Procurement Models

Syndicated procurement models

To date most SP contracts have combined both models listed below in order to provide the greatest degree of flexibility for all potential participants.

Syndicated Arrangement: refers to the situation where a group of agencies collaborate before going to the market with a tender. For each syndicated arrangement a lead agency or lead agencies are appointed that have overall leadership and co-ordination responsibilities.

The role of the lead agency/agencies and level of participation of other agencies varies depending on a number of factors, including:

• the type of goods and/or services being tendered
• commonality across agencies
• the complexity of establishing requirements; and
• the expertise that resides in other participating non-lead agencies.

The lead agency/agencies take a stronger lead in defining tender requirements for some goods and/or services, depending upon the above factors. As such the level of consultation required from participating agencies varies between tenders.

Common Use Provision: This model is based on the incorporation of a ‘piggy back’ clause in a tender or contract. The wording of the ‘piggy back’ clause is as follows:

“At any stage during the life of a contract, with the consent of the vendor, any Government Agency may utilise the provisions of the contract for the balance of the term”

The important point is that it is clear to potential vendors that the clause will be included at the time of issuing the RFP/T. And the key feature of this option is that it enables wide access to the benefits of the SP arrangement without the agency or supplier being required to partake in the up-front tender costs and process.