The Procurement Plan is an annual document which defines the products and services that a Public Body will obtain from external suppliers. A sound procurement plan helps a Procuring Entity to define their procurement requirements and to decide where and when to procure.
Why Procurement Plan is Important?
1. It lists all requirements expected to be procured over a period of time.
2. From it the procurement schedule is developed, which establishes the timelines for carrying out each step in the procurement process up to contract award and the fulfillment of the requirement.
3. It allows for the consolidation of similar requirements under one contract or the division of a requirement into several contract packages for economies of scale.
4. From the number of requirements on the procurement plan, the procuring entity can determine beforehand any need for additional staffing, including external assistance for the purpose of completing all procurement requirements listed on the procurement plan.
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5. It allows for the monitoring of the procuring process to determine how actual performance compares with planned activities, and thus to alert the pertinent departments and adjust the procurement plan accordingly.
6. It enhances the transparency and predictability of the procurement process.
Reference: procurement classroom
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