Contract Procedures Manual (SM021) Part A – Appendix XXVI(B)

Small procurement plan PW contract

Small Procurement Plan for <<insert CONTRACT NAME>>

<<This procurement plan is a starting point only. Consider each individual procurement in terms of risk and value and adapt the plan accordingly. Contact Procurement Services for assistance in completing this plan>>

Purpose

The purpose of this procurement plan is to:

document the key considerations made in the selection of the preferred procurement model delivery of <<insert project name>>

confirm the high level details in the approach to be taken to procurement

describe the key scope components of the project

ensure competition for physical works within the market place is optimised and finite resources within the region are managed.

Background

Description

<<Provide brief description of the project, including history. List the high level objectives of the projects>>

Timeline

<<Please specify timeline for this project and contract completion period>>

Status

<<Include a brief description of the status of critical aspects of the project such as: funding, statutory approvals, property acquisition, consultation, investigations including geotechnical data, scheme assessment, etc.>>

Capacity of the physical works supplier market

<<Describe supplier market and expected number of tenders with consideration of other projects that you are aware of that are due for tender and could cause any capacity constraints>>

Scope and key aspects of the contract

Scope of work

<<Describe scope of work: complexity/ scope for innovation etc>>

Project and base estimate

<<Provide high level breakdown of base estimate for this project>>

Key project characteristics and risks

<<Describe key project characteristics, opportunities and risks for this project eg programme constraints stakeholders, client involvement, control and capability etc>>

Procurement method details

Physical works supplier selection method options

<<Describe the preferred supplier selection method including reasons why>>

Guidance note:

Direct appointment: This involves the selection of a single supplier with a negotiated price (and other commercial terms). Typically, direct appointment is limited to contracts with an estimated value of less than $200K.

Lowest price conforming: This option is used when the best value for money is likely to be obtained by having suppliers compete on price only. Typically, it is only used where there is no premium to be gained from additional quality.

Purchaser nominated price: This option is used when the outputs of a business case are difficult to specify and where the price to be paid has already been capped.

Quality based (Brooks law): This option is a quality-based selection method with a price negotiated following selection of the preferred tender. Typically, this option is used for complex projects, where a full delivery procurement model has been selected and outputs are difficult to specify.

Price/Quality method (PQM): This option is used when it has been determined that best value for money will be obtained by having suppliers compete on both price and quality and where there is a strong desire to select a supplier that offers the best combination of the two.

Non-price and pricing attributes

<<Describe the proposed weightings and explain split between price and non-price weightings>>

<<Provide a breakdown of attributes>>

Attributes	weightings (%)
Relevant Experience
Track record
Relevant Skills
Methodology
Price

Physical works supplier selection method options

<<Specify the TET members. Indicate which member is the Waka Kotahi TET Leader. Indicate which member(s) is certified evaluator.>>

The TET will be made up of the following members:

[Name] (Waka Kotahi TET Lead)

[Name] (Certified evaluator)

[Name]

Procurement timeframe

activity	proposed Timeframe
Issue Request for tender (RFT)	[date]
Inception meeting	[date]
Interactive meeting	[Week starting…. ]
Close of tender	[date]
Tender evaluation period	[date]
Naming of preferred tenderer	[date]
Target date for contract award	[date]
Contract start date	10 working days following award

Probity management

<<Please modify the following to suit your procurement>>

It is essential that the agency demonstrates ethics and integrity in its procurements. This means:

acting fairly, impartially, and with integrity

being accountable and transparent

being trustworthy and acting lawfully

managing conflicts of interest

protecting the supplier’s commercially sensitive and confidential information.

Probity in this procurement will be managed by:

ensuring compliance with the agency’s code of conduct

ensuring that financial authority for the procurement is approved before proceeding to tender

ensuring everyone involved in the process signs a confidentiality agreement and declares any actual, potential or perceived conflict of interest

identifying and effectively managing all conflicts of interest

ensuring that all bids are opened at the same time and witnessed

numbering copies of suppliers’ tenders and returning them to the panel chair once the tender process ends

retaining one copy of each supplier’s tender and destroying the remaining copies once the tender process ends

treating all suppliers equally and fairly

providing each supplier with a comprehensive debrief at the end of the tender process.

Prepared by:	Signed	Date
<< Project Manager>>
Endorsed:	Signed	Date
<< Recommending Manager>>
Agreed:	Signed	Date
<<Manager Tier 4 / Manager Commercial / Manager Procurement Services>>