goods_and_service_procurement_practice_guide.doc

What options are available if effective competition

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What Options are Available? If effective competition is impaired then a public authority should consider what options are available, they may include: Continuing with the procurement; Remedying the defect (where contractually possible within the procurement process and fair to do so. Legal advice should be sought prior to using this option); Terminating the procurement and starting a revised procurement process (where contractually possible within the procurement process and fair to do so. Legal advice should be sought prior to using this option); or Terminating the procurement and revisiting the business need. In weighing the options all relevant factors should be considered, including the: Extent to which competition is impaired; Significance of the expenditure; Impact on project timelines; Risk to government and the general public; and Ensuring compliance with all other State Supply Commission and government policies. 77 Ver. December 2017 Appendix
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Documenting the Decision A public authority’s decision must be reasonable and made on justifiable grounds. Irrespective of which option the public authority chooses, the public authority’s decision should be documented at the time the decision is made. This enhances probity and assists in mitigating any perception of bias. 78 Ver. December 2017 Appendix
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Appendix – Market Sounding Guidelines What is market sounding? Market sounding or industry engagement describes a range of activities through which an agency consults with industry regarding an upcoming procurement. Early engagement with industry provides valuable information to make the subsequent procurement process more focussed and efficient and ultimately deliver improved contract outcomes. Market sounding is a valuable research tool for a broad spectrum of procurement processes. It gives agencies the opportunity to challenge their assumptions of a particular industry, clarify industry capabilities and determine the most appropriate procurement strategy. The focus is on suppliers within a particular industry as a whole rather than the merits of individual suppliers. It includes no element of supplier selection or the evaluation of offers and involves no commitment from industry or the agency. Market sounding is beneficial because it: Allows access to rich sources of data and information from industry on the way a particular market operates, the types of services and products available, industry pricing structures and any future changes to the industry; Enables the development of Request documentation relevant to the targeted industry and easy to understand and complete, reducing the need for addenda or post-tender clarifications; Provides an opportunity for industry to be informed about government procurement processes, which is particularly relevant in sectors where suppliers may lack experience in completing government tenders; and Facilitates the consideration of innovative solutions that which had not previously been identified or considered.
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