BASIC PROCUREMENT

HANDBOOK

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Basic Procurement Handbook

Listing of Acronyms

ABBREVIATION EXPLANATION
IFB Invitation for Bid
ITB Invitation to Bid
NGO Non-Governmental Organisation
OPR Office of Procurement Regulation
P&DAC Procurement and Disposal Advisory Committee
PP&DPPA Public Procurement and Disposal of Public
Property Act
RFP Request for Proposal
RFQ Request for Quotation
TOR Terms of Reference

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Contents

1.0 PREAMBLE..................................................................................................................................5
Purpose of this Handbook......................................................................................................5
Who should use this Handbook?............................................................................................5
How should this Handbook be used?.....................................................................................5
The Trinidad and Tobago Public Procurement Procedures....................................................5
1.5 How is this Handbook linked to the Trinidad and Tobago Public Procurement Procedures? 6
2.0 Introduction...............................................................................................................................8
Key definitions in the PP&DPPA.............................................................................................8
3.0 General Information.................................................................................................................11
Uniqueness of public bodies................................................................................................11
Delegation of Authority........................................................................................................11
Confirmation of Funding......................................................................................................12
Prequalification database.....................................................................................................12
Record keeping....................................................................................................................12
General and Special Guidelines issued by the Office of Procurement Regulation (OPR)......13
4.0 Public Procurement – Four Stages...............................................................15
Procurement Planning..........................................................................................................16
Pareto Analysis.....................................................................................................................19
Porter’s Five Competitive Forces...........................................................................................20
Supplier Preferencing Model................................................................................................22
Procurement Portfolio Analysis............................................................................................23
Supply Purchasing Model.....................................................................................................26
Procurement Management Strategies.................................................................................27
Contract Management Strategies........................................................................................27
Develop Annual Procurement Plan......................................................................................28
5.0 Operational Level Procurement...............................................................................................30
6.0 End-to-End Procurement Cycle Examples................................................................................35
Procurement of Office Fans..................................................................................................35
Procurement of Janitorial Services.......................................................................................38
Procurement of Vehicles......................................................................................................41
Procurement of Works.........................................................................................................46
Procurement of Stationery Items.........................................................................................50

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Section 1
Preamble

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1.0 PREAMBLE

Purpose of this Handbook

The purpose of this ‘Basic Procurement Handbook’ is to provide public
bodies with a user- friendly simplified guide for sourcing goods, works or
services. To this end, worked examples are provided to assist public
bodies in the performance of key functions at the strategic and
operational levels of the procurement function.

Who should use this Handbook?

This Handbook should be used by public bodies and other organisations
involved in the expenditure of public funds.

How should this Handbook be used?

This Handbook provides worked examples for strategic sourcing and
procurement of basic goods, works and services which procuring entities
can use as a guide.,
For a more comprehensive understanding of the Trinidad and Tobago
Public Procurement Procedures, and the activities involved in the
procurement process, the Handbook should also be read in conjunction
with the Public Procurement and Disposal of Public Property Act (2015), as
amended, the Procurement Regulations and the Comprehensive Guide to
Procurement, Retention and Disposal of Public Property, and the General
and Special Guidelines.
As may be applicable, a procuring entity may use this Handbook as a
model for developing its own special handbook. In such instances the
public body shall:
a. Map all changes (inclusions, edits, deletions) against this ‘Basic
Procurement Handbook’
b. Subsequently submit a copy of its own special handbook to The
Office of Procurement Regulation (The OPR) for review and approval.

Public bodies are to note that approval of their Procurement

Handbook and Special Guidelines will be granted in
accordance with the procedures outlined in the publication
entitled:
“A public body’s guide to approval of its special guidelines for the
procurement, retention and disposal of public property”

The Trinidad and Tobago Public Procurement Procedures

The Trinidad and Tobago Public Procurement Procedure is derived from
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the objects of the Public Procurement and Disposal of Public Property Act
(2015), as amended.

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Section 5 (1) -The objects of the Act are to

promote –
(a) The principles of accountability, integrity,
transparency and value for money;
(b)Efficiency, fairness, equity and public
confidence; and
(c) Local industry development, sustainable
procurement and sustainable development, in
.

1.5 How is this Handbook linked to the Trinidad and Tobago

Public Procurement Procedures?
The procurement procedures described in clause 1.4 above is based on
achieving good governance objectives utilising a modern-day principle
model for public procurement. This Handbook will guide public bodies in
achieving the principles included in the objects of the Act in the
procurement of the goods, works and services they require to fulfil their
organisational mandates.

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Section 2
Introduction

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2.0 Introduction

Key definitions in the PP&DPPA

A procuring entity or an individual involved in public procuring must be

aware of the following key definitions (Section 4):
a. “Public Procurement” is the acquisition of goods, works or services
involving the use of public money.

b. “Public money” is money that is –

(a)received or receivable by a public body;
(b)raised by an instrument from which it can be reasonably inferred
that the State accepts ultimate liability in the case of default;
(c) spent or committed for future expenditure, by a public body;
(d)distributed by a public body to a person;
(e) raised in accordance with a written law, for a public purpose; or
(f) appropriated by Parliament;

c. “Public bodies” refer to the following:

(a) the Office of the President;
(b) the Parliament;
(c) the Judiciary;
(d) a Ministry or a department or division of a Ministry;
(e) the Tobago House of Assembly, or a division of the Tobago
House of Assembly;
(f)a Municipal Corporation established under the Municipal Corporations
Act;
(g) a Regional Health Authority established under the Regional
Health Authorities Act;
(h) a statutory body, responsibility for which is assigned to a
Minister of Government;
(i) a State-controlled Enterprise;
(j) a Service Commission established under the Constitution or other
written law; or
(k) a body corporate or unincorporated entity—
(i) in relation to any function which it exercises on behalf of the
State; or
(ii) which is established by virtue of the President’s
prerogative, by a Minister of Government in his capacity as
such or by another public authority; or
(l) a body corporate or unincorporated entity in relation to any
function, project, scheme or arrangement which involves the
use by it, of public money;

d. “Procurement proceedings” include the process of procurement

from the planning stage, soliciting of tenders, awarding of contracts,
and contract management to the formal acknowledgement of
completion of the contract.

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Individuals engaging in procurement proceedings must also be aware of

Sections 5 and 6 of the Act, which states as follows:
5.(1) The objects of this Act are to promote—
(a) the principles of accountability, integrity, transparency and value
for money;
(b) efficiency, fairness, equity and public confidence; and

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(c) local industry development, sustainable procurement and

sustainable development, in public procurement and the disposal of
public property.

(2) A public body shall carry out public procurement and the disposal of
public property in a manner that is consistent with the objects of
this Act.

6. (1) Subject to subsection (2), any procurement of goods, works

or services or retention or disposal of public property that is not
done in accordance with this
Act and any procurement contract or agreement that is not entered
into in accordance with this Act shall be void and illegal.

The principles enshrined in the Act are illustrated in Figure 1 below.

Accountabi
lity
Sustainab Integri
le ty
Developm

Sustainab Transpare
le ncy
Procurem
To promote
the
Local principles Value
Industry for
Developm mone

Public Efficien
Confiden cy
ce
Equit Fairne
y ss
Figure 1: The Principles Enshrined in the
PP&DPPA
Detailed information on strategies and techniques that can lead to the
achievement of the objects of the Act are included in the Comprehensive
Handbook of Procurement, Retention and Disposal of Public Property.

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Section 3
General Information

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3.0 General Information

A public body may fall into one of the three categories below:
a) Organisations guided by the Central Tenders Board Act 1961, as
amended, for the procurement of their articles, works and services,
and for the disposal of public property e.g. Government ministries
and their departments or divisions.

b) Organisations guided by Appendix B: Standard Procurement

Procedures for the Acquisition of Goods, Provision of Services,
Undertaking Works and Disposal of Unserviceable Items in State
Enterprises/Statutory Bodies (State Agencies) of the State
Enterprises Monitoring Manual, e.g. State-owned enterprises.

c) Organisations that operate independently of the government,

utilising partial or full funding from public money, whose purpose is
to address a social or political issue, e.g. Non-Governmental
Organizations (NGOs).
The Public Procurement and Disposal of Public Property Act (2015), as
amended, is applicable to organisations that use public money, and to
public bodies and public-private-partnership arrangements.

Uniqueness of public bodies

Based on its size, the manner in which it was established, the volume of
its procurement activities or the value of its annual procurement spend,
each public body will have its own organisational structure, capability and
experience as it relates to performing the public procurement function.
As an example, a small public body may consist of one or a few
individuals. As a result, its procurement function may be carried out by
one individual who also perform other duties. A large organisation, on the
other hand, may contain a fully staffed procurement department with
each of its members responsible for various aspects of the procurement
function.
In planning and executing its procurement function, each public body
must consider its own unique circumstances and organise its activities in
a logical manner in order to achieve its organisational mandates and
objectives while ensuring compliance with the Act.

Delegation of Authority
As appropriate, each public body shall establish financial delegations of
authority to assist in the efficient management of its procurement
activities. Such delegations are intended to reduce administrative
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bottlenecks and provide increased responsiveness by locating decision

making authority nearer to the activity.
A small organisation, such as an NGO may be restricted to having its
entire procurement function performed by one individual. Care must be
taken to ensure that the procurement

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plan, strategies and procedures are approved by the Accounting Officer, Board
of Directors, or equivalent at the executive or governance level of the
organisation.

Confirmation of Funding
Execution of the procurement strategy and award of contract must only
commence after the Procuring Entity bears evidence or confirmation that
funds have been approved and are readily available.
If a Procuring Entity is faced with an urgent
need that requires commencement of the Note: Detailed
procurement strategy without formal guidelines for
acknowledgement of approved and available emergency
funding, potential suppliers/contractors must procurement are
be informed that the solicitation is “in provided in the
anticipation” of the requirement, but that an General Guidelines:
award of contract would only proceed when Procurement
full authorisation and funding has been Methods and
received.

Prequalification database
Procuring entities shall identify possible providers of the goods, works and
services they require from the database of prequalified suppliers and
contractors maintained by the OPR by following this link [Link].
If there are no prequalified suppliers and contractors for the required item,
the public body can identify proponents by publishing an invitation to
prequalify, an invitation to bid or a request for proposals in print media of
wide circulation and on its website; by conducting market research; by
networking with other procuring entities; or by reviewing its own historical
records. Once identified, the procuring entity shall take the necessary
steps to properly prequalify the providers, in keeping with the
requirements under Section 29 (1) of the Act, as amended, in the manner
specified in the General Guidelines for Pre-qualification and Pre- selection
of Suppliers and Contractors.

Record keeping
Procuring entities shall maintain an easily accessible and retrievable
individual record for each procurement requirement, which shall be
marked with the relevant procurement reference number, and which shall
be stored in a secure location.

Content of record
The record shall contain the originals (where appropriate) and copies, of
all information, documents and communications related to that
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procurement proceeding and shall, to the extent that not already

contained in the proposed procurement plan, also include at least the
following:
(a) approved documents to execute the various stages of the procurement
process;

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(b)the complete solicitation document;

(c) a description of the object of the procurement;
(d)a list of the participating bidders and their qualifications and any
reasons for limiting participation;
(e)any requests for clarifications and any responses thereto;
(f) reasons for any cancellation of bids;
(g)a statement of the reason for choice of a procurement method;
(h)bid prices;
(i) a summary of the evaluation of bids, including reasons for any
rejection based on abnormally low bids;
(j) any decision suspending the standstill period;
(k) the signed contract;
(l) any decision based on review by the Office, and the related decisions;
and
(m)any other information as may from time to time be directed by
the OPR to be recorded.

General and Special Guidelines issued by the OPR

This Basic Procurement Handbook provides procuring entities with a practical
end-to-end guide for the procurement of their basic goods, works and
services. This Handbook focuses on the four phases of the procurement
proceedings including the following:
a. Planning (Strategic and Operational)
b. Solicitation of Tenders /Bids
c. Evaluation and Award of Contracts
d. Contract Management to Close Out.
Detailed guidance on all aspects of the procurement, retention and disposal
of public property functions are contained in the General and Special
Guidelines issued by the OPR. These Guidelines are available at
[Link].

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Section 4
Public Procurement – The Four Stages

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4.0 Public Procurement – Four Stages

The four stages involved in the procurement of goods, works and services
are depicted in Figure 2 below:

• involves the annual planning for

procurement activities following budget
allocation
• market research and analysis
• procurement portfolio analysis,
development of risk mitigation
strategies, procurement and contract
management strategies
• detailed planning of individual procurements

• RFQ/RFP/ITB
• Site visit
• Clarification
• Receipt of bids

• evaluation of submission
• preparation of evaluation report
• approval process
• standstill period (where applicable)
• contract award

• performance of contract
• management of contract
• vendor relationship management
• reporting on contractor performance
• contract close-out

Figure 2: The Four (4) Stages of Public

Procurement

To achieve the objects of the Act, each public body is required to perform
public procurement activities at two organisational levels, namely the strategic
level and the operational level.

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Procurement Planning

Procurement planning takes place at the following two levels:

1. The Strategic Level, where the public body focuses on
developing the Annual Procurement Plan, and
2. The Operational Level, where the public body first plans, and then
executes each round of procurement.

Strategic Level Procurement Planning

Strategic Sourcing can be described as a
systematic and fact-based approach to Procurement
ensuring that the procuring entity achieves activities at
value for money in the acquisition of its the strategic level
goods, works and services. Strategic sourcing are to be
is the critical first step each procuring entity undertaken annually
must take in order to ensure that its and should coincide
organisatio Budget
procurement activities are compliant with the n’s of
objectives of the Act. Estimates fo it
Expenditur r s
Benefits of Strategic Sourcing Developmental
The research and analysis undertaken at the Projects
strategic procurement level can assist the and
public body in the following key areas:
a. Decisions to ‘make’, ‘buy’ or ‘lease’
b. Determining when to buy
c. Establishing realistic delivery schedules
d. Reviewing single/sole source justifications
e. Identifying price and non-price evaluation factors
f. Identifying special terms and conditions for the solicitation and
resulting contract that are customary in special markets
g. Establishing realistic budgets, pricing arrangements and economic
ordering quantities The steps in strategic level planning are as follows:
1. Developing the portfolio listing
This involves identifying all items to be procured in the coming year. For
ministries and statutory bodies these items will be located in their annual
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estimates for recurrent expenditure

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and development programs. For smaller entities like Non-Governmental

Organisations, these items may be included in their project proposals.
Details of the goods, works and services required by the public body, i.e.
description, quantity and cost can be found in the following:
a. The entities accounting package
b. Invoices, receipts, purchase orders
An example of a procuring entity’s portfolio listing is shown in Table 4.1.1
below:

Table 4.1.1: Sample Procurement

Portfolio
Item Description Quantity Total Price
1. Vehicles. SUV, 5-door 2 $600,000.00

2. Consultancy Services for 1 $750,000.00

Design & Development of a
Database
3. Janitorial Services for a period 1 $250,000.00
of one year

4. Microsoft Licensesfor 20 $75,000.00

staff members

5. Construction of a fence, 75ft $650,000.00

6. Fan, standing, 16” 2 $800.00

7. Stationery items (pens, $20,000.00

pencils, letter- sized paper,
legal-sized paper, post- its)

8. Drinking Water (various sizes) $5,000.00

9. Toner, for printer 10 $25,000.00

Total $2,375,800.00

2. Analysing the procurement portfolio

For every item that an entity wishes to procure, it must consider the following:
a. The characteristics of the item – is it simple e.g. a fan; or is it
complex e.g. a motor vehicle; does the item require after sale
service such as preventive maintenance?
b. The relative price of the item – is the item relatively low or high in price?
c. The supply market – are there many or a few suppliers; is the item
readily available from a nearby store, or does it have to be
manufactured abroad and/or imported; do the suppliers or
contractors value you as a customer, or are they reluctant to do
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business with you?

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d. Procurement process – which procurement procedure would be most

suitable: open or limited tendering/bidding or sole source; which
solicitation document should be used: Request for Quotation or
Request for Proposals.
The steps involved in portfolio analysis are illustrated below:

Analyse past and projected procurement expenditure

Your 1 st
also known as a spend analysis.
Step

Analyse the difficulty and risk associated with

nd
Your 2 securing these goods, services or works. Also
Step known as a risk analysis.

Develop a procurement profile that identifies

Your 3rd historical and projected procurement expenditure
Step & associated levels of risk in the form of a matrix.

Your 4th & Appropriate contract management strategies can be

Final Step developed for each of the categories of your
procurement profile.

The answers to the questions in 2 (analysing the procurement portfolio)

above, can be developed by using the following strategic sourcing tools:
a. Pareto Analysis
b. Porter’s Five Competitive Forces Model
c. Supplier Preferencing Model
d. The Procurement Portfolio Analysis
e. Supplier Positioning Model

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Pareto Analysis

Pareto Analysis

The Pareto principle known as the 80/20 rule. It is based on the premise that
20% of efforts can lead to 80% of results. By analysing the procurement
spend and identifying the procurement activities that accounts for 80% of
its’ expenditure, a public body can reduce its administrative efforts.

Your 1st Using Microsoft Excel, sort the items in the portfolio
Step listing by price, from highest to lowest.

Your 2nd Develop a running total of all expenditure items.

Step

Your 3rd
Calculate the percentage expenditure represented by each
Step item.

Using the information contained in the procurement portfolio in Table 4.1.1,

above, Pareto Analysis can be applied as follows :

Table 4.1.2: Pareto

Analysis
No. Item Description Quantity Total Price Running Total % of Total
(descending Expenditur
order) e

2. Consultancy 1 $750,000.00 $750,000.00 31.57

Services for Design
& Development of
a Database
[Link] of a fence, $650,000.00$1,400,000.00 58.93
75ft
1. Vehicles, SUV, 5-door 2 $600,000.00$2,000,000.00 84.18

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3. Janitorial Services 1 $250,000.00 $2,250,000. 94.70

for a period of 00
one year
4. Microsoft Licenses $75,000.00 $2,325,000. 97.86
for 20 staff 00
members
9. Toner, for printer $25,000.00 $2,350,000. 98.91
00
7. Stationery items $20,000.00 $2,370,000. 99.76
(pens, pencils, 00
letter-sized paper,
legal-sized paper,
post-its)
8. Drinking Water $5,000.00 $2,375,000. 99.97
(various 00
sizes)
6. Fan, standing, 16” 2 $800.00 $2,375,800. 100.00
00
$2,375,800.0
Total 0

The analysis shows that the first three items in the list represent over 80%
of the expenditure. The value of the remaining five items total less than
20% of the overall expenditure.
This would suggest that the procuring entity should invest most of its
administrative efforts in procuring the first three items and should develop
strategies to minimise its administrative efforts for the procurement of the
remaining five items.
In addition, the procuring entity must develop the most effective contract
management strategies to mitigate any risks to the supply of the items.
These techniques and strategies will be demonstrated in the sections below.
Pareto Analysis provides the procuring entity with a quick method to
analyse its procurement portfolio from a high-level perspective.
The other tools listed above, will assist the procuring entity in conducting
more in-depth analysis of its procurement portfolio.

Porter’s Five Competitive Forces

Porter’s Five Competitive

Forces

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In considering the goods, works and services it wishes to procure, the

procuring entity also needs to develop an understanding of the supply
market for each item or category of items.

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A useful tool, in that regard, is Michael Porter’s Five (5) Forces method
which helps the procuring entity to understand and evaluate the competitive
forces within the supply market.

Figure 3: Michael Porter’s Five (5)

Competitive Forces
This tool assists the procuring entity in considering and assessing the following:
a. Rivalry in the industry
How competitive is the market? Is there one, a few or many
suppliers or contractors for the item the procuring entity wishes to
secure?
b. Substitutes
Are there substitute products available in the supply market which
can give the procuring entity better value for money, than those it
routinely procures?
c. New entrants
How easy is it for new suppliers or contractors to enter the supplier
market? Can the procuring entity encourage new suppliers or
contractors to enter the supply market?
d. Supplier power
How much power does the supplier wield? E.g. if there is only one or
a few suppliers this reduces competition. Supply may then be more
difficult to secure.
e. Buyer power
As the buyer, can the procuring entity wield greater power than its
suppliers. This will depend on a number of factors including whether
competition is high or even the value of the contract, and whether
or not the supplier or contractor is interested in doing business with
the procuring entity.

NOTE:
Competitive power can change at any point in time, especially when there
are changes in the supply market. During boom times, the supplier usually
has the stronger bargaining power, but during a recession, the opposite
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Supplier Preferencing Model

Supplier Preferencing Model

Supplier Preferencing Model is a useful tool for assisting the procuring

entity in determining how its business is viewed by its suppliers and
contractors. In that regard, consideration is given to the following:
a) Revenue/Value of Account (i.e. the contract amount), and
b) Attractiveness of Account (whether or not the supplier or contractor
is interested in doing business with the procuring entity.)
This is determined by a number of factors including the following:
a) Ease of doing business
b) The procuring entity’s ability and willingness to pay in
accordance with
contractually agreed terms and conditions

Figure 4 below depicts a detailed analysis of the Supplier Preferencing Model

It illustrates how the procuring entity is viewed by the supplier or
contractor. On this basis, the supplier or contractor will determine whether
or not it treats the procuring entity as a valued customer.
.

Figure 4: Supplier
Preferencing Model
If the procuring entity is viewed as a nuisance account, the supplier may
show little interest in the business. The aim of both parties should be to
reduce transaction costs and risks, and, in

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some cases, the procuring entity may wish to consider sourcing from other
suppliers that may
value the buyer’s business more highly.
The supplier may regard the procuring entity as an account with
development potential. For example, one that is seen as attractive
perhaps because of possible opportunities for more valuable business in
the future or the account is a high profile one. In this case, the supplier
may be willing, in the short term to meet the procuring entity’s
requirements in order to win more business. There can also be many
supplier development opportunities in these cases by seeking to improve
the capacity and performance of these suppliers.
Where the procuring entity is seen as an exploitable account, the supplier
may have a high volume of sales, but the account is still regarded as
unattractive due perhaps to low profitability or other factors like location or
inconvenience. Consequently, the supplier may be keen to increase
prices. The procuring entity may therefore wish to seek alternative
suppliers or try to make the relationship more attractive by considering
more efficient ways of doing business.
If the procuring entity is seen as a core part of the supplier’s business, in
most cases, a rewarding business relationship that seems to continually
add value can be established. The supplier is generally keen to meet the
procuring entity’s requests and provide a high level of service in order to
retain the business.
It is essential that the procuring entity accurately gauges its value as a
customer as this will determine the extent to which it can influence a
market and achieve better procurement outcomes.
Procurement Portfolio Analysis

Procurement Portfolio Analysis

The Procurement Portfolio Analysis tool is also known as the Kraljic Matrix.
This tool allows the procuring entity to analyse the items or category of
items in its procurement portfolio by taking the following into
consideration:
a) The relative value of the item, and
b) The difficulty of securing supply.

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Note:
The analysis conducted using the Pareto Analysis tool can assist the
public body in determining whether an item belongs in the low or high
value category.
The analysis conducted using Porter’s Five Forces can assist the public
body in
determining whether an item belongs in the low or high-risk category.
The analysis conducted using the Supplier Preferencing Tool can assist
the procuring entity in determining the manner in which its business is
viewed by the supplier or contractor.

Figure 5 below would assist the procuring entity in categorising its expenditure items:

a. Low-risk/low value items are placed in the “Routine Products” quadrant

of the matrix.
b. Low risk/high value items are placed in the “Leverage Products”
quadrant.
c. High risk/low value items are placed in the “Bottleneck” quadrant.
d. High risk/high value items are placed in the “Strategic Products”
quadrant.

Figure 5: The Purchasing Portfolio,

Kraljic, 1983
On the basis of the analyses conducted above, the items in the table may
be categorised and placed in the Portfolio Matrix quadrants as shown in
Table 4.1.3 and in Figure 6, below:

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Table 4.1.3 – Risk/spend

analysis
Item Description Quantity Total Risk/Spend
Price Analysis
(descendi
ng
order)
2. Consultancy Services for 1 $750,000.00 High-risk/high
Design & Development value
of a Database
5. Construction of a fence, $650,000.00 Low risk/high
75ft value
1. Vehicles, SUV, 5-door 2 $600,000.00 Low-risk/high
value
3. Janitorial Services for a 1 $250,000.00 Low-risk/high
period of one value
year
4. Microsoft Licenses for $75,000.00 Low risk/low value
20 staff
members
9. Toner, for printer $25,000.00 High risk/low
value
7. Stationery items (pens, $20,000.00 Low risk/low value
pencils, letter-sized
paper, legal-sized paper,
post-its, etc)
8. Drinking Water (various $5,000.00 Low risk/low value
sizes)
6. Fan, standing, 16” 2 $800.00 Low risk/low value

Total $2,375,800.0
0

Bottleneck Strategic

Toner Database

Routine Leverage

Water Janitorial
Stationery
Licenses Vehicles
Supply
risk
Fan Fence

Relative expenditure

Figure 6: The Purchasing Portfolio,

Kraljic, 1983 32
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Supply Purchasing Model

Supply Purchasing Model

The public body can use the information gathered during the analyses
conducted above to assist it in determining the strategies that should be
adopted to ensure supply while achieving the objects of the Act.
The supply purchasing model takes the following elements into consideration:
a) The risk that the item may not be available when it is needed (Supply
Risk), and
b) The impact of the lack of supply on the organisation (Impact).
Figure 7 below illustrates the general strategies the procuring entity can
adopt as follows: Leverage Items (low risk, high impact) Exploit
purchasing power and minimise cost Strategic Items (high risk, high
impact) Form partnership
Non-Critical (Routine) Items (low risk, low impact) Outsource
& automate Bottleneck Items (high risk, low impact)
Ensure supply

High

Leverage Strategic
(Low risk, High Impact) (High risk, High Impact)
• Standard, substitutable • Strategically important
• Alternate suppliers • Substitution difficult
• High volume or cost • No alternate suppliers
Operational
Impact

Non-Critical Bottleneck
(Low risk, Low Impact) (High risk, Low impact)

• Standard, substitutable • Substitution difficult

• Alternate suppliers • Monopolistic market
• Low volume or cost • Critical items

Low
Supply High
Risk
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Figure 7: Supply Purchasing Model/Kraljic Model

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Procurement Management Strategies

1. Non-Critical (Routine) Items: Minimise administrative efforts by

using the following tactics:
a. Procurement as close as possible to the
point of need (decentralized);
b. Encouraging local suppliers to view the procuring
entity as a valuable client resulting in lower
transaction cost; and
c. Focusing ordering and payment, direct debiting,
aggregation of orders and monthly accounts, et
cetera.
Note:
2. Leverage Items: Total cost reduction and high Procurement
service levels from suppliers by the following: falling into
a. Ensuring regular management leverage,
information reports on the bottleneck &
nature of the expenditure; and strategic
b. Forming collaborative categories
initiations with other public would be
bodies to build leverage and considered
target off-peak periods in ‘significant
supply markets. purchases’.

3. Bottleneck Items: Reduce the procuring entity’s market vulnerability

and secure
ongoing supply by utilizing the following tactics:
a. Identify alternative sources of supply/substitute goods or
services;
b. Hold extra stock where possible reduces risk; and
c. Implementing framework agreements to secure
supply from key suppliers.

4. Strategic Items: Achieve value for money and reduce risk by

employing the following tactics:
a. Consideringun-bundling/alternative bundling
of procuring
requirements to reduce complexity;
b. Engaging in effective supplier relationship management;
and
c. Helping to develop suppliers’ performance levels.

Contract Management Strategies

The overarching purpose of this strategy is to ensure that procurement
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activities are undertaken consistently to a high standard, efficiently and

economically whilst helping achieve economic, social and environmental
benefits. The strategy is accordingly aligned with the strategic aims and
objectives of the PP&DPPA.

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a. Develop a Delivery Management System, for example, a checklist or

registry that assists in acceptance, management and tracking of
delivery orders;
b. Supplier Relationship Management, for example, technology makes
supplier relationship management simple to create, process and
track purchase orders, also relationships are stronger when
payments are on time, this way, the public body will prove that it is
a reliable customer and that it is easy to work with. If for any reason
payment cannot be made on or by the agreed date, the supplier
should be informed, as soon as possible, of the date on which he
can expect the payment; and
c. Efficient Contract Administration monitors from contract initiation to
contract close out.

Develop Annual Procurement Plan

The Strategic Level Procurement Planning activities described above are
to be included in the public body’s Annual Procurement Plan. Detailed
guidelines on the development of the Annual Procurement Plan are
included in the General Guidelines Developing the Annual Procurement
Plan.

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Section 5
Operational Level Procurement

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5.0 Operational Level

Procurement Operational Level
Procurement planning is Note:
conducted for the acquisition of
each item or spend category The market analysis described at the
identified in the procuring strategic level procurement above,
entity’s procurement portfolio. must be conducted for any item of
good, work or service that was not
The procuring entity shall included in the procurement portfolio,
capture the details of the prior to the procuring entity attempting
planning exercise in the to engage in operational level
Procurement Strategy procurement.
Development Template in
Appendix 1.
The activities involved in stages
2, 3 and 4 of the procurement
proceedings
described in the Act are captured in the end-to-end procurement cycle
depicted in Figure 8 below.

• RFQ/RFP/
ITB
Stage 2 • Site visit
• Clarification
Solicitati • Receipt of
on

• evaluation of submission
• preparation of evaluation report
• approval process
• standstill period (where applicable)
• contract award

• performance of contract
• management of contract
• vendor relationship management
• reporting on contractor performance
• contract close-out

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Define
Procurement
Report on Need Reconcile Needs
Performance of with Funds
the Provide r

Develop
Make Payment Purchase
Requisition

Receive Assign Purchase

Goods/Monitor Requisition
Works and
Services The
Procurem
Commencement of ent Cycle Prepare Solicitation
Documents
Contract
(RFQ/RFP/ITB )

Finalize and Execute Solicitation

Contract
Institute
Standstill
period
Issue Notice of Evaluate &
Acceptance (if Prepare
Evaluation
Report
Obtain Approval
for Contract Review by
Award P&DAC

Figure 8: The End-to-End

Procurement Cycle
The steps outlined below apply to the operational aspect of public procurement and would
typically follow the strategic planning phase.
a. Define Procurement Need – the individual or department
(the requisitioner) determines that it is ready to proceed
with the procurement of the particular good, work or service
identified in the procurement plan. The Requisitioning
Department develops the specifications, terms of reference
or scope of services and identifies probable contractors and
suppliers. In the case of larger-sized organisations, these
actions are to be completed in collaboration with the
procurement unit and other key internal and external
stakeholders.
b. Reconcile Needs with Funds – The requisitioner confirms the

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availability of funds prior to initiating the procurement

activity.

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c. Develop Purchase Requisition - The requisitioner prepares

the Purchase Requisition, attaches any supporting
documents (the specifications, terms of reference or scope
of services) and seeks the appropriate approval to proceed
with the procurement. The requisitioner submits the
completed and approved Purchase Requisition, along with
the supporting documents to the Procurement Department
for processing.
d. Assignment of Purchase Requisition – The ‘Named’
Procurement Officer
reviews the purchase requisition and assigns to a Procurement
Officer.
e. Prepare Solicitation Documents (RFQ/RFP/ITB) –The
procurement unit officer prepares the appropriate
solicitation documents.
f. Solicitation – The procurement unit invites bids, quotes or
proposals, hosts pre-bid meetings and site visits (where
necessary) and arranges for the receipt of bid submissions.
g. Evaluation and Preparation of Evaluation Report – The
evaluation team assesses the vendors’ submissions and
prepares the evaluation report with recommendation for
award of contract, for management approval.
h. Review by the Procurement and Disposal Advisory
Committee (P&DAC)– the Procurement and Disposal
Advisory Committee reviews the procurement records
including the report and recommendations for contract
award and determines whether the following three criteria
have been met: a) the approved processes as set out in the
Handbook were followed; b) the approved procurement
strategy outlined in the Annual Procurement Plan was
followed: and c) value for money was achieved; and advises
the Accounting Officer accordingly.
i. Obtaining Approval of Contract – The procurement
department seeks approval for award of contract or issuing
of the purchase order from the manager with the
appropriate delegated authority level.
j. Standstill Period (if applicable) – The procurement
department initiates the standstill period by issuing a notice
of intention to award to all suppliers/contractors, informing
them of the standstill period and of the opportunity to
gather information from the procuring entity on the contract
award decision.
k. Issue Notice of Acceptance – At the end of the standstill
period (where one was enforced), the procurement unit
issues the formal Notice of Acceptance to a successful
provider.

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l. Finalise and Execute Contract –The legal department and

preferred provider finalise and execute (sign) the contract
with support from the requisitioning department and the
procurement department.
m. Commencement of Contract – The requisitioning
department makes arrangements with the successful
provider for the performance of the contract.
n. Receive Goods/Monitor Work & Services – The duly
authorised representative of the procuring entity monitors
the performance of the contract to ensure successful
contract execution.

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o. Make Payment – the finance department arranges payment

to the supplier or contractor on recommendation from the
procuring department, in accordance with the terms and
conditions of the contract.
p. Report on Performance of the Provider – the duly authorised
representative from the procuring entity completes the
supplier or contract performance report and submits same
to the procurement department. The report may be
completed upon fulfilment of the supply contract where the
contract is of a short duration, or periodically for long-term
contracts.

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Section 6
End-to-End Procurement Examples for the
Acquisition of Goods, Works or Services by
Public Bodies

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6.0 End-to-End Procurement Cycle Examples

Procurement of Office Fans

Example – Procurement of Two (2) Office Fans – Estimated $800
Type of Procurement: Goods
Characteristics of good required:
 Relatively low value/low supply risk
 Readily available, many suppliers in the market
 Quality is important as it is linked to the useful life of the
product and achieving value for money
 One-off purchase

No. Step in the Activities Comments

Procurement
Cycle
A. PROCUREMENT PLANNING STAGE
1. Define  Requisitioning This includes:
procurement department - Develop
need refines specifications
procurement need (this will be very
identified in the basic, including,
Annual size, colour,
Procurement plan. material;
- Identify
possible
vendors
(through
market
research/
historical
information/
pre-
qualification
database).
2. Reconcile  Requisitioning - Memo from
Needs with Department Finance
Funds confirms department or,
availability of - Confirmation of
funds with funding from
Finance Finance
department. Department.
3. Develop  Requisitioning This includes:
purchase department - Description of
requisition completes the good;
purchase - Specification of
requisition. the good;
 Attaches - Estimated budget;
supporting - Suggested
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documents. suppliers;
 Acquires approval - Justification for
(signature) to procurement
procure from and/or supplier
Requisitioning listing
Person (with (where
delegated applicable).
authority).

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No. Step in the Activities Comments

Procurement
Cycle
 Submits approved
PR to ‘Named’
Procurement
Officer for
processing.
4. Assignmen  ‘Named’ Small organisation –
t of Procurementprocurement is
Purchase Officer reviews
undertaken by the
Requisition PR and assigns to
‘Named’ Procurement
a Procurement
Officer.
Officer. Larger organisation –
procurement may be
undertaken by the
Senior Procurement
Officer or the Junior
Procurement Officer or
the Buyer/Shopper.
B. SOLICITATION (TENDERING) STAGE
5. Prepare Procurement This includes
solicitation department description,
documents prepares Request specifications, delivery,
for Quotations. warranty, payment
method
and payment terms.
6. Solicitation Procurement Officer It may be more
issues Request for efficient for the
Quotations to at least shopper/buyer to visit
three (3) suppliers. the prospective
vendors to collect
relevant information
(specifications, brand,
pricing, delivery,
warranty, payment
method and
payment terms).
C. EVALUATION AND CONTRACT AWARD STAGE
7. Evaluate Procurement Officer This is a simple report
quotations and compares technical comprising a
prepare specifications, other spreadsheet or table
evaluation relevant information and with comparative
report price. Procurement information.
Officer prepares an
evaluation report and
recommends preferred
supplier.
8. Review by Not applicable. Procurement file is
P&DAC submitted to the
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‘Named’ Procurement
Officer for
review.
9. Obtain Approval The ‘Named’
of Contract Procurement Officer
Award reviews procurement file
and approves award of
contract.
10. Standstill period Not applicable.

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No. Step in the Activities Comments

Procurement
Cycle
11. Issue Notice of Not applicable.
Acceptance
12. Finalise and Administrative
 If the supplier does not
execute Officer or other accept a government
contract assigned officer purchase order, the
prepares shopper/buyer can
Purchase Order. purchase directly from
 Named the supplier.
Procurement
Officer Approves
Purchase Order.
 Administrative
Officer or other
assigned officer
issues Purchase
Order (complete
with terms and
conditions of
purchase) to
preferred
supplier.
D. CONTRACT MANAGEMENT & CLOSEOUT STAGE
13. Commenceme Not applicable.
nt of contract

14. Receive Shopper/buyer receives This includes checking

Goods/Monitor good from vendor. the item to ensure that
Works or it is working.
Services
Ensure that warranty
agreement is provided.

15. Make payment  Receive invoice Direct payment (cash or

from supplier. cheque).
 Procurement
Department Collect invoice /
approves receipt for the
payment. procurement record.
 Finance
Department
makes payment
as agreed with
the
supplier.

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16. Report on Not applicable

Performance of
the Provider

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Procurement of Janitorial Services

Example – Procurement of Janitorial Services for a One-Year Period Estimated

Type of Procurement: Services/Goods (Non-Consultancy)
Characteristics of services/goods required:
 Low supply risk
 Many suppliers in the market
 Includes both labour & supplies
 Service to be provided over an extended period of one (1) year
 Possibility of extending the contract to two or three years if
performance is satisfactory
 Performance Specification (somewhat complex)
 Negotiations with top-ranked proponent may be necessary
at $250,000

No. Step in the Activities Comments

Procurement
Cycle
A. PROCUREMENT PLANNING STAGE
1. Define  Requisitioning This includes:
procurement department - Developing
need refines performance
procurement need specifications;
identified in the - Identifying possible
Annual vendors (through
Procurement Plan. market
research/historical
information/network
ing/ prequalification
database).
2. Reconcile  Requisitioning - Memo from
Needs with Department Finance
Funds confirms department or,
availability of - Confirmation of
funds funding from
with Finance Finance
Department. Department
3. Develop  Requisitioning This includes:
purchase department - Description of
requisition completes the services
purchase required and any
requisition. other ancillary
 Attaches requirements;
supporting - Minimum
documents. qualifications of
 Acquires possible suppliers;
approval - Listing of
(signature) to
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procure from consumables;

Person (with - Duration of the
delegated service;
authority). - Date of
 Submits approved commencement of
PR to ‘Named’ services;
Procurement - Estimated budget;
Officer for - Suggested suppliers.
processing.

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No. Step in the Activities Comments

Procurement
Cycle
-Justification for
procurement
and/or supplier
listing (where
applicable).
4. Assignmen  ‘Named’ Small organisation –
t of Procurement procurement is
Purchase Officer reviews undertaken by the
Requisition PR and assigns to ‘Named’ Procurement
a Procurement Officer.
Officer. Larger organisation –
procurement may be
undertaken by the
Senior Procurement
Officer or the
Junior Procurement
Officer.
B. SOLICITATION (TENDERING) STAGE
5. Prepare Procurement department This includes editing
solicitation prepares Request for the data sheets and
documents Proposals (RFP) using evaluation criteria in
the template provided the standard RFP
by The OPR. document to ensure
that it is suitable for
the procurement
of the janitorial services.
6. Solicitation Procurement Officer In the event of an open
- Issues RFP to selected tender, the procuring
(or interested in the entity will place
event of an open advertisements in the
tender) suppliers. newspapers, on their
- Hosts site visit. website and on the
- Issues addenda website of The OPR.
(Responds to Requests
for Clarification from
suppliers).
- Hosts tender opening
meeting.
C. EVALUATION AND CONTRACT AWARD STAGE
7. Evaluate - Evaluation
proposals and Committee evaluates
prepare submissions on the
evaluation basis of the pre-
report determined
evaluation criteria
and methodology in
the RFP documents.
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- Procurement Officer
seeks clarification (in
writing). from
suppliers, if
necessary
- If necessary, and
provided for in the
RFP documents,
negotiations are
held with
the top-ranked vendor.

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No. Step in the Activities Comments

Procurement
Cycle
- Evaluation Team
Lead prepares
evaluation report for
approval.
- ‘Named’ procurement
officer reviews and
signs off on the
evaluation report.
8. Review by - The P&DAC reviews As may be applicable
P&DAC the Evaluation Report based on the size of
to ensure that: the organisation.
a) the approved
processes as set out
in the Handbook
were followed,
b)the approved
procurement
strategy outlined
in the Annual
Procurement Plan
was followed, and
c)value for money
was achieved; and
advises the
Accounting Officer
accordingly.
9. Obtain The Accounting Officer
Approval of reviews procurement file
Contract Award and approves
award of contract.
10. Standstill period The ‘named’
Procurement Officer
manages the standstill
period process (if
applicable).
11. Issue Notice of The Procurement Officer
Acceptance Issues the Notice of
Acceptance to the top-
ranked
supplier.
12. Finalise and The Legal Department
execute and the Supplier finalise
contract the contract. The
contract is signed by the
duly Authorised
Representatives from

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the
Supplier and Procuring
organisations.
D. CONTRACT MANAGEMENT & CLOSEOUT STAGE
13. Commenceme The Requisitioning
nt of contract Department liaises with
the supplier to initiate
the start of the
contract.

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No. Step in the Activities Comments

Procurement
Cycle
14. Receive The Requisitioning
Goods/Monitor Department monitors
Works or the performance of the
Services Janitorial Firm and
reducing any
instructions in respect of
improving the firm’s
performance in writing.
15. Make payment The Requisitioning
Department submits
invoices from the
supplier to the
Procurement
Department for Review
The Procurement
Department ensures
that invoices are in
accordance with the
Terms and Conditions of
the Contract and
approves the payment.
The Finance
Department makes
payment to the supplier.
16. Report on The Requisitioning The report is prepared
Performance of Department prepares at the end of the
the Provider the Vendor Performance contract period. It may
Form and submits same also be prepared on a
to the procurement unit quarterly or half-yearly
for its basis if required.
records.

Procurement of Vehicles

Example – Procurement of Two (2) SUVs estimated at $600,000

Type of Procurement: Goods with ancillary
Services Characteristics of goods and ancillary services
required:
 Low supply risk
 Several suppliers in the market
 Includes both supply and delivery of vehicles, as well as after-sale
service
 Exemption from Customs duty and taxes may be a consideration

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No. Step in the Activities Comments

Procurement
Cycle
A. PROCUREMENT PLANNING STAGE
1. Define  Requisitioning This includes:
procurement department
need refines

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No. Step in the Activities Comments

Procurement
Cycle
procurement need - Developing
identified in the conformance
Annual specifications (from
Procurement Plan. brochures, with
help from another
entity with this
type of
experience), and
any other
requirements,
including list of
spares)
- Identifying possible
vendors (through
market
research/historical
information/network
ing/ prequalification
database) .
2. Reconcile  Requisitioning - Memo from
Needs with Department Finance
Funds confirms department, or
availability of - Confirmation of
funds with funding from
Finance Finance
Department. Department.
3. Develop  Requisitioning Supporting
purchase department documents /
requisition completes information would
purchase include:
requisition. - Detailed
 Attaches specifications and
supporting any other
documents. ancillary
 Acquires requirements
approval - Minimum
(signature) to qualifications (of
procure from possible suppliers)
Person (with - Delivery date
delegated - Estimated budget
authority). - Suggested suppliers
 Submits approved - Justification for
PR to ‘Named’ procurement
Procurement and/or supplier
Officer for listing (where
processing. applicable)

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4. Assignmen  ‘Named’ Small organisation –

t of Procurement procurement is
Purchase Officer reviews undertaken by the
Requisition PR and assigns to ‘Named’ Procurement
a Procurement Officer.
Officer. Larger organisation –
procurement may be
undertaken by the
Senior Procurement
Officer or the Junior
Procurement Officer.

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No. Step in the Activities Comments

Procurement
Cycle
B. SOLICITATION (TENDERING) STAGE
5. Prepare Procurement department This includes editing
solicitation prepares Information for the data sheets,
documents Bids (IFB) using the evaluation criteria and
template provided by other requirements in
The OPR. the standard IFB
document to ensure
that it is suitable for
the procurement of the
vehicles and ancillary
services.
Ensure that the
invitation is to bid for
delivery to site, so that
the supplier has to
take care of all
logistical issues
relating to the
delivery, including
customs clearance,
licensing and fueling of
the
vehicle.
6. Solicitation Procurement Officer In the event of an open
- Issues IFB to selected tender, the procuring
(or interested in the entity will place
event of an open advertisements in the
tender) suppliers newspapers, on their
- Hosts pre- website and on the
submission website of The OPR.
meeting (if
required)
- Issues addenda
(Responds to Requests
for Clarification from
suppliers)
- Hosts tender
opening meeting
C. EVALUATION AND CONTRACT AWARD STAGE
7. Evaluate - Evaluation Evaluation would take
proposals and Committee evaluates into consideration
prepare submissions on the Whole of Life Costing,
evaluation basis of the pre- i.e. the purchase price
report determined of the vehicle, the
evaluation criteria operational and
and methodology in maintenance costs and
the RFP documents the disposal costs.
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- Procurement Officer
seeks clarification (in
writing) from
suppliers, if
necessary
- If necessary, and
provided for in the
RFP documents,
negotiations are
held with the top-
ranked vendor
- Evaluation Team
Lead prepares
evaluation report
for approval

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No. Step in the Activities Comments

Procurement
Cycle
- ‘Named’ procurement
officer reviews and
signs off on the
evaluation report.
8. Review by - The P&DCA reviews As may be applicable
P&DAC the Evaluation Report based on the size of
to ensure that the organisation.
a) the approved
processes as set out
in the Handbook
were followed;
b)the approved
procurement
strategy outlined
in the Annual
Procurement Plan
was followed, and
c)value for money
was achieved; and
advises the
Accounting Officer
accordingly.
9. Obtain The Accounting Officer
Approval of reviews
Contract Award procurement file and
approves award of
contract.
10. Standstill period The ‘named’ Procurement
Officer manages the
standstill period process
(if applicable).
11. Issue Notice of The Procurement Officer
Acceptance Issues the Notice of
Acceptance to the top-
ranked
supplier.
12. Finalise and The Legal Department A preventive
execute and the Supplier finalise maintenance contract
contract the contract. The can be included as part
contract is signed by the of the supply contract.
duly Authorised
Representatives from
the Supplier and
Procuring
organisations.
D. CONTRACT MANAGEMENT & CLOSEOUT STAGE
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13. Commenceme The Requisitioning

nt of contract Department liaises with
the supplier to initiate
the start of the
contract and confirm
date of delivery.
14. Receive The Requisitioning If applicable, monitoring
Goods/Monitor Department monitors includes the preventive
Works or the performance of the maintenance contract.
Services supply contract and
reducing any instructions
in

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No. Step in the Activities Comments

Procurement
Cycle
respect of improving the
firm’s
performance in writing.
15. Make payment The Requisitioning Payments will be
Department submits related to the supply of
invoices from the the vehicle (capital
supplier to the cost) and maintenance
Procurement costs
Department for Review. (recurring/operational
The Procurement expenditure).
Department ensures
that invoices are in
accordance with the
Terms and Conditions of
the Contract and
approves the payment.
The Finance
Department makes
payment to the
supplier.
16. Report on The Requisitioning The report is prepared
Performance of Department prepares at the end of the
the Provider the Vendor Performance contract period. It may
Form and submits same also be prepared on
to the procurement unit delivery of the
for its records. vehicles, and
subsequently during
the period of the
preventive
maintenance contract.

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Procurement of Works

Example – Procurement of Small Works for the construction of a 75-foot

Fence estimated at
$65,000.
Type of Procurement: Works
Characteristics of works to be performed:
 Low supply risk
 Several contractors in the market
 Includes supply of materials and construction of fence
 Consideration must be given to a defects liability period
 Conformance Specification and Bills of Quantity (somewhat
complex)

No. Step in the Activities Comments

Procurement
Cycle
A. PROCUREMENT PLANNING STAGE
1. Define  Requisitioning This includes
procurement department - Developing
need refines conformance
procurement need specifications, Bills
identified in the of Quantities and
Annual any other
Procurement Plan. requirements (this
may require the
assistance of a civil
works professional
such as a project
manager or
engineer)
- Identifying possible
contractors
(through market
research/historical
information/network
ing/ prequalification
database)
2. Reconcile  Requisitioning - Memo from
Needs with Department Finance
Funds confirms department, or
availability of - Confirmation of
funds with funding from
Finance Finance
Department. Department.
3. Develop  Requisitioning Supporting documents /
purchase department information would
requisition completes include
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purchase - Detailed
requisition specifications,
 Attaches Bills of Quantities,
supporting and any other
documents ancillary
 Acquires requirements.
approval
(signature) to
procure

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No. Step in the Activities Comments

Procurement
Cycle
from Person (with - Minimum
delegated qualifications and
authority) experience (of
Submits approved possible
PR to ‘Named’ contractors)
Procurement - Estimated
Officer for contract
processing. duration
- Estimated budget
- Suggested
contractors
- Justification for
procurement
and/or
contractor
listing
4. Assignmen  ‘Named’ Small organisation –
t of Procurement procurement is
Purchase Officer reviews undertaken by the
Requisition PR and assigns to ‘Named’ Procurement
a Procurement Officer.
Officer. Larger organisation –
procurement may be
undertaken by the
Senior Procurement
Officer or the Junior
Procurement Officer.
B. SOLICITATION (TENDERING) STAGE
5. Prepare Procurement department This includes editing
solicitation prepares Information for the data sheets,
documents Bids (IFB) using the evaluation criteria and
template provided by other requirements in
The OPR. the standard IFB
document to ensure
that it is suitable for
the procurement of the
construction works.
6. Solicitation Procurement Officer
- Issues IFB to
selected
contractors
- Hosts site visit
- Issues addenda
(Responds to Requests
for Clarification from
suppliers)
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- Hosts tender
opening meeting
C. EVALUATION AND CONTRACT AWARD STAGE
7. Evaluate - Evaluation
proposals and Committee evaluates
prepare submissions on the
evaluation basis of the pre-
report determined
evaluation criteria
and methodology in
the IFB documents.
- Procurement Officer
seeks
clarification (in writing)

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No. Step in the Activities Comments

Procurement
Cycle
from contractors, if
necessary.
- If necessary, and
provided for in the
IFB documents,
negotiations are held
with the top-ranked
contractor.
- Evaluation Team
Lead prepares
evaluation report for
approval.
- ‘Named’ procurement
officer reviews and
signs off on the
evaluation report.
8. Review by - The P&DAC reviews As may be applicable
P&DAC the Evaluation Report based on the size of
to ensure that: the organisation.
a) the approved
processes as set out
in the Handbook
were followed;
b)the approved
procurement
strategy outlined
in the Annual
Procurement Plan
was followed, and
c)value for money
was achieved; and
advises the
Accounting
Officer
accordingly.
9. Obtain The Accounting Officer
Approval of reviews procurement file
Contract Award and approves
award of contract.
10. Standstill period The ‘Named’
Procurement Officer
manages the standstill
period process (if
applicable).
11. Issue Notice of The Procurement Officer
Acceptance Issues the Notice of
Acceptance to the top-
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ranked
supplier.
12. Finalise and The Legal Department
execute and the Contractor
contract finalise the contract.
The contract is signed by
the duly Authorised
Representatives from
the Contractor and
Procuring
organisations.

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No. Step in the Activities Comments

Procurement
Cycle
D. CONTRACT MANAGEMENT & CLOSEOUT STAGE
13. Commenceme The Requisitioning
nt of contract Department or assigned
Project Manager liaises
with the contractor to
initiate the start of the
contract.
14. Receive The Requisitioning
Goods/Monitor Department monitors
Works or the performance of the
Services works contract, reducing
any instructions in
respect of
improving the
contractor’s
performance in writing.
15. Make payment The Requisitioning Completion certificates
Department are to be submitted
/Project Manager with the invoices.
submits invoices with
supporting documents
from the contractor to
the Procurement
Department for Review.
The Procurement
Department ensures
that invoices are in
accordance with the
Terms and Conditions of
the Contract and
approves the payment.
The Finance Department
makes payment to the
supplier.
16. Report on The Requisitioning The report is prepared
Performance of Department prepares at the end of the
the Provider the Contractor contract period.
Performance Form and
submits same to the
procurement unit for its
records.

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Procurement of Stationery Items

Example – Procurement of a mix of Stationery Items estimated at $20,000

Type of Procurement: Goods
Characteristics of goods required:
 Low supply risk
 Several suppliers in the market
 Includes both supply and delivery of the items
 These items are required on a recurring basis throughout the year
 Consideration could be given to issuing a three-year framework
agreement

No. Step in the Activities Comments

Procurement
Cycle
A. PROCUREMENT PLANNING STAGE
1. Define  Requisitioning This includes:
procurement department - Developing
need refines conformance
procurement need specifications (e.g.
identified in the from catalogues,
Annual or site visit to
Procurement Plan. suppliers)
- Identifying possible
suppliers (through
market
research/historical
information/network
ing/ prequalification
database).
2. Reconcile  Requisitioning - Memo from
Needs with Department Finance
Funds confirms department, or
availability of - Confirmation of
funds with funding from
Finance Finance
Department. Department.
3. Develop  Requisitioning Supporting documents /
purchase department information would
requisition completes include
purchase - Estimated budget
requisition - Suggested suppliers
 Attaches - Justification for
supporting procurement
documents and/or supplier
 Acquires listing (if
approval applicable)
(signature) to
procure from
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Person (with
delegated
authority)

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No. Step in the Activities Comments

Procurement
Cycle
 Submits approved
PR to
‘Named’
Procurement
Officer for
processing.
4. Assignmen  ‘Named’ Small organisation –
t of Procurement procurement is
Purchase Officer reviews
undertaken by the
Requisition PR and assigns to
‘Named’ Procurement
a Procurement
Officer.
Officer. Larger organisation –
procurement may be
undertaken by the
Senior Procurement
Officer or the Junior
Procurement Officer.
B. SOLICITATION (TENDERING) STAGE
5. Prepare Procurement
solicitation department prepares
documents Invitation for Bids (IFB)
using the template
provided by The OPR.
6. Solicitation Procurement Officer In the event of an open
- Issues IFB to selected tender, the procuring
(or interested in the entity will place
event of an open advertisements in the
tender) suppliers newspapers, on their
- Hosts pre- website and on the
submission website of The OPR.
meeting (if
required)
- Issues addenda
(Responds to Requests
for Clarification from
suppliers)
- Hosts tender opening
meeting
C. EVALUATION AND CONTRACT AWARD STAGE
7. Evaluate - Evaluation
proposals and Committee evaluates
prepare submissions on the
evaluation basis of the pre-
report determined
evaluation criteria
and methodology in

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the IFB documents

- Procurement Officer
seeks clarification (in
writing) from
suppliers, if
necessary
- If necessary, and
provided for in the
IFB documents,
negotiations are
held with
the top-ranked vendor.

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No. Step in the Activities Comments

Procurement
Cycle
- Evaluation Team
Lead prepares
evaluation report for
approval.
- ‘Named’
Procurement
Officer reviews and
signs off on the
evaluation report.
8. Review by - The P&DAC reviews As may be applicable
P&DAC the Evaluation Report based on the size of
to ensure that the organisation.
a) the approved
processes as set out
in the Handbook
were followed;
b)the approved
procurement
strategy outlined
in the Annual
Procurement Plan
was followed, and
c)value for money
was achieved; and
advises the
Accounting Officer
accordingly.
9. Obtain The Accounting Officer
Approval of reviews procurement file
Contract Award and approves
award of contract.
10. Standstill period The ‘named’ Procurement
Officer manages the
standstill period process
(if applicable).
11. Issue Notice of The Procurement Officer
Acceptance Issues the Notice of
Acceptance to the top-
ranked
supplier.
12. Finalise and The Legal Department
execute and the Supplier finalise
contract the contract. The
contract is signed by the
duly Authorised
Representatives from
the Supplier and
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Procuring
organisations.
D. CONTRACT MANAGEMENT & CLOSEOUT STAGE
13. Commenceme The Requisitioning
nt of contract Department liaises with
the supplier to initiate
the start of the
contract and confirm
date of delivery.

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No. Step in the Activities Comments

Procurement
Cycle
14. Receive The Requisitioning Supply would be
Goods/Monitor Department monitors based on call-offs on
Works or the performance of the the framework
Services supply contract and agreement.
reducing any
instructions in respect of
improving the firm’s
performance in writing.
15. Make payment The Requisitioning Payments will be
Department submits related to the types
invoices from the and quantities of
supplier to the Stationery items
Procurement supplied.
Department for Review.
The Procurement
Department ensures
that invoices are in
accordance with the
Terms and Conditions of
the Contract and
approves the payment.
The Finance
Department makes
payment to the supplier.
16. Report on The Requisitioning The report is prepared
Performance of Department prepares at the end of the
the Provider the Vendor Performance contract period. It may
Form and submits same also be prepared
to the procurement unit quarterly or half yearly
for its during the duration of
records. the
framework agreement.

This basic Procurement Handbook provides guidance for the

procurement of relatively simple and straightforward goods,
works and non-consulting services.

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Detailed guidelines for more complex procurements can be

found in the Comprehensive Handbook to Procurement,
Retention and Disposal of Public Property, and in the General
and Special Guidelines at the OPR’s website ([Link]).

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