A procurement plan is a document prepared by each procuring entity annually to plan for all procurement requirements necessary to perform the activity plan for the procuring entity.
A procurement plan contents include:
1. A detailed breakdown of required goods, works or services.
2. A schedule of the planned delivery, implementation or completion dates for all goods, services or works required.
3. An estimate of the value of each procurement package of goods, works and services.
4. Source of funding.
5. An indication of items or sections of the services or works that can be aggregated for procurement as a single package.
6. Procurement method and justification.
7. Details of any committed or planned procurement expenditure under existing multi-year context.
8. Warehouse requirement.
9. Mode of procuring.(Once or twice or either twice etc)
10.Timelines for critical stages of the delivery or implementation program.
11.Rules applicable to the procurement. (Requirements of the suppliers or contractors to the procurer)
Importance of The Procurement Plan.
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. Procurement plan allows for the consolidation of similar requirements under one contract or division of a requirement into several contract packages for economics of scale.
4. From the number of requirement of 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.
5. Allows for the monitoring of the procurement process to determine how actual the performance compares in the planned activities and thus to allow the pertinent departments and adjust the procurement plan accordingly.
6. Enhances the transparency and predictability of the procurement process.
