3.2.1

Question 1

What are the Five Rights of Procurement?

Answer 1

Quantity
Quality
Time
Place
Price

Question 2

What is the scoping stage questions to ask about the specification?

Answer 2

Who is responsible for producing the first draft?
Is there an existing specification?
If so, how well does it achieve what is needed?
What are its identified shortcomings?
If there is no existing specification, what are the broad objectives to be achieved?
Is there an already defined minimum quality standard? What is it?
Are there quality aspirations above that standard?
Are there any technical constraints?
Are there any environmental and/or social requirements?
Who are the stakeholders that need to be consulted?

Question 3

What are the Factors which influence the decision of who is responsible for producing the FIRST DRAFT of a specification?

Answer 3

The structure of the organization
The level of skill and knowledge within the relevant departments
Whether this is a re-procurement or completely new
Current workloads
Timescales

Question 4

What is a Non-disclosure agreement?

Answer 4

A promise not to share information that could be useful to competitors and therefore harmful to the company that owns it.

Question 4

Where is a good place to start when writing the first draft of a specification?

Answer 4

By assembling several comparable specifications that already exist from different sources

Question 5

What are the 10 key aspects of specification design?

Answer 5

What are you trying to achieve?
Any preference for conformance or performance specification
Varying perspectives of different of different stakeholders
Relevance and avoiding the inclusion of anything not actually needed
The limits and constraints of the scope of the procurement
Performance standards to be achieved
Improvements sought
Ensuring that there is no ambiguity
Compliance with regulations and standards
The expected operating environment

Question 6

What are the Shortcuts that can be taken when drafting the specification?

Answer 6

The use of brand names
The use of recognized standards
The use of samples

Question 6

What are the Disadvantages of starting from a pre-written specification?

Answer 6

Time wasted with irrelevant aspects
Relevant aspects related to your company may be overlooked
Combining aspects from different specs can create inconsistency
The sample spec may be too high or too low quality
References to legislation, international standards or codes of practice may be outdated
Difference in lengths lead to unnecessary aspects
Changing the spec to align to a different form may create inconsistencies

Question 7

What should be clear before opening a dialogue with a supplier?

Answer 7

What you wish to achieve
What you are willing to divulge
Any conflicts of interest, how you protect against them
Any intellectual property issues, how you will protect it
Whether the conversation is procurement-led or technical-led

Question 8

What are the Advantages of general networking?

Answer 8

Establishes a personal connection, useful as a starting point
Can provide the basis for more-in-depth conversations

Question 9

What are the Disadvantages of general networking?

Answer 9

Unlikely to deliver specific information
Risk of creating the perception of ‘too close’ a relationship which might raise suspicion of conflicts of interest

Question 10

What is Supply Market?

Answer 10

All potential suppliers capable of delivering a requirement

Question 10

What are the Advantages of one-to-one meetings?

Answer 10

Supplier-specific product development
An insider’s view on risks to the supply chain
Direct input into specification development

Question 11

What are the Advantages of meet-the-buyer events?

Answer 11

Useful for ensuring suppliers understand the purchaser’s requirements
If general event, could help to inform the supply market of the product development being sought after

Question 11

What are Disadvantages of one-to-one meetings?

Answer 11

Supplier may favor own product
Supplier may be silent on features where its behind its competitor
Risk of only getting part of the story depending on who you are talking to.
Tendency for outcomes not to be communicated across departments

Question 12

What is one of the shortcuts used when writing specifications?

Answer 12

Quoting recognized standards and codes of practice (CoP) which is a statement of the principles used by a business in its operations. It generally refers to practices that are ethical or socially responsible.
Standard is a document which is more definitive and sets out agreed minimum technical parameters for a product or service

Question 12

What is the Advantage of formal negotiations or competitive dialogues on a contract-specific basis?

Answer 12

Useful for refining a draft specification or schedule of requirements into a fully agreed and jointly developed contract spec

Question 12

What are the Disadvantages of meet-the-buyer events?

Answer 12

Often held too late to influence spec development

Question 12

What are examples of standards?

Answer 12

Company-specific standards
Association or trade-body standards
National standards (BSI)
International standards (ISO)

Question 13

What is market dialogue?

Answer 13

An ongoing conversation between suppliers and purchasers

Question 13

What are the Disadvantages of formal negotiations or competitive dialogues on a contract-specific basis?

Answer 13

Time consuming and can be resource intensive
Usually only permits a limited number of participants

Question 14

What should be done to manage market dialogue?

Answer 14

At all meetings notes should be made of - who was present, areas discussed, insights gained, any follow-up action to be made

Question 15

What can Market dialogue be used to do?

Answer 15

Assist in developing current and future specifications

Question 16

What are the benefits of using published standards?

Answer 16

Specifications are shorter
Suppliers can understand specs more quickly
International standards remove a barrier to trade (cross-border suppliers will understand local rules)
Allows for different approaches to be offered
Ensures that all recent influences have been considered

Question 16

The ISO defines a standard as a document that provides?

Answer 16

requirements, specifications, guidelines, or characteristics that can be used consistently to ensure that materials, products, processes, and services are fit for their purpose.

Question 17

What are the risks of using published standards?

Answer 17

In-house staff may not be familiar with which standards apply; simplification missed
May not understand the implication of the standards they quote, creating conflicts in the spec
Using standards where they are not designed for, adding cost without value
Insufficient thought in what needs to happen when standard needs updating
SMEs (small-to-medium enterprise) may not be as familiar to international standards as larger companies

Question 18

What are the key Sections of a specification?

Answer 18

Title
Version control/issue reference
List of contents
Foreword (or background)
Scope
Definitions (Terminology, Abbreviations, Units of measurement, Time)
Consultation requirements
References to other documents, standards, or CoPs
Substantive requirements

Question 19

What are the key substantive elements to be included in a specification?

Answer 19

Characteristics (design, dimensions, materials)

Timescales
Response times
Performance/reliability
Lifespan/durability
Packaging
Information requirements
Implementation
Guarantees and warranties

Question 19

What is meant by Supply base?

Answer 19

The group of suppliers that a purchaser contract with

Question 20

What are the advantages of Standardization?

Answer 20

Clarity of specification
Economies of scale
Reliability
Service enhancement
Timesaving in the procurement process
Accuracy of quotations
Wider supply market
Narrower supply base
Inventory savings
Reduced risk

Question 20

What is pricing for risk?

Answer 20

Increasing the price quoted for goods or services to include an element of insurance against having to remedy errors

Question 21

What are advantages of increasing the range of products?

Answer 21

Breadth
Innovation
Product differentiation
Cultural differences
Economic factors
Flexibility

Question 22

List the reasons for including social criteria in a specification

Answer 22

Ethics such as (labour conditions, modern slavery, child labour, bribery and corruption) some examples are: - Compliance with international labour standards, Support for education programs aimed at reducing child labour and Adult programs aimed at ensuring workers understand their rights

Question 22

What is Social value?

Answer 22

The output from a contract that benefits society at large, rather than the purchaser or end user (corporate social responsibility)

Question 23

List the reasons for including environmental criteria in a specification

Answer 23

Boycotts and protests in response to damage or injury to property, the environment or people, stakeholder pressures, international agreements, government policies some examples are: - environmental labelling, Waste reduction, Waste separation and recycling, Energy use/carbon footprint measures, Energy and Water use reduction

Question 24

What are the three (3) things a supplier can do to cover the additional cost associated with the social or environmental criteria?

Answer 24

Treat it as a general business cost and increase the overheads element of price
Increase the price of the goods or services being delivered
Absorb the cost and reduce the profit margin

Question 24

Why should purchasers monitor suppliers closely?

Answer 24

to ensure that the requirements are being met

Question 24

Why should purchasers seek disclosure of costs associated with social and environmental criteria?

Answer 24

to ensure that the costs are not disproportionate to gains

Question 25

How can the social and environmental criteria be written into the specification?

Answer 25

the same way as any other aspect of the requirement which are as follows: -
Use International standards where they exist
Ensure that the inclusion does not create a conflict with other aspects of the spec
If different aspects are specified by reference to standards, ensure that the standards do not themselves create conflicts
Include an order of precedence for standards if there are conflicts
Be clear whether the requirement is a minimum standard, a mandatory level or an aspiration or target

Question 26

List examples of public sector environmental and social criteria

Answer 26

In the UK: The Public Services Act 2012
In Australia: The State of Queensland, Australia Department of Housing and Public Works Social Procurement Guide
In South Africa: Preferential Procurement Policy Framework Act No. 5 of 2000
In the USA: Socioeconomic Programs for Small Businesses

Question 27

What is Information assurance (IA)?

Answer 27

the name given to the processes and methods used to protect information systems, databases, computer systems and networks etc.

Question 28

What are the five key elements or ‘pillars’ of Information assurance (IA)

Answer 28

Integrity: ensuring data is not falsified or tampered with
Availability: ensuring that the data can be accessed by those with the relevant authority when they need it
Authentication: ensuring that users are genuine/who they say they are
Confidentiality: ensuring that data can only be accessed by those with the relevant authority
Non-repudiation: ensuring that people cannot deny having taken actions which they did

Question 29

When does Information Assurance (IA) apply?

Answer 29

applies specifically to the technical ICT systems in which data is managed, stored, processed or exchanged

Question 30

When does Information governance (IG) apply?

Answer 30

includes the protection of information that is managed outside of such systems and goes beyond the five pillars of IA. It includes paper documents, control of visitors, verbal communications etc.