Specification

When developing your specification it is important to engage as early as possible with the supply base and relevant technical team e.g. if ICT or fleet requirements are being purchased. This is important in terms of:

  • identifying the desired outcomes,
  • Identifying risks and issues
  • early supplier feedback on: how the outcomes might be achieved; the risks and issues as they see them, feedback on timescales, feasibility and affordability.

It is best practice to ensure that suppliers are contractually required to provide line item spend details and this can be detailed as part of your specification.

Types of Specification

There are different types of specification, further detailed below.

Technical Specification and Standards

Output/Performance Specification

Design Specification

Quickfire Guide

Quickfire Guide

Specification Contents

A list of what you should include in your specification, where relevant to your procurement exercise.

Life Cycle Costing

You can apply life cycle costing as part of the specification and subsequent evaluation. 

Life cycle costing takes into account all of the identifiable costs of a product or service from its purchase to  use, maintenance and end of life (recycling / disposal). 

These can be direct costs like scheduled maintenance and energy used through the life of a road sweeping vehicle and also less apparent external environmental costs such as the cost of emissions of greenhouse gas based on the energy use of the road sweeping vehicle.

These costs can only be assessed when:

  • based on criteria that don’t favour or disadvantage any potential bidders;
  • The assessment method is accessible to all interested parties;
  • The data required can be provided with reasonable effort from all interested parties.  This includes parties from other countries..

If using a life-cycle costing approach to award a contract, the Procurement Documents must state:

  • The data bidders will provide
  • The method used to calculate the life-cycle cost

It is important to differentiate between Whole Life Costing, Lifecycle Costing and Lifecycle Impact Mapping:

Whole Life Costing

Lifecycle Costing

Lifecycle Impact Mapping

The Marrakech Approach

Every product and service has a ‘life cycle’ or number of stages it goes through: from the extraction and sourcing of raw materials such as mining to the transportation of sub-assemblies and parts.  This is often through a global supply chain from the use of products or works and the delivery of services to the re-use, recycling, remanufacture and final disposal of materials.

In the Marrakech Approach, the assessment of these risks and opportunities is broken down in to four key phases:

  • Raw materials
  • Manufacturing and logistics
  • Use
  • Disposal or end-of-life management

Labels

If you purchase goods or services with specific environmental, social or other characteristics labels can be used as a means of proof.  The label will show the supplied goods or services correspond to the required characteristics.  An example of a label that addresses workforce issues is that provided by the Fairtrade Foundation.

Using Samples, Patterns, etc., in Specifications

Samples or patterns may be issued or requested from suppliers when you cannot produce a detailed description of the requirement.

It is best practice to keep a "sealed sample" for later comparison with the products supplied. Samples, patterns and drawings may also form part of a design specification.

Any samples that are no longer required should be returned to the tenderer.

Care should be taken that copyright is not breached when using samples, patterns etc. for specification purposes. Consideration needs to be given to the Intellectual Property Rights of the tenderers.

Simplification and Variety Reduction

Simplification and variety reduction techniques can help in reducing costs and in obtaining better Value for Money (VFM).

Specification simplification and variety reduction involves removing design complexities.  For example by removing different design types, sizes, grades etc. .

This can be a valuable tool when creating a specification for large collaborative procurements.

Contract Implementation/Contract and Supplier Management

You will consider how the contract quality and performance of goods and services of will be measured as you develop your specification, especially an output specification.

These factors should be included into the Management Information (MI) and Key Performance Indicators (KPIs) you require from your supplier(s).  MI and KPIs will be included in your ITT and Terms and Conditions.

It is also best practice that suppliers are contractually required to provide line item spend detail as part of their contract support.

Review and Sign Off

The key criteria that the User Intelligence Group (UIG) needs to ensure are met when completing the specification are:

  • Requirements are complete and accurate
  • Stakeholders’ needs are taken into account
  • Future developments have been taken into account
  • Consistency with the Organisation’s requirements and objectives.  This includes: business case; relevant legislation; procurement and contracts strategies; sustainability objectives and evaluation strategy
  • Risk assessment completed to ensure that related risks are closed or managed