last updated:
14th July 2011
| Action |
Risk | Solutions |
|---|---|---|
| Unrealistic costs estimated for the project |
- Wrong amount of funds allocated |
- Use the Whole Life Costing Model to explore and identify the operating and end of life costs of the proposed purchase. - Prepare an outline business case and an options appraisal that explores the likely costs and benefits of the procurement - Ensure the value of proposed projects follow the valuation methods published in the procurement legislation |
| Consideration not given to future costs associated with the procurement | - Insufficient funds or other resources (staff etc) available to ensure the best use is made of the goods or services - Inefficient use of the procured goods or services - Funds are wasted |
- Use the Whole Life Costing Model to explore and identify the operating and end of life costs of the proposed purchase. |
| Need not challenged | - Unnecessary or inappropriate purchase made and funds used that could have been put to better use | - Ensure that questions are asked when a requirement is proposed. The level of challenge should reflect the value and complexity of the procurement. |
| Alternative solutions not considered | - Unnecessary or inappropriate purchase made and funds used that could have been put to better use | - Ensure that questions are asked when a requirement is proposed. The level of challenge should reflect the value and complexity of the procurement. |
| Outline Business Case not prepared | - Alternative solutions not identified or considered
- Opportunity of a better solution is missed or a purchase made when it was not necessary |
- An outline business case and an options appraisal should be completed for all procurements above a stated value. The detail in both reflecting the value and complexity of the proposed procurement - The Do Nothing options should always be considered in order to identify if there is a genuine need for the proposed goods or services |
| Investment Appraisal not completed | - Alternative solutions not identified or considered
- Opportunity of a better solution is missed or a purchase made when it was not necessary |
- An outline business case and an options appraisal should be completed for all procurements above a stated value. The detail in both reflecting the value and complexity of the proposed procurement - The Do Nothing options should always be considered in order to identify if there is a genuine need for the proposed goods or services |
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