The procurement strategy lays out how each Plan of Work stage will be procured, which teams will be responsible for managing and delivering each stage and what procurement process will need to be followed to deliver the outcomes.
Resource
The procurement strategy lays out how each Plan of Work stage will be procured, which teams will be responsible for managing and delivering each stage and what procurement process will need to be followed to deliver the outcomes.
📤 The primary outcome from this activity is to understand the potential routes for procuring a solution.
The procurement strategy also helps to identify and develop the role of the local authority in delivering the solution. For example, does the local authority want to be a customer, owner or partner in the solution? This will change the procurement routes available.
The procurement process continues through the lifecycle of the project, from engaging the market to contract management.
Procurement needs to be considered from an early stage in a project as it has a fundamental impact on how a project is organised.
The procurement plan influences:
- How the project/programme is structured and how it manages risk
- Who is contractually responsible for project risks
- Who is responsible for the design and when specialists become involved in the design work
- How and when the design team is employed
- How the construction/installation teams are appointed and when their involvement can start
- How the operational phase will be managed
- How the project/programme is evaluated
The choice of procurement plan does not fundamentally alter the design process during Stages 2 and 3 other than potentially including contractors in the concept design phase. However, the information that will be produced at each stage needs to be carefully considered to ensure the best value is delivered by the contracted design and implementation teams.
Things to consider
✅ Consider inviting procurement teams into projects at the earliest possible stage to deliver maximum impact
✅ Ensure a comprehensive set of information for each stage and tendering
✅ Lock down key aspects of the design critical to the quality of the outcome before tendering at the right time with detailed information
✅ Ensure coordination between the different project teams
✅ Consider procurement outcomes rather than services or products – this allows bidders to present their best solution rather than being constrained by previous assumptions
Procuring outcomes
derived from Government Outcomes Lab (2021)
Outcomes-based contracting is a mechanism of linking payments directly to the achievement of outcomes with service users. There are a range of ways in which an outcomes-based procurement can be incorporated into public services in order to focus on the overall improvements in the life of service users, rather than participation in individual services.
Principles for procuring better outcomes
derived from Ten Principles for Procuring Better Outcomes (2016)
These principles are aimed at construction projects but are relevant to local energy projects.
- Invest in the right design skills, briefing procedure and design process at the right stage when setting project budgets
- Consider whether and how the Public Contracts Regulations 2015 apply when commissioning design services – this is a given in the public sector
- Select and tailor your procurement procedure to suit your project needs, using design quality as a means to shortlist or award contracts where appropriate
- Consider whether a framework will deliver the best outcomes and design quality for the full range of projects you intend to procure. If awarding frameworks, consider dividing them into more numerous and smaller lots
- Consider actively encouraging consortia bids from smaller businesses, making it as simple as possible for consortia to compete
- Make the selection phase as simple as possible and proportionate to the scale and complexity of your project
- When assessing consultant capability, consider a track record of undertaking projects of a similar scale and complexity rather than extensive previous experience of an identical project type
- Set out your evaluation criteria for both selection and award stages clearly in advance and balance quantitative (fees and cost) with qualitative criteria, using a qualified design assessor
- Establish financial thresholds based on the scale, complexity, actual level of risk and value of the design services – turnover and professional indemnity insurance requirements are not mandatory criteria although the local authority’s own procurement policy may mandate certain thresholds
- Choose a standard form of contract, if one exists, and appoint consultants that promote collaboration, integration and direct communication with your design team
Capability required
| Capability | Responsibility | Team |
| Procurement Officer | Ensure that procurement processes are carried out correctly | Procurement team |
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