For Corporate and Regional Office sites Guidelines for Developing a Simplified Purchase Recommendation

Topics When Should Simplified Purchase Recommendations Be Used? How to Complete a Simplified Purchase Recommendation Steps DECS Strategic Contracts Policies & Guidelines

When are Simplified Purchase Recommendation used? After Simplified Acquisition Plan (SAP) complete and approved by appropriate delegate Quotes have been received & preferred provider selected - Business Unit submits Simplified Purchase Recommendation (SPR), attach quote(s) via Basware for approval by the ADP&C prior to making any purchasing commitment NB: the Strategic Contracts Team may assist in developing a formal Request for Quotation Once approved, Business Unit generates order via Basware

How to Complete a Simplified Purchase Recommendation…

Steps: Step 1: Project Type Step 2: Specifications Step 3: Once-off Purchase or Ongoing requirement Step 4: Good/Service Description Step 5: Negotiated Project Cost Step 6: Expenditure Approval Step 7: Contract Term Step 8: Contract Start Date Step 9: Supplier Step 10: Recommended Supplier Step 11: Risk analysis Step 12: Budget

Step 1: Project Type Project Type: Goods, Services, Goods and Services, or Consultancy Refer to Simplified Acquisition Plan

Step 2: Specifications Specifications: detailed descriptions of the goods and/or services to be provided Refer to Simplified Acquisition Plan

Step 3: Once-off purchase or Ongoing requirement Determine if the good/service to be procured is a once-off requirement or ongoing requirement Refer to Simplified Acquisition Plan

Step 4: Good/Service Description Provide summary of goods and/or service proposing to procure Refer to Simplified Acquisition Plan guidelines

Step 5: Negotiated Project Cost The actual cost of the project negotiated with and agreed by the supplier Must be inclusive of all extension options

Step 6: Expenditure Approval Ensure expenditure authority approval obtained from appropriate financial delegate Attach expenditure approval evidence; Or, appropriate delegate may grant expenditure approval by signing off as Action Director on the Simplified Acquisition Plan Expenditure approval must be sought for the value of the contract, inclusive of extension options.

Step 7: Contract Term Particularly relevant for the provision of services. (Goods: The proposed delivery/implementation date) Should include any extension options (e.g. Contract Term is two years, with the option to extend for a further two-year term)

Step 8: Contract Start Date Propose a contract start date gives Procurement Unit indication of project timelines In determining a proposed start date, adequate time should be allocated to undertake the procurement process

Step 9: Supplier

Step 9: Supplier (Cont) The Simplified Acquisition Plan must be approved before providers are formally approached to provide a quote. It is a requirement that at least 3 providers are approached to obtain a written quote: For procurements greater than $11,000 and up to and including $110,000 the quotes can be either verbal or in writing For procurements greater than $110,000 and up to and including $220,000 the quotes must be in writing The requirement for 3 written quotes is considered to have been met if less than 3 responses are received. It may be acceptable to approach less than 3 providers in some circumstances (e.g. intellectual property belongs to one particular organisation/individual; specialist knowledge/expertise; bona fide sole supplier).

Step 10: Risk Analysis ‘An event/circumstance which will impact on project outcomes’ Risks relates to a number of factors, including: Financial/budgetary; Time; Service Delivery; and Legal. Refer to Accredited Purchasing Unit Guideline ‘Managing Risk in Procurement.’Managing Risk in Procurement

Step 10: Risk Analysis (Cont) Risk Analysis: List potential risks including: Risks which were identified at the Acquisition Plan Stage and not mitigated; and Any new risks which have been identified at the Purchase Recommendation Stage. RiskConsequenceLikelihood (1) Impact (2) Mitigation (1) Please use one of the following ratings: Almost Certain, Likely, Possible, Unlikely or Rare. (2) Please use one of the following ratings: Catastrophic, Major, Moderate, Minor or Insignificant.

Step 11: Budget The authorised delegate approves the expenditure and confirms that the funds are available in the existing budget and are to be allocated from the following accounts classification. ProjectAccount Code Object Cost CentreCost Account (as required)

Step 12: Advice from others and Action Director Advice from others: Please ensure to include the contact name and position title of personnel involved in this process Action Director: Please ensure the delegate with appropriate financial authority signs off.

DECS websites: State Procurement Board Website Simplified Purchase Recommendation Template: mme.doc mme.doc Or contact Strategic Contracts Team on DECS Strategic Contracts Policies & Guidelines