Gateway
Tender Decision
Workbook
Government of
Western Australia
Department of
Finance
Government Procurement
The
Te
nde
r D
eci
sio
n re
vie
w c
onf
rms
the
pro
ject
is stil
l achie
vable.
1
ABOUT THIS WORKBOOK
This workbook supports the Gateway review Tender Decision. It is the fourth in a series of six reviews a
project may undergo.
This review ensures that the tender selection process has been performed transparently
and according to
the required procedures. It also investigates the business case, confirming that the project is still required,
affordable and achievable. Finally, it checks that implementation plans are robust.
The checklists in this workbook provide review teams with key areas to explore and suggest evidence to
look for. At the same time, they provide the Senior Responsible Officer (SRO) with information on the
areas the review team will be exploring, the types of documents it will be reviewing and the evidence
expected for a Tender Decision review.
As each project is unique and circumstances vary, this workbook should be used as a guide for appropriate
questions and evidence, not a full checklist of mandatory items.
2
TENDER DECISION
In the tender selection process, the agency invites proposals or tenders against fully developed
requirement specifications. Potential suppliers, partners and/or other delivery organisations submit
their proposal or tender and an evaluation panel analyses all submissions on a ‘like-for-like’ basis. The
evaluation panel then recommends the delivery solution that meets all the needs of clients and end-users,
while delivering the best value for money.
The Tender Decision review confirms that the supplier selection process for this particular project (not the
supplier selection decision itself) was sound and robust. It also checks that the implementation plans that
are in place are realistic and achievable.
It assesses:
• Whether the supplier selection process has been well managed
• Whether the business needs are being met
• That both client and supplier are in a position to implement and manage the proposed solution
• That processes are in place to achieve a successful outcome after contract award.
Both the project team and review team must be satisfied that all options have been considered, including
commercial arrangements with existing suppliers that offer value for money.
The Tender Decision review confirms that the recommended investment decision is appropriate before a
contract is placed with a supplier or partner.
Th
e re
view
take
s pla
ce b
efore
a co
ntract
is pla
ced with
a supp
lier or p
artner.
3
KEy AREAS Of REVIEW
This review aims to answer the question:
“Does the preferred tenderer meet the requirements of the business case and organisational
need?”
It investigates the following areas:
Outcomes and objectives:
Will the recommended contract decision deliver the specified outputs on time,
within budget and provide value for money?
Stakeholders:
Is there continuing support for the project?
Context:
Is the business ready for change, for implementation, transition and operation of new services
or facilities?
Project management:
Are management controls in place to manage the project, including contract
management aspects? Is there a clear understanding of responsibilities between all parties?
Risk:
Has the risk management plan been shared with suppliers/delivery partners?
Resourcing:
Does the project have resources with the appropriate skills and experience to achieve the
intended outcomes of the investment?
Once the evidence for each of these areas has been considered by the review team, the project is
evaluated on its readiness for the next phase and recommendations to this effect are made.
4
STRUCTURE Of REVIEW
The Gateway Tender Decision review is broken up into the following sections:
• Assessment of the proposed solution
• Business case and stakeholders
• Risk management
• Review of current phase
• Readiness for next phase.
The following checklists provide review teams with a range of appropriate questions and evidence to look
for in each of the above sections. It also provides the SRO and project teams with a guide as to what the
review team will be exploring.
As each project is unique and circumstances vary, these questions should be used as a guide rather than a
full checklist of mandatory items.
T
he re
view
‘Ten
der D
ecisio
n’ as
sesse
s the p
roposed
delivery
solution.
5
1.
REVIEW AREA: ASSESSmENT Of THE PROPOSED SOlUTION
Areas to review
Evidence expected
1.1 Does the proposed solution
continue to meet the
business need?
The selected delivery solution fully complies with
all requirements.
Consultation with stakeholders during evaluation and
their acceptance of the proposed solution.
1.2 Have the suppliers or partners
proposed any alternatives or
other options in addition to a
fully compliant bid?
Assessment of options to show whether these are
beneficial to the project’s output/outcomes and still
within the scope of the tender advertisement.
1.3 Will the proposed delivery
solution deliver the business
need described in the
business case?
Analysis to show that:
- The proposal is defined in business outcome terms
- The business can achieve the necessary organisational
and business process changes
- The proposed services and service levels as defined in
the contract will meet the agreed business
requirements.
1.4 Has the proposed solution
affected the strategy for
business change?
Updated plan for managing the business change on
the basis of the proposed solution, agreed by the
project’s steering committee and agreed with
users and stakeholders.
Analysis of differences from original plan.
1.5 Has the proposed solution
affected the expectations of
business benefits?
Updated plan for benefit realisation and updated
descriptions of benefits and their owners.
Analysis of differences from original plan.
Changes documented and agreed with users
and stakeholders.
1.6 Are the client and supplier
prepared for the development
(where there are new systems
and processes), implementation,
transition and operation of any
new services?
Proposed supplier’s development/implementation plans
included in delivery solution and recommended to the
project’s steering committee.
Client’s implementation plan agreed with users and
stakeholders, e.g. staff training, changes in processes.
1.7 Are there plans and processes
to address future issues, both
business and technical?
Strategy for managing change agreed by all parties,
including supplier.
6
1.8
Is there clear allocation and
understanding of responsibilites
between all parties, in addition
to any contractual liabilities?
Defined client and supplier personnel and
responsibilities.
On the client’s side, identified internal relationships and
interfaces describing ‘who does what’ with the supplier.
On the supplier’s side, reciprocal arrangements
including senior management roles.
Where applicable, partnering arrangements defined.
If a single supplier, how they will manage their
supply chain.
If multiple suppliers, how the client organisation will
manage the interfaces.
Evidence to show the client and supply team will work
together as an integrated project team.
If the project traverses organisational boundaries
on the client side, there are clear governance
arrangements to ensure sustainable alignment with the
business objectives of all organisations involved.
1.9
Are there resources available
for the business to fulfill its
obligations within the contract?
Plan for implementing the new contract, identifying the
quantity, type and quality of resources required.
Formal management acceptance of resource
requirements agreed, with key roles and personnel
identified and in place.
Adequate plans and procedures for contract
management, including availability of requisite skills
and experience.
1.10 Have the technical implications
been assessed?
Demonstrates that the delivery solution is
technically acceptable.
1.11 Does the project have resources
with the appropriate skills and
experience to achieve the intended
outcomes of the investment?
Internal and external commitment to provide the
resources required.
Job descriptions for key project staff.
Skills appraisal undertaken and plans for addressing
any shortfall.
Access to external sources of expertise if required.
Appropriate allocation of key project roles between
internal staff and consultants or contractors.
1.12 Is the proposed procurement
within financial approvals and
is there adequate budget to
accommodate the procurement?
Confirm financial approvals are obtained and
adequacy of the budgeted costs.
7
2.
REVIEW AREA: BUSINESS CASE AND STAKEHOlDERS
Areas to review
Evidence expected
2.1 Is the project still required?
The project still fits with strategic objectives, including
government/organisational objectives.
External factors have not affected current priorities.
2.2 Has the business case been
updated?
Re-assessment of updated business case, including
strategic, economic, financial, commercial and project
management factors.
2.3 Does the business case, when
incorporating the delivery strategy,
still demonstrate affordability?
Business case incorporating bid information, including:
- Changes from budgetary figures
- Returns and value re-calculated with new benefits plan
- Costs compared with budget, pre-tender estimates.
2.4 Does the recommended way
forward meet the business need?
Objectives revisited against final bid and
proposed solution.
2.5 Has the most appropriate option
been selected?
Cost/benefit/risk analysis against final bid information
and results of evaluation, including sensitivity analysis.
The whole-of-life design quality, cost and time optimised
as far as possible.
2.6 Does the commercial arrangement
represent value for money, with an
appropriate level of quality over
the life of the project?
Market assessment, other organisational benchmarks
and previous experience.
Results of evaluation.
Where appropriate, assessment of supplier’s funding
arrangements.
2.7 Is the client realistic about their
ability to manage the change?
Documented understanding of cultural implications,
where appropriate, account has been taken of the current
organisational culture.
Comparison with others.
2.8 Is there an agreed benefits
evaluation plan?
Benefits management strategy and plans, including:
- Critical success factors
- Individuals responsible for achieving benefits identified
- Agreed process for measuring and assessing benefit
- Data on baselines for benefits assessment
- Post-implementation review plan identifies review
points and benefits to be assessed
- Payment mechanisms linked to benefits realisation.
2.9 Have all stakeholders been involved
and approved of tender evaluation
report and draft contract?
Stakeholder involvement in quality and proposal reviews.
Views of all stakeholders have been considered.
Representation of stakeholders on the evaluation team.
8
3. REVIEW AREA: RISK mANAgEmENT
Areas to review
Evidence expected
3.1 Are risk and issue management
plans up to date?
Risk register and issue log regularly reviewed, updated
and acted upon.
3.2 Have all major risks that arose
during this phase been resolved?
Updated risk and issue management plans and risk
register, including risks associated with:
- Project resourcing and funding
- Team competencies
- Legislation
- Technical dependencies
- Users and stakeholders.
Owners of risks/issues assigned or client-side risk
transfer plans vi, where applicable.
3.3 Are there arrangements to
minimise the impact on the
business in the event of major
problems during implementation
and rollout?
A business continuity and contingency approach agreed
with stakeholders and suppliers.
Business of client continuity and contingency plans
under development.
Assessment of supplier’s continuity and
contingency plans.
3.4 Does the contract reflect standard
terms and conditions and the
appropriate allocation of risks
between the contracting parties?
Contracts comply with standard terms and conditions.
Any changes to standard terms and conditions
assessed for their impact, legality and acceptability.
Analysis of risk allocation proposed by supplier or partner
versus expectations or the original rationale for project.
3.5 for longer-term service or
partnering contracts, have
the re-tendering issues been
considered?
Plans for exit strategy at the end of the contract, with
appropriate review points built in over the life of the
contract to update these arrangements.
9
4. REVIEW AREA: REVIEW Of CURRENT PHASE
Areas to review
Evidence expected
4.1 Is the project under control?
Project running to schedule and cost within budget.
Recommendations from last Gateway review actioned.
4.2 What caused any deviation, such
as over and under-runs?
Reconciliations set against budget and time plan.
4.3 What actions are necessary to
prevent deviations recurring in
other phases?
Analysis and plans documented in project
documentation that is continually updated and reviewed.
4.4 Have all the assumptions from
the business case been
validated?
Validation of assumptions. Any that cannot be validated
are being examined, appear in the risk register or issue
management log, and are assessed and discussed with
potential suppliers and partners.
Documentation of any new assumptions.
4.5 Have all the required
organisational procurement
and technical checks been
carried out?
Bid management review and approval processes.
Compliance with relevant legislation and
policy guidelines.
The evaluation strategy, underpinning models and
criteria have been followed.
Demonstration of compliance with statutory
requirements (e.g. planning, building regulations).
4.6 Did the project team follow the
planned steps in the delivery
strategy?
Documented information confirming that the activities
and processes in the delivery strategy and plan have
been followed.
4.7 Were the documents subject to
quality review?
Quality review documentation.
4.8 Has the procurement process
adequately managed probity?
Probity documentation or report.
10
5. REVIEW AREA: READINESS fOR NExT PHASE:
READINESS fOR SERVICE
Areas to review
Evidence expected
5.1 Is the working relationship
likely to succeed?
Realistic assessment of management style/behaviours
on both sides.
Reporting arrangements identified at appropriate levels
on both sides.
Suitable procedures and responsibilities for contract
management are defined and agreed.
Plans for integrating the project team, where applicable.
Continuity of key personnel from the contract award
phase into the implementation phase.
5.2 Are all resources and internal
funds (the ‘client-side budget’)
in place?
Budget provision including following years’ expenditure.
Manpower provision agreed.
Approval process for payments to suppliers.
Process for expenditure reporting and reconciliation.
Insurances established by supplier where required.
5.3 Is there a plan for achieving
the required outcomes?
Confirm the supplier’s or partner’s project plan meets
timescales for achieving the outcome of the investment.
Realistic supplier’s or partner’s implementation plan and
plans for managing risk.
5.4 Does the client-side plan
reflect the supplier’s plan,
and vice versa?
Updated project management plan reflecting tender
proposals.
Defined organisation, personnel and responsibilities on
the client’s side.
Supplier personnel cleared to meet project requirements.
Process for resolving issues agreed with supplier/
partner.
Evidence that all plans have been reviewed, agreed and
included in the contract.
5.5 Are the long-term contract
administration plan and benefit
measurement process complete?
Long-term plan with contract management strategy and
a detailed service delivery plan.
Resources with identified sources.
Key measures of benefit agreed with supplier/partner (if
supplier payments related to benefits delivery).
Analysis of project plan showing that resource
requirements are identified, planned, budgeted for and
available when required.
Defined roles and responsibilities.
11
5.6
Are all the mechanisms and
processes in place for the next
phase?
Project plan confirms arrangements for management,
monitoring, transition and implementation.
If external consultants are used, they are accountable
and committed to help ensure successful and
timely delivery.
5.7
Are the service management plan,
administration and service level
arrangements complete?
Documented service management strategy and plan.
Defined and agreed service level managment, service
levels, service quality and measurement.
Responsibilities defined for each party.
Defined and agreed standards for services.
Defined and agreed monitoring, reporting and
review mechanisms.
5.8
Is the management process for
service change complete?
Change control procedures (both technical and
business) defined, agreed and included in contract.
Defined and agreed management process and
responsibilities.
5.9 Is there an acceptance strategy
or commissioning strategy, as
applicable?
Acceptance/commissioning strategy and plan, with
fully documented and timetabled decision paths.
Decision makers clearly identifed and informed about
their role and what information they will be given to
make their judgement.
Acceptance criteria agreed with supplier.
Validated acceptance testing plan, including technical
and business components.
5.10 Is there an implementation
strategy?
Implementation strategy and plan.
Users, stakeholders and client business management
involved in developing strategy.
Where applicable, transition plans to new ways
of working.
Clearly defined roles on client and supplier sides for
monitoring and controlling handover.
12
PROJECT DOCUmENTS
Examples of evidence expected for each area should be available before the review starts.
The following is a range of information that would typically be required:
• Risks and issues
Strategies for managing the risks and issues, and a risk
register showing that risks were identified and managed.
• Change
The plan for implementing business change and strategies for
handling
future
change.
• Services
Service management arrangements defining how services will be
managed, their performance measured and responsibilities shared
between the client and supplier.
• Benefits
The benefit management strategy, benefit management plans and
responsibilities
for
delivery.
• Delivery
The delivery strategy, including a procurement strategy, if appropriate.
• Operations
The operational requirement and draft contract.
• Business case
Business case for each of the bids that were
acceptable in principle,
to confirm the delivery strategy and that the negotiated
and agreed solution remains within the original criteria.
• Implementation
Realistic plans from the supplier for development and implementation.
• Evaluation
An evaluation report containing:
- Recommendation for the selected supplier or partner
- Justification of the selected supplier
-
Details
of
close
contenders
- Plans for debrief of unsuccessful suppliers.
• Plans
Outline project plans through to completion and plans for the
next
phase.
• Timeline
An updated project time plan developed with the selected suppliers.
• Communications
An updated communications plan.
• funds
Confirmation of the funds and authority to proceed.
Optima Centre 16 Parkland Road, Osborne Park WA 6017
Postal Address: Locked Bag 11, Cloisters Square, Perth WA 6850
T: (08) 6551 1555
E: gateway@finance.wa.gov.au
W: www.finance.wa.gov.au
Government of
Western Australia
Department of
Finance
Government Procurement
Document Outline - web_cover
- tender_decision
- strategic_assessment_of_a_project 18
Dostları ilə paylaş: |