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STATEMENTS OF REQUIREMENTS Alfred Lapyem Principal Procurement Officer Ministry of Finance, Planning & Economic Development.

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Presentation on theme: "STATEMENTS OF REQUIREMENTS Alfred Lapyem Principal Procurement Officer Ministry of Finance, Planning & Economic Development."— Presentation transcript:

1 STATEMENTS OF REQUIREMENTS Alfred Lapyem Principal Procurement Officer Ministry of Finance, Planning & Economic Development

2 Specification (technical standard)  A specification is an explicit set of requirements to be satisfied by a material, product, or service.

3 Use of a Specification  In engineering, manufacturing, and business, it is vital for suppliers, purchasers, and users of materials, products, or services to understand and agree upon all requirements.engineeringmanufacturingbusiness  A specification is a type of a standard which is often referenced by a contract or procurement document. contract  It provides the necessary details about the specific requirements.  Specifications may be written by government agencies, standards organizations (ASTM, ISO, CEN, etcASTMISOCEN  A product specification does not necessarily prove the product to be correct. Just because an item is stamped with a specificaiton number does not, by itself, indicate that the item is fit for any particular use. The people who use the item specify the item and have the responsibility to consider the available specifications, specify the correct one, enforce compliance, and use the item correctly. Validation of suitability is necessary. Validation

4 Content of a Specification  A specification might include:  Descriptive title and scope of the specification  Date of last effective revision and revision designation  Person, office, or agency responsible for questions on the specification, updates, and deviations.  The significance or importance of the specification and its intended use.

5 Cont…  Terminology and definitions to clarify the meanings of the specification  Test methods for measuring all specified characteristics Test methods  Material requirements: physical, mechanical, electrical, chemical, etc. Targets and tolerances.tolerances  Performance requirements. Targets and tolerances. tolerances

6 Cont….  Workmanship  Certifications required.  Safety considerations and requirements Safety  Environmental considerations and requirements Environmental  Quality requirements, Sampling (statistics), inspections, acceptance criteria QualitySampling (statistics)

7 Cont…  Person, office, or agency responsible enforcement of the specification.  Completion and delivery.  Provisions for rejection, reinspection, rehearing, corrective measures  etc

8 As for goods and civil works, consultancy services should be specified. The specifications:  Can be more difficult to specify than products  Should be as precise, clear and measurable as possible  Should be stated in terms of output  Be time bound – a time frame should be indicated  Should state required qualifications of people

9 SOR for services  A solicitation document should contain a SOR for the procurement of consultancy services is to be defined in the TORs or brief

10 Guidelines for Writing & Planning Terms of Reference  What are Terms of Reference  Terms of Reference are the Scope allowed to persons conducting an enquiry of any kind. (New Oxford Dictionary.)  Particularly in the public sector, TRs have come to be used in almost a generic sense to cover the base document used as a guide for a wide range of activities including:  investigations;  reviews;  projects;  implementation;  development of plans (strategic & otherwise); and  regular group meetings.

11 How to write the Terms of Reference  Terms of Reference need to state clearly and specifically the permitted and/or possible extent to which an investigation may reach. Thus, the TRs should enable a project team to:  set boundaries on the project;  know what is and isnt within their jurisdiction;  understand the context in which the TRs have been framed;  have a clear idea of where they should begin; and,  have a clear idea of outcome/product.

12 Terms of Reference should include:  Mission statement.  Problem statement.  Boundaries, beyond which the investigation should not go.  Specific issues to be addressed. # Desired outcomes/outputs. # Persons involved. # Project administration including: # timeframes; # meetings; # reporting guidelines; # resources; and # intervention strategies.

13 Terms of reference (ToR)  a background narrative to the required services  objectives of the consultancy services  a list of the specific tasks or duties to be performed  a schedule of deliverables/outputs for the assignment against which to gauge achievements

14 Cont….  reporting lines and requirements  the duration and timetable of the assignment  Requirement for a bidder to comment on the terms of reference  See attached table

15 Solicitation documents for Consultancies  Drafting to comply with prescribed formats in the solicitation documents (SD)  SDs specify ToR and expected input of key personnel  the amount and form of the required bid security  the amount and form of performance security (bond) that shall be required

16 Cont…  a valid bid  the bid submission methodology  the currency in which a bid is to be submitted  procedure for converting prices to a single currency for evaluation purposes (including the source and date of exchange rates to be used)  the currency in which the contract price shall be paid  method for calculating variations in variable prices, if required  the method of payment

17 Cont…  payment modalities, including any advance payment, stage payments or payment retentions and payment securities  duration, timing of inputs and completion schedule  required deliverables or outputs  the evaluation methodology and criteria  type of contract to be placed

18 Cont…  Confirmation of availability of key professional staff, whose CVs are part of the bid  signed statements of availability from key professional staff included in the bid  If a substitution of key professional staff is unavoidable or agreed upon, substitute to be of equivalent or superior qualifications and experience

19 Bill of quantities  Bill of quantities is used as a form of cost planning and mapping to monitor and control the construction cost during the execution or post-contract period of construction.  These documents originated historically as non-contractual measurements, taken off drawings to assist tenderers in quoting lump sum prices.

20  Bills of quantities are drawn up and specified by a cost professional called a quantity surveyor and prepared in advance to take into account the works required for a project, and then later used as a tender document to acquire bidding from the contractors who would be interested in winning the job. quantity surveyor  There are different styles of bills of quantities, mainly the Elemental BOQ and Trade Bills

21  Quantity surveyors get their name from the Bill of Quantities, a document which itemises the quantities of materials and labour in a construction project. This is measured from design drawings, to be used by the contractors for tendering and for progress payments, for variations and changes and ultimately for statistics, taxation and valuation.  At feasibility stage quantity surveyors use their knowledge of construction methods and costs to advise the owner on the most economical way of achieving his requirements. Quantity surveyors may use techniques such as Cost Planning, Estimating, Cost Analysis, Cost- in-use Studies and Value Management to establish a project budget.

22  During design the quantity surveyor ensures that the design remains on budget through Cost Management. Essential additions are offset by identified other savings.  On completion of design and drawings, the quantity surveyor may prepare a Bill of Quantities, which is issued with the specification, for use by contractors in submitting tenders. The contractor’s quantity surveyors/estimators generally prepare tenders, and may price alternatives for consideration

23  They will also value changes to design or quantities which may arise by reference to appropriate Bill of Quantities rates. The contractor’s quantity surveyor/contract administrator will have prepared claims for progress payments and additional work.  As decisions involving large sums of money are often made using information produced by them they must be accurate in all aspects of their work.

24 Value for money  All public procurement of goods and services, including works, must be based on value for money, having due regard to propriety and regularity. Value for money is not about achieving the lowest initial price. It is defined as the optimum combination of whole life and quality

25  To achieve value for money (VFM) goods & services must be acquired through competition. Unless, there are other convincing reasons to the contrary

26 Value for money procurement can be achieved through: – Getting an increased level, quality, or service at the same cost. – Avoiding unnecessary purchases – Ensuring that user needs are met but not exceeded – Specifying the purchasing requirement in output terms so that suppliers can recommend cost-effective and innovative solutions to meet that need.

27 – Sharpening the approach to negotiations to ensure the public sector get a good deal from suppliers. – Optimizing the cost of delivering the service or goods over the full life of the contract rather than minimizing initial price – Aggregating transactions to obtain volume discounts – Horizontal collaboration (joint purchasing) with other public sector enterprises to obtain the best prices &secure discounts from buying.

28 Thank You


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