Middle Eastern Company

10 Jan Middle Eastern Company

Introduction

In 2017 a Middle Eastern Company began implementing the Best Value Approach (BVA) in the outsourcing of an Enterprise Resource Planning (ERP) program to replace their manual and semi-automated business processes with a single system. The project has completed the award of the contract and is currently in progress with results to follow after completion.

The project was awarded with the following accomplishments:

1. A best value selection process was run utilizing the BVA PIPS process.
2. The client preselected the most qualified vendors in the Middle East capable of implementing an ERP platform.
3. In the short time span available, the vendors were competed, and the best value vendor was identified. The prioritized best value was the lowest cost, and the highest performance based on level of expertise, ability to identify and mitigate risk, value added and interview.
4. A clarification period was run, confirming that the vendor was the most capable, had a fair price and proposed a detailed schedule, milestone schedule, risk mitigation plan, scope document and weekly risk report that would track the project time and cost deviation.

In the analysis of the use of Best Value over traditional process the client participants which included the leads of all departments, were surveyed (7 individuals). The survey was on a scale from 1 to 10, with 10 representing that you were very satisfied/in complete agreement with the statement and 1 representing that you were very unsatisfied/in disagreement with the statement and 5 being neutral. Their responses identified the BVA process to be faster, simpler, more efficient, better at minimizing client risk, and better at requiring pre-planning (see table 7). The measurable estimated benefits by the client include:

1. The ability to procure without developing a complete scope requirement. This simplified the size of the scope requirement to 2 pages, a reduction of 48 pages (96% reduction) and saved 136 days (91% savings) and $500K dollars (100% cost saving).
2. The efficient, faster and lowering costing identification of a best value vendor. This saved 136 days (50% reduction) in procurement and the reduction of 97 internal manhours (87% savings).
3. The delivery of a complete vendor proposal which the client understands and is satisfied with, that meets the client’s requirement. The proposal is 30 days and $2.5M dollars less than expected (10% , 51% savings respectively), with a lower internal requirement from client project management from .8 FTE to .05 (94% reduction).

Table 1: Client Traditional vs Best Value Surveyed Results

Table 2: Client Traditional vs Best Value Estimated Results