UPH Review and Recommendation 2019

1. Overview

Project Name

[insert]

Reference number(s)

[Annual procurement plan and/or business unit reference number]

Brief background overview

Estimated procurement value

(incl whole of life costs, based on term of engagement)

$ (AUD) (excl GST)

Funding source

(Code or Grant number)

[insert]

Overall project budget amount

$

Contract type

[insert name of contract type or purchase order]

Faculty & School; or

Division & Department

[insert initiating area]

Length of contract

(incl extensions)

Initial term: [insert]

Extension period(s): [insert]

Estimated benefit

Note, 3-5% is benchmark against estimation

· Cost reduction (% or $)

· Cost avoidance (% or $)

· N/A

Financial year

Choose an item.

Business representative

[insert name and position]

Procurement Risk

Choose an item.

Budget Owner

[insert name and position]

Establish panel

Choose an item.

Procurement Lead

[insert name and position]

Invite suppliers from panel

https://www.fin.unsw.edu.au/policies

Choose an item.

[Name of panel] [add or delete]

2. Approvals

Status

Name

Position

Signature

Date

Comments

Submitted by

Supported/Not Supported

Approved/Not Approved

Note:

· This document does not require financial delegation approval (DOA) at this stage in the process

· DOA should be considered for high risk and/or high value goods and services

· DOA must occur at recommendation of a preferred supplier(s) stage.

· By signing this document, you confirm that you understand your duties and obligations to the University with respect to identifying actual, perceived or potential conflicts of interest between your personal interest or duties to other parties. Should a conflict arise, you will disclosure of all relevant facts and circumstances and complete a Disclosure Statement and notify your supervisor, manager or head of faculty/department promptly after becoming aware of a conflict.

3. Activity Details (refer to section 9- Policy Guide)

Type of activity

Choose an item.

Procurement threshold

Choose an item.

Is this Strategy seeking an exemption from the minimum quotations?

Choose an item.

Name of invited suppliers

[insert supplier names]

Project information/Key Considerations

[include high level scope requirements and specific outcomes sought]

Market research

[insert brief market analysis relating to suppliers invited]

Statement of requirement

Choose an item.

Conflicts

[enter any declared conflicts and specify any attachments]

If you have already completed the activity and wish to also recommend your preferred supplier(s), please attach the recommendation and ensure the Financial Delegate has approved the recommendation

Recommendation Document

Choose an item.

Strategic Procurement

Procurement Strategy

Procurement Strategy (all UNSW procurement activity)[Name of Activity]

Procurement Strategy (all UNSW procurement activity)[Name of Activity]

*PLEASE DELETE this section if you are seeking the minimum quotes in accordance with the policy

4. Exemption Details

If you wish to proceed outside of the procurement Policy this section will guide you to provide relevant justifications against the 4 ICAC Principles and direct negotiation considerations that can be found by visiting https://www.fin.unsw.edu.au/unsw-suppliers

Type of exemption

Choose an item.

Number of quotes required by the Policy

[insert no of quotes required]

Have you considered any UNSW Supplier or UNSW Panel Supplier to perform the requirement?

You can find UNSW suppliers by visiting https://www.fin.unsw.edu.au/unsw-suppliers

Have you considered any alternatives to this product or service?

How is UNSW ensuring that value for money is being attained through a limited test of the market?

Do you have access to clear documentation for establishing a financial benchmark – e.g. rate card, existing panel arrangement, existing contract, expert advice, previous and recent market test?

Describe how UNSW is still able to obtain value for money?

· Have you performed cost-benefit analysis or similar study?

· Have you obtained an independent estimate of the price or financial consideration?

· Are you considering an “open book” relationship with the supplier for greater transparency on the breakdown of costs including sub-contractor and consultant costs

Have any suppliers expressed interest in the supply of the goods or services who are not being invited to submit (and therefore have the potential to challenge the process)?

Have you already obtained a written quote from the supplier(s) against set requirements, specification or scope of the services prior to completing this form?

Can the proposal be readily delivered by competitors?

Does the supplier own something that would limit UNSW from contracting with other parties if the opportunity went to tender?

Can you ensure segregate duties and confirm that there are no conflicts of interest in relation to the procurement approach?

Can you ensure that the decision to enter into direct or limited negotiations and the reasons for it are recorded (and publicly accessible >$150k incl. GST), so an auditable document rail is established?

Procurement Strategy (all UNSW procurement activity)

[Name of Activity]2

Procurement Strategy (all UNSW procurement activity)

[Name of Activity]3

5. Risk Assessment

Have you engaged Finance for a financial assessment and Treasury for any hedging requirements if the supplier(s) is/are from overseas?

Suppliers excluded may raise complaints with UNSW or other government bodies. Do you ensure that the procurement approach is fact-based and can be validated? Can you confirm that evaluation criteria and evaluation methodology have been clearly defined so supplier selection can be justified?

Can you ensure that the specifications have not been developed to favour a specific supplier or are too specific such as to limit market interest?

Can you confirm that the decision-making process is well documented and aligned with UNSW objectives and financial delegations?

Can the procurement activity cause adverse media attention? Can this procurement activity impact academic courses, research activity or staff? If yes, ensure that appropriate level of sign-off is received

Is the contract that you intend to use a standard UNSW precedent contract or a supplier’s contract? If non-standard is being used, you should engage with Legal.

Can you confirm that the Intellectual Property will remain the property of UNSW?

Can you ensure that the members of the Project Team and relevant assessors have the knowledge and skills to carry out the required tasks and support the selection of the preferred supplier?

Can you ensure that members of the Project Team and other related stakeholders are clear on their roles and responsibilities?

Can you confirm that relevant perceived, potential and actual conflict of interests have been declared and mitigated if required for all individuals directly involved in the procurement process?

Can you confirm that all suppliers will receive the same level of information and that no suppliers have been receiving an unfair advantage?

Can you confirm that all confidential information is kept secured?

Do you confirm that there are no conflicts of interest in relation to the procurement approach?

Download Conflict of Interest form at https://www.fin.unsw.edu.au/services/procurement/templates

If you have a formal risk assessment, please attach to this document or state N/A or Attached

N/A or Attached

*PLEASE DELETE this section if the activity type is a Direct Negotiation or mark N/A

6. Evaluation

Evaluation Criteria

Weighting

[insert]

(%)

[insert]

(%)

[insert]

(%)

[insert]

(%)

[insert]

(%)

Total

100%

Evaluation team (an odd number of members is recommended for the evaluation team)

[insert e.g. Technical]

[insert e.g. Capability]

[insert e.g. Commercial]

Methodology

Non pricing methodology

The scores for each criterion excluding any pricing criterions will be based on the scoring regime adopted and multiplied by the percentage allocated and divided by ten. This methodology will assign a total weighted score for each Supplier. The formulae applied is as follows (criterion score x criterion percentage/10= total weighted score (TWS).

Pricing

(delete or enter own)

1. Price per unit – scores are based on estimated annual usage x minimum order quantity for each line item. Will calculate the total estimated annual cost for that line item providing a Whole of Life (WoL) cost. Formulae applies: Roundup (Estimated annual usage/min order quantity,0) x minimum order quantity x price per unit. This WoL cost can be compared against other Suppliers. Like for like minimum order quantities should be inspected prior to applying formulae.

2. Price weighted- The lowest price will receive the highest score in accordance with the following formulae (price weighting e.g. 25) *MIN (Supplier1 Price, Supplier2 Price, Supplier3 Price etc.)/Supplier 1 Price.

3. Value for Money (VFM)- non weighted price- VFM takes into account the non-pricing TWS and considers the price point combined without a weighting being applied to the price. The following formulae should be used

TWS/Total price *100 = VFM ranking. this is the most simplistic way of calculating ranking if pricing is non weighted.

4. [add additional fit for purpose if required]

Methodology (Overall Results)

(delete or enter own)

1. To obtain the ranking of shortlisted and/or preferred Supplier(s), the two scores from price and non-price will be added together to gain an overall total weighted score for each Supplier. The Supplier receiving the highest Total Weighted Score and who deliver the best value for money to UNSW overall will be ranked highest to lowest. Or

2. To obtain the ranking, the highest VFM ranking Supplier should be ranked as the preferred and so on based on the VFM ranking scores; or

3. [add additional fit for purpose if required]

Procurement Strategy (all UNSW procurement activity)

[Name of Activity]2

Procurement Strategy (all UNSW procurement activity)

[Name of Activity]3

7. Evaluation Guidance

Phase 2- Approach the Market & Recommendation

1.

Initial screen of response

Responses assessed as either complying or non-compliant with any conditions of participation or minimum form and content requirements, as specified in the requirement.

Phase 2- Detailed evaluation, Risk and Shortlist

2.

Evaluate

Responses can be evaluated against the criteria set out for the requirement.

The evaluators can review, evaluate against the criteria and use any information obtained in the collection of responses to assess.

This may include:

(a) individually or collectively scoring responses

(b) recording strengths, weaknesses, risks and clarifications

(c) participating in moderation meetings to review scores, discuss and agree on scores for shortlist (if required)

(d) scores can also be averaged if preferred

(e) issue list of clarifications or questions to the supplier

3.

Nominate your preferred supplier(s)

Evaluators may:

(a) conduct discussions, further clarify and negotiate with shortlisted suppliers (if required)

(b) consider value-add initiatives

(c) conduct reference checks, site visits, presentations, financial viability checks and distribute information to evaluators

Identify:

· Overall weighted score and ranking for each supplier

· Recommended short list or identify preferred supplier

· Identify key issues or risks to be address during negotiation (if any)

4.

Negotiate

Evaluators may:

(a) draft a negotiation plan (gap list/term sheet) for the supplier(s)

(b) facilitate negotiations with relevant stakeholders and supplier(s)

Scores and supplier ranking can be updated during this phase.

Phase 3- Evaluation Summary

5.

Prepare evaluation summary

An artefact (recommendation report or other) should be drafted, summarising the process and the evaluation results. Evaluators should endorse the recommendation and the Financial Delegate must approve the recommendation, including total expenditure.

Phase 4- Contract execution and handover

6.

Execute contact or raise a purchase order

(a) A contract or purchase order will be prepared with preferred supplier(s), based on the evaluation outcome.

(b) If you have a contract artefact, the financial delegate must execute the contract. An executed electronic copy must be saved in a approved system of record. Please send your final contract to records@unsw.edu.au for appropriate records management. GIPA requirements must be met for contracts with a value of $150,000 >

(c) When requesting a purchase order from your FST representative, please ensure you attach the recommendation summary with the approval you have obtained from the financial delegate.

(d) Unsuccessful supplier(s) to be notified and offered the opportunity of a debrief

8. Proposed Procurement Timeframes

Phase 1- Procurement strategy & planning

· Plan your requirement

· Obtain approval to proceed to approach the market

2 weeks [amend as required]

Phase 2- Out to market

· Release to market a request for submissions/responses

· Answer queries from suppliers, provide clarification and if required hold industry briefing(s)

4 weeks (publication time)

[amend as required]

Phase 2- Evaluation

· Review and assess submissions

· Clarifications sent (if required)

· Review contract departures

· Agree on scores, ranking, shortlist, or preferred supplier(s)

3 weeks

[amend as required]

Phase 3- Recommendation

· Complete any final due diligence checks (incl credit reports, if necessary)

· Draft recommendation for preferred supplier(s)

· Finalise contract

· Complete statement of requirement for contract schedule

· Engage legal to review any high- risk departures from the contract (if required)

· Obtain Financial Delegate Approval to proceed to award preferred supplier(s)

2 weeks

[amend as required]

Phase 4- Contract execution and handover

· Complete any final negotiations (if required)

· Mutually execute contract (supplier & UNSW financial delegate)

· Submit a new vendor (if required) to Accounts Payable to create

· Raise a purchase order and attach approvals received

· Deliver de-briefs to unsuccessful suppliers

· Provide executed contract to records@unsw.edu.au

2 weeks

[amend as required]

Total time

Note, the average procurement timeframe for high value strategic procurement is between 14- 16 weeks dependent on the scale and complexity of the activity. Multi- stage procurement activities should consider a timeframe of 21- 26 weeks to ensure stage gates are assessed and closed appropriately

13 weeks [amend as required]

9. Policy Guide (should you not wish to include for approvers, please delete this section)