Value for money is the core principle underpinning Australian Government procurement.
DMV has provided advice on and assistance with the complete procurement cycle including procurement plans, industry briefs, tendering activities, contract negotiations, contract award and contract management, in accordance with the Commonwealth Procurement Rules (CPRs) and Departmental instructions, legislation (PGPA Act), policy, procedures and templates.
When undertaking research for a particular market for a client, DMV conducts a structured and comprehensive analysis, including the following key areas of major cost constituents for delivering the services, procurement options and market best practice. We have found that developing a facts and data based understanding of a market enables our clients to proactively manage their categories and suppliers.
Market testing and tender evaluations aim to recommend an option that delivers best value for money to the Government. Value for Money (VFM) is generally a derivative of a number of key metrics, being a technical delivery score, pricing and risk considerations.
These metrics can be derived from extensive evaluation criteria, multiple scoring hierarchies and consideration of a range of risk factors. The application of evaluation specific tools and models can greatly assist in ensuring a configured, transparent and accountable evaluation plan and outcome.
In contract negotiations extensive preparation and business planning to ensure negotiations are based on objective, qualitative data, effectively removing any disputes founded on emotion or incorrect perceptions. DMV conducts extensive preparation, training and business planning prior to negotiation commencing. This planning invariably results in a negotiation plan being produced which identifies essential and desirable outcomes plus a list of low value outcomes that might be used to trade-off with the preferred tenderer in order to achieve a best value for money outcome during the negotiations.
Developing strategies for managing outsourced services includes assisting with developing performance standards, performance measures and monitoring methods. To realise the benefits of outsourced services, agencies have to adopt new management processes for measuring and governing the performance of these services, including consideration of incentives and dis-incentives to ensure compliance is maintained.