Professional Documents
Culture Documents
You need not learn the Face-2 Face model in the study guide- a direct question on
it cannot be asked. Only learn carters and the generic areas suggested in the
unit content i.e.
Typical selection criteria such as: quality assurance, environmental and
sustainability, technical capabilities, systems capabilities, labour standards,
financial capabilities
Note the study guides does not use all the same criteria as Ray Carters original
and amended framework
The Study guides version below is an adaptation of Carters original framework .
1.
2.
3.
4.
5.
6.
7.
8. Compatibility
was CULTURE in carters original model
9. Compliance (or corporate social responsibility)
was CLEAN on Original
Carter
10.Communication
Choosing the right supplier is frequently the key to obtaining quality,
performance and price; hence sourcing is critical to optimal purchasing
performance.
However, it is not sufficient to merely select the most suitable supplier in the first
instance; it is crucial to long-term success that performance is monitored,
maintained and improved.
This requires consideration of supplier appraisal and assessment, procedures for
monitoring, and the development of the most suitable relationship between the
parties.
Broader selection approach Supplier selection has traditionally been described as
being based on the "five Rs" - right price, right quality, right quantity, right time
and right place. However, greater emphasis is now placed on the management of
the buyer-supplier relationship in a non-adversarial, longer-term perspective. This
may mean that the five Rs are no longer sufficient when compared with the
qualitative aspects of the relationship.
The Carter model is more than a theoretical framework, but rather a working
model that has been adopted and used in a number of organisations. The C
factors are weighted according to the situation and evidence is reviewed to
confirm a supplier's score for each of the evaluation criteria.
Selection Criteria
Award Criteria
Price
Quality
(further examples
provided below)
Publication of criteria
As a matter of procurement policy, and in order to meet obligations of
transparency, public bodies must publish details of the evaluation criteria to be
used to either select the suppliers to be invited to bid for the contract or the
evaluation criteria to be used to identify the supplier to whom the contract will
be awarded.
The evaluation criteria must be included or referenced within the Contract Notice
where possible, and set out in the subsequent PQQ and ITT documentation. If it is
not possible to have all of this prepared prior to the publication of the Contract
Notice, the public body must ensure that it publishes any selection evaluation
criteria at the same time as it issues PQQ and it publishes the contract award
criteria at the same time as the ITT document is issued.
Where it is not possible to provide weightings on objective grounds, the criteria
should be stated in descending order of importance in the contract notice or ITT
documents.
The objective and non-discriminatory criteria that will be applied to produce a
'short-list' must be contained in the Contract Notice, or at the very latest
published at the same time as the PQQ documents is issued to suppliers.
The agreed and advertised award criteria and weightings must not be changed
once they have been notified to the tenderers.
Selection criteria
Further information on the selection stage is available under the Supplier
Selection station of the Procurement Journey. The standard Pre-Qualification
Questions can be found in the Supplier Selection station of the Procurement
Journey, PCS-Tender and PCS-Advertising. These questions should not be
amended, however questions can be deleted if not required and additional
questions added. If additional questions are added on PCS-Tender, the
Procurement Officer should create a separate section for these as appropriate.
Prior to issuing the PQQ, the Procurement Officer should develop a percentage
scoring methodology for the questionnaire tailored to the needs of the
requirement.
Selection criteria can include sustainability issues e.g. social, economic and
environmental considerations, this also includes employment practices or
workforce matters .
Award criteria
Unit content details price, total life cycle costs, technical merit, added value
solutions, systems, resources
The criteria identified must relate directly to the goods, services or works to be
provided and not focus the characteristics of the individual suppliers. Each award
criterion should be clearly defined, so that there is a common understanding of
what it means.
The objective of any procurement exercise should be to achieve best Value for
Money for the taxpayer. Public bodies can award contracts on the basis of the
most economically advantageous tender or the lowest price. In determining the
criteria for the award of contracts, purchasers should rarely rely on price alone.
As part of value for money, due regard to other relevant organisational policies is
important, for example, policies in relation to corporate social
responsibility/sustainability and Quality/Technical Merit - Is the product or service
proposed fit for purpose? How well does it perform?
Lowest price is based on the lowest priced tender which meets the users
requirements.
Some examples of award criteria are given below:
Price- The whole life cost including the initial purchase price, operating
costs, consumables and disposal costs. How cost effective will the
goods/service prove to be?
Commodity
Type
Description
Suggested
Price/Quality Ratio
Routine
90:10 to 80:20
Leverage
70:30 to 60:40
Strategic
60:40 to 50:50 to
40:60
Bottleneck
Strategic to Operations
Few Sources of Supply
Large Spend Area
Specification may be complex
40:60 to 10:90