Procuring Security Toolkit - Perpetuity Research

1 Perpetuity Research & Consultancy International (PRCI) Ltd 148 Upper New Walk Leicester LE1 7QA United Kingdom Tel: +44 (0)116 222 5555 Fax: +44 (0)116 222 5557 Procuring Security Toolkit Perpetuity Research Team June 2011 CONFIDENTIAL 2 Copyright Copyright 2011 Perpetuity Research and Consultancy International (PRCI) Ltd All Rights Reserved. No part of this publication may be reprinted or reproduced or utilised in any form or by any electronic, mechanical or other means, known now or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from Perpetuity Research and Consultancy International (PRCI) Ltd.

2 Warning: the doing of an unauthorised act in relation to copyright work may result in both civil claim for damages and criminal prosecution. This Toolkit is the result of the Security Research Initiative (see ), supported by the British Security Industry Association, The Security Institute and ASIS International 3 Index The index below provides a summary of all pages within the Toolkit . You can skip to the sections of interest by clicking on the links below. You can also return to this page at any time by clicking the index link at the top of each page. Section 1.

3 The purpose of the Toolkit .. 4 Introduction .. 4 Introduction to Security .. 6 Introduction to Procurement .. 9 Section 2. Planning and preparation .. 16 Decision to purchase .. 16 Specification .. 27 Section 3. Tendering .. 35 Pre-Qualification Questionnaire (PQQ).. 35 The Invitation to Tender and the Response .. 40 E-tendering .. 45 Section 4. Evaluation .. 47 Site Visits .. 47 The Interview and the Presentation .. 54 Innovation .. 60 E-auctions .. 64 Section 5. Towards contract award .. 68 Selection .. 68 Negotiation .. 74 Section 6. Sample Documents .. 78 Examples .. 78 Section 7. Reference.

4 79 Mini Case Studies .. 79 Glossary .. 91 Useful Links .. 94 References .. 95 INDEX In this section: Introduction Introduction to Security Introduction to Procurement The procurement process Public procurement SMEs and procurement Why good practice in procurement is important Perpetuity Research and Consultancy International Ltd 4 Section 1. The purpose of the Toolkit Introduction Why develop a Toolkit ? Previous Research has shown that the procurement process used for purchasing Security goods and services does not always work to the benefit of the buyer and/ or supplier. There seemed much to be gained by a Research study drawing upon the experiences of those engaged in the process to flag the potential problems, and identify ways to overcome them while at the same time highlighting good practice examples.

5 This is especially important in an era where Security is undergoing great regulatory change and where many clients, pressurised by an adverse economy and testing market conditions are seeking better deals from suppliers. The Research included over 50 one to one interviews, mostly conducted over the telephone, with procurers (both procurement professionals and Security professionals); and different types of Security providers. It was supplemented by a focus group discussion and a literature search, and conversations and debates in a variety of settings that helped identify and develop ideas and insights.

6 This Toolkit includes the findings from this Research . The aim is to better enable those involved in Procuring Security to move towards a win win scenario, where the buyer receives the goods or services required at a fair price and where the supplier can deliver within a fair budget to a high standard. Principles of the Toolkit There are seven key principles that have guided the development of this Toolkit : The first is that it is aimed at those who are involved in buying and selling Security products and services. So all the examples are Security -related and Security is the exclusive focus, albeit that others buying and selling in related disciplines such as Health and Safety, Facilities Management may find it useful.

7 Second, the Toolkit is aimed at being relevant to both those with little knowledge of Security procurement and to those who are experts. For the former, the advice and tips may serve as a major source of guidance to their own approaches, to the latter as a reminder or aide memoir. INDEX In this section: Introduction Introduction to Security Introduction to Procurement The procurement process Public procurement SMEs and procurement Why good practice in procurement is important Perpetuity Research and Consultancy International Ltd 5 Third, the Toolkit has been designed so that each section is self-contained, readers do not have to plough through every section and it has been designed to be user-friendly.

8 Fourth, the aim has not been to provide you with everything you need to know to undertake procurement effectively. As a cursory view of any books on procurement in a library or bookshop will reveal (if you can find them that is), buying and selling has emerged as a discipline in its own right developing its own body of knowledge, represented in the UK by the Chartered Institute of Purchasing and Supply (CIPS). Fifth, this Toolkit does not advocate any particular or specific approach to procurement. It is derived from a number of practices and the content is mostly aimed at providing practical advice.

9 It does not endorse any approach nor is it endorsed by any organisation or association, it has not sought that. Sixth, the content provides a mixture of explaining why some processes are important and necessary, and advice on how to conduct them to generate the best advantages. Seventh, the content is gained from reviewing practical advice from books, reports and other publications but is primarily based on original Research with buyers and suppliers operating in the Security sphere. INDEX In this section: Introduction Introduction to Security Introduction to Procurement The procurement process Public procurement SMEs and procurement Why good practice in procurement is important Perpetuity Research and Consultancy International Ltd 6 Introduction to Security It is important to note that the Security sector is a fragmented one.

10 Although there are a wide range of types of Security providers they often bear little relationship to each other, are organised via quite separate representative associations, and the skills sets of the people who work in them are markedly different. Sometimes Security is seen as a part of Health and Safety, or integral to Facilities Management or business continuity, but not always. Sometime there is a close overlap between physical and corporate Security on the one hand, and information Security on the other, but mostly not. While the different elements of Security might (loosely) share an engagement with a process to protect an organisation s assets ; the form this takes varies as much as the python from the Indian Elephant.