Scottish Government

What should be in a Specification?
Who provides the Specification?
Output/Performance Specification
Technical Specifications and Standards
Using Samples, Patterns etc. as Specifications
Simplification and Variety Reduction
Review and Sign-off
Specification Checklist

The specification must:

- clearly describe what the supplier is expected to provide.

- focus squarely on outputs, detailing what is required but without being prescriptive as to the method the supplier should use to provide it;

- provide a standard by which it is possible to measure the quality of what is being provided against what is contractually required;

- include performance targets or include criteria for acceptance of the products or services;

- act as a tool for contract monitoring;

- avoid over-specification of performance (more than "Fit for Purpose") to ensure procurement at the optimum cost;

- take account of environmental and social policies where appropriate;

- take account of relevant legislation on, for example, health and safety and racial equality;

- not be written in a way that favours monopolies or single sources of supply;

- be sufficiently tight so that the product or service fits the user's needs, but not so explicit that it discourages the supplier from proposing innovative solutions that optimise VFM;

- either identify any optional "bells and whistles" which would add value, or give the suppliers the opportunity to do so;

- be realistic in specifying requirements including limits, tolerances, deliverables and timescales;

- encourage a structured method of tender evaluation; and

- be able to form the major part of the formal contract between the purchaser and the contractor.

Once the specification has been included as part of the contract it can be changed only by agreement with the Contractor and should be formalised in a Contract Amendment. Changes to specifications after the contract is agreed can be expensive.

If the specification is wrong, inadequate or unnecessarily tightly drawn it may result in:

- unsuitable tenderers submitting bids or suitable tenderers submitting unsatisfactory bids;

- suitable tenderers being precluded from bidding;

- tenderers wrongly or variously interpreting the requirement;

- major difficulties in evaluating the bids;

- wrong or unsuitable products/services being offered/supplied or services not meeting the actual requirement; and

- claims of unfair treatment being made by tenderers.

Who Provides the Specification?

The User Intelligence Group, which should include end-user representitives are responsible for developing the the specification, but should ensure that other end-users, stakeholders and technical specialists are consulted where approriate. Patrt of the role of the UIG is to challenge accepted thinking and advise the customer representatives to ensure that the final specification meets the customer requirements but also achieves value for money. Commodity Managers may also have knowledge of similar requirements procured elsewhere and should be alive to the possibilities of collaboration and draw together customers with similar requirements to achieve greater leverage in the marketplace and VFM. Previous similar or related specifications may be developed and used, although care should be taken not to be constrained by the truths of the past. At the specification stage the UIG should explore opportunities to incorporate Corporate Social Responsibility policies and objectives and encourage them to consider and incorporate environmental and other sustainable issues where ever practicable. Customers will often have knowledge of what environmentaly preferable options are available.

The foundation of a good specification is laid in the planning and research undertaken before writing begins. Allow sufficient time to create the specification.

In major or unusual procurements there is often merit in discussing the specification with a broad range of potential tenderers, where this is practical. This must be done in a fair manner to avoid distorting competition and/or giving any potential tenderer an advantage. Extreme caution and care must be exercised to avoid not only genuine unfairness to some potential tenderers, but also the impression of unfairness to some tenderers. Under no circumstances should any commitments be made during this process. In developing a specification following discussions with the marketplace the ownership of IPR must be clearly understood, reinforcing the need to ensure that suppliers are aware of the future intent to compete the business.

It should be remembered that purchasers can also use their commercial influence to help improve the competitiveness of suppliers, e.g., by ensuring that the products, processes and services which they buy, as far as possible, reflect requirements (in terms of quality and price) of world markets, and specifications encourage innovation. Suppliers should not be put to unnecessary cost through casual enquiries for bids.
All managers, not only purchasers, are responsible for ensuring that best VFM is achieved through the procurement process.

Output/Performance Specification

In order to obtain the most cost effective solution from the tenderer, the specification should be written in "performance" terms, which focus on the fuinction of the product or service required. It builds the specification around a description of what is to be achieved rather than a fixed description of exactly how it should be done and encourages innovation in the market place, thereby allowing and encouraging tenderers to propose modern (including environmentally preferable) solutions.

In very exceptional circumstances, for a very limited number of products or services, a "design" specification may be unavoidable. As the term implies, such a specfication starts with exact details of the physical dimensions, the materials used, power input and output, the manufacturing processes required, and so on. The nature of the requirement may make it essential to narrow the options by writing a detailed full design specification. However, these assertions should be tested and guidance sought particularly when EU Regulations apply, as a "design" specification may restrict competition.

Wherever possible, specifications should be on an "output/performance" basis rather than in "design" terms.

Technical Specifications and Standards

In the context of specifications, a "standard" is a technical specification or other document available to the public. Standards are based on the consolidated results of science, technology and experience, aimed at the promotion of optimum commercial benefits and approved by a body recognised at the national, regional or international level.

There is now a legal obligation, as well as the requirement contained in the EU Directives to use European standards where they exist, except in a few specified instances. There are two criteria which must be satisfied before you may specify any particular make, source, process, trademarks, patents, types etc:
- the reference must be justified by the subject matter of the contract; and
- the subject of the contract cannot otherwise be described in a manner, which is sufficiently precise and intelligible to all potential providers.

Any such reference must be qualified by "or equivalent". The use of this kind of reference is something that both the European Commission and the European Court of Justice are extremely strict on, even where the words "or equivalent" are used, if both the criteria identified here are not satisfied. Where European standards do not exist, other recognised standards may be specified provided they are followed by the words "or equivalent".

Using Samples, Patterns, etc, in Specifications

If it is not possible to produce a detailed description of the requirement, samples or patterns may be issued to the tenderers or requested from them. In this case, a "sealed sample" must be kept for later comparison with the products supplied. Samples, patterns and drawings may also form part of a design specification.

Any samples that are no longer required should be returned to the tenderer.

Care should be taken that Copyright is not breached when using samples, patterns etc. for specification purposes. Consideration again needs to be given to the Intellectual Property Rights of the tenderers.

Simplification and Variety Reduction

Simplification and variety reduction techniques can help in reducing costs and in obtaining better VFM.

Simplification and variety reduction in a specification requires the elimination of complexities in design by omitting different types, sizes, grades etc. of products. At its simplest this might be seen as the reduction in the number of colours in which an item is purchased, or in the sizes of envelopes which are purchased and kept in stock and can be a valuable tool when seeking to establish a specification for large collaborative procurements.

Review and Sign-off

The key criteria that the User Intelligence Group need to ensure in completing the specification are that the:
- Requirements are complete and accurate;
- Stakeholders needs are taken into account;
- Future developments have been taken into account;
- Consistent with the organisations requirements and objectives including business case, EU Directives, procurement and contracts strategies, sustainability objectives and evaluation strategy;
- Risk assessment to ensure that related risks are closed or managed.

Specification Checklist

Purchasers should give consideration to the following aspects when preparing specifications: