Procurement plan
The following is a template for a procurement plan for a nuclear power plant project based on information
included in IAEA Nuclear Energy Series publication NP-T-3.21. Users should adapt the template for their own
particular circumstances. Information related to filling out each section is included within the section or as
embedded review comments.
Procurement plan
Project ID:
Project name:
Date:
Revision #:
Prepared by:
Approvals
Approval of the plan
Procurement manager / procurement team leader
Process type:
[Choose: open competitive / closed competitive / direct source / single-step / multi-step
/ panel supplier / if other please state]
Name:
Position/title:
Signature:
Date:
Authority to proceed to tender
Project sponsor
Approval to:
Tender start:
Contract start:
Name:
Position/title:
Signature:
Go to market and identify the preferred supplier.
[Insert: date the tender process will be initiated]
[Insert: date the contract will start]
Date:
Approval of budget for this phase
Delegated financial authority holder
Total cost:
[Insert: estimated $ total costs over whole-of-life]
Financial year:
Financial year
Amount
20XX
$[amount]
$[amount]
$[amount]
Name:
Position/title:
Signature:
Funding type
Date:
Approval of evaluation criteria and methodology
Subject matter expert
Name:
Position/title:
Signature:
Reference: NCT-Tool-2.4-1
Date:
Released: 09-Feb-2016
Procurement plan
Approval of proposed terms and conditions of contract
Legal advisor
Contract type:
Contract term:
Name:
Position/title:
Signature:
Reference: NCT-Tool-2.4-1
[Insert: the term (anticipated duration) of the contract]
Date:
Released: 09-Feb-2016
Procurement plan
TABLE OF CONTENTS
1
1.1
1.2
1.3
2
3
3.1
3.2
4
5
6
6.1
6.2
6.3
7
8
9
10
Introduction ............................................................................................................................................... 4
Purpose ................................................................................................................................................. 4
Background ........................................................................................................................................... 4
Objectives .............................................................................................................................................. 4
Scope of procurement and exclusions........................................................................................................ 4
Options considered .................................................................................................................................... 4
Available suppliers ................................................................................................................................ 4
Contract options .................................................................................................................................... 4
Recommended procurement approach ...................................................................................................... 5
Interfaces and communications with vendors ............................................................................................ 5
Procurement plan ...................................................................................................................................... 5
Schedule ................................................................................................................................................ 5
Milestones ............................................................................................................................................. 5
Key assumptions .................................................................................................................................... 6
Roles, responsibilities, and resources ....................................................................................................... 6
Risks and mitigative actions ...................................................................................................................... 7
Evaluation process and scorecard............................................................................................................. 7
Oversight, auditing, and fairness .............................................................................................................. 9
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016
Procurement plan
1
INTRODUCTION
1.1 Purpose
This section should state the reason that the procurement activity is required and expected outcomes (e.g.
acceptable contract awarded to a vendor by a particular date).
1.2 Background
The background should contain all information pertinent to the procurement that was previously prepared. This
can include items such as any business case that was prepared and approved in support of the procurement.
Any pertinent issues from such previous work that need to be addressed during this procurement should be
identified.
1.3 Objectives
This section should identify the primary and secondary objectives of the procurement. Primary objectives would
include the main item to be purchased (e.g. a nuclear power plant or related good or service). Secondary
objectives might include goals established for technology transfer or national participation in the eventual
contract.
2
SCOPE OF PROCUREMENT AND EXCLUSIONS
This section should provide a summary/overview of the project requirements and any special owner’s
requirements. Specific mention should be made of items within the planned owner’s scope of work (e.g. off-site
infrastructure, etc.) that are to be excluded from this particular procurement
3
OPTIONS CONSIDERED
3.1 Available suppliers
This section should provide a market analysis for the proposed procurement. It is important not to eliminate
potential competitors too early in the process to maximize owner options and leverage. Items to be considered
in this section can include:
•
•
•
•
•
•
•
•
•
Key suppliers and their market shares;
Key buyers and their influence on market (demand) (e.g. other projects in progress or planned);
Factors influencing competition;
Degree of competition ;
Factors affecting pricing;
Nature, location and quality of the supply chains;
Likely impacts that this procurement will have on the supplier and the market;
Assessment of the power / leverage of the owner in relation to the various suppliers (and any
strategies to address imbalances);
Level of desired trust and communication with the supplier.
3.2 Contract options
This section should detail the various contract options for proceeding with the procurement.
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016
Procurement plan
For new NPPs contract options can include EPC (engineering, procurement and construction) contracts,
“normal” and “super” turnkey contracts, multi-contract approaches, or arrangements based on country-tocountry agreements where the NPP vendor takes on an equity share (BOO build own operate, BOT build own
transfer, DBF design build finance, or similar arrangements).
Recently partnership models have been used on EPC contracts where the owner and contractor jointly develop
a detailed execution plans and budget as part of a preliminary project development phase.
Gated approaches to proceeding with contracts and their associated major projects are recommended to
increase project predictability.
4
RECOMMENDED PROCUREMENT APPROACH
In this section the recommended procurement approach should be identified, including the gates/stages to
be employed and the desired contract model to be pursued. Details surrounding the bidding and negotiation
process to be followed should be described (e.g. one or two stage bidding, parallel negotiations or serial, etc.),
any payments to the bidders, and key organizations to be represented on the evaluation team should be
identified.
Proposed contact terms and conditions, including specific terms tailored to risks present with this particular
purchasing, should be attached.
A strategy to exit from the contract due to inadequate contractor performance or other unanticipated events
can be described in this section.
5
INTERFACES AND COMMUNICATIONS WITH VENDORS
In this section the processes for interfacing and communicating with prospective vendors should be described.
Typically the procurement organization appoints a single-point-of-contact who is the only individual authorized
to directly communicate with the vendors (outside of documented interviews or meetings with owner
personnel) once the procurement process has commenced.
6
PROCUREMENT PLAN
6.1 Schedule
A resourced schedule for procurement activities aligned with the major milestones from the following section
should be prepared and attached to the plan.
6.2 Milestones
The major milestones for the procurement process should be identified, preferably in a table format similar to
the one below.
Action
Pre-procurement
Procurement plan approved
Bid invitation documents developed
Bid invitation approved
Pre-procurement market engagement
Advance notice published on public website
Bid schedule
Reference: NCT-Tool-2.4-1
Target date
Released: 09-Feb-2016
Procurement plan
Action
Bid invitation advertised on public website
Supplier briefing/s
Supplier site visits
Last date for supplier questions
Last date for owner to answer questions
Bid closing date
Evaluation
Panel confidentiality and conflict of interest declarations signed
Evaluation panel meets
Interview short listed suppliers
Panel minutes and recommendation
Recommendation accepted/denied
Post-evaluation
Advise bidders of outcome
Debrief unsuccessful suppliers
Due diligence and contract negotiation
Contract award notice published on public web site
Contract start date
Target date
6.3 Key assumptions
Identify any key assumptions made that impact on this plan (e.g. availability of personnel, vendor interest,
availability of suitable financing, impacts from other projects the owner or vendor are working on, etc.)
7
ROLES, RESPONSIBILITIES, AND RESOURCES
Key roles and responsibilities for the procurement process should be identified.
The following tables should one possible method for describing roles of the bid evaluation team. It allows for a
distinction between advisors to the team (“non-voting members”), and those that actually perform the
evaluation (“voting members”).
Non-voting members
Role
Chair of evaluation panel:
Administrative support:
Financial analyst:
Legal advisor:
Probity auditor:
Name
Organization
Name
Organization
Voting members
Representative/s
Business group/owner:
User group/beneficiary:
Subject matter expert:
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016
Procurement plan
8
RISKS AND MITIGATIVE ACTIONS
LIKELIHOOD of risk happening
The level of risk identified to this particular procurement for the owner organization should be identified. A risk
register of key risks and mitigative actions should be provided (e.g. table below or as separate Appendix).
Almost
certain
amber
amber
red
red
red
Likely
yellow
amber
amber
red
red
Possible
yellow
yellow
amber
amber
red
Unlikely
green
yellow
yellow
amber
amber
Rare
green
green
yellow
yellow
amber
Negligible
Low
Moderate
High
Extreme
CONSEQUENCE if the risk happens
The key for the following risk tables is:
likelihood (L): R = rare U = unlikely P = possible L = likely A = almost certain
consequence (C): N = negligible L = low M = moderate H = high E = extreme.
Key risks in the procurement process
Risk
L
C
Rating

U
L
Low

P
M
Medium

L
H
High

A
E
Extreme
Mitigation action
Responsible
Mitigation action
Responsible
Key risks in delivering the contract
Risk
L
C
Rating

U
L
Low

P
M
Medium

L
H
High

A
E
Extreme
9
EVALUATION PROCESS AND SCORECARD
The evaluation model that will be used, weighting of criteria, and scoring methods should be described in
detail. Various models and divisions of criteria are possible depending on owner needs and priorities (some
samples are available from other Nuclear Contracting Toolkit downloads and in ISO standard 10845). Criteria
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016
Procurement plan
can be divided into such categories as technical, economic, financial, commercial, administrative and/or project
management. Some evaluations attempt to translate all items into an evaluated single price for electricity
(LUEC).
Experience has shown the importance of project management related criteria in predicting the success of large
capital projects such as NPPs, in comparison to the particular technology chosen.
It should be noted that even sole source contracts need to undergo some sort of evaluation, even if against a
“do-nothing” option or against other potential project options.
The following are sample tables describing one possible methodology (evaluation criteria and rating scale).
Each of the criteria would be described in more detail than is shown here.
Sample evaluation criterion
Project management
E.g. Project planning
E.g. Schedule quality
E.g. Engineering plans
E.g. Project risk management plans
Commercial conditions
E.g. Organizational strength
E.g. Commercial risks and contract deviations
E.g. Transparency of business relationship
E.g. Others
Pricing
E.g. Definition phase cost
E.g. Price sensitivity
E.g. Financial risks and deviations
Weighting
50%
20%
30%
100%
The panel will use the following rating scale to evaluate suppliers’ bids against the criteria.
Rating scale
Description
Excellent
Good
Acceptable
Definition
Exceeds the requirement. Exceptional demonstration by the supplier of the
relevant ability, understanding, experience, skills, resources and quality measures
required to provide the goods / services. Response identifies factors that will offer
potential added value, with supporting evidence.
Satisfies the requirement with minor additional benefits. Above average
demonstration by the supplier of the relevant ability, understanding, experience,
skills, resource and quality measures required to provide the goods / services.
Response identifies factors that will offer potential added value, with supporting
evidence.
Satisfies the requirement. Demonstration by the supplier of the relevant ability,
understanding, experience, skills, resources and quality measures required to
provide the goods / services, with supporting evidence.
Reference: NCT-Tool-2.4-1
Rating
9-10
7-8
5-6
Released: 09-Feb-2016
Procurement plan
Description
Minor
reservations
Serious
reservations
Unacceptable
Definition
Satisfies the requirement with minor reservations. Some minor reservations of the
supplier’s relevant ability, understanding, experience, skills, resources and quality
measures required to provide the goods / services, with little or no supporting
evidence.
Satisfies the requirement with major reservations. Considerable reservations of
the supplier’s relevant ability, understanding, experience, skills, resources and
quality measures required to provide the goods / services, with little or no
supporting evidence.
Does not meet the requirement. Does not comply and/or insufficient information
provided to demonstrate that the supplier has the ability, understanding,
experience, skills, resource and quality measures required to provide the goods /
services, with little or no supporting evidence.
Rating
3-4
1-2
0
In support of potential challenges to the successful bid selection, a “due diligence” process can be documented
at this stage. The table below shows a verification matrix that can be used as part of the evaluation to
demonstrate due diligence on the part of the panel as part of the evaluation. The table shows how elements of
the criteria are to be verified by the bid evaluation panel.
Evaluation and due diligence options
Written offer/bid submission documents
Clarifications provided
Reference checks
Interview with evaluation panel
Presentations to evaluation panel
Site visits
Audited accounts
Credit check
Company office check
Accepts proposed contact conditions
Police/security check
Other
Fit for purpose






Criteria
Ability to deliver











Value for money




10 OVERSIGHT, AUDITING, AND FAIRNESS
Processes for senior executive oversight of the procurement process, internal and/or external auditing, and/or
fairness monitoring should be described.
Methods that the evaluation team will employ to manage fairness should be described. These might include:
•
•
•
•
•
ensuring compliance with the owner company’s code of conduct;
ensuring that financial authority for procurement is approved before proceeding to the bidding
process;
ensuring everyone involved in the process signs a confidentiality agreement and declares any
actual, potential or perceived conflict of interest;
identifying and effectively managing all conflicts of interest;
ensuring that all bids are opened at the same time and witnessed;
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016
Procurement plan
•
•
•
•
numbering copies of suppliers’ bid documents and returning them to the panel chair once the
process ends;
retaining one copy of each supplier’s bid documents and destroying the remaining copies once the
process ends;
treating all suppliers equally and fairly;
providing each supplier with a comprehensive debrief at the end of the process.
Reference: NCT-Tool-2.4-1
Released: 09-Feb-2016