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Including PBS in the procurement cycle

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Mariana Silva

on 29 August 2014

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Transcript of Including PBS in the procurement cycle

Selection criteria for candidates
Identify need and asses risks
Define the specification and invite bids
Evaluate Bids from suppliers
Awarding the contract
Defining contract performance clause
Monitoring and evaluating supplier
Including PBS in the procurement cycle
1)
It is fundamental to concentrate on what the real problem instead of defining how the solution looks like.
For example: A hospital in the UK had a very slow patience registration process. Aiming to increase the patience insertion ratio public procurers decide to launch a tender for an IT system which will replace the human staff filling the registration forms. The end result was catastrophic since the IT was a solution to achieve quicker a highly inefficient process.
ddIT was clearly not the solution for this conundrum. by the use of PBS, public procurers could articulate the problem leaving the private sector to innovate with the most suitable solution. Identifying the real problem will help public procurers define when a tender will be most suitable for a performance based specification
Openings for the use of PBS:
Leasing contract
Straight Public procurement contract
- Define what the needs are in terms of required performance; analyze the types of contract available that might be suitable
Explanation:
Identify need and asses risks
Public Procurement Cycle
2) Selection Criteria for Candidates
Openings for the use of PBS:
- The prequalification of suppliers provides an opportunity to evaluate the technical capacity of bidders, including considerations of past performance.
3)
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5)
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7)
3) Define the technical specifications and invite bids
Openings for the use of PBS:
- Leave the specifications "open". Output based specifications
Explanation:
4) Evaluate bids from suppliers
Openings for the use of PBS:
- Conduct due diligence of the feasibility of each bid
- Develop a functional questionnaire to evaluate bidders on the same basis
Explanation:
5) Awarding the contract
Openings for the use of PBS:
- Establish the most suitable weighting approach and evaluation methodology for the evaluation
Explanation:

6) Define contract performance clause
Openings for the use of PBS:
- Set up special conditions related to the management and /or performance of the contract. (If performance indicators where not defined before, they could be included in this step)
7) Monitoring and Evaluating supplier
Openings for the use of PBS:
- Set up disciplinary measures for supplier's under performance
If in step 1 the problem has been identified as the public building are overheating and there is a need of indoor air conditioning.
The technical specifications could we written in the following way: "inside temperature between 18 - 22 C during winter and 25 - 27 C during summer"
Instead of the traditional straight public procurement technical specification for an specific air conditioning equipment.
The Bidder will chose any method for achieving the requirement without having to follow very specific technical specification, this will allow innovation and cost efficiency
Since the technical specifications have been written in an "open" way. Every bidder will have a different way to deliver a solution. Evaluating the different bids with life cost analysis will be challenging since no real comparison could be achieved.
To overcome this problems, Netherlands has developed a questionnaire ..... (more info on this)
Since every bidder will have a different solution for the tender, it is important to establish the criteria and weight which will help to make the final decision.
This step is a good place to include environmental criteria such as: energy efficiency requirements, environmental resources management, circular economy requirements ..etc..
For example ....DUBOCAL
Explanation:
- Set up Incentives to encourage superior performance
Explanation:
Explanation:
How have bidders committed to energy reduction in past projects
How have the bidders made reductions in their packaging
Full transcript