Developing Specifications

Agenda
 Specifying –overview
 Specification defined
 Before preparing a specification
 How to develop specifications
 The structure of specifications
 Specification sources
 Types of Specifications
 Summary
Specifying-Overview
 Specifying is the most determing step with
regard to the success of procurement since
this the stage in which what is going to be
purchased id exactly defined
 It therefore provides the basis for everything
that follows
 The result of this step is the programme of
requirements,listing all requirements as a
supplier has to meet in the offer
Cont’d
 Writing specifications may be the most challenging
and important step in the procurement process
 The specification stage also draws up the selection
criteria against which supplier proposals will be
evaluated in a later stage
 Task:The specification phase is the most important
stage in the procurement process ,examine the
validity of this statement in light of the organisation
you work for
Cont’d
 Specifications should neither over nor under specify
the requirements
 The content of the specification should
 Not restrict competion
 Not act as a barrier to alternatives
 Encourage tenders to be innovative
 Why developing specifications,always remember
 The bidders will not read your mind
 The bidders are not ready to provide more than what
you specified
Specs-defined
 The term specifications refers to a description of characteristics
of a commodity or service required or desired
 It defines the explicit requirement furnished with a solicitation
upon which a purchase order or contract is based
 A document primarily for use in procurement’which clearly and
accurate;y describes the essential requirements for
goods,products or services’it may also include the procedures
for determing that the requirements have been met
 It sets forth the characteristics of the property and services to
be purchased so as to enable the vendor to determine and
understand what is to be supplied
 It may be in form of description of physical,functional or
performance characteristics of a reference brand name or both
cont’d
 The cost of the tender process is reduced if
specifications are;
 Uniform or similar
 Clear, complete and reliable
 Readily incorporated into a contract
 If a specification allows both an equal opportunity to
bid and objectivity of selection by the bidder, then the
specification is servicing its intent. A straight forward
and fair evaluation based on good specifications will
persuade vendors to bid
Before preparing a specification

You should
 Identify customer or user needs accurately
 Research the market adequately
 Assess the risk
 Identify what is to be purchaesd
 Determine the scope
 Envisage the evaluation criteria
How to develop specifications

 Developing a specification should involve

close and continuous liaison between users
of the service or goods, the specification
writer, and other specialist or expert staff
 The function of specifications is to provide a
basis for obtaining a commodity or service
that will satisfy a particular need at an
economical cost. A good specification should
do these things
 Identify minimum requirements
Cont’d

 Allow for a competitive bid

 List reproducible test methods to be used in
testing for compliance with specifications
 Provide for an equitable award at the
possible cost
 To ensure that your specifications meet the
above criteria, use the following check list
Cont’d

 Are the specifications clear and accurate, yet

simple?
 Are the specifications understanble to both
the bidder and the buyer?
 Are the specifications as flexible as possible?
 Are the specifications legibible and concise?
 Are the specifications capable of being
checked
 Are they resonable & fair
Sources of specifications

 Collect much information as possible from

end users
 Collect product information from industry
 Look for standards and test information from
professionals
 From other buyer entities were applicable
 Check to see if standard specifications exist
 Call on other experts
tel +256 703248975
The structure of specifications

 Specifications will vary in length and

complexity,depending on the nature of what
is to be purchased.To ensure an approriate
level of standardisation and that the
specification addresses all the relevant
areas,organisations could prepare
specifications using the guidelines described
in the following list
Structure cont’d

 Title page (mandatory)

 Table of contents
 Introduction
 Scope
 Background
 Service and environmental factors
 Statement of requirements
Structure cont’d

 Security
 Training
 Documentation
 Glossary
 Implementation time table
Types of specifications

 Standard
 Non-standard
 Brand name
 Manufacture
 Custom-made
 Functional or performance
 Samples and technical data
Introduction to procurement tactics
& Operations

 Question
 Procurement/Purchasing/Buying/Sourcing
 Procurement defined
 Distinction between purchasing and
procurement
 Evolution and development of procurement
 Proactive vs reactive procurement
 Objectives of procurement
Intro cont’d

 Procurement process
 Documents used
 Conclusion
 Question:What do you buy/source/procure
 Can any one buy/source/procure
Procurement/purchasing/buying/
sourcing

 Ordering
 Buying
 Purchasing
 Procurement
 Sourcing
 Supply management
 Supply chain management
Procurement defined

 The acquistion by purchase,rental,lease,hire

purchase,licence,tenancy,franchise,or any
other contractual means,of any type of
works, services or supplies or any
combination
Procurement objectives

 To supply the organisation with a steady flow

of materials & services
 To ensure continuity of supply
 To buy efficiently and wisely
 To manage inventory
 To maintain sound relations with user
departments
Procurement process,elements &
typical documents

 Specifiction(what)
 Selection (who)
 Contracting (how)
 Ordering
 Monitoring
 After care services
Elements of procurement process

 The procurement function is more than just

the procurement process. A number of
elements have to be organized properly to
support the procurement process and
adequately facilitate a successful
procurement practice
 These elements are categorized as
Elements cont’d
 Clients
 Suppliers
 Methods
 Procedures
 Personnel
 Organization
 Information services
 Policy
 Performance indicators
Documents used in procurement

 Requisition note
 Enquiry or requests for quotations (RFQS)
 Quotation
 Purchase order
 Advice invoice
 Delivery note
 Pro-forma invoice
 GRN
Class exercise one

 Examine the author and targeted recipient of

the above documents highlighting their
limitations