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 DECD 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: Risk analysis Step 11: 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 SupplierPrice QuotedComments 1.List the 3 or more provider’s approached and attach their quote. List any internal resource alternatives considered. Provide relevant details about the supplier and the goods/services offered (e.g. brand, version, value-adds). 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 purchases greater than $22,000 Inc GST and up to $220,000 Inc GST. 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). In these circumstances contact the DECD Procurement Unit on

Step 9: Supplier (Continued) Any real of perceived conflicts of interested should be declared again at this point. For further information contact the DECD Procurement Unit on Alternatively you may contact the DECD Employee Conduct Unit on Detail your purchase recommendation. Conflict of Interest (If Applicable) Provide details of any Conflicts of Interest which exist between the identified providers (above) and DECD personnel involved in this procurement and how this was handled. E.g. Personal relationship such as a family member identified and the associated business unit representative removed themself from the procurement process. Recommended Supplier: Justify your recommendation. If a more expensive option is recommended, provide justification for choosing this option. E.g. Specialist experience and knowledge or better quality.

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 11: 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 12: 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.

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