【正文】 s standard conditions – the agreed range of items or services should be at short notice thus reducing or avoiding stock holding for goods and reducing downtime on equipment maintenance and repairs – the supplier benefits in terms of planning stock levels and continuity of supply – a mutually beneficial longerterm working relationship can be established with suppliers – Calloff create legal obligation and not LTA 48 Purchasing Card: ? Tool for procurement of low value contracts . less than $2,500. ? Aims to reduce petty cash and number of payment transactions. ? Monthly limit set at $10,000 ? Can’t be used for procurement of assets. ? Facilitate P2P. ? No transaction fee ? Payment cycle 30 days. 49 Procurement Process: ? Planning is not an analysis but identifying the activities and direction of activities ? Formalization phase determine the sourcing approach, evaluation criteria and solicitation documents. It formalizes the requirement based on budget ? Implementation covers all functions that pertain to the acquisition, including description of requirements, selection and solicitation of sources, preparation and award of contracts, and all phases of contract administration. It may also include logistics. ? Final phase consists of audit, evaluation and feedback 50 Tips on writing an effective SOW ? Be clearuse simple, direct language. ? Use active, not passive tenses ( The seller shall conduct the test as opposed to a test should be conducted, language is the dress of thoughts) ? Spell the buyer’s obligation carefully ? Provide a ceiling on the extent of services ? Identify all constraints and limitations ? Include standards that will make performance measurement possible and meaningful ? In case of goods, focus should be in providing functional and performance specifications 51 Purchasing a service: ? Services are more difficult to evaluate than goods. Goods have objective standards ? Supplier of services are often reluctant to provide benchmark ? Excellent services are easy to monitor but mediocre or poor services are difficult to evaluate. ? Goods can be returned whereas services cannot ? Poor quality services may continue undetected and cause greater problems ? Because of above differences the reputation and the experience of supplier is more important ? Key purchasing criteria: Reputation, References, Experience, Current Clients, Equipment, price etc. 52 Purchasing Services: ? Many services such as secretarial and cleaning are often bought as generics. Other services such as application software development , advertising are bought as professional. ? Purchasing is not involved fully in procurement of services ? Word of mouth is the one of the key ways in which buyers of services exchange information. ? There are five roles, Users, Buyers, Influencers, Deciders, gatekeepers ? Market Research, prequalification of suppliers ? Interviewing the panies and asking them to make presentation for better clarification before technical evaluation. 53 Outline of SOW/TOR: ? Background ? Outputs/ deliverables desired ? Inputs to be provided ? Schedule of pletion ? Standards by which to measure performance Other Issues: 1) Use active Verbs (2) Avoid “Should” or”May (3) Use “Shall” for contractor and “will” for UNDP 54 Why an RFP? ? In petitive contracting, there are two methods : ITB or a RFP. ? ITB is used when goods or service is well defined and can be specified in detail. Selection solely on the basis of cost. ? RFP is a negotiated procurement process and provides flexibility to the contractor and the pany. 55 Designing an Effective RFP: “ Never tell people how to do things. Tell them what you want to achieve and they will surprise you with their Ingenuity” 56 Basic Elements of an RFP: ? Statement of Purpose: the nature of the services to be provided and the overall objectives of the contract. ? Background Information: Overview of the program, statistics, existing facilities, an honest accounting of current problems and strengths. ? Service Specification: Sets out in specific and measurable terms the services required, 57 Basic Elements of an RFP: How they are to be delivered and the duration they are required. ? Performance Standards: Minimum performance standards and method of monitoring ? Instructions to the Offerors ? General Terms and Conditions ? Special Terms and Conditions ? Evaluation and award process 58 Basic Elements of an RFP: How they are to be delivered and the duration they are required. ? Performance Standards: Minimum performance standards and method of monitoring ? Instructions to the Offerors ? General Terms and Conditions ? Special Terms and Conditions ? Evaluation and award process 59 Evaluation Factors: ? Key Considerations: Management, Technical and Financial ? Analysis: – What things should be evaluated – What are their attributes – Which attributes are relevent – What is their relative importance Best Value: Value of a proposal is the sum of the weighted values of the applicable evaluation factors for award. 60 Best Value for Money: To get the best value for money, you must consider costs that the buyer will incur in addition to the Offeror’s price, including: ? Cost to administer the contract ? Lifecycle cost of the product ? Quality of the product ? Past performance of the supplier 61 Value Tree: ? Overall Value – Technical Factors ? Reliability ? Quality – Management Factors ? Personnel (Education, Performance, Exp.) – Price Factors ? Cost and Fee ? Realism ? Reasonableness 62 RFP: Decisional Rules ? Lowest Priced technically acceptable –