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6. Gate 3: procurement strategy

Gateway review 3 assess the project’s viability, its potential for success and whether the project is ready to invite proposals or tenders form the market. The review assures the project steering committee and / or senior responsible owner that the selected procurement approach is appropriate for the proposed acquisition.

Where the initial contract term with an existing supplier is about to expire procurement components need to be adapted to ensure they make informed choices about value-for-money options to best meet the business needs.

Purpose

  • Confirm the outline business case now the project is fully defined.
  • Ensure that the procurement strategy is robust and appropriate.
  • Ensure that the project’s plan is appropriately detailed and realistic, through to completion.
  • Ensure that the project controls and organisation are defined, financial controls are in place and the resources are available.
  • Confirm funding availability for the whole project.
  • Confirm that the development and delivery approach and mechanisms are still appropriate and manageable.
  • Check that the supplier market capability and track record is fully understood.
  • Confirm that the procurement will facilitate good client/supplier relationships.
  • Confirm that appropriate project performance measures and tools are being used.
  • Confirm that quality procedures have been applied consistently since the previous review.
  • Confirm compliance with health and safety and sustainability requirements.

Deliverables

  • Tender advertisement - refer to tendering, evaluation and acceptance guideline.
  • Selection report.
  • Contract - refer to contract documentation and contract administration guidelines.

Key actions

  • Tender advertised.
  • Evaluation panel established. 
  • Preferred contractor identified and engaged.

Documentation

The following documentation, where applicable, should be available before the review starts:

  • an updated business case containing a plan for realising benefits
  • the project’s costs to date set against budget
  • a plan for managing the business change
  • specification of the project’s expected outputs and outcomes
  • the procurement strategy and documentation justification for the approach
  • draft tender documents
  • proposed implementation strategy 
  • risk and issue logs and risk management plans
  • current and planned business / technical policies, strategies and constraints
  • outline project plans to completion and detailed plans and constraints
  • results of any business, commercial or technical benchmarking
  • updated communications strategy and plan
  • documentation management system for the project
  • a strategy for measuring project performance, including health and safety.

Key sign offs

  • any changes to endorsed scope / TEI / timeframes to be signed off by service division. 
  • relevant delegate authorisation to engage construction contractor.
  • relevant delegate to sign contract / commit funds.