Slide 1

Commodity Profile & Strategy for the [Contract / Framework Agreement] for: [insert]

Reference: [insert]For info – delete text prior to issue

This strategy document is also commonly referred to as a procurement or purchasing strategy. The strategy is used in the planning stage of any procurement to determine how key issues will be addressed e.g. route to market, CSR issues, pricing strategy etc which is then translated into the

procurement process and documentationIt identifies and minimises risk and assists in ensuring all key factors have been taken into account

when conducting the procurement leading to fit for purpose and VFM.

The term ‘commodity’ is a common procurement terms used to refer to any purchase.

© APUC LIMITED 2009- See terms of permitted use on the Sector Procurement Manual’s Home page

Slide 2

Version Control

Version Name Date Completed Comments

When drafting and amending the Profile & Commodity Strategy, the Procurement Officer should complete the above table to ensure changes can be tracked and queries can be directed to the appropriate User Group member/others as appropriateWhen drafting and amending the Profile & Commodity Strategy, the Procurement Officer should complete the above table to ensure changes can be tracked and queries can be directed to the appropriate User Group member/others as appropriate

Slide 3

Procurement Decisions & AuthorisationsComplete from the Decision Tree questions prior to completing rest of Strategy

Record & retain decision for audit

trail, abort planned procurement and delete remainder of Strategy slides

Yes

No

Can you utilise an internal,

unused or now surplus to

requirements resource? E.g. AUPO surplus

equipment scheme.

Requirement to be procured as a Cat C or C1 [insert which

applies]?

Estimated Cost [insert £ value excl VAT]

Budgetary Authority: approval obtained by [insert name & date]

Purchasing Authority: approval of Procurement

Officer to procure the requirement given [insert

name & date].Proceed with completing

Commodity Strategy

Slide 4

Except where stated as optional, below is the recommended mandatory minimum contents of the Profile & Commodity Strategy. Other slides can be added on a commodity specific basis as appropriate. Further slides are contained in the Scottish Public Sector Toolkit

Contents Slide Number• Version Control 2•Procurement Decisions and Authorisations 3• Consultation with HoP (delete slide prior to issue for signoff) 5• Executive Summary 6• User Group role & Input 7• Stakeholder Contacts 8• Business Requirements 9•Scope 10• Expenditure Analysis 11• Total Cost Model (OPTIONAL) 15• Supply Market Overview 17• Benchmarking Opportunities 21• Risk Analysis - Including Barriers to Change 22• Corporate Social Responsibility 23• Strategic Tendering Options 26•Prior Information Notice 28• ITT Considerations 29• Information re evaluation of references, site visits & presentations 31•PQQ/Tender Award & Weighting Criteria 32• Contract Implementation 35• Strategic Contract Management 37• Commodity Project Plan 38• Commodity Life Cycle & Technology Roadmap (OPTIONAL) 39• Supply Chain Considerations (OPTIONAL) 40• Sign-Off 41

Contents:

Slide 5

Recommended consultation with the Head of Procurement

Procurement Officers should seek advice from the HoP in the following circumstances:

where Single Tender Action (non competitive action) is proposed

where a procurement has a strong potential to influence CSR issues

where an extension to a contract or framework agreement is proposed

where the negotiated procedure, competitive dialogue, or dynamic purchasing system is the proposed tendering option

where it is proposed to shorten the EU minimum tendering timeframes or use the Accelerated Restricted procedure (NB use of the Accelerated Restricted MUST be highlighted in the Contract Notice. For further information about the Accelerated Restricted Procedure please refer to this Scottish Procurement Policy Note (SPPN 1 2009): http://www.scotland.gov.uk/Resource/Doc/1265/0076383.pdf)

where it is proposed that the duration of a framework agreement will exceed 4 years

where TUPE may apply

Slide 6

Executive Summary – Procurement Officer to complete this slide after completion of the Strategy and prior to forwarding for agreement by the User Group and sign off by the Head of Procurement

Current status: [list]

Spend – total versus addressed: [list]

Scope: [detail]

Strategic recommendations and reasoning: [detail]

Benefits – how much, how, by when? Examples:

Price parity opportunities of £a achievable by DATE

Benchmarking opportunities of £b achievable by DATE

Market competitiveness £c by DATE

Product standardisation/ rationalisation potential of £d, assuming xyz by DATE

Supply chain redesign, moving to ex-works, £e by DATE

Any major barriers to success: [detail]

Slide 7

User Group Role & Input

Procurement Officer to agree with the User Group their role, responsibilities, input and actions at each stage in the strategic sourcing process e.g.

Procurement Officer to agree with the User Group who will agree the final draft of the key stage documentation e.g. all or a nominated number of User Group members re the strategy, award recommendation etc

[if applicable]: Procurement Officer to agree with the User Group the role User Group members will play in PQQ evaluation [insert] e.g. Procurement Officer to evaluate all sections of PQQs and the User Group to evaluate Part E only

PPS to agree with the User Group the role the User Group members will play in ITT evaluation [insert] e.g. Procurement Officer & User Group (or nominated individuals) to evaluate technical aspect of tenders and Procurement Officer to evaluate commercial aspects etc.

PQQ/ITT results will be revealed by the [overall weighted results/ the average] of Tender Evaluation Board scores etc

Refer to: User Group Interface Model - detailing actions required in the various stages in the procurement

process

Slide 8

Stakeholder (& User Group) Contacts for [Contract/Framework Agreement]

List names and contact details of all stakeholders relevant to this commodity:

Name Job Title Division Contact Tel E-mail

Slide 9

Business Need and Functional Requirements

XXXXXXXXXXXX

Institution Requirements

Where we are…Where we are…

What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications

Consider the procurement innovation issues for highly complex procurements

What does the commodity do, standard v customised, level of customisation, quality requirements, real v perceived function, service requirements, user perception, value to institution, specific specifications

Consider the procurement innovation issues for highly complex procurements

Where we want to beWhere we want to be

NB use of generic specifications – if these don’t exist the User Group needs to start working on them as soon as possible

NB use of generic specifications – if these don’t exist the User Group needs to start working on them as soon as possible

Slide 10

Scope of [Name of Commodity]

Scope the commodity to be covered i.e. what is included in this commodity group, breakdown into sub-commodities, which products fall under which sub-commodity.

•Cleaning & Hygiene systems for kitchen and general cleaning

Cleaning MaterialsCleaning Materials

Laundry ChemicalsLaundry Chemicals

Hygiene Care PlansHygiene Care Plans

Cleaning and Laundry

•Detergents•Disinfectants•Oven Cleaner•Deodoriser•Furniture Cleaning Products•Soap Powder/Tablet for dishwashing•Alcohol / Detergent Wipes

• Laundry Detergents• Laundry Conditioners• Laundry Bleach

Potential Future Developments

Potential Future Developments

Cleaning EquipmentCleaning Equipment

•Floor Pads•Cleaning Bucket•Brush’s•Mop’s and associated equipment•Disposable gloves – PVC / Marigold, initial discussion with medical category identify a potential to purchase from medical contract

Example

Slide 11

Expenditure Analysis - Spend Distribution

In scope spend broken down by supplier and by sub-commodities: [detail]

What is the value of the requirement? How does this inform the procurement process?

Procurement Officer to add an acknowledgement, for future reference, of the source(s) of data used: Procurement Officer to add an acknowledgement, for future reference, of the source(s) of data used:

Slide 12

Future Expenditure Trends

Demand Profile: [insert]

Slide 13

Spend Analysis & Conclusions

Demand Profile: [insert]

Slide 14

[Commodity] - Typical Cost Breakdown

Profit 10%Complete the breakdown for the commodity

xxxxxxxx

What are the recommendations

Recommendations

Slide 15

Total Cost Model [Name of Commodity] (OPTIONAL)

List the activities carried out under each step of the product life cycle, Determine the impact of each step on the total cost of ownership in terms of High, Medium or Low, Brainstorm the cost drivers associated with the activities under each step, Determine the opportunities in each area. Which costs can be reduced (savings)/avoided (cost avoidance)?, Identify Low, Medium and High Savings Opportunities, Identify the barriers and enablers related to realising the opportunities

Raise Need Acquire / Order Use Dispose

Activities:

Impact:(on TCO )

Cost Drivers:

Savings Opportunity:

Barriers:

Enablers:

Slide 16

Total Acquisition Cost (OPTIONAL)

Sample Cost DriversSample Cost Drivers

Uniform specification and range

Delivery frequency and location

Order frequency

Order value

Requisition to P/O

Returns

Queries

Reporting

Goods receipt

Sewing Rooms

Delivery

Uniform specification and range

Delivery frequency and location

Order frequency

Order value

Requisition to P/O

Returns

Queries

Reporting

Goods receipt

Sewing Rooms

Delivery

Supplier Costs Total Acquisition Costs Organisation’s Costs

ProductDrivenCosts

Customer Driven Costs

OrderFulfilmentCosts

Cost Drivers e.g:

•Product specification and range

• Delivery frequency and location

•Order frequency

•Order value

•Lead time

•Material• Labour•Overheads•Warehousing•Special tooling

•Quality specifications•Defects/rejects/returns•IT Costs•Customer support•Sales

AdministrationCosts

OrderFulfilmentCosts

OrderFulfilmentCosts

OrderFulfilmentCosts

•Inventory handling•Transportation•Picking & Packaging

•Requisition to P/O•Order Transmission•Expediting•Invoice Reconciliation•Timely Payment•Queries•Reporting

•Defects•Inspection•Rejects•Repackaging•Reshipping

•Storage costs•Labour•Overheads

•Goods receipt•Delivery•Requisitions

Example acquisition costs:

Slide 17

Supply Market Overview

Market Trends – detail what is happening in the market for the commodity, current and future technologies, changing customer demands, new players, mergers and acquisitions

Supply Market Share – detail the key players within the industry, identify size in terms of turnover, sales, number of customers and capacity

NOTE: trends are important - they reveal:

•who is winning/ losing business

•who’s trying to win market share in the UK

•whose business objectives match the sector

•what do profit margins typically look like for the industry

Slide 18

Current Contract Position– [Contract/Framework Agreement]

Contract Contract Value Contract Start/End Dates (plus any extension period (s)

Comments

Slide 19

Current Suppliers of [Name of Commodity] to Institution

Current Suppliers of [Name of Commodity]Current Suppliers of [Name of Commodity]

SupplierSupplier SpendSpend Total RevenueTotal Revenue Background on the SupplierBackground on the Supplier

xxxxxx

xxxxxx

xxxxxx

xxxxxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxxxxx xxx xxx xxx xxx xxx xxx

Slide 20

Main Suppliers in the Market in Context of their Total Institution Business

SupplierSupplierInstitution Spend on

Commodity

Institution Spend on

Commodity

Institution Total Spend

Institution Total Spend

Other commodities supplied; recent Institution business awards or losses; other business they are tendering for…etc

Other commodities supplied; recent Institution business awards or losses; other business they are tendering for…etc

xxxxxx

xxxxxx

xxxxxx

xxxxxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxxxxx xxx xxx xxx xxx xxx xxx

Slide 21

Benchmarking Opportunities

Product Pasa Price NHSS Price

Notes

Apron Yellow 25mu 1.90 1.82 -

Apron Clear 20mu 1.57 1.77 -

Apron Blue 20mu 1.90 1.82 -

Yellow Clinical Waste 26mu

12.48 15.93 -

Black Houshold waste bag

12.66 10.08 PASA currently use only the 30&40mu, NHSS use 50,40&30mu. Those Health Boards that are using the 50&40mu are currently being identified with a view to standardising to the 30mu

EXAMPLE

Look to understand opportunities from: what the Institution currently pays; and, from benchmarking with other organisations e.g. PASA, Value Wales, N Ireland Procurement Service, OGC, Scotland Excel, councils, fire and police service, private sector etc

Slide 22

Risk AnalysisRisk Analysis

Description of RiskDescription of Risk

xxx xxx

Probability of Risk

Probability of Risk

High / Medium / Low

High / Medium / Low

Implications to InstitutionImplications to Institution

xxx xxx

xxx xxx

xxxx xxxx

High High

xxxx xxxx

Measures to Minimise / Eradicate Risk

Measures to Minimise / Eradicate Risk xxxx xxxx

xxxx xxxx xxxx xxxx

xxxx xxxx xxxx xxxx

Risk Analysis for [Name of Commodity] Inc Barriers To Change

Slide 23

Corporate Social Responsibility (CSR)

Procurement Officer & User Group to consider CSR issues relevant to this procurement:

General issues: [list]

Result of the Risk Coding Analysis for [goods/services] regarding relevance and risk: [detail results: Equality: X, Environmental/Sustainable: X , WEEE/disposal: X, Social issues: X ] and the impact will be managed by [detail]. NB: The risk coding analysis results inform the degree of relevance and risk in the above 4 areas associated with the commodity being procured. Taken together with the outcome from completion of the SPRAT (see below), this will enable the PPS/User Group to accurately target these areas in the PQQ/ITT CSR Questionnaire.

Completion of the Sustainable Procurement Risk Assessment Tool (SPRAT) for [goods/services]: The resulting actions are required to be managed by [detail] NB: areas may already be adequately covered by the existing CSR questions.

PQQ CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by PQQ applicants

ITT CSR Questionnaire (if applicable): exclude any questions which are not relevant to the commodity and do not require completion by tenderers

CSR Guidance from Scottish Government and EAUC resource bank ITT Statement of Requirements: consider the applicability of the Buy Sustainable-Quick Wins product specifications detailed in

SPPN 15/2008. NB: these contain a set of sustainable specifications covering a range of commonly purchased products and are considered best practice

* Part of the AUPO revised CSR Toolkit (the Risk Coding Analysis and SPRATS have been created by the Environment Agency on behalf of the UK Government)

Slide 24

CSR

SMEs, Supported Businesses & Social Enterprises* including Social Issues** & Community Benefits:

barriers to participation identified as: [insert]. The proposal for removing barriers to participation is [detail] e.g. lotting, sub-contracting opportunities, consortium member etc.

Further information relating to SMEs is contained in SPPN 2/2009 and SPD Buyer’s Guide. Identification of any social clauses or community benefits relevant to this procurement: [list]

NB: areas may already be adequately covered by the existing PQQ/ITT CSR Questionnaire.

Reserved Contract under Regulation 7 of the EU Procurement Regulations: applicable to the contract/framework agreement?: [Yes/No] and brief reason if not [detail]. Refer to Paragraph 3.5 of the Procurement Manual for guidance.

*refer to Procurement Manual for information on supported businesses and social enterprises.

** social issues might broadly be defined as issues which impact on society or parts of society and cover a range of issues including equalities issues (i.e. age, disability, gender, race, religion and sexual orientation), training issues, minimum labour standards and the promotion of small and medium-sized enterprises (SMEs), including black and minority ethnic enterprises and the third sector including social enterprises. Refer to SPPN 03 2008 for community benefits guidance or SPPN 06 2007 for social issues guidance

Slide 25

CSR

Race Equality – Impact AssessmentTo determine whether race equality is a core requirement in a contract or framework agreement for goods, services or works, the following questions should be considered:

1. What is to be provided under the contract or framework agreement? [list]

2. Is the provision of the goods, services, or works one of the functions or policies relevant to meeting the duty to promote race equality? [Yes/No]. Refer to Section 6 of the Procurement Manual

3. Is the provision of the goods, services or works likely to affect (directly or indirectly) the ability to meet the duty to promote race equality? [Yes/No]

4. Is it necessary to include requirements for promoting race equality in the contract to make sure the duty is met? [Yes/No]

5. What race equality requirements are appropriate for the contract or framework agreement? [list]

If the answer to questions 2, 3, or 4 is ‘Yes’, race equality is a core requirement. Refer to paragraph 3.7 of Procurement Manual which details how and where race equality should be implemented into the strategic sourcing process.

Slide 26

Strategic Tendering Options

On the basis on the internal and external analysis, plus opportunity assessment, detail the available options and the pros/cons of each. Several examples are detailed below:

Option 1: Extend current contract (if provision within contract to do so) Pros: analysis shows limited opportunity in this area compared with rest of portfolio, would

achieve savings whilst minimising resource effort; Cons: will not optimise savings as suppliers looking for volumes commitments which is

dependant on extended work with stakeholders

Option 2: Use APUC framework for next 12mths to allow quick win and gathering of better management information

Pros: initial assessment shows saving of 3% on contract, this could be quickly implemented and allow management information to be collated as currently data is poor

Cons: comparisons with industry suggest savings of 20% if had Institution commitment contract

Option 3: Institution to tender for a Category C/C1 contract for x years, with the aim of being in y position in z period of time e.g. product rationalisation as part of contract requirements. Intention would be dual supply award to maintain competitive tension etc

Pros: formulise requirements Cons: resource effort involved given other portfolio opportunities have higher potential

Slide 27

Strategic Tendering Options

Lead-In Period - detail period required: NB: consider the period for implementing the commodity onto PECOS agreed with your local ePS team during the project start up stage

Extension Period: detail any proposed period (s): [insert]

Tendering route to demonstrate competition: following the [e.g. Open/Restricted] procedure [using an e-auction] because [insert justification]

[delete as applicable] A Contract will be established OR

A Framework Agreement will be established as follows:

framework route: [single supplier/multi-supplier]

multi-supplier framework lots: [insert number proposed] and the justification for this is: [detail]

Call Off Contract mechanism: [direct/ranked/ mini competition] and the justification for this is: [detail]

Prior Information Notice (PIN)

Use of PINs is not mandatory. PINs can be published through OJEU in order to alert the market to forthcoming contract opportunities.

Once a PIN has been published, reductions in timescales for competitions identified in the PIN are possible.

PIN should be published at least 52 days before and not more than 12 months before the contract notice.

The PIN should contain details of supply and services contract for which the public body expects to seek tenders in the next 12 months.

PINs must be published on OJEU website (this can also be done through the Public Contracts Scotland website).

Slide 28

Slide 29

ITT Considerations (particularly relevant to consider at this stage in more detail when the Open Procedure is proposed so as to reduce the time taken to compile the ITT at the ITT composition stage)

Statement of Requirements (SoR): the main areas and issues needing to be inserted into the SoR are: [detail]

IPR: [IPR does/doesn’t apply]. If IPR applies, the impact is [detail]

TUPE: establish if TUPE is likely to apply: [Yes/No]. If yes, obtain the following detail for insertion in Schedule 4 of the ITT: name(s), sex, employment location of individuals who may be subject to TUPE and consult with the HoP or Human Resources or seek legal advice.

Monitoring & Evaluation: • View the core areas detailed in Schedule 4 of the ITT and detail the KPIs to apply: [insert]

• Will KPIs be for information only? If there are to be consequences if KPIs are not met this should be referenced in the ITT Schedules 2 and 6.

• Detail any other performance indicators or management reports required (other than detailed already in Schedule 4 of the ITT): [insert]

Pricing Strategy: detail the how the commodity will be priced (taking into account whole life costing and cost

avoidance). Can an e-Auction be utilised for this commodity? [yes/no] State the period of price stability (e.g. 1 year etc) and the reasoning for this: [insert]

Slide 30

ITT Considerations

Mechanism for addressing variation in the charges e.g. via RPI/CPI etc: [detail]. More info can be found at www.statistics.gov.uk/statbase/product.asp?vlnk=868

State the payment period: [detail] NB: if no date is inserted, the default position under the Late Payments of Commercial Debts Act 1998 is 30 days

Parent Company Guarantee: state if either is to be included in the ITT for the framework agreement and/or call off contracts or a contract and why use would be beneficial: [detail]

Ts&Cs: list any clauses required over and above the standard ts&cs: [list]

Questions for tenderers (to populate Schedule 6 of the ITT): [detail in outline]

Part B services: If the procurement is considered to be high risk/high value, a standstill period should be considered (with reference to Federal Security Services Ltd vs Police Service of Northern Ireland).

Information re Evaluation of References, Site Visits, and Presentations References: In a Restricted procedure, ascertaining an applicant’s past experience in terms of “technical or professional ability” (as determined by

Regulation 16(7)(b)(ii) of the Public Contracts (Scotland) Regulations 2006) can be included in a Pre Qualification Questionnaire as a section criteria.  Written evidence of past performance, which can be objectively evaluated, can be used but it is not recommended written evidence is used as a Minimum Standard. Standard forms can be used to request references , but returned references should then be used for information purposes only.

 The above also applies to an Open procedure.

 Site visits: If a site visit is required before tender return i.e. to be used to inform tenderers more clearly regarding the outputs of the requirement

e.g. visit to an Institution's property or visit to a new build, then this is not evaluated.

If a site visit is deemed to be required post tender return and as part of evaluation process (because the information to be ascertained from the site visit directly relates to the subject matter of the Contract or Framework Agreement), this must be detailed as an award criteria in the Contract Notice or ITT, be capable of evaluation, and make clear what is being assessed in the site visit.

 Presentations: If a presentation is deemed to be necessary as part of tender evaluation and/or bid clarification,  it can only be used for information

purposes and cannot be detailed as an award criteria in the Contract Notice or ITT and used to evaluate tenders because it is subjective, and not capable of objective evaluation i.e. performance at interview is not an evaluation criteria. 

Evaluation of a presentation’s written output is permissible where as part of bid clarification tenderers are requested to present on common areas in the submitted tenders (which following tender evaluation have been revealed to be areas where clarification would be needed).  These areas cannot be in addition to the award criteria detailed in the Contract Notice or ITT. 

Ensure any area of concern remaining after the presentation is followed up in writing as part of bid clarification.

Slide 31

Slide 32

PQQ Selection CriteriaFurther information OGC Selection/Award criteria PPN

Part A – Background Information Part B – Economic & Financial Standing

Part C – Conviction of Criminal Offences

Part D – Business Probity

Part E – Technical & Professional Ability

NB - If restricting number of PQQ applicants, the minimum**/maximum number able to participate is: [number]. NB: clarify if this number relates to per lot or to the overall framework

** minimum number must be 5

Part A - Section not scored – for info only

Part B - Insert minimum standards in the Contract Notice or list as objective criteria in section III.2 in the Contract Notice - Institutions should follow their own guidelines for Financial Analysis. See APUC’s of Financial Analysis of Accounts* for recommended levels. NB: if minimum standards are set and aren’t met, the applicant should be excluded from the process

Part C - If the applicant answers ‘Yes’ to any question they MUST be excluded from the process

Part D - If the applicant answers ‘Yes’ to any question they MAY be excluded from the process

Part E - If minimum standards are set and aren’t met, the applicant should be excluded from the process otherwise use objective scoring criteria to shortlist those applicants meeting minimum standards

* Institutions can access APUC’s guidance composed for conducting the collaborative procurements, use alternative or in-house resources

Selection Criteria:

REFER TO PQQ GUIDANCE NOTE

Criteria:

EXAMPLE

We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

Slide 33

ITT Award & Weighting CriteriaFurther information OGC Selection/Award criteria PPN

Award Criteria: award criteria is based on [MEAT/lowest price]

Price Quality Ratio:[insert]

Weighting Criteria:

EXAMPLE

We need to ensure that we are able to objectively score against each award criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

We need to ensure that we are able to objectively score against each award criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

Minimum Standards (if necessary)Service Delivery – Details Requirements PASS/FAIL

Service Delivery – Detail Requirements PASS/FAIL

CSR – Detail Requirements PASS/FAIL

Supplier Stability & Viability – Detail requirements PASS/FAIL

EXAMPLE

PQR Weighting (%)

Award CriteriaSub-

weighting (%)

In this example the headings below are for six award criteria. All questions to be asked of tenderers in the ITT must relate to this criteria and have corresponding weighting. Any sub-criteria and weightings must also be listed. Refer to ITT Schedule 6 for further info.

Price 40% - 100%

Quality 60%

Service Delivery 20%

Design Scenarios 25%

Staffing 5%

Project Planning & Implementation 25%

Warranty & Support 10%

Continuous Improvement 15%

Slide 34

ITT Call Off Contract Award Criteria

[insert criteria] [insert weighting]

Award Criteria:award criteria is based on [MEAT/lowest price]

Price Quality Ratio:[insert]

Weighting Criteria:

EXAMPLE

We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

We need to ensure that we are able to objectively score against each criteria (and any sub-award criteria) and there is consistency & transparency right through the strategic sourcing process

Slide 35

Contract Implementation – Lead-In Period

Detail what will need to happen, when, and whose responsibility is it to e.g.:

Conduct product trials (if applicable) Start running down stocks of current product ranges (if applicable) Prepare/ complete any required training Clarify supplier change management/ implementation expectations Ensure smooth transition Follow-up on progress

Note requirements for completion later in the strategic sourcing process: Systems updates, Savings notification Notification and award letters Buyers Guide/ Commodity Action Report (CAR) etc

Slide 36

ePS Trading Strategy

Detail how End Users will see and access the [Contract/Framework Agreement] content in PECOS:

1. Use APUC’s Supplier Report showing ePS active suppliers through Institutions & ePS Supplier Report to determine PECOS:

Content Availability

Connection Type

2. Develop a list of specific and general ePS issues / requirements relevant to the commodity:

[list]

Plan how these will be accommodated on PECOS: [detail]

3. Decide PECOS trading strategy:

on catalogue

Catalogue

Punchout

Slide 37

Strategic Contract Management

All contracts or framework agreements will be contract managed by the Procurement Officer (or delegated officer(s). Refer to Schedule 4 of the ITT for Procurement Officer and User Group roles and responsibilities.

Note that once the pan Scotland strategic contract management guidance, processes, and templates are

available, these will be incorporated into the strategic sourcing documentation.

Slide 38

Commodity Project Plan (complete as applicable)

Open Procedure Complete and attach the Commodity Project Plan

Restricted Procedure Complete and attach the Commodity Project Plan

Competitive Dialogue Procedure Complete and attach the Commodity Project Plan

Negotiated Tendering Procedure Complete and attach the Commodity Project Plan

E-Auction in an Open or Restricted Procedure Complete and attach the Commodity Project Plan (open)

Complete and attach the Commodity Project Plan (restricted)

Slide 39

BMS DES Branched DES

Bio absorbable DES

1999 To 2005 2005 to 2007 Future

Pric

e

Now ??

Commodity Life Cycle & Technology Roadmap Considerations (OPTIONAL)

•By looking at product developments in the context of life cycles we can estimate the time based impact on price

EXAMPLE

Product Introduction

Early Adoption

Product Maturity

Product Decline

Life Cycle

Technology Roadmap

•By understanding where a product is in its lifecycle we get an insight into suppliers likely approach to price and market share

Slide 40

Supply Chain Considerations (OPTIONAL)EXAMPLE

Mapping the Supply Chain will allow institution to understand additional benefits to it from the restructuring of the Supply Chain

Mapping the Supply Chain will allow institution to understand additional benefits to it from the restructuring of the Supply Chain

Distributor link to be removed going forward

Dispatched to hospital

DistributorSSS

ManufacturedUK

Dispatched to hospital

Shipped toRMS Stirling

Shipped toCardinal Health

ManufacturedMalta

RMS Healthcare65651930

Abbot

Dispatched to hospital

DistributionSSS

Direct dispatch to hospital

WarehouseSelby, UK

ManufacturedFinland (Serres)

Procare / Serres VacSax9910-208

Suction Liners

Slide 41

Commodity Strategy Sign-Off – User Group & Head of ProcurementUser Group:

NAME TITLE DEPARTMENT DATE

Head of Procurement:Profile & Strategy approved by Head of Procurement: ……………………………..

Date: …………………………

Head of Procurement:Profile & Strategy approved by Head of Procurement: ……………………………..

Date: …………………………