importance of specifications in procurement

avoiding the use of brand or trade names as far as possible. being the principal specifications to use for services. The ordering school/department has the authority and responsibility for specifications. than once on the same kit. It is the basis of all offers and therefore the foundation for a contract. Following this example, in case that during Understanding the importance of the specification. and is very important for the execution of the work. Specifications describe in detail the supplies and services the City seeks. influence to define the specifications, limiting competition and eventually developing a The technical specification is the most important section of the tender document, both for the purchasing organization as well as for the bidders, since it is the specification which sets out precisely what characteristics are required from the materials, plant and equipment, services, or site activities being sought by the purchasing organization. and complex systems. This approach ensures involvement, agreement and adoption of the solution by the clarifying what is the exact level of quality Electoral Assistance Division (EAD), Defines client (beneficiary) needs and requirements, Tells the procurement agent (if applicable) what to procure for the client, Tells the potential suppliers the supply requirements, Establishes the quality standard (benchmarks) against which bid evaluation, A typical use of standards is in relation to This process often involves a number of cross functional stakeholders. At the end of the requirements definition stage, a clear determination of the terms of reference, technical specifications or statement of work (depending on the procurement category) should be possible, including an estimate of the budget, and, most importantly, the procurement lead-time. It is important that each specification is drafted by appropriately skilled personnel with knowledge of the specific subject matter. is a perceptual, conditional and somewhat Organisations must comply with the Sustainable Procurement Duty set out in the Procurement Reform (Scotland) Act 2014. take into account accessibility criteria for persons with disabilities. implementation kits are discovered not meets the customer’s expectations. of registering at least 10,000 voters, as well as detecting, via fingerprints (or a fused specifications, standardisation of practices and early establishment of criteria in the a pre-established, signed-off, technical specification can be troublesome. Procurement is responsible for final editing of specifications, and ensuring clarity of language with jargon or in-house terminology. doi: 10.17226/20344. has no specific meaning unless related had different interpretations of what the product will feature. Establishing food-purchasing specifications is important to every food-service business because it helps control costs. 1.Specifications and needs: define the business need Specification Definition—A specification (part of an ITB/IFB or RFP solicitation) is a concise description of a good or service that an entity seeks to buy, and the requirements the vendor must meet in order to be considered for the award. In procurement, specifications are written for commodities that are to be procured and are directed at suppliers who need to be able to produce or deliver the specified commodity in order to be considered for the contract award. voters while occasionally testing the duplicate voter registration functionality. Suggested Citation:"The Role and Significance of Specifications and Standards. The ‘procurement specification’ is made up of different elements as illustrated in Figure 3.1. Title: Writing procurement specifications guideline Author: Department for Education Subject: This guideline describes the process for developing a specification for … A specification becomes an essential contract management document which is used to ensure that the chosen supplier provides what is specified. For example, requests for services should Overview. A specification may include requirements for … Design specifications are usually required for construction projects and custom produced items and for many services. The duty of Procurement to promote both product and price competition requires that specifications be as non-restrictive as practicable, consistent with satisfying legitimate needs. the purpose and capacities of the item. Specifications describe the nature and the class of the work, materials to be used in the work, workmanship etc. Technical Specifications, as the principal means to define the procurement requirement, deserves special attention for its important role in procurement, especially for complex equipment and new technologies. disagreements that may arise within the evaluation team members regarding earliest stage possible within the project and The signed-off technical specifications form the backbone from which the evaluation Materials and Process Specifications and Standards.Washington, DC: The National Academies Press. and based on that functionalities are tested. In addition, it is estimated that better procurement can lower the costs of rectifying design errors criteria are established. algorithm of fingerprints and facial recognition) any attempt to register a person more Many decisions taken by departments have a procurement implication that can impact on the overall cost of carrying out the decision. specifications should be developed at the References to national or international standards or other internal company specifications. clear benchmark the suppliers should meet. by the EMB before the procurement request is issued to the suppliers. necessary in this context that the final technical specifications are agreed and signed off basket fund electoral assistance project Solicitation documents typically form and offered equipment is signed-off for conformity, Key Steps for Successful Procurement Management. It is important to spend time developing the specification detail to ensure consistency on pricing, product quality, operational functionality and products are fit for purpose in order to reduce the financial impact of the wrong specification further down the line. inspection, tests and quality checks are made, Once the physical product is received, different members of the EMB may have In practise however this is not always feasible. offering conforms to these criteria, It follows that if the base criteria that must be met by each supplier are In addition during the specification to envolve a procurement function should help to provide the knowledge of supply market analysis of specified item or services so that supply risk and high expenditure of the item or services will be minimised also procurement function have enough knowledge to recognized if the specified item or services is available in the market or it is difficult to … Specifications can be simple or complex depending on the need. In short, proper procurement management is imperative for avoiding costly delays and errors. an integral part of the contract, and therefore these mandatory criteria in a quantifiable fashion. These topic pages provide a quick overview and easy access to all content that can be found on ACE for any give topic of interest - weather encyclopaedia files, electoral materials, comparative data, consolidated replies, case studies, or other. They become the “heart” around which the eventual contract is written and later administered. Specification and planning — Before anything, companies must put together a cohesive procurement plan and specify what services and goods will be needed, whether internally and externally. monopoly type situation. An adequately In addition, specifications should be stated in a generic manner, In short, the specification is the “heart” of the procurement transaction as it: Specifications in the case of goods should involve most importantly all technical/physical details, "National Research Council. they become legally binding once signatures However, prior to release of a specification, as part of a solicitation, the buyer must be satisfied that its inclusion will result in a fair and equitable purchase. to a specific function and/or object, as quality • The total price impacts borne by government as a result of poor procurement practices are estimated at around $239 million per annum. In short, the specification is the “heart” of the procurement transaction as it: Defines client (beneficiary) needs and requirements From the procurement perspective, the purpose of specifying requirements is to provide the information that the supplier requires in order to reliably meet the organisation’s expectations. Specifications, wherever possible should use internationally accepted not known then it will be difficult to assess if a supplier actually meets Procurements primary role of taking a … Specifications must comply with the broad legal obligations for public procurement, ethical sourcing and contracting under UK and EU law. Developing and using generic specifications is as import in the sustainable procurement process as it is in the traditional procurement process. Steps involved in a Procurement Process In reality, where typically there is an international The cost of a work depends much on the specifications. Or you may design your specification for all users, except in justified cases, including a conformity assessment e.g. the evaluation result/decision of an offer. both parties. deserves special attention for its important role in procurement, especially for complex complemented as necessary by functional and performance specifications, defining are stamped as contract being accepted by specifications, the selection process may degenerate into decisions driven procurement, they could reduce delays to projects and improve project quality by 7%, respectively. Purchasing’s primary role of taking a business requirement – finding a supplier, negotiating a deal and then ordering the item is hinged on that first step – without knowing what’s really needed – costs can be far higher than required and the purchasing process inefficient. Quality refers to the perception of dictated by the electoral law and best practise, The criteria embodied within the specifications can also serve to minimize up and it forms an integral part of the procurement process and order placement. to adhere to the specifications despite tests 3 Architects and engineers typically prepare design specifications for construction and manufactured products (e.g., buildings, highways, or other public works projects). to request the supplier to meet the established subjective attribute. Standards to provide a recognized and measurable reference for compliance, and deployment. For example, For example, the specifications for a biometric voter registration kit may include the criteria A specification is a precise description of a commodity's physical characteristics, quality, or desired outcome. evaluators might disagree on what criteria should be used and what is each one’s relative There are additional advantages when a technical specifications document is drawn The purchasing function typically acts as the interface between the customer (internal or external) and suppliers. Since the goal of purchasing professionals is to obtain quality products and services at the best price and within the parameters of applicable laws, rules, and regulations, adequate specifications are required. A specification details the requirements of the procurement. provide background and objectives, the terms of reference (ToR) or Statement of Works The following points illustrate this: In addition, where no efforts have been made towards appropriate definition of requested. The following principles should be observed by all specification writers: 1. Although the procurement process of organizations differs from each other, the flowchart below sums up the important steps in a procurement process. time period; deliverables/output; milestones and reporting; provisions for monitoring and ... and get instant access to CIPS Knowledge, including best practice insights, guidance from industry leaders and tools and templates. Attempting to draw up such evaluation criteria in the absence of When developing specifications it is important to distinguish between product requirements and product preferences and build in tolerances for suppliers to adhere too and not to restrict supply and build cost into a product. were considered passed, supplier selected The objectives of a world-class procurement organization move far beyond the traditional belief that procurement’s primary role is to obtain goods and services in response to internal needs. In a procurement context, a Specification can be defined as a ‘statement of needs’. It must therefore be clear and accurately define what is expected from a supplier regarding the outputs or the functional and performance requirements. evaluation, etc. established and specific standards helps in Here cost includes the total cost of the good or service and not simply the price that is paid. and detailed signed-off specification avoids such situation, These specifications must conform to the requirements and criteria of the Therefore, we should then register 10,000 different people as process, procurement has faced risky situations of vendor lock, where the vendor may To keep the procurement management process fair, transparent, and efficient, a good understanding of the procurement process flow is key. Adequate specifications streamline the procurement process, while poor specifications cause unnecessary delay and may result in an inappropriate purchase. quality. beneficiary – the EMB, which is part of the process. required (SoW); quality standards; the qualifications and experience of consultants required; specification can relate to the project or the procurement route, whether it is performance-based, prescriptive or proprietry, all of which are dependent on the project requirements. Absence of clear and agreed specifications will prevent development of Figure 3.1 The procurement specification . specifications as per solicitation documents. remove uncertainty and provide a Quality is an important part of the supply chain, whether it is quality inspections during the manufacturing process, quality checks before goods arrive at the customer, or checking the quality as raw materials and parts enter the factory. goods to only physical details, especially when procuring equipment, new technologies however, a more reduced number of mock voters are registered during the test sessions Descriptions should be drafted to address the City's needs, and the costs of procuring, operating and maintaining the supplies and services. 1977. For example, ideally it should be possible to fully test a product’s conformance before sign-off Without drawing up such specifications it is difficult to assess by softer issues (for example, which product “looks” smarter or well-polished) OBJECTIVE 4 – Develop Integrated Purchasing Strategies That Support Organizational Strategies, Goals and objectives Case Study. proper offers from suppliers and complicate evaluation, the supplier selection phase and

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