successful? This should include design, quality and performance criteria that can be used to measure benefits realisation and project success.

Have the critical project success factors been clearly defined and agreed and signed off with stakeholders?

Describe what is the capability to be acquired (i.e. what is being bought?)

How will value for money be achieved and measure

Describe key risks to the procurement/project, considering:

the project risk management plan; and

‘show-stopping’ risks.

Describe how identified risks will be managed through the procurement process, including:

implications of transferring risks; and

implications of delivery models on risk.

Risks may address the following areas: organisational risk, category risks (inventory), supplier related risks and/or market related risks. (Atleast 5)

Identified Risk	Responsible	Likelihood	Impact	Mitigation Strategy
		H/M/L	H/M/L

Add more rows if needed

Outline the capability of the agency to manage the procurement including:

the agency’s capacity to manage what is required in the procurement under different deliver models;

management capability in the agency;

where projects cross organisational boundaries, clear management arrangements are in place to ensure ongoing alignment of all organisations business objectives;

governance arrangements within the agency;

if there is a skilled and experienced procurement/project team with clearly defined roles and responsibilities (if not, if there is access to expertise for those fulfilling the roles);

reporting and monitoring arrangements;

if there are systems and processes in place for monitoring and controlling project expenditure and for measuring and tracking realisation of project benefits;

if governance arrangements are robust enough to ensure that bad news is not filtered out of reports to senior management; and if processes and training are in place to ensure ethical behaviour to support accountability and openness in the procurement process, giving supplier’s confidence to participate and reduce the cost of managing risks (fraud, corruption etc.)

Outline the process used to evaluate procurement options and determine the preferred delivery model

Present the outcomes of the procurement short-listing and detailed analysis

The results of an assessment should be summarised in an evaluation matrix, such as the following example:

Evaluation criteria	Importance of criteria	Ranking of Evaluation
Operational flexibility The extent to which each procurement option enables the government to retain flexibility in terms of the operational profile
Risk management The extent to which each procurement option provides incentives effectively and efficiently to manage and reduce risks, thereby minimising the whole-of-life-cost to the government
Time to deliver project The extent to which each procurement option is able to support achieving an operational supply by X date.
Market interest The extent to which each procurement option assists in maximising market interest amongst the appropriate market participants with the relevant skills, expertise and capacity to deliver the project
Value for money The extent to which each procurement option assists in maximising the government’s value for money from implementing the project: design and construction

innovation other innovation factors whole-of-life cost considerations risk allocation competitive tension government development and tender costs and resources external development and tender costs
Budget certainty The extent to which each procurement option assist in providing earlier budget certainty to the government
Flexibility (future scope changes) The extent to which each procurement option assists the government in managing and implementing changes to the functional requirements of the project over time (particularly in relation to any variation in the required capacity of the plant)
Stakeholder management The extent to which each procurement option assists the government in managing stakeholders through the delivery of the project

Suggested evaluation criteria rating system:

4 – the procurement option is extremely effective in satisfying the requirements of the criterion;

3 – the procurement option is effective in satisfying the requirements of the criterion;

2 – the procurement option just satisfies the requirements of the criterion; or

1 – the procurement option is ineffective in satisfying the requirements of the criterion.

Stakeholder Identification (Name/Title/Position)

Stakeholder Classification

(Internal/External)

Assessment Information

Potential strategies for engagement – gaining support and reducing objections

Communication Strategy

Timing of Engagement

to collaborate, consult, empower, inform, involve or win them>