How to Prepare Procurement Document For Projects
An effective procurement document for projects provides all the necessary information so that prospective sellers can respond completely and accurately to your solicitation.
A well-crafted Procurement Document will elicit consistent and comparable responses and allow sellers to suggest other ways to satisfy the requirements of the products and services.
Here are the guidelines …
#1 Examine the need
You need to examine the procurement need and determine which procurement document to use.
#2 Standard forms
There is a need for you to use a standard procurement forms and templates if they are available in your organisation.
#3 Source selection criteria
There is a need for you to develop a strong set of source selection criteria based on the real need of your project. Objective criteria will probably be required when requesting bids for most goods and facilities.
However, you may find out that using objective criteria alone will be too restrictive when it comes to selecting resources such as a video producer, graphic artist, or central office site.
#4 Range of capabilities
There is a need for you to have some room to select from a range of capabilities a d experience to get the best fit possible.
#5 Determine response
There is a need for you to determine how you want prospective sellers to respond to your requests.
- Must the response be provided on a specific form?
- Is there a specific format that must be followed?
- What is the deadline for proposal submissions?
- Is there any additional documentation that must be provided?
Where and to whom should the proposal be sent?
#6 Necessary modifications
There is a need for you to also examine the relevant SOW and make the necessary modifications that may have been identified when planning for contracting.
#7 Procurement structuring
You have to ensure that the procurement document is structured to facilitate consistent, comparable responses from sellers. it should include, at the minimum, the following elements :
- Reference to the relevant SOW. You may also include other relevant project documents, such as the WBS or network diagram as appropriate.
- Clear instructions for how the prospective sellers should respond.
- Any required contractual provisions such as confidentiality agreements and certifications.
- Criteria by which proposals will be evaluated.
#8 Important additions
In addition, your Procurement Document may include:
- Listing of qualified sellers to bid.
- Bidders conferences
- Supplier payment plan
- How to change request will be managed.
You also need to take into account any regulations that may define the required structure of the procurement documents for government contracts.
Typical example …
The Salesforce Automation project team is preparing a procurement document for the manufacturing of their product. After reviewing the project schedule and the scope statement, the team examines the manufacturing needs to determine the type of procurement document to be used.
Because the product has well-defined specifications, a tight production schedule, and prospective sellers will primarily be evaluated on price, the team members agree to use an RFQ. They use their organisation ‘s standard RFQ for to prepare the RFQ for this procurement project.
Before including the SOW in the procurement document, the team members review it to ensure that it accurately reflects the procurement needs and make minor modifications that they identified as necessary during solicitation planning.
The team members also develop a set of objective and subjective evaluation criteria that will be used to score and rank the quotations they achieve. High on the list of criteria is a competitive price.
The RFQ includes all of the key elements listed in the guidelines and a description of how change requests will be managed. In an effort to drive down costs, the RFQ also includes a list of sellers expected to bid on the solicitation.
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