Procurement Decisions & Authorisations

1. Commodity Profile & Strategy for the [Contract / Framework Agreement] for:[insert]Reference: [insert] Recommended for completion for procurements falling below the OJEU Threshold and above £50,000. This strategy may still be used for procurements below £50,000 if deemed appropriate.

2. Procurement Decisions & Authorisations Complete from the Decision Tree questions prior to completing rest of Strategy 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]? No Estimated Cost [insert £ value excl VAT] Yes Record & retain decision for audit trail, abort planned procurement and delete remainder of Strategy slides 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

3. Contents: • Below is the recommended 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 • ContentsSlide Number • Version Control 1 • Executive Summary 4 • Business Requirements 5 • Supply Market Overview 6 • Risk Analysis - Including Barriers to Change 8 • Corporate Social Responsibility 9 • ITT Considerations 11 • Information re evaluating references, site visits & presentations 12 • PQQ Selection Criteria 13 • Tender Award & Weighting Criteria 14 • Contract Implementation 15 • Sign-Off 16

4. Executive Summary – Procurement Officer to complete this slide after completion of the Strategy and prior to forwarding for sign off by the User Group (if applicable). • Current status:[list] • Spend – total versus addressed:[list] • Scope of requirement:[detail] • Recommendations and reasoning:[detail] • Benefits – how much, how, by when? • Any major barriers to success:[detail]

5. Business Need and Functional Requirements Institution Requirements Where we are… Where we want to be • 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 • NB use of generic specifications – if these don’t exist the Procurement Officer/User Group needs to start working on them as soon as possible XXXXXX

6. Supply Market Overview • Market Trends – briefly detail what is happening in the market for the commodity, current and future technologies, changing customer demands, new players, mergers and acquisition • Supply Market Share – briefly 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 is trying to win market share in the UK • whose business objectives match the sector • what do profit margins typically look like for the industry

7. Current Suppliers of [Name of Commodity] to Institution Current Suppliers of [Name of Commodity] Supplier Spend Total Revenue Background on the Supplier xxx • xxx • xxx • xxx xxx • xxx • xxx • xxx xxx • xxx • xxx • xxx xxx • xxx • xxx • xxx xxx • xxx • xxx • xxx

8. Risk Analysis for [Name of Commodity] Inc Barriers To Change Risk Analysis Description of Risk Probability of Risk Implications to Institution Measures to Minimise / Eradicate Risk • xxxx • xxx • High / Medium / Low • xxxx • xxxx • xxxx • xxx • xxxx • xxxx • xxxx • xxx • High

9. Corporate Social Responsibility (CSR) Procurement Officer & User Group to consider CSR issues relevant to this procurement: • General issues:[list] • PQQ CSR Questionnaire (if applicable):exclude anyquestions 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 • 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

10. 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 2007for social issues guidance

11. ITT Considerations (particularly relevant to consider this stage in more detail when the Pre Qualification is not being used) • What is the value of the requirement?How does this inform the procurement process? • 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 TUPEand consult with the HoP or Human Resources or seek legal advice. • ContractMonitoring & Management: • View the core areas detailed in Schedule 2 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 5. • Detail any other performance indicators or management reports required (other than detailed already in Schedule 3 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? • State the period of price stability (e.g. 1 year etc) and the reasoning for this: [insert]

12. Information re Evaluation of References, Site Visits, and Presentations References: Ascertaining an applicant’s past experience in terms of “technical or professional ability” can be included in a Pre Qualification Questionnaire (if it is used) as a section criteria using written evidence of past performance which can be objectively evaluated. 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 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 advert 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 advert or ITT.  Ensure any area of concern remaining after the presentation is followed up in writing as part of bid clarification.

13. Part A – Background Information Part B – Conviction of Criminal Offences Part C – Business Probity Part D – 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 Part A - Section not scored – for info only Part B - If the applicant answers ‘Yes’ to any question they MUST be excluded from the process Part C - If the applicant answers ‘Yes’ to any question they MAY be excluded from the process Part D - 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 PQQ Selection Criteria (if applicable)Further information OGC Selection/Award criteria PPN EXAMPLE We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

14. ITT Award & Weighting CriteriaFurther information OGC Selection/Award criteria PPN EXAMPLE EXAMPLE We need to ensure that we are able to objectively score against each criteria and there is consistency & transparency right through the strategic sourcing process

15. 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 process: • Systems updates • Savings notification • Notification and award letters

16. Commodity Strategy Sign-Off Profile & Strategy approved by Head of Procurement/ Budget Holder: Name:…………..………………… Date: ……………………………..