Author
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Julie Fox
Published
09/12/2019
So, you’ve just come back from your monthly catch-up with one of your major suppliers and they pitched you a really great idea. The proposal sounds feasible; like it would delivery efficiencies and improved outcomes for your organisation. Now what do you do?
Since you hadn’t thought of the proposal before it was pitched to you, it’s probably safe to assume that it’s not in your organisation’s strategic or corporate plans and there isn’t any unallocated budget to pay for it. So your first question might be: Is this proposal so good that the organisation will change its plans and budgets to take it up?
If a strong case can be made for the proposal the next question is: How can I take up the proposal?
Your supplier will already have told you that they are best placed to do the work. They may even have mentioned that the proposal was their idea, they put effort into bringing it to you, and no one else can do it as well as they can. While these arguments feel persuasive, you have more work to do before you can simply deal with your supplier directly. Your core responsibility with any spending proposal is to ensure that you are achieving value for money.
Here are some initial questions to consider before settling on your next steps.
PRO: Is the proposal truly unique and innovative?
CON: Is the proposal a novel presentation for a known requirement of your organisation that might be sourced through a competitive process?
PRO: Is the proposal detailed enough to show why a competitive process couldn’t deliver the same benefits to the organisation – has something been originally and independently developed by the supplier?
CON: Does the proposal vary or extend an existing contract? Does it effectively depend upon the staff of the supplier (like consultancy services), or is it simply a different approach to delivering available goods or services?
Conundrum: What if the proposal is experimental, or involves a pilot of concept? Short answer:
The concept may not be ‘procurement-ready’.
