I need to put together an analysis of procurement options for the programme I am shaping, as first steps in devising a procurement strategy.
The main online reference I have found so far is the OGC’s Risk Allocation Model for Project Strategy and Procurement (pdf).
The first part of that document examines the suitability of different contract types in relation to the nature of the organisation and the programme goal:
- Understand overall programme goal
- Think about life-cycle of that goal, and of the sponsoring organisation – i.e. Volatility
- Understand the difference between Inputs, Outputs and Outcomes
- The more volatile the goal or the organisation, the less likely that you will be able to successfully procure for Outcomes, or possibly even for Outputs.
The document then goes on to consider the risks related to organisational capabilities. The earlier in the value chain Inputs-Outputs-Outcomes, the more skills are required within the organisation for integration and change management, and the more vulnerable you are to opposition from within.
The last area of consideration is the ability of the market to supply a particular service.
Once all three areas have been analysed, it’s likely that further iteration will be required to converge the solution.
