| PREPARATION [top]
The people who are most able to influence procurement timescales
are departmental senior management with input from other stakeholders.
If we cannot obtain a satisfactory response to the following questions,
procurements will suffer delay and disappointment: we would be embarking
on a journey unprepared:
- Why are we undertaking this project? What is it required to
achieve? What assumptions have been made?
- What are the business drivers and constraints? Whatwill constitute
success? Who are the key senior stakeholders – do they understand
and agree?
- Does the project fit with the business strategy and programmes?
- Is the business case sound? Have all the life cycle costs been
assessed, including staff, training, accommodation and costs in
running the competition? Is the requirementaffordable? Have we
assessed the market to check? Hasthe necessary budget been secured?
- What are the risks? Are we biting off more than we canchew?
Are we breaking new ground? Is the project too complex? Can it
be phased or modularised? What can we do to reduce risks to an
acceptable level?
- Have all dependencies been identified and is there full provision
to manage them?
- Is the Board committed to delivery? Do we have a Senior Responsible
Owner who will drive it through? Will the Board support this person,
give them consistent advice and direction, and give them enough
time and resources to do the job? Will we provide a competent
project team led by an experienced project manager and give them
enough time and support to do an effective job?
- Have we fully analysed the markets in which the procurement
will take place? Can we guarantee a proper competition, which
includes all credible bidders, especially in re-competition?
- Have we identified the information needs of the bidders during
bidding, and taken adequate steps to provide the full range of
data within the procurement timetable?
- Have we identified all the necessary contact points for each
of the bidders throughout the procurement?
- Do we understand the extent of the change to be managed, of
which the procurement is a part? Do we plan to engage relevant
stakeholders, including technical authorities and customers, and
to ensure their interests are identified and catered for? Will
we invoke best practice for managing successful projects and programmes?
- Do we have the necessary capability and capacity to own and
manage related business changes?
- Have we developed a realistic project plan? Do we have an effective
control system to ensure the project remains on track, with any
changes to the plan, the timetable or the project’s risks
assessed for impact and communicated to those who need to know?
- Have we allowed sufficient time to obtain all necessary consents,
permissions or legislative changes and developed plans to manage
possible public or stakeholder opposition?
- Are our procurement strategies well thought through and finalised?
Has the procurement unit been properly consulted? Have we learnt
from others and from past mistakes?
- Is the procurement timetable a generic one, or is it adequately
tailored to take into account the particular circumstances of
the project?
- Is there a management framework to provide quick decisions
on key issues?
- Is there an effective mechanism for communicating with and
involving all key stakeholders?
- Are there effective mechanisms to manage risks and to resolve
potential conflicts?
- Can we ensure ongoing commitment from management at the appropriate
level? Will there be continuity among the procurement team throughout
the procurement process?
- Is there an effective change management procedure in place
so we can be confident that we can manage any changes that might
occur, and ensure that they are aligned to the business strategy?
- Do we have the necessary access to specialist resources to
provide expert advice on legal or technical issues, etc?
- Do our plans provide for the advance preparation of evaluation
criteria, etc to be accomplished in parallel with the rest of
the procurement process?
- Have we allowed time for gateway reviews, if appropriate, in
our plans?
DURING THE PROCUREMENT PROCESS
[top]
Throughout the procurement process we need to ensure that our processes
are aligned for swift, effective and efficient delivery.
If we cannot obtain a satisfactory response to the following questions
the procurement process is not attuned to meet the requirement and
deadlines may not be met:
Is there a management framework to provide quick decisions on key
issues?
- Is there an effective mechanism for communicating with and involving
all key stakeholders?
- Are there effective mechanisms to manage risks and to resolve
potential conflicts?
- Can we ensure ongoing commitment from management at the appropriate
level?
- Will there be continuity among the procurement team throughout
the procurement process?
- Is there an effective change management procedure in place
so we can be confident that we can manage any changes that might
occur, and ensure that they are aligned to the business strategy?
- Do we have the necessary access to specialist resources to
provide expert advice on legal or technical issues, etc?
- Do our plans provide for the advance preparation of evaluation
criteria, etc to be accomplished in parallel with the rest of
the procurement process?
- Have we allowed the time for gateway reviews, if appropriate,
in our plans?
- Do we have appropriate resources and procedures for effective
supplier management, post-award?
Fast, Effective and Efficient Procurement
is Good [top]
It is a common complaint that government procurement takes too long
– and people ask why the Government doesn’t do something
about it. Everybody benefits from fast, effective and transparent
procurement. It reduces suppliers’ costs, enables departments
to fulfil commitments faster and more effectively and gives citizens
more responsive and better value-for-money (VFM) public services.
Don’t Blame Brussels [top]
The EC Rules are often cited as the cause of delay.Yet the minimum
times that apply in the EC procedures are largely insignificant
compared with the time departments need before the start of procurement
and when measured against the whole procurement process. Of course
it takes
time to run a proper procurement but we can save everybody’s
time and effort by being absolutely clear in what we want and by
keeping changes to an absolute minimum. Set appropriate evaluation
criteria at the beginning and make sure suppliers understand those
criteria
and the nature of the requirement so that we only have credible
bidders in the competition.
Use of Frameworks [top]
If frameworks exist, including frameworks managed by other government
departments and OGC, that are accessible across government, which
fully meet our department’s requirements and deliver VFM,
use them. They have already been competed for so we don’t
need a second
competition. However, we must stay within agreed framework terms
and conditions. If these do not fit the requirements, we cannot
use the framework.
Speeding Up Projects [top]
Effective and efficient procurement is rooted in professionalism
– most delays spring from a lack of clarity and are exacerbated
by the absence of the right people with appropriate skills. Senior
management sets the tone for fast, successful procurement and correct,well-considered,
timely
decisions taken up front are paramount. Make sure your project team
has suitable experience and the appropriate skills.
Not Just Procurement [top]
Procurement can be fundamental to the development of a strategic
business change and delivery programme. It is important to pay attention
to the business-change elements. Having a clear and shared understanding
of how our organisation is to work in its new state will help ensure
that
the procurement fully supports the business need and isn’t
delayed by decisions about business change.
Complexity and Risk [top]
Wherever possible avoid complexity, but if we must run a complex
project, break it down to reduce risks, for example, by piloting,
modular development or time-boxing (what can be done by a defined
point in time). Follow recognised good practice on risk identification,
assessment and management.We should do as much as we can up front
to reduce project risks. Remember that where the market hasn’t
done it successfully before, there is always a possibility that
it could go wrong. Once a risk is identified, it should be managed.
If we are transferring risks to a supplier,
make sure to allocate or apportion each risk to the party best able
to manage it.
Sound Advice [top]
Many projects need external advice – when this is necessary
select advisers with care. Look at their experience and track record.
Make sure they are familiar with the government and departmental
best practice we want to use. Try to encourage them to facilitate
a speedy
and effective procurement and make sure they are under effective
departmental control. After all, they only advise – we decide!
Competence and Capacity [top]
None of us would want to fly with an inexperienced pilot. Therefore
we should not expect fast, successful projects from inexperienced
project teams. The greater the risks the greater the need for experience
and competence. The Successful Delivery Skills Framework lets us
check whether
or not our people have the necessary skills for the task. Inexperienced
project teams can be a recipe for failure. If we have to take on
more projects than we have competent people to run them, there really
are only three options – develop, recruit or do less. Knowledge
of how to run projects is so important that it needs to be developed,
extended and nurtured. In too many
cases, hard-won knowledge is being thrown away at the end of the
project, when the team is disbanded. Project teams need to be clear
on the decisions they can take and the ones they have to refer upwards.
We should not keep them waiting for decisions. Confidence makes
for
rapid progress; fear of criticism or failure will slow things down.
Keeping to Time [top]
Make sure people know that we expect project teams to set realistic
timescales for the project to come in on time. Expect timely warning
of any unavoidable delays. Remember that suppliers have to gear
up for procurement projects, so make sure they’re kept in
the picture if things start to go wrong.
Practice Makes Perfect [top]
As far as possible, all procurements should follow a proven path,
based on recognised good practices such as those in the OGC Successful
Delivery Toolkit or equivalent departmental standards where there
is a successful track record. Remember, we must be prepared to tailor
the
generic timetable to take into account the particular circumstances
of the project. However, the more repeatable the project processes
are, the easier it is to sustain a cycle of improvement in project
timescales and success generally. We should use the findings from
our department’s gateway reviews and post-project reviews
to learn lessons and improve our practices.We must learn from others
so that we do not keep making the same mistakes.
Role of the Procurement Professional
[top]
It is important that the project receives experienced professional
procurement and commercial support. Departmental procurement professionals
can fulfil this role and they should be engaged from the start of
the project and throughout the procurement process. See the successful
delivery toolkit for related sources of best practice, tools and
techniques at www.ogc.gov.uk/sdtoolkit/
Address:
Office of Government Commerce
Trevelyan House
Great Peter Street
London
SW1P 2BY
OGC Service Desk: 0845 0004999
GTN: 3040-4999
Email: ServiceDesk@ogc.gsi.gov.uk
Website: www.ogc.gov.uk
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