streamline supplier selection processes by applying consistent repeatable processes (forms, templates, notification, etc.); better manage risks for buyers who have background information on potential suppliers; reduce costs for suppliers by not having to prepare a detailed capability and capacity submission for each and every procurement opportunity; inform suppliers of potential supply opportunities; and drive continuous improvement by refreshing the pre-qualification criteria and pool of suppliers. Open and closed pre-qualification registers An open register allows new suppliers to join at any time during the period of the arrangement. A closed register can take two forms; either no new suppliers can be added after the first selection, or new suppliers can only be considered at predetermined intervals during the period of the contract. Open registers are suited where: prices and rates in the market may be variable; the procurement requirements are broad; there is diverse expertise in the marketplace or there is significant movement of expertise in the marketplace; there are a large number of suppliers in the marketplace; the market is immature with the likelihood of new players emerging over time; and there is potential for government purchasing power to influence the market, which would be restricted if the arrangement was closed to new entrants. Closed registers are generally suited where: there is a requirement for specialist expertise/skills/knowledge relevant to a particular supply market; and a more stable pool of suppliers facilitates innovation from partnerships, risk sharing and continuous improvement. Deciding on the number of suppliers on a closed register is a balanced judgement between: optimal number of suppliers who can satisfy the requirements of the procurement and the scope of potential work generating a level of contestability and competition between suppliers, and the cost to the organisation in maintaining and refreshing the database in relation to the value derived from the procurement. Informing the market When establishing a pre-qualification register, inform the market of: the categories of goods and services sought; application requirements; the selection criteria (specify the criteria and weightings to be used); management arrangements; profile of buyers and the scope of potential business (where applicable); an indication of the rules of use applied by buyers in selecting a supplier; and review and refresh processes relating to the prequalification arrangement.
streamline supplier selection processes by applying consistent repeatable processes (forms, templates, notification, etc.); better manage risks for buyers who have background information on potential suppliers; reduce costs for suppliers by not having to prepare a detailed capability and capacity submission for each and every procurement opportunity; inform suppliers of potential supply opportunities; and drive continuous improvement by refreshing the pre-qualification criteria and pool of suppliers. Open and closed pre-qualification registers An open register allows new suppliers to join at any time during the period of the arrangement. A closed register can take two forms; either no new suppliers can be added after the first selection, or new suppliers can only be considered at predetermined intervals during the period of the contract. Open registers are suited where: prices and rates in the market may be variable; the procurement requirements are broad; there is diverse expertise in the marketplace or there is significant movement of expertise in the marketplace; there are a large number of suppliers in the marketplace; the market is immature with the likelihood of new players emerging over time; and there is potential for government purchasing power to influence the market, which would be restricted if the arrangement was closed to new entrants. Closed registers are generally suited where: there is a requirement for specialist expertise/skills/knowledge relevant to a particular supply market; and a more stable pool of suppliers facilitates innovation from partnerships, risk sharing and continuous improvement. Deciding on the number of suppliers on a closed register is a balanced judgement between: optimal number of suppliers who can satisfy the requirements of the procurement and the scope of potential work generating a level of contestability and competition between suppliers, and the cost to the organisation in maintaining and refreshing the database in relation to the value derived from the procurement. Informing the market When establishing a pre-qualification register, inform the market of: the categories of goods and services sought; application requirements; the selection criteria (specify the criteria and weightings to be used); management arrangements; profile of buyers and the scope of potential business (where applicable); an indication of the rules of use applied by buyers in selecting a supplier; and review and refresh processes relating to the prequalification arrangement.
Guide-to-pre-qualified-supplier-arrangements.docx