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Single Source procurement in the APAC region

In Commerce Decisions’ new White Paper: Considerations when undertaking Single Source procurement, we explore the pros and cons of Single Source procurement and why this approach might be favoured. Whilst this paper generally observes Single Source activity in the UK market and makes specific references to that, Commerce Decisions supports Single Source procurements globally.  

In our APAC markets, recent projects bear testament to the fact that considerations when undertaking Single/Sole Source procurement are no different in principle, wherever they are undertaken. The Commonwealth Procurement Rules in Australia refer to this in their “limited tender” process and in New Zealand the “direct source” process requires that the key disciplines around formal proposal, evaluation and assessing public value are adhered to prior to award of a contract.  

In these markets, although expressed in different ways, the team conducting a Single Source project  will need to demonstrate that they have considered a number of factors throughout the process – these factors are aligned to those of a multi-source competition. Namely: 

  • Compliance: is the proposed solution compliant with the minimum expectations of the project? 
  • Value for Money: having evaluated the proposal, has the team concluded that it returns the desired value for money threshold (including any desired or mandated social value/AIC/broader outcome considerations)? 
  • Alternative to competitive pressure: has the project applied measures through the evaluation and negotiation to enable the best deal possible for all parties? A walk away position perhaps, or collaborative joint incentivisation measures. 

Commerce Decisions expertise focuses on supporting the evaluation strategy and evaluation models for use in Single Source and competitive projects alike. Our services are supported by our innovative AWARD® solution, which provides the necessary evaluation audit trail and control to enable the demonstration/briefing of a robust, transparent and value for money decision-making process to senior stakeholders and interested parties.

 

References:  
Commonwealth Procurement Rules – 14 December 2020.pdf (finance.gov.au) 
New Zealand Government Procurement