Step 3 - PROJECT PROCUREMENT PLAN

Funding has been approved for the procurement.

The agency’s position in the market place, the nature of the property to potentially invest in and the demographics of the contractor market and risk analysis are assessed in developing the market approach. The approach to market must be fair, encourage competition, and be consistent with government procurement obligations and the agency procedures. The strategy should cover all aspects of potential sourcing benefits, including contractor management and a Total Cost of Ownership (TCO) perspective.

The project procurement plan describes the stages of the project and how it will be managed. It should be consistent with the business case developed in step 2. A robust plan including detailed market assessment, evaluation criteria and impact analysis helps achieve project outcomes and value for money. Obtain Procurement Plan approval prior to proceeding; confirming available funding and resources for managing the procurement.

• Key Document
• PM2008-06 State Property Authority and Government Property Principles
• Key Guidelines
• Property Acquisition Checklist
• Property Disposal Checklist

Establish governance structure

A project team is appointed and roles and responsibilities allocated. Project governance and reporting structure and communication channels are determined.

The skills and experience of the team must be relevant to what is being procured.

Determine market approach (procurement strategy)

In recognition of the risk exposure in major property markets, the Government Asset Management Committee (GAMC) endorsed the establishment of the Government Leasing Service (GLS) within the State Property Authority to assist agencies achieve enhanced outcomes from centralised negotiation of single office leases, except where the Government Asset Management Committee determines otherwise. Additionally, the GLS is to manage leases for all generic property in the greater Sydney metropolitan areas. If your project needs to be managed by GLS, you will need to submit a request for support to them to manage the negotiations.

Prepare project procurement plan

A procurement plan outlines the procurement strategy and market approach, the project brief and tender method. It builds on the business case / investment justification previously developed and includes a governance framework for the tender process and contract management.

It proposes how tenderers will be selected, how the tender process will be managed and who will be responsible. It includes the basis for tender evaluation, and a direct negotiations plan (if direct negotiations are involved).

The procurement plan will also include key performance indicators for the proposed contract.

A Gateway Review Process can be undertaken at the completion of this stage to confirm that the optimal procurement strategy is selected to deliver the project within its budget and time constraints. The review can also assess whether the project is ready to proceed to the execution stage.

GAMC also endorses proposed property acquisitions.