3.28 In the past public bodies and Government Departments have sometimes rushed into a formal bidding process before they had fully decided on their requirement from the project. In contrast, a number of central procurement agencies in other European countries and experienced private companies talk to their suppliers first to identify what outcomes can realistically be delivered within a given timeframe and cost. Where this level of pre-procurement engagement happens procurements are subsequently faster and more straightforward because bidders can develop their bid to reflect these discussions.
3.29 The Government's PF2 Lean Sourcing procurement process will require projects to undertake extensive pre-market engagement. Projects will also be required to produce full bidders' pack (specification, selection and award criteria, terms and conditions and timescales) at the point of going to market alongside the Official Journal of the European Union (OJEU) Contract Notice and a full due diligence pack for the bidders invited to participate in dialogue.
3.30 To ensure the Lean Sourcing approach is followed, additional Treasury checks will be introduced as part of the business case approval process to scrutinise project preparation prior to issuing project tenders. This will ensure that projects do not go to market before they are fully prepared. A summary of the project preparation checks are listed in Box 3.E.
3.31 The Treasury and MPA will continue to work together in the integrated assurance process to ensure that the additional Treasury checks do not duplicate a project's existing assurance processes. The additional checks aim to ensure that good procurement practice takes place and so should not present a significant burden on a well run project.
Box 3.E: Treasury Project Preparation Check Departments will be required to demonstrate the following preparations have been undertaken prior to issuing project OJEUs: • a planning and development brief has been produced that adheres to the preparation guidance set out by Department of Communities and Local Government; • a full site information pack has been obtained; • a site acquisition plan for any land has been obtained; • evidence there are clear plans to address any employment issues; • a market sounding report has been prepared that details the various methods the procuring authority has employed to test the market's interest in its project; • a commitment to comply with standard contract guidance and the standard facilities management output specification and payment mechanism; • ministerial and senior project officials commitment to the procurement timeline and the detailed milestones within this; • final project team procurement skills check; • an Integrated Assurance and Approval Plan; and • confirmation that all stakeholders involved are signed up to a project's business plan. |