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The 6 stages of the

procurement process
- An overview-

Brussels
P2P
Presentation 15.10.2008
by
Prof.Dr.Ralf von Ameln
Checklist Public Procurement

I. PHASE Planning
II. PHASE Creation of a Tender
III. PHASE Evaluation Criteria
IV. PHASE Publication
V. PHASE Evaluation
VI. PHASE - Contracting
From 6 to 5

I. PHASE Planning
Preparation
II. PHASE Creation of
a Tender
Invitation
III. PHASE Evaluation Submission and
Criteria
opening
IV. PHASE Publication Evaluation
V. PHASE Evaluation Award
VI. PHASE - Contracting
I. PHASE - Planning
Needs
Shopping list
Budget
Responsibilities
O.k. from boss/council etc.
Project management plan
Time schedule
II. PHASE
Creation of a Tender
Procedure (open, restricted, negotiated etc.)
Award criteria (lowest price best value)
Tender related aspects (e.g. technical
specifications)
Bidder related aspects
Environmental aspects
Social aspects
Finances
Formal aspects
III. PHASE
Evaluation Criteria

Determination of evaluation criteria


Weighting of criteria
Creation of a grid/scheme
Nomination of the evaluation team
IV. PHASE - Publication

National
International Official Journal
Respecting time limits
Respecting formal aspects
V. PHASE - Evaluation

Opening procedure
Evaluation team
Elimination of formally incorrect offers
Bidder related aspects
Technical aspects
Price
Weighting
Decision
VI. PHASE - Contracting

Contract
General provisions
Special provisions
Respecting formal aspects
PP Strategy
The PP directives are based on three
main principles:

Community-wide adverti-
sing of contracts so that all
Competitiveness enterprises in all mem-ber
states have an oppor-tunity
of bidding for them

Application of objective
Transparency criteria in tendering and
award procedures

The banning of any tech-


nical specifications liable to
discriminate against
Non discrimination potential foreign bidders
Definition of Needs
What do I need?
Product/service
Quantity
Quality
Service

When do you need it?

What is my budget?
Decision on Procedure
Open procedure
All interested suppliers, contractors or service providers may
submit tenders.

Restricted procedure
Only those suppliers, contractors or service providers invited
by the contracting authority may submit tenders

Negotiated procedure
The contracting authority consults suppliers, contractors or
service providers of its choice and negotiates the terms of the
contract with one or more of them.
Preparation

Planning
the tender

Documentation
Preparation

Create a team of experts

Financial expert Budget


Technician Specifications
Lawyer Contract
User Needs
Others Environment
Social
Check-list
(fixing responsibilities, o.k. from
council/boss, time schedule)

Task Who When Done Remarks Signature

Data Mr. Jones 01.02.2005


collection
Budget Mrs. James 01.03.2005

Technical Mr. Pitt 01.04.2005


aspecs
Bidder rela- Mr. Rand 01.04.2005
ted specs
Publication Mrs. Bens 05.04.2005
Preparation

Find out details on the product/supply/service

Latest development/technique
Price
Suppliers
Expertise
Tender Document
Define the product/supply
Award criteria
Specifications
Bidder related
Financial Environmental/social aspects
Technical
Tender related
Time limit
Place for submission of documents
Alternative bid
Maximum/minimum price
Evaluation criteria/weighting
Contract details
Miscellaneous (number of copies, fees, contact, e-procurement
etc.)
Planning the tender

Be clear Simple wording, CPV etc.

Be precise Exact quantity etc.

Ask only necessary No exaggeration you have


documents to check them!

Do not discriminate Local products, brands

Be fair Evaluation criteria

Be realistic Time limits, services


Defining Award Criteria

Awarding Authorities when deciding which bid to accept may do


so on the basis of either:

The lowest price only


The most economically advantageous tender - using various
criteria such as price, period for completion, running costs,
profitability, technical merit.
If an Awarding Authority chooses to use the "most economically
advantageous" method, this must be stated in the tender notice
or documents. Details must include which criteria it intends to
apply to the award, and their order of importance.
Financial and Economic
Information that may be required

- Balance Sheet Information


- Bank Statements
- Turnover over the previous 3 financial years
- Evidence of overall turnover and turnover in respect
of services/products to which the contract relates,
over the previous 3 financial years
- Any document which the Public Sector Organisation
considers appropriate
- Relevant professional risk indemnity insurance
Information Supporting Technical
Capacity that may be required

List of principal product deliveries/services provided over the previous 3 years with
details of amounts, dates and recipients (whether in the public or private domain)
Technical bodies and personnel responsible for monitoring your quality control and
conformance with other standards
Recognised third party certification of conformity of the products/services to given
specifications and industry standards
For complex or special purpose services/products, a possible check on the
supplier's/service providers technical ability, study and research facilities or quality
control measures carried out by an official body in the supplier's country of
establishment
Information on Health and Safety aspects
Information on Environmental Controls
Educational and professional qualifications of managerial staff and of those
responsible for providing the services
Average annual manpower and the number of managerial staff for the last 3 years
Tools, plant or equipment available for the carrying out of the services
An indication of the proportion, if any, of the contract, which the service provider
intends to sub-contract
Quality assurance standards referring to EN29000 European Standards series (see
ISO9000)
Publication

National
International Official Journal
Respecting time limits
Respecting formal aspects
Evaluation

Opening procedure
Evaluation team
Elimination of formally incorrect offers
Bidder related aspects
Technical aspects
Price
Weighting
Decision
Tendering checklist
Do they have the necessary resources?
Does their product/service meet the specifications
set out in the tender document?
Do they submit the required financial information on
their company?
Do they submit details and references of previous
contracts?
Do they submit details of your personnel and
qualifications?
Do they submit details of your plant and any
specialized equipment?
Contract

Kind of contract

General provisions

Special provisions

Formal aspects (e.g.


award notice)
Contract management
Summary
PP is a win-win situation, if you distinguish the different
phases properly and follow a checklist

Define the needs properly Publish the tender

Decide on the procedure Provide a proper


evaluation
Prepare the tender
Sign the contract
Define the award criteria
Manage the contract