Best Practice Guide for ICT Purchasing

V2.01.00 February 2007

Purpose and use of guidelines

While Information & Communications Technology (ICT) purchasing is subject to the general directives contained in the State Purchasing Policy, it has also some particular characteristics that require specific recognition. These include: The continually increasing dependence of Government on ICT and the high risk entailed in many ICT acquisitions; The complexity of the ICT environment and the speed with which technologies are changing; The need for informed choices in a multiplicity of delivery options; The relative importance of Government expenditure in the Queensland ICT marketplace, which provides sufficient leverage for the achievement of Government objectives; and Recognition across Government procurement that the provision of more timely and comprehensive information provided to the marketplace will produce better outcomes.

While parallels to many of these characteristics may be found in other industries, it is the unique combination in ICT, which is important and demands particular consideration in purchasing policy and practice.

How to use this document

These Guidelines have been developed to complement the Queensland Government Information Standard 13 - ICT Procurement. They may be used as additional reference material by Queensland Government agencies when developing agency ICT Purchasing regimes. The Guidelines are provided for general guidance only. Agencies should consider the information provided in these Guidelines as reference material and interpret them in the context of their own agency purchasing procedures. It is important to read this document in conjunction with the State Purchasing Policy and Information Standard 13 - ICT Procurement and relevant Queensland Purchasings Better Purchasing Guides. The information contained in this Guide has been developed to provide agency staff involved in the procurement of ICT goods and services with an overview of processes to produce optimum results.

Best Practice Guide for ICT Purchasing

TABLE OF CONTENTS
1. 2. 2.1. 2.2. 2.3. 2.4. 2.5. 2.6. 2.7. 3. 3.1. 3.2. 3.3. 3.4. 4. 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 5. 5.1. 5.2. 5.3. 6. 6.1. 6.2. 6.3. 7. 7.1. 7.2. PROCUREMENT FRAMEWORK ........................................................................4 COMPONENTS OF ICT PROCUREMENT..........................................................5 State Purchasing Policy ICT SME Participation Scheme GITC Probity Process Planning Options Identify Need Developing the business case Establishing a Project Team Preliminary Approvals Determining the type of offer Components of a formal Invitation to Offer Development of a formal offer Publishing the offer Handling enquiries Abandoned or delayed offers Conduct an auditable purchasing process GITC Customer Contracts Intellectual Property Publish invitation results Advise unsuccessful offerers Complaints Develop and implement contract management plan Review suppliers performance 5 5 6 6 6 6 7 10 10 10 11 12 12 13 15 15 16 17 18 18 19 19 19 20 20

KEY STEPS .......................................................................................................10

THE OFFER PROCESS ....................................................................................12

THE EVALUATION PROCESS .........................................................................17

THE DE-BRIEFING PROCESS .........................................................................19

CONTRACT MANAGEMENT ............................................................................20

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1. Procurement Framework
Information and Communication Technology (ICT) procurement is subject to the general directives of the State Purchasing Policy, but has some particular needs which have required the formulation of specific Government policies. To meet these needs Information Standard 13 - ICT Procurement (IS13) and Government policies and directives such as the Government Information Technology Contracting (GITC) Framework and Queensland Purchasings Better Purchasing Guides have been developed to provide direction for agency ICT procurement. The framework below illustrates the linkages between these requirements, policies and standards.

GOVERNMENT PRIORITIES

LEGISLATIVE & REGULATORY REQUIREMENTS

LOCAL INDUSTRY POLICY

STATE PURCHASING POLICY

FINANCIAL MANAGEMENT STANDARD

ICT RESOURCES PLANNING STANDARD (IS2)

ICT RESOURCES STRATEGIC PLAN

CORPORATE PROCUREMENT PLAN

QUEENSLAND PURCHASING BETTER PURCHASING GUIDES

PUBLISH ICT FORWARD PROCUREMENT SCHEDULE PLAN FOR SIGNIFICANT ICT PURCHASES

ICT PROCUREMENT (IS13) ICT PROCUREMENT BEST PRACTICE GUIDE

ICT PROCUREMENT ACTIVITY

GITC

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2. Components of ICT Procurement

2.1. State Purchasing Policy

The State Purchasing Policy is underpinned by the objectives of advancing Government priorities, value for money and probity and accountability for outcomes. In an operational environment these objectives translate into a number of concepts which provide direction for general procurement and ICT procurement. The concepts include: Procurement planning; Analysing supply markets in purchasing; Managing arrangements with suppliers; Managing and monitoring suppliers performance; Developing purchasing skills; and Developing agency purchasing. In accordance with the State Purchasing Policy agencies are required to: Prepare annual procurement plans; Prepare individual procurement plans for goods and services (including ICT) that have been identified in the agencys corporate procurement plan as being of high relative expenditure and/or for which supply is difficult to secure; Publish forward procurement schedules outlining anticipated purchases that are of high relative expenditure and/or for which supply is difficult to secure; and Conduct a supply market analysis for purchases of high relative expenditure and/or for which supply is difficult to secure.

2.2.

ICT SME Participation Scheme

The ICT SME Participation Scheme (the Scheme) was approved by Cabinet in April 2006 as a requirement for Queensland Government procurement of ICT products and services. It has a specific intent of assisting ICT Small to Medium Enterprises (SMEs) gain greater access to the Queensland Government market. In accordance with the SME Participation Scheme agencies are required to: demonstrate that they have undertaken a market assessment to identify appropriate SMEs and to obtain offers from at least two; complete a short questionnaire, as part of the formal tender process, which will capture information previously covered in the former Industry Development Statement process ; provide the Queensland Government Chief Information Office with a copy of their plan for any significant purchase; and report to the IIB on a quarterly basis regarding details of contracts awarded.

The requirements of the Scheme can be obtained through the Information Industries Bureau website on www.iib.qld.gov.au

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The requirement for annual procurement planning in the State Purchasing Policy has opened opportunities for better communication between the Government and the ICT industry. Under the provisions of the State Purchasing Policy and Information Standard 13 - ICT Procurement (IS13) agencies are required to provide advance notice to the industry of their proposed timing for significant ICT purchases, offering suppliers time to match their planning to Government requirements.

2.3.

GITC

All acquisitions, upgrades and enhancements of ICT products and services are to be carried out under the contractual terms and conditions of the Government Information Technology Contracting (GITC) Framework. Agencies are to ensure that any potential supplier of ICT goods and services is a signatory to the GITC in this State before they transact business. Further information concerning GITC can be sourced through the GITC website. A Reference Sheet containing Additional GITC clauses and phrases is located in the Procurement Toolbox.

2.4.

Probity

Probity requires the procurement process to be conducted ethically, honestly and with fairness to all participants. Procurement transactions and decisions should be able to withstand a public defensibility test. The procurement planning process must include strategies that ensure probity and accountability within all aspects of the conduct of the agencys purchasing function.

2.5.

Process

The establishment of documented processes and procedures for all aspects on procurement is a mandatory requirement of the State Purchasing Policy and IS13. Agencies should refer to the Queensland Purchasing Developing Agency Purchasing Procedures Better Purchasing Guide for detailed information.

2.6.

Planning

Good planning is essential to the overall success of an ICT purchasing activity, especially in the case of complex ICT specifications and requirements. Queensland Purchasings Better Purchasing Guides provide detailed information on Corporate Procurement Planning and Analysing Supply Markets for Purchasing. These are located on the Queensland Government Marketplace website. 2.6.1. Forward Procurement Schedules The State Purchasing Policy requires agencies to publish their forward procurement schedules. IS13 requires agencies to publish their schedules on the Queensland Government Marketplace website and provide this information to industry by way of a presentation at the Information Industries Bureaus premises at Milton as soon as budget allocations have been determined. 2.6.2. Significant ICT Purchases Planning for significant purchases focuses on the management of a particular transaction such as a single high-relative expenditure or high-risk purchase. Most ICT purchasing will fall under quadrants 2, 3 and 4 of Figure 2 as detailed in the State Purchasing Policy and therefore will require a plan for a significant purchase. Agencies should refer to Queensland Purchasings Planning for Significant Purchases Better Purchasing Guide for detailed information or see below for purchases of $2M or above.

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HIGH Category 3 Goods and/or services which involve a low relative expenditure, but where supply is difficult to secure Category 4 Goods and/or services which involve a high relative expenditure and where supply is difficult to secure

2.6.3. Significant ICT Purchases of $2Million or above The Industry/Government ICT Group was established by the Premier in October 2005 to provide a forum where the Government and the ICT industry could work together to identify opportunities and respond to issues affecting the productivity and effectiveness of the ICT industry in Queensland. As a result, agencies are required to contact the Industry Liaison Group, Queensland Government Chief Information Office who will review: all proposed ICT product and service purchases and proposals to establish standing offer or other panel supply arrangements;

where the projected total (staged or otherwise) whole of life costs of the purchase is $2 million or above. These reviews are to be conducted prior to the agency going out to market. This process is intended to provide best practice advice to agencies to ensure the highest opportunity for agency ICT investment to achieve outcomes. N.B.The guidelines for this process are currently being developed. 2.6.4. Supply Market Analysis Thorough analysis of supply markets may assist agencies to reduce expenditure, manage risk and identify opportunities to advance Government priorities. Analysing supply markets for procurement is a technique used to identify market characteristics for specific goods or services and provides information that assists procurement planning. It will enable the agency to understand how a particular ICT market works and the direction in which it is heading, the competitiveness of this market and the key suppliers.

Difficulty of Securing Supply

Category 1 Category 2 Goods and/or services which Goods and/or services have a low relative value and which have a high relative where supply is easy to secure value and where supply is easy to secure

Relative Expenditure

HIGH

Figure 2

2.7.

Options

During the planning process for a significant ICT purchase agencies should also consider trade-in, lease or outsourcing options as a means of contributing to the development of the ICT industry in Queensland. It is important for agencies to conduct a thorough assessment of all relevant factors in order to establish the most appropriate course of action.

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Agency ICT staff are encouraged to network with colleagues in other agencies on issues of mutual interest and share information on purchasing activity and other matters which can be beneficial to all parties. Some of the options which agencies should consider before commencing an offer process include: Accessing your own agencys arrangements; Use of agency arrangement by a second agency; Establish a joint offer process; Agency Panel and Standing Offer Arrangements; Use Whole-of-Government ICT arrangements; and Partnering with industry.

2.7.1.1. Access your own agencys arrangements Ensure that you access your own agency ICT supply arrangements if there is an established arrangement current for the particular product or service required. 2.7.1.2. Use of agency arrangement by a second agency Where an agency proposes to establish a supply arrangement of its own (where a whole-of-Government supply arrangement is not in place), and that agency is aware that other smaller agencies may wish to purchase from their proposed supply arrangement, a standard clause should be incorporated into the invitation document. Refer to Reference Sheet Additional GITC clauses and phrases located in the Procurement Toolbox. If it is in accordance with their own purchasing instructions, agencies may buy off another agencys established Standing Offer Arrangement, if they have an identical requirement. The primary reasons for piggy backing on another agencys arrangement are to save time and the cost of procurement. However, when it is a significant purchase, this may not be appropriate and the agency would still have to prepare a plan for significant purchase, addressing but not limited to the following considerations: Are the agencys specification requirements the same as yours? Has the agency conducted a proper evaluation process? Are the agencys priorities the same as yours? Would your evaluation criteria be the same as the agencys? Has technology changed since this arrangement commenced? Are there new suppliers in the market place? Does your intended purchase represent a high portion of the original value or greater than the original value? Could a better offer (price) be expected? Would the market place have a reasonable expectation to have an opportunity for your business? Is the present supplier prepared to supply the same products and services at the same terms and conditions? Has the supplier performed satisfactorily during the currency of the present arrangement? Is the decision defendable?

It would be necessary to have discussions with the agency and the supply market in preparing the plan for significant purchase.

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2.7.1.3. Agency Panel and Standing Offer Arrangements (SOAs) SOAs are agreements with one or more suppliers to provide an undefined volume of goods or services over a set period in accordance with agreed conditions, including price. Standing Offer Arrangements may be between the supplier and an agency direct or an agency may have access to a standing offer through, for example, a whole-of-Government arrangement. To ensure that SOAs and Panel arrangements continue to be both beneficial to the agency and the supplier, reviews of pricing, market availability and supplier suitability should be built into the performance measures of the agreement and also addressed as a part of annual agency procurement planning. Agencies should also ensure that staff involved in developing and managing SOAs and Panel arrangements are appropriately trained and/or accredited to do so. Agencies should contact Queensland Purchasing in regard to all purchasing training. Further information on developing SOAs can be found in the Queensland Purchasing Developing and Management Arrangements with Suppliers. 2.7.1.4. Use of Whole-of-Government ICT Arrangements Agencies should consult with GITC Services for details on what whole-ofGovernment ICT arrangements are in place. Refer to http://www.gitc.qld.gov.au. 2.7.1.5. Partnering Agencies may wish to consider the appropriateness of using a partnering process as part of their ICT procurement exercise. Partnering is likely to be useful in a developmental situation or where the ICT goods or services being purchased over the life of the relationship cannot be easily defined. The procurement would be one with a high monetary value or where supply is difficult to secure. For further information refer to the Queensland Purchasing Developing and Managing Arrangements with Suppliers Better Purchasing Guide and Public Private Partnerships Guidance Material developed by the Department of Infrastructure (refer to www.coordinatorgeneral.qld.gov.au)..

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3. Key Steps
3.1. Identify Need
Before commencing a procurement activity a genuine need for the purchase should be demonstrated. Agencies should avoid hunting for ideas with industry without a serious intent of going to the marketplace via an invitation process. Consistency with the Corporate Procurement Plan and consideration of all options (refer to Section 2.6 Options) should be assessed on a case by case basis, especially for significant ICT purchases.

3.2.

Developing the business case

Once a need is identified for the ICT purchase, a business case should be developed to ensure that all options, costs and benefits associated with the need are identified. The detail of the business case will be dependent on the relative expenditure of the purchase. Significant purchasing of ICT products and services would generally require that a detailed cost benefit analysis be included in the business case. The following issues should be considered when developing the business case: Identification of key stakeholders; Survey of clients needs and their views on how to meet the need; Investigation of all alternatives that will address the need and their associated costs and benefits; Cost benefit analysis (for high value purchases); Risk assessment; Determine how to best spread the cost over time; The degree of standardisation required across the agency or parts of it; Corporate implications, including impact on service delivery and resourcing; Considerations of industry development; vendor viability, contractual implications; Functional requirements and performance; and Support requirements and compatibility issues.

3.3.

Establishing a Project Team

It is advisable to form a project team of experts for major complex ICT procurement. The composition of this team will vary, but could include officers from the following areas: Procurement; Technical; Users; Financial; and Probity auditors. These roles should be involved in all stages of the procurement activity including: Having some input in preparing the plan for significant purchases; Developing the specification and invitation documents; Evaluating offers; Tests and trials; Presentations; Negotiations;

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Recommendations; and De-briefing suppliers.

3.4.

Preliminary Approvals

Agencies should refer to local agency ICT resources planning instructions to ensure that internal approval processes are followed. For example, before the commencement of a purchasing activity for a significant dollar value, the business case may need to be approved by the agencys Information Steering Committee (ISC) or a similar governance process. Agencies should refer to Information Standard 2 - ICT Resource Planning and local instructions for further information on ICT planning and governance.

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4. The Offer Process

4.1. Determining the type of offer
Inviting offers can be informal (by telephone) for low value purchases or formal (in writing) for inviting most offers from the market place. There are various terms and approaches used when inviting offers. The method selected should be determined on a case-by-case basis. Whatever the term used, the process of inviting offers must be conducted in accordance with the objectives of the State Purchasing Policy. The most common terms and approaches are: Request for a quote; Request for Information (RFI) or Expression of Interest - generally used to request information from suppliers in order to shortlist potential suppliers before seeking offers. Usually the information sought is high-level and specific; Request for Offer (RFO) or Invitation to Offer - usually used to obtain bids for clearly defined and specific requirements; Request for a Proposal - usually seeks a solution to a problem or process; and Request for Tender - this is similar to an RFO. The construction industry often uses this term.

The procurement methods adopted will vary depending on the complexity of requirements, the market and the difficulty of securing supply of goods and services and the relative expenditure for the goods and services.

4.2.

Components of a formal Invitation to Offer

The content and details of the Invitation to Offer document will be dependant on the complexity of the purchase and local agency instructions. However, it is important that the document remains clear and focussed on sourcing the business outcome. The name and address details of an agency contact person for any queries pertaining to the invitation are to be included in the document and should be published with the Invitation for Offer on the Queensland Government Marketplace. Any proposed agency course of action that may impact on industry should also be highlighted in the invitation document. So as not to mislead or confuse industry, agencies are to state their intentions clearly in the invitation document and indicate if they may be considering any of the following options: Whether post invitation negotiations are a prospect; Whether alternate invitations and part invitations are acceptable; Whether partial acceptance of an invitation is a prospect; Whether a best and final offer (invitation) is a prospect; Whether suppliers will have the option to offer new or enhanced goods or services during the evaluation; That alternative technologies and innovative solutions are encouraged and will be evaluated; and

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Whether the agency may elect to change (in minor aspects) the scope of the requirement or the terms and conditions of the invitation document during the evaluation period.

4.3.

Development of a formal offer

Where a formal Invitation to Offer process has been selected for the purchase, documentation usually consists of the following sections or parts, however, agencies should refer to local instructions or Queensland Purchasing for further guidance. Agencies should endeavour to develop offer documentation and devise standard templates and guides for the formal offer process within their agency. 4.3.1. Cover Sheet This section provides basic information about the offer, including contact details, the name of the products/services required and the agency identity. 4.3.2. Standard Conditions of Offer This section outlines the standard terms upon which the department/agency is inviting offers including: Lodgement o Lodgement and handling arrangement for offers - the form in which the offer will be accepted in writing, by fax, by phone or electronic media. Response o The format of response and the response times. Government ICT invitations are to be open for an appropriate period to enable the market to respond effectively. This period will vary depending on whether the requirement is a complex or more routine purchase. Suppliers should not be put to additional expense or deterred from responding because of unnecessarily short time frames or the closing of offers around holiday periods. Completion timetables o Agencies are to state in their invitations realistic timetables for finalisation of the total purchasing project. This ensures that industry does not overcommit resources to one particular project, which may continue indefinitely. Suppliers will be able to plan accordingly and have key staff available for interviews, industry briefings and contract negotiations, etc. 4.3.3. Standard Conditions of Contract This section outlines the terms and conditions upon which the agency is prepared to contract. 4.3.4. Special Conditions of Offer When developing ICT offers, this section of the offer should outline: GITC terms and conditions; Professional Indemnity and insurance requirements; If QA accreditation is required; and If there are any specific Queensland Government Information Standards, Australian or International Standards and policies which need to be considered.

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4.3.4.1. Use of GITC clauses The GITC Framework is a set of contractual terms and conditions pertaining to the procurement of ICT related products and services. GITC assists through providing contractual clarity and certainty in contractual arrangements. The Government has an obligation to not contravene the pre-agreed terms and conditions of the GITC Framework. An Invitation to Offer is to include a requirement for the supplier to have, or to be prepared to obtain, GITC accreditation prior to the placement of a customer contract. Invitations to supply ICT goods and services should include a standard GITC clause. This can be found in the Reference Sheet Additional GITC clauses and phrases located in the ICT Procurement Toolbox of Information Standard 13 - ICT Procurement . 4.3.4.2. Existing GITC signatories Whilst it is a mandatory requirement for suppliers of ICT goods and services to have already signed a GITC agreement with the State of Queensland, the information obtained for GITC accreditation only provides a snapshot of the supplier details at that point in time. The invitation to offer document must still clearly define the GITC terms (eg. unconditional financial undertakings, insurances required, etc.) and parts (eg. software, hardware telecommunications, facilities management) that are applicable to each invitation to offer.

4.3.5. Quality Assurance (QA) To satisfy obligations under the Queensland Governments Quality Assurance Policy, agencies need to assess the risk associated with the purchases valued over $10,000. In terms of ICT purchasing the requirement should be risk assessed on a case-by-case basis and the QA requirements specified accordingly. Where a moderate to high risk is identified, evidence of formal accreditation may be required under the Queensland Governments Quality Assurance Policy. To determine the level of risk, agencies should follow local agency risk methodologies and policies or use the suggested QA risk methodologies outlined in the Quality Assurance Policy. 4.3.6. Relevant Standards This section should also include where there is a need for an offerer to meet the requirements of a specific Information Standard or Information Standard mandatory principle. Agencies should ensure that ICT equipment (PCs and printers, scanners, etc.) purchased complies with the US EPA Energy Star or power management features and is supplied with these features enabled where technically feasible. Invitations for the supply of relevant ICT hardware should include a requirement that the equipment be Energy Star compliant and enabled. Refer to the Queensland Purchasings Buy Green: Sustainable Procurement project and also to the Reference Sheet Additional GITC clauses and phrases located in the Procurement Toolbox. 4.3.7. SME Participation Scheme Additional information on specific requirements of the SME Participation Scheme can be obtained from the Policy Statement and Operational Guidance on the Information Industries Bureau website www.iib.qld.gov.au.

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4.3.8. Specifications The specifications component of the offer is a statement of needs and identifies the goods or services that the agency requires from a supplier. It is important to note that the specifications form a part of any future contract that might result from offers received. It is critical when developing ICT specifications that a clear and comprehensive document is developed so both the agency and the supplier know precisely what is expected of each party. A risk assessment should be carried out prior to the development of the specifications to assess the levels of risks and how these can be minimised through the specifications. For example, there may be specific security and/or privacy issues that must be accounted for in the specifications. Refer to the Queensland Purchasing Developing Specifications for Purchasing Better Purchasing Guide for a draft outline and suggested scope for inclusion in the specification document. 4.3.9. Schedule of Prices A standard format included in the invitation documentation for offerers is to include multiple pricing information for a range of products, if applicable. Agencies should refer to Queensland Purchasing for further information on this component of the offer. 4.3.10. Schedule of Particulars This section should be used to recap and clarify all requirements for the offer and should take the form of a set of questions which the offerer can use as a checklist to ensure that all details including specifications, requirements, inclusions and relevant information are covered off in their response to the offer. The section should clearly state which of the requirements are mandatory or desirable and that unless the mandatory requirements are met, the offer will not be considered further. The information provided should be sufficiently clear to allow suppliers to accurately size projects.

4.4. 4.4.1.

Publishing the offer

Electronic procurement Agencies are encouraged to utilise any whole-of-Government mechanisms in place for electronic procurement. Accountable officers are to ensure that such facilities are accompanied by due attention to areas such as authentication of transactions and securing agency infrastructure, and that a clear business case exists for the use of electronic procurement. Advertising of ICT invitations Information Standard 13-ICT Procurement mandates that Forward Procurement Schedules and all information relating to offer for Significant Purchases must be published on the Queensland Marketplace Government website. However, potential ICT business opportunities will be readily accessible to industry, if agencies advertise all ICT invitations on the Queensland Government Marketplace website www.qgm.qld.gov.au. This is a convenient and well-known central location where industry can access whole-of-Government purchasing policy matters and related issues.

4.4.2.

4.5.

Handling enquiries

Once an offer is released, agencies should ensure that there is appropriate staff on hand to clarify details for supplier enquiries, provide information on the status of the

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tender process throughout the tender invitation process and to provide feedback to offerers at the conclusion of the tender process.

4.6.

Abandoned or delayed offers

Should an invitation process be abandoned or delayed, the agency should advise all interested suppliers in writing and state the reason/s why the project will not be finalised or why it will be delayed. Events may occur that make it inappropriate to proceed with an invitation process such as: Changes in the machinery of Government; Major changes in Government policy or strategic direction; Significant budget reductions; and Radically new technology or radically different products/solutions that appear on the market.

In the event of an offer being delayed for 6 months or more, agencies should assess if the offer still meets the needs of the agency and if there is a need to re-offer to the market.

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5. The Evaluation Process

An offer evaluation plan is a useful internal planning and control document for the management and conduct of offer evaluation. Queensland Purchasings Evaluating Offers Better Purchasing Guide provides and outlines details on developing an evaluation plan and the evaluation process. The underlying principles of the evaluation phase of the ICT purchasing project are to ensure that the agency acquires the most cost-effective ICT solution to meet its identified business needs and that the selection process is fair to all potential suppliers. The evaluation of offers is a highly complex activity, with substantial legal and ethical implications. Training and/or accreditation in the application of offer evaluation methods are also highly recommended. This training can be sourced through Queensland Purchasing.

5.1.

Conduct an auditable purchasing process

5.1.1. Treat prospective offerers in a fair and equitable manner During the period the invitation is open to the market place, prospective suppliers will often seek additional information or clarification of the requirements and it is critical to ensure that all these suppliers are treated in a fair and equitable manner. Any details provided to one supplier that could materially alter the understanding of the requirement or provide a competitive advantage should, therefore, be conveyed promptly to all potential offerers. 5.1.2. Obtain additional information during evaluation ethically During the evaluation stage where clarification of response information is required, agencies can seek further information in the form of a series of questions. However, the questions should not deviate from or seek late amended/late invitations outside the parameters of the initial invitation. It is important that the selection process be conducted appropriately and will withstand a probity audit. 5.1.3. Verbal or informal commitments Do not give any form of verbal or informal commitments to potential suppliers prior to the formal signing of a contract or release of a purchase order. 5.1.4. Dealing with ICT suppliers Agency personnel are always to act responsibly and professionally in their dealings with ICT industry representatives. They should recognise and report any perceived conflicts of interest, deal with suppliers even-handedly and not compromise themselves or the Government by accepting gifts or hospitality. If agencies engage external ICT consultants to assist in the purchasing process, they should be conscious that this might give an unfair advantage to the company with which these consultants are involved. In this instance, the consultant should be advised that the terms of their engagement would preclude them and their company from being able to participate as an offerer in that purchasing process.

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5.1.5. Confidentiality Agencies are to keep commercially sensitive information obtained from suppliers (such as invitation responses and specialised software) secure and are never to use it for personal gain or to prejudice open and fair competition. Refer to Queensland Purchasings Better Purchasing Guides-Ethics, Probity and Accountability in Procurement and Evaluating Offers in Purchasing.

5.2.

GITC Customer Contracts

All customer contracts or notifications for ICT products or services are to reference the suppliers GITC signatory number. Any specific modifications or deletions to the pre-agreed conditions covered in the GITC Agreement should be discussed with GITC Services prior to incorporation in the Customer Contracts/letter of acceptance. Templates for GITC Schedules can be sourced through the GITC website.

5.3.

Intellectual Property

Intellectual property covers a broad range of material which has been produced as a result of intellectual effort. The Cabinet endorsed the Public Sector Intellectual Property (IP) Principles require that agencies are accountable for the responsible management of IP assets they produce or use. These Principles provide guidance to agencies on how to appropriately manage and commercialise their IP assets. The three overarching Principles are: 1. Agencies are responsible for managing the IP assets they generate or use. However, where appropriate, the Department of State Development and Innovation may provide advice or assistance at first instance which includes referrals or suggestions to appropriate organisations/entities. 2. Commercialisation of IP by an agency should generally be ancillary to that agencys core business; and 3. The on-going operational value of IP should not be compromised by commercialisation activities. Further information and guidance on managing IP can be sourced through the Intellectual Property Publications website.

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6. The De-Briefing Process

6.1. Publish invitation results
Agencies are to publish on the Queensland Purchasing website www.qgm.qld.gov.au the company name/s of the successful offerer/s for their ICT invitations. This practice will foster more open business dealings between Government and industry. 6.2. Advise unsuccessful offerers To demonstrate to industry that Government ICT purchasing practices are open, and to ensure strong agency/supplier relationships, unsuccessful offerers are to be notified subsequent to the successful offerer being advised. Agencies should also assess on a case by case basis the timing and implications of providing those offerers not short listed with immediate advice. Unsuccessful offerers should be given the opportunity to attend a feedback/debriefing session, a forum where they can learn where their invitation responses were deficient against the evaluation or selection criteria and, thus, how to improve their future chances of transacting ICT business with the Government. Agencies should limit these de-briefing discussions to strengths and weaknesses of the respective invitation response against the evaluation criteria rather than justifying why another supplier was chosen. Agencies should assess on a case by case basis if they wish to release detailed information on the weightings of the evaluation or selection criteria.

6.3.

Complaints

Agencies are required by the State Purchasing Policy to have in place a complaints management process. It is good purchasing practice to offer a debriefing session to suppliers that have been unsuccessful in tendering for Government business. The information provided in these sessions should limit the need for complaints.

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7. Contract Management
7.1. Develop and implement contract management plan
This process would occur at the end of the ICT procurement project after the contract has been awarded. Agencies should meet with the successful supplier/s and develop an agreed management plan for the period of the contract. This provides an opportunity to discuss the full contractual details and the level of expected commitment of both parties.

7.2.

Review suppliers performance

Agencies should conduct a regular review of the suppliers effectiveness in meeting contractual requirements for delivery of the particular ICT product or service. It is important from the Governments perspective to ensure the supplier is meeting the performance milestones and that any problems or disputes are quickly resolved. In this regard communication between the agency and the supplier must be ongoing and effective. Issues for consideration by the agency are payment methods, managing variations to the arrangement and the keeping of appropriate records. Queensland Purchasing Managing and Monitoring Suppliers Performance Better Purchasing Guide provides a detailed guide on this issue.

20/02/2007

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