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| Manual on Access to Information – Version 3 | ||||||||||||
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Standards and Practices |
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| A-PRAC-1034 Practice for the Selection of Contractual Sources | ||||||||||||
Clearly, risk cannot be regarded as a decision criterion. Instead, it reflects uncertainty regarding outcomes, and must be handled accordingly.
Essentially, the revised procedures are designed to ensure that those in the industry are treated fairly using rigorous decision-making techniques.
| File Name | Description | Size (Kb) |
|---|---|---|
| A-PRAC-1034.pdf | Practice for the selection of contractual sources | 914 |
Update of K-STD-0010 to A-STD-0010: Rules Applicable to Prospective ContractorsARMSCOR has updated K-STD-0010 and this has been published as A-STD-0010 dated 20 April 2009.
| File Name | Description | Size (Kb) |
|---|---|---|
| A-STD-0010.pdf | A-STD-0010: Rules Applicable to Prospective Contractors | 236 |
| A-STD-0020.pdf | A-STD-0020: General Conditions of Contract | 467 |
Update of K-Std-61 to A-Std-61: Contract Conditions, Technical Standard for:
| File Name | Description | Size (Kb) |
|---|---|---|
| A-STD-61_Part1_issue1.pdf | A-STD-61: Part 1: Highly Complex Programmes | 660 |
| A-STD-61_Part2_issue1.pdf | A-STD-61: Part 2: Medium Complex Programmes | 780 |
| A-STD-61_Part3_issue1.pdf | A-STD-61: Part 3: Non-Complex Programmes | 578 |
| A-STD-61 Part3 Tailored Contract.pdf |
A-STD-61: Part 3: Non-Complex Programmes (Tailored Contract Conditions, Technical, Standard for the Application Renewal Project) |
112 |
| A-STD-61_Part4_issue1.pdf | A-STD-61: Part 4: Production Programmes | 535 |
| A-STD-61_Part5_issue1.pdf | A-STD-61: Part 5: Commercial Off-the-shelf: Equipment, Components or Spares | 558 |
| A-STD-61_Part6_issue1.pdf | A-STD-61: Part 6: Maintenance Programmes | 587 |
| A-STD-61_Part7_issue1.pdf | A-STD-61: Part 7: Refining an Operating Baseline for Existing Systems | 673 |
| File Name | Description | Size (Kb) |
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| A-Form-013 002.doc | Security Clearance Form | 4202 |
| A-Form-014 001.doc | Security Clearance Cost Covering Form | 59 |
| KD27_IP_Information.xls | KD27 Intellectual Property (IP) Form | 119 |
| A-STD-0070.pdf | Sales General Terms and Conditions | 250 |
| A-Form-032-002.doc | Application for Credit Facility | 687 |
| A-Form-034-001.doc | Supplier Code Application | 754 |
| A-Form-035-001.doc | Supplier Code Amendment | 755 |
Competition should be encouraged as far as is practical in the procurement of armaments. This should include the invitation of foreign tenders, according to the Defence Policy of January 1996. And tenders shall not necessarily be granted on the basis of lowest price, but in terms of value for money and industrial development goals.
Fair, equitable, transparent, competitive and cost-effective are some of the words used when talking about procurement. The MODAC document on Defence Policy states that ‘as part of the tender evaluation process, the concept of cost evaluation based on life cycle costing (cost of ownership) shall be employed’. It further states that the ‘adjudication of tenders shall be based on value for money and industrial development goals’.
As the issues surrounding adjudication are complex, a revised procedure and a supplementary handbook were published, which will be updated as ARMSCOR’s experience in adjudication of multi-source tenders grows and matures. The revised procedure introduces three primary concepts: Value for money, the categorization of decision criteria, and risk management in adjudication.
Value for money
In order to establish a suitable definition for the phrase ‘value for money’, it is necessary to examine the issues of ‘value’ and ‘money’ (or cost) as well as another important intangible, namely ‘risk’. Value for money in acquisition programme management terms is defined as follows:
VALUE FOR MONEY = PERFORMANCE taking RISK into account.
COST
This model is practical, since the aspects of cost, performance and risk can be evaluated separately through a careful choice of questions.
Categorisation of decision criteria
Experience has shown that, in any acquisition starting from a zero baseline, there are three distinct phases of selection:
– short-listing the potential suppliers who can offer solutions based on broad product specifications
– selecting those candidates who comply with crucial specifications
– identifying candidates from the final short-list who offer the best value for money.
To facilitate formalising these phases, three categories of criteria have been defined; namely qualification, critical and discriminating criteria.
Risk management in adjudication
It is generally acknowledged that there is always risk or uncertainty surrounding the outcome and decision, in terms of the performance of an acquisition or contractor. Many variables play a part in this. There is also often significant uncertainty regarding the final cost that will be paid for the goods or services.