Integrating sustainable development principles into procurement Dr Gordon Murray 18 November 2009
Dec 03, 2014
Integrating sustainable development principles into procurement
Dr Gordon Murray18 November 2009
Principles, regardless of contract value• Equal treatment• Transparency • Non-discrimination• Proportionality• Mutual recognition
The commissioning cycle
Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
The commissioning
cycle
Eight Principles of Commissioning1.Understand the needs of users – through
inclusive consultation2.Consult with potential providers3.Focus on outcomes for users4.Map the range of potential providers5.Consider investing in the capacity of the
provider base6.Ensure transparency7.Seek long-term contracts and risk sharing8.Seek feedback
Strategic needs assessment
Decide priorities and outcomes
Plan and design services
Optional appraisal
Sourcing
Delivery
Monitor and review
Determine the need
Supplier selection
Contracting
Ordering
Expediting
Follow-up/evaluation
The commissioning
cycle
The purchasing
cycle
procurement
What can you do?
POLICY
STRATEGY
THE PROCUREMENT
CYCLE
Sustainable Procurement Policy
• Member & Chief Officer commitment• Relationship with Sustainable
Community Plan and ‘Procuring the Future’
• Linkage with strategic procurement management, Efficiency Strategy, Local Economic Development Strategy, Climate Change Strategy, and Procurement Strategy
• Legal compliance• Clear message to be communicated
to the market and staff• Commitment to act throughout the
procurement cycle• Commitment to on-going
improvement• Plans for reviewing effectiveness
Policy & strategy
• Set sustainability as a procurement objective & KPI
• Ensure access to procurement know-how
• Use cross-functional teams• Focus on outcomes/outputs• Publish long-term plans• Develop approach to unsolicited
openings• Encourage early dialogue with the
market• Accept variants• Use ‘lots’ and pilots
Maximise opportunities throughout
the Procurement Cycle
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Identifying the need
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Focus on the problem &
desired outcomes;Question need
to procure.
The Business Case
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
A robust options appraisal;
consider wider community benefits;
maximise opportunities for innovation;
market dialogue;progress or stop.
Defining the Approach
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Eliminate barriers; grants/contracts;
choice of procedure; framework agreements,
competitive dialogue, etc.; duration; consortia bids;
bundling; shared services; use of variants; social
clauses;‘Forward Commitments’;
‘positive action steps’;Performance based;
consultation on draft specification;
…
Supplier Appraisal
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Communications strategy – reverse marketing;
check timescale is pragmatic; simplify PTQ;
statement of community benefits criteria;
RELEVANT TO THE SUBJECT MATTER
OF THE CONTRACT
Tender evaluation
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Transparent criteria driven by need
identified; most economically
advantageous tender (MEAT); WLC;
community benefits criteria can be used;relevant to subject
matter of the contract.
Contract award
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Invest in constructive debriefing
for successful & unsuccessful bidders;listen for constructive feedback on how to
improve;encourage development
of improvement plans
Manage the contract
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Agree performance management
and improvements;two-way constructive
feedback; work with provider to
maximise community benefits
Closure and capturing lessons learnt
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
How can we do it better?
Competitive procurement
• Incentivise sustainability• Evaluate risks• Evaluate variants• Test the business case
Post award
• Risk/reward share• Embed within contract
management continuous improvement plan
• Collect and learn from the lessons (on both sides)
8. Closure / Review Need
1. Identify Need
2. Develop Business Case
3. Define Procurement Approach
4. Supplier Appraisal5. Tender Evaluation
6. Award Contract
7. ManageImplementation
of Contract
Utilise Gateway Stages
Challenge
Challenge
Challenge
Challenge
Challenge
Challenge
A procurement policy and strategy to improve sustainability
• Strategic objective• Focus on outcomes• Cross-functional teams• Recognise the market as an asset• Performance manage
Integrating sustainable development principles
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