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Acquisition Planning Guideline

Version 8.1
Date Issued August 2014
Review Date April 2016
Principal Contact State Procurement Board
Telephone 8226 5001
Contents

Overview ..................................................................................................................... 3

Object of the State Procurement Act ........................................................................... 3

What is Acquisition Planning? ...................................................................................... 3

When is Acquisition Planning Required? ...................................................................... 3

Why is Acquisition Planning Important? ...................................................................... 4

Acquisition Planning and its Relationship to Complexity and Value Quadrants ............ 4

Mandated Acquisition Planning Requirements ............................................................. 5

Limitation of Liability ................................................................................................... 6

Contract Renewals ....................................................................................................... 7

Approval of Acquisition Plans ....................................................................................... 7

Purchase Recommendations ........................................................................................ 8

Further Information and Resources ............................................................................. 8

Related Policies and Guidelines ................................................................................... 9

Attachment 1 Acquisition Planning Template............................................................. 10

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Overview
This guideline outlines the Board’s mandated requirements, and provides practical advice, in
relation to acquisition planning, a key element of undertaking procurement within
government.

This guideline excludes procurements valued up to and including $220,000, undertaken in


accordance with the State Procurement Board’s (the Board) Simple Procurement Guideline.

All dollar values are GST inclusive.

This guideline outlines:


 what acquisition planning is, and when it is required;
 why acquisition planning is important;
 how acquisition planning efforts depend on the complexity and value of a
procurement; and
 the Board’s mandated acquisition planning requirements.

Object of the State Procurement Act


The object of the State Procurement Act 2004 (the Act) is to advance government priorities
and objectives by a system of procurement for public authorities directed towards:
a) obtaining value in the expenditure of public money;
b) providing for ethical and fair treatment of participants; and
c) ensuring probity, accountability and transparency in procurement operations.

The development of acquisition plans must have regard to, and be consistent with, these
objectives.

All expressions defined in the Act have the same meaning in this guideline.

What is Acquisition Planning?


Acquisition planning is undertaken when commencing the acquisition process and includes
the development of procurement objectives based upon a clear understanding of the
business needs, and the inclusion of a market approach which reconciles the business needs
with the character of the supply market.

When is Acquisition Planning Required?


Acquisition planning must be undertaken for all procurements valued at above $220,000,
regardless of the procurement strategy or market approach and regardless of the approving
authority.

Acquisition Plans must take into account the requirements set out in this guideline by
utilising the Acquisition Planning Template provided in Attachment 1.

The rigour of acquisition planning should be varied in line with the complexity and value of
the acquisition and should commence as soon as possible, so that commercial opportunities
can be identified and risks mitigated.

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Why is Acquisition Planning Important?
Successful acquisition planning ensures that the most appropriate acquisition strategy is
selected to fulfil the public authority’s procurement objectives in a timely manner and at an
acceptable cost.

Successful acquisition planning results in:


 the selection of the most appropriate acquisition strategy to meet the procurement
objectives;
 improved management of procurement;
 improved risk identification and risk management;
 better value for money outcomes; and
 improved relationships with suppliers.

The time taken to plan, research and analyse a procurement significantly contributes to the
identification of the best value for money strategy. As such, this guideline emphasises the
importance of devoting greater time, resources and effort in the acquisition planning phase
of the procurement process.

Where the strategy relates to an across government procurement, the establishment of


strategic across government contracts should consider the needs of regional areas and
provide where appropriate, opportunities for local suppliers or agents where such suppliers
or agents exist.

Acquisition Planning and its Relationship to Complexity and


Value Quadrants
To assist public authorities ensure that the time and effort spent planning a procurement is
commensurate with its complexity and value, and so deliver the best value for money
outcome, the Board has developed the following Quadrant Assessment Matrix:

High
High Complexity/Low High Complexity/High
Value Value
Simple Procurement*

(Quadrant 2) (Quadrant 4)
Complexity

Low Complexity/Low Low Complexity/High


Value Value
(Quadrant 1) (Quadrant 3)

Low

$220,000 $4.4M
Low High
Value
* For simple procurements valued up to and including $220,000, apply the Board’s Simple
Procurement Guideline.

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To determine the quadrant in which a particular procurement is most appropriately
positioned, an assessment of the procurement’s complexity and value should be undertaken
as one of the first priorities of the acquisition planning process.

Complexity

A high-level assessment of the procurement’s level of complexity is the first step to


determining its quadrant.

For government procurements, areas that add complexity typically relate to availability and
continuity of supply, quality standards, safety, and regulatory issues.

To determine the quadrant in which a procurement is to be assigned, consider the following


questions:
 Does the supply market have the capability to meet current and anticipated demand?
 Can the public authority readily continue to function (meet all key customer needs) if
supply is interrupted?
 Is there a low probability that the goods/services will be superseded or become
obsolete during the life of the contract?
 Is provision and ongoing use of the goods/services considered to be safe?
 Is stakeholder and public interest in the purchase low?
 Are all risks assessed as low and/or managed through standard practices and routine
procedures to ensure that they will not impact on the achievement of the procurement
objectives?

If the answer to all of the above questions is YES, the procurement is assigned to a low
complexity quadrant (quadrant 1 or 3). However, if the answer to any of the above
questions is NO, the procurement is considered in a high complexity quadrant.

While high complexity procurements are often associated with high risk, consideration of the
complexity of a procurement against the questions posed above is not, in itself, intended or
designed to be a risk assessment.

Value

For the purposes of this guideline, low value procurements (quadrants 1 and 2) are valued at
up to and including $4.4 million and high value procurements (quadrants 3 and 4) are valued
at above $4.4 million. All values are GST inclusive.

Value is the estimated total value of any contractual commitments that may result from a
single procurement exercise. It incorporates the GST inclusive cost over the potential life of
the contract including optional extensions.

Mandated Acquisition Planning Requirements


Public authorities must address a common set of acquisition planning requirements for all
procurements above $220,000 by utilising the Board’s Acquisition Planning Template,
provided as Attachment One.

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The template is structured as follows:
1. Sign Off 8. Probity
2. Executive Summary 9. Evaluation
3. Acquisition Details 10. Public Authority Additional Requirements
4. Procurement Governance 11. Procurement Timeframe
5. Market Analysis 12. Approvals
6. Risk and Opportunity Analysis 13. Recommendation
7. Acquisition Strategy

The detail and scope of the Acquisition Plan will vary according to the nature, complexity
and value of the procurement being undertaken. Public authorities must adopt the template
(including headings and detailed requirements) but can add extra details under the relevant
heading, as long as these do not contradict other Board policies and guidelines or other
aspects of the template.

Alternatively, public authorities can include additional information in the template at Section
10 - Public Authority Additional Requirements.

Public authorities are able to brand the acquisition planning template to suit their own
internal requirements.

For procurements considered high in complexity and/or value (i.e. quadrants 2, 3 and 4), a
Procurement Risk Management Plan must be prepared and attached to the Acquisition Plan.

For all procurements greater than $4.4 million, public authorities must use the Supply
Positioning and Supplier Preferencing market analysis models outlined in the Board’s Market
Analysis and Acquisition Strategy Guideline to assist with the development of an appropriate
acquisition strategy.

Public authorities are expected to exercise judgement when applying these requirements to
specific procurements. Where the nature of the procurement prevents the requirement from
being properly addressed, the public authority must document the rationale for this in the
Acquisition Plan.

Limitation of Liability
Cabinet has approved the following default liability cap for low risk contracts valued up to $1
million:

“Low risk contracts” are considered to be contracts that have been assessed as having a low
risk (after risk treatments) as determined by the public authority’s risk management rating
matrix.

The default liability cap for low risk contracts with a contract value up to and including $1
million is five times the contract value.

Public authorities must undertake a risk assessment to determine the default liability cap for
the contract, in accordance with the Department of Treasury and Finance’s “Guidelines for
the Limitation of Liability of Suppliers, Consultants and Contractors”.

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For contracts that fall under a Cabinet approved default liability cap, the default liability
limits should be reflected in tender documents.

Contract Renewals
Where a contract is currently in place, it is important that forward planning is undertaken to
ensure that sufficient time is allowed for an appropriate acquisition strategy to be
developed, approved and implemented before the contract expires.

Where a contract has already expired, any subsequent actions will be considered a new
procurement. Where a contract has not yet expired and does not contain any extension
options, it can be extended before expiration by enacting a mutually agreed variation to the
contract, in accordance with the Board’s Contract Management Guideline, which provides
examples to assist public authorities to meet a short term need or imperative when this
occurs.

Approval of Acquisition Plans


Acquisition plans must be approved by the public authority principal officer (or delegate)
prior to implementation of the acquisition plan and approach to the market.

Where the procurement value exceeds the procurement authority of the public authority,
Acquisition Plans must be submitted to the Board for approval, except when using
Across-Government or Lead Agency contracts as discussed in the Panel Contract Guideline.

Where a procurement presents an extremely high level of risk to government (including


reputational risk) or where it has a potential across government impact, public authorities
can elect to forward the Acquisition Plan to the Board to gain an independent assessment,
irrespective of its complexity and value.

Note that acquisition plans that involve a single supplier market approach, within the limits of
the public authority’s procurement authority, must be approved by the principal officer.
Where the procurement value exceeds this limit, it must be endorsed by the principal officer
before being sent to the Board for consideration. In both situations, this endorsement by the
principal officer cannot be delegated.

An approval made by the Board in relation to a proposed procurement assumes that the
public authority:
 has provided the Board with accurate information (containing no omissions or
representations) enabling the Board to make a proper assessment of the proposal;
 principal officer remains accountable for the procurement as the Board’s decision is
based on the recommendation of the principal officer;
 has answered all questions or clarified aspects of the proposal, to the Board’s
satisfaction, where requested by the Board;
 will undertake all actions associated with the approval if requested by the Board;
 will advise the Board of any material change in the nature or circumstances of the
procurement (following approval); and
 will undertake the proposal with due process and comply with all relevant Board
policies, guidelines or legislation.

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In some cases, the approving authority may provide approval subject to certain conditions
being met. Where the Board is the approving authority, the Board has the option to approve,
approve subject to conditions, or not approve the acquisition plan. The Board may also defer
its approval pending the provision of additional information, or determine that its approval is
not required.

A higher approving authority may, at its discretion, select any acquisitions, of any value, to
review and/or examine to ensure Board policies and guidelines are adhered to and
implemented.

As a general rule, funding approval must be obtained before procurement approval is sought
and obtained. However, in cases where funding approval cannot be obtained prior to the
acquisition planning stage, approval of the Acquisition Plan by the delegate or Board will be
conditional on obtaining the required funding approval before the market approach is
undertaken. This applies to both one stage and two stage market approaches.

A Probity Plan is optional but should be considered for higher value and risk procurements.
The Acquisition Plan must clearly identify who will approve the Purchase Recommendation.

Where, in progressing the approved acquisition plan, a requirement deviates from the
approved plan, justification for that deviation must be documented and the deviation
approved in accordance with the Board’s Supplier Selection Guideline.

To ensure that deviations from approved acquisition plans only occur in exceptional
circumstances, an effort should be made in the acquisition planning phase to ensure that the
acquisition plan reflects the appropriate procurement strategy and process to be undertaken.
The likelihood of deviations to the acquisition plan occurring during the procurement process
may be identified and addressed in the acquisition plan and the delegation of authority to
approve such deviations sought in the plan.

A documentary record of all plans, processes and approvals must be maintained and be
made available for review by the Board on request.

Purchase Recommendations
The acquisition plan approver is also responsible for the approval of the purchase
recommendation, however, they may delegate this authority at the time of approving the
acquisition plan. For this reason, the acquisition plan must clearly identify who will approve
the purchase recommendation.

Further Information and Resources


For feedback or assistance regarding this guideline, please contact:

State Procurement Board Secretariat


ph: (08) 8226 5001 fax: (08) 8226 5667
email: stateprocurementboard@sa.gov.au
www.spb.sa.gov.au

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Related Policies and Guidelines
SPB Simple Procurement Guideline
SPB Risk Management Guideline
SPB Base Level Procurement Authority Policy
SPB Panel Contracts Guideline
SPB International Obligations Policy
SPB Standard Tender and Contract Document Policy
SPB Standard Tender and Contract Document Guideline
SPB Market Approaches Guideline
SPB Industry Participation Guideline
SPB Probity and Ethical Procurement Guideline
SPB Contract Management Guideline
SPB Supplier Selection Guideline
SPB Market Analysis and Acquisition Strategy Guideline

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Attachment 1 Acquisition Planning Template

Instructions for use of this document: Guidelines for drafting this document are in italics.
Each Acquisition Plan will need to be customised as the length and details will vary
according to complexity and value.

[Name of Public Authority]

Acquisition Plan

[Procurement Description]

[Date]

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Table of Contents

1. Sign Off ........................................................................................................ 12


2. Executive Summary ....................................................................................... 13
3. Acquisition Details ......................................................................................... 14
3.1 Description of the Requirement .............................................................. 14
3.2 Background ........................................................................................... 14
3.3 Procurement Objectives ......................................................................... 15
3.4 Quadrant Assessment ............................................................................ 15
3.5 Estimated Value..................................................................................... 16
3.6 Life Cycle Costing .................................................................................. 16
3.7 Funding ................................................................................................ 16

4. Procurement Governance .............................................................................. 17


4.1 Governance Structure ............................................................................ 17
4.2 Government Policies and Regulations ...................................................... 17

5. Market Analysis ............................................................................................. 17


5.1 Market Analysis – Internal ...................................................................... 17
5.2 Market Analysis – External ..................................................................... 18

6. Risk and Opportunity Analysis ........................................................................ 19


7. Acquisition Strategy ...................................................................................... 19
7.1 Market Approach ................................................................................... 19
7.2 Specification Development ..................................................................... 20
7.3 Sustainability ......................................................................................... 20
7.4 Type and Length of Contractual Arrangement ......................................... 21
7.5 Contract Implementation and Management ............................................. 21

8. Probity ......................................................................................................... 21
9. Evaluation .................................................................................................... 22
10. Public Authority Additional Requirements ........................................................ 22
11. Procurement Timeframe ................................................................................ 22
12. Approvals ..................................................................................................... 23
12.1 Purchase Recommendation .................................................................... 23
12.2 Other Approvals .................................................................................... 23

13. Recommendation .......................................................................................... 23

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1. Sign Off

Acquisition Plan Recommended by:

Signed: _________________________ Name: __________________________

Date: ___________________________ Position: ________________________

Work Unit Director/Financial Delegate – Endorsement:

Funds are available.

Signed: __________________________ Name: __________________________

Date: ____________________________ Position: ________________________

Procurement – Endorsement:

Signed: __________________________ Name: __________________________

Date: ____________________________ Position: ________________________

Procurement Approval of Acquisition Plan:

☐ Approved

☐ Endorsed for consideration by the State Procurement Board

☐ Nominate authority for delegation of purchase recommendation approval (if

applicable)
Name and Title of Delegate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

☐ Conditions related to either approval or endorsement:

................................
................................
................................

☐ Not approved

Signed: ____________________________ Name: __________________________

Date: ______________________________ Position: _________________________

Comments:

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2. Executive Summary

Contact Details
Department / Section
Contact Person Details Name:
Title:
Phone:
Email:

Procurement Details
Procurement Description What is the problem or opportunity being addressed
(Brief) and what is the solution being acquired?

Procurement Type (Tick one or more as applicable)

☐ One Off Purchase


☐ One Off Purchase with maintenance options
☐ Period Contract
☐ Panel Contract
☐ Pre-qualification
☐ Other (please detail) . . . . . . . . . . . . . .
Procurement Method
☐ Request for Quotation ☐ Single
☐ Expression of Interest ☐ Selective
☐ Request for Tender ☐ Open
☐ Request for Proposal ☐ Multi- Stage
☐ Direct Negotiation
☐ Competitive Dialogue
☐ Other ..............

SPB Quadrant
Assessment Matrix Q1 ☐ Q2 ☐ Q3 ☐ Q4 ☐
Procurement Risk
Management Plan Yes ☐ No ☐
attached

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Free Trade Agreement
Compliance: ☐ Covered Procurement
Limited tendering AUSFTA ☐ Limited tendering –
15.8;ACIFTA 15.15
Exception: AUSFTA 15.12; Identify specific relevant clause: . . . . . . . . . . . .
ACIFTA 15.23 ☐ Exception
☐ Under financial threshold

Industry Participation Yes ☐ N/A ☐


Policy Compliance
Base Contract Term

Contract Term Extension


Options
Total Contract Term
Base Value (GST $
inclusive)
Options Value (GST $
inclusive)
Total Value (GST $
inclusive)
Funding Status Funding Approved for the Total Contract Term:

Yes ☐ No ☐
Funding Approval Attached:

Yes ☐ No ☐
Funding Source . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Acquisition Details
The achievement of value for money in a procurement process begins with
developing a clear understanding of the requirement and the procurement
objectives.

3.1 Description of the Requirement

Provide a clear description of the requirement/need i.e. what is being procured.

Ensure the requirement is conceived in outcome terms and described in neutral


terms without promoting one particular solution.

3.2 Background
State why the procurement is required and the expected outcomes.

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Provide information on the cost / benefits that have been considered, including a
brief reference to any business case that may have been prepared and approved.

Provide details of the following:


 Business needs (i.e. problem or opportunity that the procurement aims to fill
or solve);
 Critical success factors; and
 Current arrangements including contract length and contract end date.

3.3 Procurement Objectives

Identify the specific procurement objectives which are relevant to the requirement
such as:
 Quality;
 Service;
 Cost;
 Risk;
 Social; and
 Environmental.

Provide objectives that are realistic, measurable and capable of being achieved in
light of the specific acquisition strategy proposed.

Ensure that these procurement objectives link directly to the background and the
description of the requirement.

3.4 Quadrant Assessment

Answer the following questions to identify which quadrant the procurement is within.

If the answer to all of these questions is YES, the procurement is assigned to a low
complexity quadrant (quadrant 1 or 3). However, if the answer to any of the above
questions is NO, the procurement is considered in a high complexity quadrant.

Question Yes/No Comments


Does the supply market have
the capability to meet current Yes ☐ No ☐
and anticipated demand?
Can the public authority readily
continue to function (meet all Yes ☐ No ☐
key customer needs) if supply is
interrupted?
Is there a low probability that
the goods/services will be Yes ☐ No ☐
superseded or become obsolete
during the life of the contract?
Is provision and ongoing use of
the goods/services considered to Yes ☐ No ☐
be safe?

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Is stakeholder and public
interest in the purchase low? Yes ☐ No ☐
Are all risks assessed as low
and/or managed through Yes ☐ No ☐
standard practices and routine
procedures to ensure that they
will not impact on the
achievement of the procurement
objectives?

3.5 Estimated Value

Provide an estimate of the proposed contracted cost(s) over the total contract term,
including any extension options (GST inclusive).

Ensure that all potential additional work is included within the contract value
(including options).

Provide an explanation of the basis for the estimate of value including the rationale
for any cost assumptions.

Ensure the cost estimate is based on market research and benchmarking, and is
congruent with the market conditions and the buyer’s relative market power.

3.6 Life Cycle Costing

Identify the total estimated whole of life cost of the acquisition (including contract
extension options), for example, purchase costs, lease, maintenance, training and
transition costs.

Seek advice from relevant financial staff in preparing this section.

Determine if these costs are fixed, variable or subject to exchange rate fluctuation or
consumer price index considerations?

Separately identify and describe the costs associated with the project that are not
part of the actual acquisition but essential to the implementation of the project, for
example, in house costs, project management costs, engagement of specialist
consultants.

Indicate the estimated trade in or sale value of assets if applicable.

Outline any potential transition in and out costs.

3.7 Funding

Identify the value and scope of any funding approvals obtained or being sought (be
it from Cabinet, the Minister or another approver) and ensure it is consistent with the
approval being sought from the Board. Where relevant, outline the reasons for any
difference, in terms of total value, contract periods (including any options) and other
key factors.

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4. Procurement Governance
4.1 Governance Structure

Describe the proposed procurement governance arrangements and the terms of


reference, where appropriate, of the:
 Steering committee;
 Evaluation team;
 Negotiation team;
 Probity advisor (internal or external);
 Probity auditor; and
 Expert advisers and their role.

4.2 Government Policies and Regulations

Outline any relevant government policies, regulations and requirements and how
they have impacted the acquisition strategy including, but not limited to:
 applicable legislation;
 work health, safety and welfare;
 Treasurer’s Instructions;
 Government strategic priorities;
 liability and insurance considerations including (for example) public liability,
products liability and professional indemnity;
 information technology;
 environmental and sustainability;
 free trade agreements;
 intellectual property;
 limitation of liability; and
 Industry Participation Policy.

5. Market Analysis
5.1 Market Analysis – Internal

Note: Normally this section would require the contribution of an appropriately


qualified, experienced and skilled procurement practitioner.

Summarise the consultation process and stakeholder input obtained including:


 who was involved and how the stakeholders were engaged in the process;
 opportunities to work with other government departments that may be
undertaking similar procurement activities or have similar requirements;
 the consideration of viable alternatives to the procurement;

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 undertake a review of other organisations that may have similar requirements
and the procurement strategies they have adopted (e.g. other government
jurisdictions, large corporations);
 consider lessons learned from existing/previous arrangements and how they
will be used for continuous improvement;
 issues and opportunities identified; and
 noting if any technical advice was sought.

Identify and consider (where appropriate) whether there is an existing arrangement


in place, and if there is:
 evaluate the effectiveness of the arrangement; and
 assess the impact of the possible loss of the contract on the incumbent
supplier in terms of the economic, social and political implications.

Provide a general description of the project requirements including:


 Current / proposed spend (volume/trends); and
 Demand profile (where applicable).

Identify any relevant existing or proposed government contracts that may have an
impact on the procurement. Provide justification if the existing arrangements are not
adequate to fulfil the need.

5.2 Market Analysis – External

Note: Normally this section would require the contribution of a full time procurement
practitioner.

If informal discussions with potential suppliers have been arranged, summarise (in
line with the Potential Supplier Engagement Checklist within the Board’s Market
Approaches Guideline) any key outcomes of these discussions that are relevant for
this procurement.

Outline the external market analysis undertaken commensurate with the nature,
complexity and level of risk of the procurement including:
 market/industry structure, level of competition, sources of supply, capability
of possible providers;
 number of suppliers, their capability and capacity;
 availability of alternatives;
 size of acquisition in the marketplace, value of the public authority’s business
to the supplier; and
 how other jurisdictions in Australia currently address the requirement and
identify any opportunities for collaboration.

If the project impacts upon stakeholders or specific groups, ensure the breadth of
the stakeholders is identified.

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Provide evidence from the use of a selection of tools that basic dimensions of the
market have been captured, and that conclusions have been drawn which are
congruent with the research including but not limited to:
 market concentration;
 supply chain analysis;
 supplier preferencing; and
 supply positioning.

Note that all for all procurements greater than $4.4 million, public authorities must
use the Supply Positioning and Supplier Preferencing market analysis models outlined
in the Board’s Market Analysis and Acquisition Strategy Guideline to assist with the
development of an appropriate acquisition strategy.

Ensure the Acquisition Plan:


 analyses the supply market, including potential changes that may happen to
that market during the lifetime of any agreement; and
 balances the leverage and commercial benefits, with the impact on the supply
market in terms of creating a barrier to entry for potential new entrants to
the market.

6. Risk and Opportunity Analysis


Undertake a risk assessment and document to an appropriate level of detail any
potential risks, mitigation strategies and residual risks related to the objectives of the
procurement in accordance with the Board’s Risk Management Guideline (Quadrant 1
only).

Provide a separate Procurement Risk Management Plan that considers likelihood,


impact, controls and treatment of risks (for Quadrants 2, 3, and 4). The level of
detail to be recorded will be commensurate with the value and complexity of the
procurement.

The Procurement Risk Management Plan may be part of the project’s overall risk
management plan.

Further information is available in the Board’s Risk Management Guideline.

Where appropriate, demonstrate that subject matter experts have been sourced,
engaged and contributed to the risk management process.

7. Acquisition Strategy
7.1 Market Approach

Describe the market approach to be utilised and the rationale, with reference to the
market analysis and the procurement objectives, for selecting the proposed market
approach.

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Ensure the market approach addresses the State’s obligations under various free
trade agreements.

Demonstrate an appropriate level of analysis that includes exploration of:


 an assessment of the likely potential for a common arrangement to satisfy
the variation of users of the same category; and
 how the award of a single contract may affect the supply market or markets
with which the State Government deals.

Where a direct negotiation approach is proposed, demonstrate how the negotiation


team will be appropriately capable, the key issues and how the negotiation targets
will be developed.

State whether the Board’s standard market approach documents will be utilised or
that exemption approval has been obtained from the Board. The Board’s Standard
Tender and Contract Document Policy and Guideline also outlines exemptions for
which Board approval is not required.

7.2 Specification Development

Summarise the proposed specification including a summary of the extent of the


goods and services to be included and identify that the proposed specification is
consistent with the market strategy and the outcome of stakeholder engagement.

Ensure the specification avoids the use of proprietary standards and specify the
requirements in such a way as to maximise the opportunity for competitive offers
from a variety of suppliers.

7.3 Sustainability

What impact does the procurement have on sustainability and how will the public
authority ensure contribution to sustainability objectives across-government?

Consider and identify opportunities or issues regarding sustainability including


environmental, social and ethical factors related to the procurement process and the
supply chain.

Identify potential sustainability issues (for example, the use of energy, social
responsibility or ethical practices).

Identify opportunities to:


 minimise adverse environmental impacts;
 minimise unnecessary purchases;
 maximise resource efficiency (energy, water, raw materials and components);
 minimise the use of hazardous materials; and
 minimise waste and maximise reuse.

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Consider using the spend portfolio to pursue the social priorities and objectives of
government.

7.4 Type and Length of Contractual Arrangement

Provide details of, and the rationale for, selecting the proposed contractual
arrangement:
 type of contract (sole supplier, period or panel contract);
 scope of contract (across agency, lead public authority or across-government
contract); and
 length of contract (including any options).

State which of the Board’s standard contract documents will be utilised (if
applicable).

Where a panel contract is proposed, identify the secondary procurement processes


that will be employed to access the panel.

Where a lead agency or across government contract is proposed, identify the scope
of any mandate that is to apply.

Ensure contract duration is carefully considered in terms of offering the supplier


sufficient time to recover any initial investment in mobilising to provide the good or
service, without damaging competition in the longer term.

Where contract extensions are suggested, provide the rationale behind a contract
extension and the explicit criteria for the contract being extended.

7.5 Contract Implementation and Management


Provide a high level contract management, transition and implementation strategy
that will assist in the achievement of the procurement objectives in accordance with
legislation, policy and probity requirements.

Outline which division or section within the public authority will manage the contract
and the contract management resources that have been allocated for the contract
management tasks.

8. Probity
Provide a clear explanation on how probity will be managed during the procurement
process.

The following issues should be considered:


 Use of specialist probity advisors;
 Identify how communication will be managed with potential suppliers during
the procurement process;
 Identify actual or potential conflicts of interest (both in relation to the supplier
and internal participants) and how these will be managed; and

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 Identify how tender documents and other confidential information will be
managed during the tender process.

A Probity Plan is optional but should be used for higher value and risk procurements
and is a useful mechanism that helps to ensure that probity issues are considered
throughout the procurement process.

9. Evaluation
Describe the evaluation strategy to be adopted that reflects the procurement
objectives and the public authority’s needs. This includes:
 evaluation methodology;
 criteria and weightings; and
 composition of the evaluation team.

An Evaluation Plan must be developed and approved prior to the opening of tender
responses as per the procurement timeframes below.

The detail provided in the Acquisition Plan must be sufficient to demonstrate that the
evaluation strategy will facilitate the achievement of the objective.

If life-cycle costing has been identified as applicable to this procurement, consider


how it will be utilised in the evaluation process.

10. Public Authority Additional Requirements


Outline any public authority specific requirements that need to be considered for this
procurement.

11. Procurement Timeframe


Outline any key milestones and deadlines that address each of the phases of the
procurement process. Ensure the timeframes allowed are realistic and proportional to
the complexity of the task, value and risk in the procurement.

Outline the key proposed dates:

Target Responsibility
Activity
Date (Name and Title)
Acquisition Plan submitted for approval
Acquisition Plan approved
Tender Document drafted
Evaluation Plan drafted and approved
Probity Plan (optional) drafted and approved
Tender advertised
Tender Briefing
Tender Closes

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Evaluation
Short listing & Presentations
Negotiations
Evaluation Report Approval (if applicable)
Purchase Recommendation Approval
Contract Award
De-briefing Unsuccessful tenderers
Contract Management Plan (Optional)
Completed
Transition Plan (Optional) Completed and
Implemented
Contract Details Published (including contract
disclosure)
Contract Commencement

12. Approvals
12.1 Purchase Recommendation

Provide details of who will approve the purchase recommendation and any other
relevant details.

12.2 Other Approvals

Provide details of the procurement approvals proposed for relevant plans/documents


(delete or add as required).

Document and/or Approval Authority Comments


Deviations to the approved Acquisition Plan
Funding authorisations
Interdependencies (e.g. Cabinet/Minister)
Tender documents
Evaluation Plan
Negotiation Plan (optional)
Entering into a contract
Contract Management Plan
Contract variations
Transition Plan
Implementation Plan

13. Recommendation
Provide a summary of the requirement and the recommended market approach for
approval.

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