Designing of Technical Specifications and Pre-Qualfication: Project Procurement Management

Project Procurement Management
Designing of Technical Specifications and

Pre-Qualfication
Plan Procurement Management Process – Outputs
Supplier Pre-qualification ◼ Prequalification is typically based on

a high-level criteria, which must be
◼ An organization may already have fulfilled by the suppliers to be
existing suppliers (selected through a considered for participation in a
procurement process. E.g.
thorough procurement process), who ▪ Minimum experience
are qualified to provide the required ▪ Availability of required expertise
services ▪ Geographic presence
◼ If an existing pool of suppliers is not ◼ Purpose of prequalification is to

already available within an organization, ensure that only ‘relevant’ suppliers
the procurement team may have to are included in the process
conduct ‘Supplier Market Analysis’ to
identify potential suppliers
2
Plan Procurement Management Process – Outputs
◼ Procurement Strategy
▪ Once the make-or-buy analysis is
◼ Delivery methods.
complete and the decision is made
to acquire from outside the project, ▪ Professional Services
a procurement strategy should be ▪ Construction
◼ Contract payment types
identified.
▪ FP, CR, Awards and Incentives
▪ The objective of the procurement ◼ Procurement phases
strategy is to determine the project ▪ Sequencing or phase

delivery method, the type of legally ▪ KPIs
binding agreement(s), and how the ▪ Criteria (Gate)
procurement will advance through ▪ Monitoring Plan for tracking
the procurement phases.
▪ Process of knowledge transfer
▪ Procurement strategy may include:

3
Where Technical specifications come in?
what’s actually needed

vs.
what is “nice to have”
◼ Specifications constitute a document that clearly, accurately and
completely describes in detail what the client needs to purchase.
4
Rule-10 PPRA 2004 - Specifications
• Specifications shall allow widest possible competition

• Shall not favour any single contractor
• Shall be generic
• Shall not include reference to brand names, catalogue numbers
• In case brand name required, or specs incomplete, references will be
qualified with the words or
“ equivalent .”
5
Specifications
◼ A specification is the foundation of any purchase of goods,

services (including consultancies) or civil works.
6
Defining Requirements:
□ The process of finding out what client wants by writing down exact
requirements
7
Guiding the Supplier:
◼ The specification provides guidance to potential suppliers, so they can

supply the client with what he wants.
8
Agreement with the Supplier:
◼ The specifications become the basis for the contract with the supplier.
◼ Acceptance Certificate issued upon compliance to specifications
9
Clarity in Contract:
▪ The clearer the specifications, the easier it is to manage the contract.
▪ unclear specifications can create

▪ inefficiency
▪ confusion
▪ Disagreement
▪ conflict
10
Future Evaluation:
Clear and complete specifications enable us to evaluate whether:

▪ Client received what he wanted?
▪ supplier performed what client wanted him to?
11
Key drivers for developing Technical Specifications
▪ Type of products required

▪ Quality of product required
▪ Fabrication & workmanship
▪ Application
▪ Installation & finishing
▪ Codes & standards applicable
▪ Descriptions & procedures for alternate materials, products or services
etc.
12
Types of Specifications
◼ Functional Specifications
▪ These describe how a product will work
▪ entirely from the user’s perspective
▪ It talks about features
▪ It does not care how the thing is implemented
13
Types of Specifications
◼ Technical Specifications
▪ These describe internal implementation of a program
▪ entirely from the manufacturer’s/developer’s perspective
▪ It talks about technology & system architecture
▪ It focuses on how the thing is implemented
14
Methods of Specification writing
▪ Functional Specifications
▪ Performance
▪ Technical Specifications
▪ Conformance
▪ Reference Standard
▪ Proprietary
◼ One author for one type of specification
15
Statement of Work (SOW)
▪ Statement of Work (SOW)

• A narrative description of the required work.
• Stipulates the deliverables or services required
• Defines the
✔ tasks to be accomplished or
✔ services to be delivered
• in clear, concise and meaningful terms.
• Drafted in the Planning Phase by the Project Planners as a component of the Bidding Document
• Selected seller refines and provides his own version of SOW during Contract Administration phase
16
SOW- Words to be cautious of
▪ All ▪ Mutually satisfactory

▪ Never ▪ To your full satisfaction
▪ Unlimited ▪ Without any problem
▪ Unconditionally ▪ Fully guaranteed
▪ Assure or ensure ▪ etc. etc.
▪ Acceptable response
time
17
SOW Format may vary wrt scope of work
◼ Background
◼ Objectives
◼ Scope
◼ Tasks
▪ Task requirement No. 1
▪ Task requirement No. 2
◼ Task Areas
◼ Delivery
◼ Deliverables
◼ Deliverable schedule
◼ Government-furnished Property
◼ Security
◼ Travel
◼ Special Material Requirement
◼ Other Unique Requirements
◼ Place of Performance
◼ Period of Performance
18
SOW Background
■ Provides information needed with basic acquisition situation
■ Identify the requirement in a general way
■ Summarize ante-statutory authority affecting overall requirement
■ Identify background material attached to SOW
19
SOW Objectives
□ This section should provide overview of:
■ Contract Efforts & Goals
■ How results or end product be used
20
SOW Scope
◼ Provide a brief statement of:
▪ what the Government expects to accomplish under the contract
▪ the breadth and limitations of the contract effort
▪ It should not include specific work tasks or a description of

deliverable products.
21
SOW Tasks
◼ Also called “Work Requirements.”
▪ tasks that the Contractor must complete during contract performance.
▪ approach to meet task requirements and
▪ the required effort.
22
SOW Delivery
◼ This section should clearly state:

▪ What the Contractor must deliver. Different tasks with different
delivery requirements must be clearly identified
▪ When the Contractor must deliver. This may be stated using actual
dates, days after contract award,
23
Who reads the SOW?
□ A variety of people with different perspectives and life

experiences will read your SOW.
■ Stakeholders
■ Government & industry contracting personnel
■ managers
■ technical experts
■ accountants
■ lawyers
24
Thankyou
Q&A
25

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Project Procurement Management

Designing of Technical Speciﬁcations and

Supplier Pre-qualiﬁcation ◼ Prequaliﬁcation is typically based on

◼ If an existing pool of suppliers is not ◼ Purpose of prequaliﬁcation is to

▪ The objective of the procurement ◼ Procurement phases

strategy is to determine the project ▪ Sequencing or phase

▪ Procurement strategy may include:

what’s actually needed

• Speciﬁcations shall allow widest possible competition

◼ A speciﬁcation is the foundation of any purchase of goods,

◼ The speciﬁcation provides guidance to potential suppliers, so they can

◼ Acceptance Certiﬁcate issued upon compliance to speciﬁcations

▪ The clearer the speciﬁcations, the easier it is to manage the contract.

▪ unclear speciﬁcations can create

Clear and complete speciﬁcations enable us to evaluate whether:

▪ Type of products required

▪ entirely from the user’s perspective

▪ It talks about features

▪ It does not care how the thing is implemented

▪ entirely from the manufacturer’s/developer’s perspective

▪ It talks about technology & system architecture

▪ It focuses on how the thing is implemented

◼ One author for one type of speciﬁcation

▪ Statement of Work (SOW)

▪ All ▪ Mutually satisfactory

■ Provides information needed with basic acquisition situation

■ Identify the requirement in a general way

■ Summarize ante-statutory authority affecting overall requirement

■ Identify background material attached to SOW

□ This section should provide overview of:

■ Contract Efforts & Goals

■ How results or end product be used

◼ Provide a brief statement of:

▪ what the Government expects to accomplish under the contract

▪ the breadth and limitations of the contract effort

▪ It should not include speciﬁc work tasks or a description of

◼ Also called “Work Requirements.”

▪ tasks that the Contractor must complete during contract performance.

▪ approach to meet task requirements and

▪ the required effort.

◼ This section should clearly state:

□ A variety of people with different perspectives and life

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