Procurement Plan

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Version No: 1.0
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Definition
The following are definitions of terms, abbreviations and acronyms used in this document.
Term Definition
Procurement Plan Page
Table of Contents
1 PROCUREMENT REQUIREMENTS..............................................................4
1.1 REQUIREMENTS..................................................................................................................... 4
1.2 PURPOSE............................................................................................................................... 4
1.3 JUSTIFICATION......................................................................................................................... 5
M!R"ET RESE!RC#............................................................................$
2.1 MARKET CONDITIONS............................................................................................................... 5
2.2 AVAILABLE PRODUCTS.............................................................................................................. 5
% PROCUREMENT P&!N..........................................................................$
3.1 SCHEDULE.............................................................................................................................. 5
3.2 ASSUMPTIONS......................................................................................................................... 6
3.3 RISKS.................................................................................................................................... 6
4 TEN'ER PROCESS..............................................................................(
4.1 OVERVIEW.............................................................................................................................. 6
4.2 DOCUMENTS........................................................................................................................... 6
$ PROCUREMENT PROCESS.....................................................................)
5.1 OVERVIEW..............................................................................................................................
5.2 DOCUMENTS...........................................................................................................................
( !PPEN'I*.......................................................................................)
PROCUREMENT REQUIREMENTS
!dentify the products to be sourced from outside the organi"ation, the purpose of each
product and the justification for procuring it as opposed to sourcing it internally.
1.1 Re+,ire-ents
#escribe the specific products and $uantities to be sourced from the external mar%et place
as well as the budgeted expenditure for each product, using the following table:
ID Product Description uantit! Budget
&'( &omputer
'ardware
)atest specification computer !ntel P& including:
*creen +(, inch monitor-
&omputer unit +latest !ntel processor-
.ccessories +%eyboard, mouse-
)atest /indows 0perating *ystem
1* 0ffice software suite
Amount $
21( 2aw 1aterials 3uilding construction materials, including:
/ooden framing for walls
2oofing materials
Electrical cabling and switches
Amount $
&*( &onsultancy
*ervices
4eneral consultancy services to assist with the
management of the project, including:
Amount $
Procurement Plan Page 5
6uality assurance and auditing
Project office management
.ccounting services
1. P,rpose
#escribe the purpose of each product within the following table:
ID Product Purpose
&'( &omputer
'ardware
To enable project management and administrative staff to oversee the
project by recording and trac%ing progress against project plans
21( 2aw 1aterials To physically construct the deliverables to be produced by the project
&*( &onsultancy
*ervices
To provide confidence that the project will achieve the time, cost and $uality
targets through regular reviews and reporting
1.% .,sti/0ation
Provide sound reasoning as to why the above products must be ac$uired from external
suppliers as opposed to from within the business, using the following table:
ID Product "ustification
&'( &omputer
'ardware
There are no available P&s within the business of a suitable specification to
perform the re$uired tas%s
21( 2aw 1aterials The business does not currently have sufficient spare raw materials to
produce the project deliverable
&*( &onsultancy
*ervices
There are no human resources within the business suitably $ualified to
underta%e the activities re$uired
Procurement Plan Page 7
Mar1et Resear02
&onducting mar%et research is critical to ensuring that the right product is readily available in
the mar%et place at the right price. 6uestions such as 8/hich products are available98: 8/ill
they meet the re$uirement98: and 8.re suppliers able to deliver the product at the right price
within the timescales needed98 are all $uestions which need to be answered before the
Procurement Plan can be completed. ;nderta%e a thorough mar%et research exercise and
document the results of the research program within the following section.
.1 Mar1et Conditions
!dentify the various mar%et conditions related to the supply of the products listed in the
section above. The types of mar%et conditions to be considered include:
Political environment +!s it stable9 /ill influences in the exchange rate have a bearing on
product pricing9 !s change li%ely9-
Technological trends +/ill new technologies present new opportunities or threats9-
1ar%et segment +'ow many suppliers are in this particular mar%et segment9-. <
. !3aila4le Prod,0ts
)ist a sample of the potential suppliers and currently available products to provide confidence
that there are products available in the mar%et place which will li%ely meet the re$uirement
within the budget stated. &ross reference the supplier name, available product and current
price with the product !# above, using the following table:
ID #upplier Name #upplier Product Price
&'( .3& )td !ntel P&, including:
*creen +(, inch monitor-
&omputer unit +latest !ntel processor-
.ccessories +%eyboard, mouse, &# reader-
=
21( #E> )td 3uilding construction materials, including:
/ooden framing for walls
2oofing materials
Electrical cabling and switches
=
&*( ?@A )td &onsultancy services, including:
6uality assurance auditing
Project 0ffice management
.ccounting services
=
Procurement Plan Page B
% Pro0,re-ent Plan
%.1 S02ed,le
*chedule the activities re$uired to complete the tender, deliver the re$uired products and review the suppliersC performance.
Procurement Plan Page B
!# Tas% Name #uration
5 P$%D&C'T'ND'$ () da!s
7 Issue $*I +, da!s
B #ocument 8*tatement of /or% +*0/-8 days
D #ocument 82e$uest for !nformation +2>!-8 days
E 2elease Tender #ocuments +2>! and *0/- days
F 2eceive G Evaluate Tender 2esponses days
, *elect Tender *hortlist G Notify *uppliers days
(H Issue $*P +, da!s
(( ;pdate 8*tatement of /or% +*0/-8 days
( #ocument 82e$uest for Proposal +2>P-8 days
(5 2elease Tender #ocuments +2>Pand *0/- days
(7 2eceive and Evaluate Tender 2esponses days
(B *elect Pref erred Tender G Notify *uppliers days
(D Issue Contract ) da!s
(E #ocument *upplier &ontract days
(F Negotiate *upplier &ontract days
(, *ign *upplier &ontract days
H !nitiate &ontractual 0bligations days
( Tender Process Complete H days

5 D'-IV'$P$%D&CT# ., da!s
7 #eliver Product xxx (H days
B #eliver Product xxx (H days
D #eliver Product xxx (H days
E All Products Delivered H days
F
, $'VI'/#&PP-I'$# (. da!s
5H 2eview *upplier xxx days
5( 2eview *upplier xxx days
5 2eview *upplier xxx days
55 Supplier Reviews Complete H days
++0,(
(10,.
+)0,.
BIH( (IH( (,IH( DIH( IH ,IH (DIH 5IH (IH5 FIH5 (BIH5 IH5 ,IH5
ary >ebruary 1arch .pr
%. !ss,-ptions
)ist any assumptions made during this Procurement Planning exercise. >or example:
!t is assumed that:
The procurement re$uirements will not change
There will be no changes to mar%et pricing
The pool of current suppliers will be available as re$uired.
%.% Ris1s
)ist any ris%s identified during this Procurement Planning exercise. >or example:
The procurement re$uirements may not be defined in sufficient detail to provide potential
suppliers with an inJdepth understanding of the project re$uirement
The methods underta%en to review supplier performance may not provide ade$uate
confidence that the suppliers will meet the specified procurement re$uirements
The resource allocated to underta%e the supplier reviews may not be appropriately
s%illed to complete the activity as re$uired. <
4 Tender Pro0ess
*ummari"e the Tender 1anagement Process.
4.1 O3er3ie5
KThe purpose of the Tender 1anagement Process is to provide a clear, robust and fair
process for the appointment of preferred suppliers for the ac$uisition of product for the
projectL. !n summary, the Tender Process will be underta%en by this project through the
implementation of three %ey processes:
!ssue 2>!
!ssue 2>P
!ssue &ontract. <
4. 'o0,-ents
)ist any other documentation used when underta%ing the tendering process. >or example:
*tatement of /or% +*0/-, 2e$uest for !nformation +2>!-, 2e$uest for Proposal +2>P-,
Tender 2egister.
Procurement Plan Page D
$ Pro0,re-ent Pro0ess
*ummari"e the Procurement Process or reference a more detailed Procurement
1anagement Process document.
$.1 O3er3ie5
8The Procurement 1anagement Process is underta%en to ensure that all products +i.e.
goods and services- are ordered, delivered and received in accordance with the
Procurement Plan and that the performance of the supplier providing the products is
ade$uately managed.8 <
The Procurement Plan lists the products, suppliers and timeframes for ac$uisition by the
project. The Procurement Process ensures that the products outlined within the Procurement
Plan are ac$uired on time, are within cost and at the level of $uality re$uired. To ensure that
procurement is handled correctly, a MPurchase 0rderC document is completed for each
single I bul% purchase. . Purchase 0rder sets out the specific product+s- re$uired, the
delivery urgency, the location for delivery and the cost center to be charged for the delivery.
Purchase 0rders are usually approved by the Project 1anager and the delivery information
is recorded within a Procurement 2egister.
!n summary, Procurement 1anagement will be introduced to this project through the
implementation of three %ey processes:
The issuing of Purchase 0rders
The completion of Purchase 0rders
The management of supplier contracts. <
Note: This process caters for the procurement of all types of Products, including goods +e.g.
computer hardware, raw materials and e$uipment- and services +e.g. raw labor, technical
services, consultancy and management-.
$. 'o0,-ents
)ist any other documentation used when purchasing product for the project +e.g.
Procurement 2egister, Purchase 0rder >orm-.
( !ppendi6
.ttach any documentation you believe is relevant to the Procurement Plan, including:
Project documentation +e.g. 3usiness &ase, >easibility *tudy, Terms of 2eference,
Project Plan, 2esource Plan, >inancial Plan or 6uality Plan-
2e$uirements .nalysis or Needs .nalysis documentation
1ar%et 2esearch materials
0ther relevant information or correspondence. <
Procurement Plan Page E