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Sunday, November 21, 2010

A United Kingdom approach to procurement

I have happened upon the UK's official procurement website, or so it appears. It is the web home of the Office of Government Commerce (OGC). The Home Page is here.

It appears to offer a treasure trove of procurement advice and resource, not only restricted to the unique requirements of the United Kingdom and the European Union, but also framed in more universally recognized statements of procurement theory and principle.


For instance, it describes the procurement process in the manner I consider most appropriate to obtain effective procurement outcomes:
The procurement process spans the whole life cycle, from the identification of the need to purchase, through supplier selection and contracting, to the delivery of the required goods or services and (where relevant) the underlying policy outcome through to the disposal of the asset(s) or service closure or recompetition exercise. Its success can only be ultimately judged or measured when the product has been disposed of, or sold on, or when the service contract has been delivered in full.
Its Introduction to Public Procurement also details one of the cornerstones of effective procurement practice:
Pre-Procurement Planning

It is essential effective planning is carried out prior to a procurement. This planning should include :

> consultation with stakeholders about what is needed and the budget that is available to fulfil the need

> engagement with the market to understand the solutions that may be available and to get feedback on how the requirement may be best met

> establishment of effective governance arrangements and resourcing plans

> if necessary because the department does not have the necessary expertise, appointing advisers to help ensure novel or difficult projects are established on a sound footing

Developing Specifications

It is important to provide sufficient detail to allow the market to respond to requirements, whilst leaving room for innovation where appropriate.

Output- or outcome-based specifications should normally be used. These focus on what authorities want to achieve, not how a supplier is to provide it. This challenges suppliers and gives them the scope to develop innovative solutions.

In certain circumstances it will be essential to specify exactly what is required in detail (e.g. for specialised laboratory equipment).

Specifying an accepted industry standard for a technical solution is also good practice; specifying non-standard or ‘gold-plated’ solutions will always lead to higher costs.

While the website appears to be under re-construction, it nevertheless contains links and articles and other material that is sure, at some point, to offer valuable insight to any student or procurement practitioner, regardless of your particular procurement framework.

I encourage you to have a "sticky beak" (a look around).

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