New Procurement Risks

Unrealistic costs estimated for the project

Risks

  • Wrong amount of funds allocated
  • Project not funded because costs are too high
  • Funds miss-allocated to project that could be used elsewhere
  • Wrong competitive procurement process followed leading to risk of challenge under EU procurement rules

Solutions

Consideration not given to future costs associated with the procurement

Risks

  • 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

Solutions

Need not challenged

Risks

  • Unnecessary or inappropriate purchase made and funds used that could have been put to better use

Solutions

  • 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

Risks

  • Unnecessary or inappropriate purchase made and funds used that could have been put to better use

Solutions

  • 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

Risks 

  • Alternative solutions not identified or considered
  • Opportunity of a better solution is missed or a purchase made when it was not necessary

Solutions

  • 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

Risks

  • Alternative solutions not identified or considered
  • Opportunity of a better solution is missed or a purchase made when it was not necessary

Solutions

  • 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