NAO audit framework

Commercial strategy

1.  Is there an overarching commercial strategy, with a clear rationale and linkage to organisational strategy, and which targets VFM?

1.1  Is there a clear and consistently held view of what the contract is producing, the type of commercial relationship desired, the basic contract structure and how it will be managed?

1.2  Has there been an assessment of strategic drivers, including policy drivers, and the internal and external environment?

1.3  Has the commercial strategy been based upon the assessment of strategic drivers and the internal and external environment?

Examples of relevant guidance

NAO good practice contract management framework

10.2  A benefits realisation plan is in place for supplier relationship management; and there is a clear sense of what value is to be generated for both parties.

10.3  There is a focus on capturing innovation from the supplier where necessary or valuable.

10.4  Knowledge management issues are addressed, including knowledge capture from suppliers.

Green Book supplementary guidance on delivering public value from spending proposals includes an explanation for proposals that optimise public value by identifying and appraising a wide range of realistic and achievable options.

Government Commercial Function - Government Commercial Operating Standards Iteration ii

4.2  Commercial options should be considered early and with the department Commercial Function (suggested a minimum of six months prior to any approval date for Strategic Outline Business Case and Outline Business Case) using business cases (or equivalent) that contain appropriate consideration of commercial and contract management capability (staffing/resources).

5.1  Early engagement of suppliers.

The Scottish Government's Procurement Journey - Develop strategy