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Procurement Planning and Management

The objective is not to deliver the procurement process, it's to deliver the successful business outcome.

PPI assists its clients with their most challenging procurement projects. Although we can assist with any type of project, we are most often assisting our clients with their strategic, highly visible, politically sensitive, and largest projects.

PPI Select+© is designed and built on PPI’s twenty years of experience in supporting public-sector procurement. It includes a range of advanced development and evaluation tools, templates, and systematic project management processes that incorporate an extensive knowledge base of previous professional assignments and lessons learned. Risk management and mitigation is a key element within PPI Select+©. It also incorporates widely recognized best practices for openness, fairness and transparency in procurement management that have developed within the public sector in Canada over the last two decades. (In fact, PPI is a nationally recognized leader in the development of such best practices.)

The graphic following provides a graphic description of the constituent elements in the application of this methodology.

PPI Select+© Procurement Methodology – Management Phases & Underlying Planning Relationships

Methodology Wheel

The primary project management steps within the PPI Select+© methodology are outlined below. These elements are fully customizable to accommodate the governance and accountability models, public policy objectives, and operating requirements for individual public sector clients. Particular attention is given to mitigating risks and maintaining compliance and value for money considerations throughout each step of the process.

As noted in the graphic above, PPI recognizes the critical success factors that underlie the success of a public-sector procurement project throughout each stage in the process:

1. Governance. A successful procurement project requires an operative governance framework in place that assures appropriate stakeholder participation; a clear definition of roles, responsibilities and decision-making authority; initial and sustaining funding conditions; appropriate performance evaluation and accountability criteria; periodic reporting and audit requirements; and the definition of on-going business management processes for risk and relationship management. Without these elements properly defined, even a well-scoped project will fail.

2. Compliance. A successful procurement project must adhere to all applicable public policy objectives and standards as embodied in legislation/regulations, management directives and operating policies, as well as guidelines for ethical behaviour and standards of conduct.

3. Value-for-Money. Successful procurement initiatives and project delivery demonstrate value-for-money. Value for money (VFM) is not only based on acquisition costs but on the efficiency and effectiveness of the outcomes. Effective procurement management assures that projects are scoped and defined in a manner that maintains focus on the desired business outcome; maximizes qualitative competitive tension in soliciting responses from suppliers; minimizes risk to the proponent; and provides for effective contract and relationship management.

PPI Select+© applies these primary elements within four principal procurement management phases.

Over the lifecycle of a procurement process, PPI can assist with:

A. Project Planning and Scoping

The objective of the Project Planning and Scoping phase is for the organization to clarify the proposed initiative, envision the desired outcome, investigate the market within which it will conduct its activity and profile the ideal vendor for the desired procurement outcome. Activities in this stage include:

1. An Environmental Scan

  • Gather background information on the project drivers (e.g. political, operational, financial, industry/vendor perspectives, etc.)
  • Clarify the project requirements (e.g. expenditure, volumes, demand projections)
  • Review any applicable over-riding public policy or operating practices requirements
  • Assess organization’s preparedness for “change”
  • Review the current governance framework and accountability structures
  • Review the business case and go-forward options

2. A Readiness Assessment

  • Conduct stakeholder workshops to recruit/involve stakeholders, gather information, secure commitment, and define roles, responsibilities and accountability
  • Review “What’s in, What’s out, and What may come later”
  • Review risks, challenges and critical success factors
  • Review lessons learned
  • Assess current service or program

3. An Analysis of the Marketplace

  • Identify potential suppliers
  • Profile the ideal proponent
  • Analyse the market for risk and opportunities (e.g. vendor/contractor capability and capacity)

At the end of this stage, the client understands the opportunity, has a good understanding of the underlying range of considerations that impact on the project and the foundation elements to undertake a successful procurement are in place.

B. Developing Process and Document Phase

Within the ‘Developing Process and Document’ phase, the previously gathered information will be used to communicate the ideal solution, design the selection process and generate the RFx document in a manner that will be consistent with achievement of the desired outcomes. The activities within this stage include:

1. Design Sourcing Strategy

  • Review risks and opportunities associated with the RFx
  • Validate that the Statement of Work aligns with desired outcome
  • Design Sourcing process and method (e.g. One versus two staged process)

2. Design Criteria Matrix

  • Develop rating criteria and weighting
  • Develop financial evaluation methodology
  • Develop scoring system

3. Develop RFx

  • Validate that the Form of Agreement aligns with desired outcomes
  • Design and review Terms and Conditions of the process
  • Review and edit RFx for consistency
  • Assemble RFx document
  • Through these activities, the client will have finalized a sourcing methodology, developed a strategy to proceed and will have confidence that their RFx process will encourage competition, uses appropriately weighted criteria and will generate value-driven outcomes.

C. Go To Market

In this phase, PPI supports the client in preparing to engage vendors and to undertake the selection process. This stage is characterized by the following activities:

1. Generate Market Interest

  • a. Advertise and distribute the opportunity (e.g. Merx, Biddingo, by invitation)

2. Manage Process and Evaluate

  • Manage questions and answers, develop addenda
  • Develop Evaluation Guides and Tools
  • Train evaluators
  • Evaluate and score (individual and consensus sessions)
  • Conduct Oral interviews and demonstrations
  • Finalize scoring and review scoring spreadsheets

3. Award

  • Document results and get approval to proceed
  • Issue notices of award

At the end of this phase, the client will have successfully engaged the market and managed the evaluation process to select a preferred proponent.

D. Delivery and management

The final phase of the methodology is conducted to transition the vendor through delivery and prepare the organization for the next procurement opportunity. Activities in this phase include:

1. Finalize Contract and Debrief Proponents

  • Negotiate final clauses (if allowed)
  • Assemble contract and get sign-off
  • Issues notices of regret to unsuccessful bidders
  • Develop debriefing scripts
  • Debrief successful and unsuccessful proponents
  • Initiate program delivery

2. Manage Contract and Performance

  • Measure, record and communicate contract delivery metrics
  • Measure, record and communicate program performance attributes
  • Utilize feedback for continuous improvement feedback loop

3. Conduct Assessment, Post-RFx Windup and Transition to New Service Delivery Arrangements

  • Review current service level
  • Review lessons learned with Client

At the end of the procurement process, the contract is finalized and the new arrangement(s) for program or service delivery is initiated. Follow-on would include activities such as contract and relationship management; change management issues arising from moving from a current to a desired future state; performance review (reporting and audit); and feedback on outcomes from both the proponent and contractor/supplier perspectives. Feedback is an important element in management of both the relationship and new business processes. It also provides meaningful input on lessons learned that be considered in preparation for future procurements.

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