PROCUREMENT MANAGEMENT PLAN FOR

HELLO PACKAGING

Prepared by:

Ms. Brandy Alves (Group Leader) 20180827;

Mr. Justin Dwarika 20180808;

Ms. Jenise Harnarinesingh 20180785;

Ms. Ahzinya Joseph 20180862;

Ms. Jennisa Nandoo 20180810 and

Ms. Shastra Maharaj 20151161.

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TABLE OF CONTENTS PAGE

1. BACKGROUND 3-4

2. PROCUREMENT STRATEGY JUSTIFICATION 4-7

3. CONTRACT TYPE 7-8

4. CONTRACT APPROVAL PROCESS 8-12

5. EVALUATION 12-15

6. PROCUREMENT RISK MANAGEMENT 15-24

7. VENDOR MANAGEMENT 25-27

8. STANDARDIZED PROCUREMENT DOCUMENTATION 27-29

9. APPENDICES 30-59

10. NOTES 60-61

11. WORKS CITED 62-63

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BACKGROUND

Hello Packaging is a family-owned enterprise and has been in operation over the
last forty-five (45) years. It is classified as a small business, with 150 employees,
assets up to TT$3,000,000, sales turnover up to TT$12,000,000 per annum and net
income ranging from TT$3,000,000 – TT$5,000,000 per annum. The company has
been one of the country’s leaders in focusing on the triple bottom line of people,
profit and planet, and specializes in the production and customization of a broad
range of biodegradable corrugated containers, wrap-around cases, pre- and post-
printed cartons, file storage boxes and paperboard boxes. Hello Packaging’s target
audience has been other companies in the food, beverage, confectionary, garment,
footwear, manufacturing and pharmaceutical industries.

In recent times, Hello Packaging has capitalized on sales from customers who
intend to combine capitalism with a social conscience. Furthermore, the rise in social
media marketing and “foodstagram”1 means that food and beverage companies are
exploring options for trendy yet eco-friendly packaging of their products. Hello
Packagingwas approached by event promoters during the hectic Carnival 2020
season to provide innovative and specially cut and designed packaging for all-
inclusive parties. Moreover, event planners have also approached Hello Packaging
in anticipation of the June-August 2020 wedding season peak. These collaborations
are facilitating access to new clientele, particularly to millennials who are inspired by
global climate and environmental activism, and unique, ‘instagram-worthy’ packaging
options.

In response to demand, Hello Packaging has decided to procure additional

equipment in the form of one (1) Industrial Laser Die Cutting Machine. A die
cutting machine allows to cut various materials such as paper, fabric or metal to a
specific shape which can be replicated over and over, with quick turnaround and
limited room for error.2 For a small enterprise like Hello Packaging, this is a large
procurement action, estimated at TT$500,000.

There are three main types of industrial die cutting machines: laser, rotary and semi-
rotary.3 Laser die cutting machines facilitate tight tolerance cutting of intricate shapes
and software programmable designs that can be saved and recalled, without wear
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and tear of cutting tools or the high costs of sharpening and storing rotary dies. In
summary, laser die cutting machines are an attractive option in the industry for less
downtime, increased capability and quicker time to get the product to market.

Image 1: An Industrial Laser Die Cutting Machine 4

With the addition of one (1) Industrial Laser Die Cutting Machine to the
manufacturing line, Hello Packaging will be able to accept orders for the June-
August 2020 wedding season which, based on current requests, stand to bring in
TT$600,000 in revenue. Additionally, orders fulfilled via outsourcing during the 2020
Carnival season brought in net income of TT$1 million. Therefore, with in-house
capacity for Carnival 2021, Hello Packaging’s Finance Department has projected an
additional net income of TT$1.6 million. Rush orders that are received over the
course of the year as Hello Packaging markets their added capacity will also
generate revenue.
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PROCUREMENT STRATEGY JUSTIFICATION

Hello Packaging’s procurement forms a significant part of its capital items in terms
of expenditure. This Procurement Strategy is expected to deliver one (1) Industrial
Laser Die Cutting machine that is capable of meeting customization requests from
clients for unique and intricate biodegradable packaging. As each procurement
action must be clearly justified for accountability and transparency purposes, Hello
Packaging'sproject team is expected to conduct a 'make or buy' or 'lease or buy'
analysis to determine the most appropriate method to acquire the asset.

For this project, a ‘lease or buy’ analysis will be conducted by the Project Manager in
collaboration with the Chief Finance Officer to determine the most affordable means
of procuring one (1) Industrial Laser Die Cutting Machine. Together, they would be
required to agree upon the criteria for the evaluation of the ‘lease or buy’ analysis of
the said machine to be procured.

Firstly, the Project Manager and the Chief Finance Officer would be required to
review Hello Packaging’s financial statements for the last three (3) accounting
periods. This would be crucial to ascertain the company’s cash flow identifying both
revenue and expenditure. This assessment would aid in determining whether the
company has adequate revenue to purchase the said machine or whether leasing
may be the more viable option. In considering a possible purchase, the assessment
would include: the suggested retail price, the down payment required, the resale
value after depreciation of the machine, interest rates, the value and term of a
commercial loan (if Hello Packaging decides to finance the purchase through a loan
facility), charges for loan financing and maintenance costs.

In considering the factors associated with pursuing a lease, the Project Manager and
the Chief Finance Officer wouldconsider: the suggested lease price, duration of the
lease, the security deposit and maintenance costs. Accordingly, in both
assessments, the Project Manager and the Chief Finance Officer wouldtake into
account all life cycle costs associated with the said Industrial Laser Die Cutting
machine.

Based on the foregoing, the analysis performed by the said Project Manager and the
Chief Finance Officer revealed that it would be more affordable to lease the said
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machine for a period of three (3) years, as opposed to buying it. The said ‘buy or
lease’ analysis is appended to this Procurement Management Plan at Appendix I.

The following were also presented by the Chief Finance Officer, explaining the
advantages of leasing:

Better cash flow. Leasing provides access to the asset with minimal up-front
payments and spreads the cost over time.

No debt. An operating lease preserves a company’s credit options because it is

generally classified as an expense as opposed to a debt.

Maximized financial leverage. A lease can often finance everything related to

the purchase.

Cash flow management. Lease payments are usually predictable.

Tax advantage. Operating lease payments are generally tax deductible.

Flexible time frames. Leasing contracts can be structured to fit a company’s

requirements.

Protection against obsolescence. Depending on a company’s end-of-lease

option, the asset can be returned to the lessor 5.

The lease agreement will be required to include the conditions of monthly

instalments to the supplier over the three (3) year period. The machine must be
ideally located in Trinidad and Tobago (even if the supplier is a company with
international operations) as Hello Packaging will not bear any ocean freight or
terminal handling costs to get machines into Trinidad and Tobago’s jurisdiction.
However, if the machine is not available locally, a separate procurement action
would have to be initiated for a purchase from an external supplier. Moreover, while
Hello Packaging has already internally agreed to cover the costs of maintenance,
the intention is to lease machines that have been in use no more than 2 years so
that costs for breakdowns and repairs would be reduced. The delivery period should
also be less than one (1) month as Hello Packaging must confirm orders for
weddings in June-August 2020 by May 20, 2020.
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With this understanding, the Project Team will be required to proceed with exploring
the options for leasing one (1) Industrial Laser Die Cutting machine. In joint
consultations with the Finance Department and the Legal Department, the Project
Team has selected the option of a finance lease, defined as a means by which a
lessee can acquire an asset for most of its useful life. Generally, a finance lease is
non-cancellable during the term of the lease and is net to the lessor, signifying that
Hello Packaging will bear the costs of maintenance, taxes and insurance 6. The
intent is that upon expiration of the three-year (3) finance lease with the selected
supplier,the company would have generated sufficient profit from orders to be able to
purchase one (1) new Industrial Laser Die Cutting Machine. Images below
demonstrate the possibilities of unique designs using said machine:
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Image 2: New Biodegradable Packaging Boxes to be introduced 7

CONTRACT TYPE

To secure the three (3) year finance lease for the Industrial Laser Die Cutting
machine, Hello Packagingwill select the appropriate contract type. Moreover, the
contractual arrangement must be in writing to ensure that all terms and conditions
are expressly stated which is expected to inevitably safeguard Hello Packaging’s
interest.

The Project Team is required to enter into a Fixed Firm Price (FFP) Contract having
assessed both Hello Packaging’s internal and external environment, as well as its
financial statements over the last three (3) accounting periods. This Contractual
Arrangement has been defined as one in which, inter alia, “…the price is not subject
to adjustment. The buyer and seller agree to performance at the stated price, and
the risk of profit and loss passes solely to the supplier.” 8 This arrangement is
considered ideal as it would allow the company to commit to making monthly
instalments at a fixed price at fixed points in time, without the fear of unplanned
increases and/or fluctuations in inflation and market rates.

Furthermore, a FFP Contract would be appropriate given Hello Packaging’s goals

and objectives in both the short and long term as the company would be able to have
better stability in terms of its expenditure as the instalment costs are not subject to
adjustments. This will allow the company to have stable and regulated monthly
statements and budgets regarding this procurement over the three (3) year period.

In summary, Hello Packaging would be able to benefit from a predictable

accounting period with respect to this procurement and is secured in knowing that
any increases due to unforeseeable circumstances and/or performance would be
borne by the lessor who is obligated to absorb all additional costs.

As such, when undertaking the contract approval process for the procurement of this
Industrial Laser Die Cutting machine, the standard FFP Contract would be amended
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accordingly and used by Hello Packaging. The standard FFP Contract is hereto
appended to this Procurement Management Plan at Appendix II.

CONTRACT APPROVAL PROCESS

Having established the contract type, Hello Packaging will follow an established
bidding process and a formal selection and approval process 9.

Hello Packaging’s Procurement Committee would be responsible for the thorough

evaluation and contractapproval process. The Committee comprises its Procurement
Manager, who acts as the Chairman of the Committee, along with the following
representatives from the various functional departments of Hello Packaging:

● A Senior Legal Representative;

● A Production Representative;
● A Finance Representative;
● A HR (Planning & Procurement) Officer II; and
● A Sales and Marketing Representative.

The Procurement Committee is broken into two (2) arms in order to facilitate an
effective evaluation and approval process:

(1) The Evaluation Team- comprising all five (5) key members; and
(2) The Legal Team- comprising Hello Packaging’s Senior Legal
Representative, Finance Representative and HR (Planning & Purchasing)
Officer II.

Both teams would work together to ensure that the entire process of the award and
closure of the contract is efficient and fully documented. Both teams would report to
the Chairman of the Committee (Procurement Manager).

This Procurement Committee is a cross-functional team that has been appointed and
acts on behalf of Hello Packaging’s Managing Director and seeks to:
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1. Open and oversee the tendering process to ensure all bidders are compliant
with the bidding regulations and to determine which bids do not satisfy the
criteria;
2. Evaluate all relevant information e.g. scope of work, purchase specifications
and develop a weighted Evaluation Criteria that will establish the standards by
which the bidder’s approach meets the needs of Hello Packaging. To ensure
this, a scoring method must be agreed upon by the team and impartially
applied to all approved submissions; and
3. Make all clarifications and recommend the award of contract to the bidder who
attains the highest score.

Since Hello Packaging has its Preferred Suppliers (List of Prequalified Suppliers at
Appendix IX) who have previously provided quality machines at value for money,
the company would opt for a Selective Sourcing Approach to Bidding. This means
that potential suppliers are already pre-screened or pre-evaluated on their
background, authenticity, financial standing and overall competency. However,
verification of these elements will be performed upon receival of bids by the
Evaluation Team to ensure such standing still applies.

The Procurement Team will be authorised to directly send out solicitations to Hello
Packaging‘s preferred vendors by means of an Invitation to Tender (ITT) (Appendix
III) and a Request for Quotation (RFQ) (Appendix IV), that would be included in the
Bidding Documents. The team would then prepare for Negotiations. When preparing
for negotiations, the Procurement Manager, along with the rest of the team, would be
required to agree on the minimum acceptance threshold that would be allowed.

PREPARING FOR THE BIDDING/TENDERING PROCESS:

In the Tendering process, the Procurement Manager, acting as Chairman, and the
HR (Planning & Procurement) Officer II of Hello Packaging would be required to
make adequate provision for receiving tenders as follows:

(1) Ensure that a clear address is specified for the submission of tenders with an
accompanying contact name and number;
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(2) Tenderers who submit their tenders prior to the submission deadline would be
issued with a numbered receipt that enlists the date and time the tender was
received. The receipt number would be written on the outside of the tender envelope;

(3)Tenders received prior to the submission deadline would be locked in a secure

place, preferably in a safe with access given only to the Chairman and Legal Officer,
prior to the official closure of bids.

All bids must be in accordance with Hello Packaging‘s Procurement Requirements,

which was carefully formulated by the Procurement Management Team of Hello
Packaging.

When bid proposals are received, the established Evaluation Team would be
required to run a formal compliance check to ensure adherence to all Hello
Packaging’s procedural requirements and formalities that would have been
provided for in the Bidding Documents. Procedures would have to be instituted to
facilitate the tenderers’ representatives who wish to attend the opening of tenders at
the specified place and time. The opening of tenders should take place immediately
after the deadline for submission of bids.

Those that are non-compliant to the aforementioned would be rejected and the fit
and approved bids would be cross-examined by the team to ensure all aspects of
Hello Packaging’s needs are considered and optimized. This is not limited to cost
feasibility (budget) alone, but evaluating the competency of the bidder to deliver the
machine in accordance with the required specifications and quality (scope) and
within the desired time frame.

Within the company’s Evaluation, the selection criteria would be applied to all
approved bidders and in effect, weigh all bidders against each other for fairness and
transparency. The key principles that would govern the tender evaluation process
include:

1. Non-Discrimination;
2. Equal Treatment;
3. Confidentiality; and
4. Transparency.
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Upon the conclusion of the Evaluation stage, the Team should have a clear
indication of:

1. Which bids are deemed unworthy of further consideration; and

2. Any clarification that needs to be requested from tenderers.

Tender Evaluation Reports would also have to be prepared by the Evaluation Team
and recommendations would have to be transmitted to the Head of the Committee
where necessary.

Next, as part of the qualifying and Selection process, as aforementioned, any

clarification needed would be sought via a written ‘‘Request for Clarification’. This
request would be made to clarify: any contradicting or inconsistent information about
a specific aspect of the tender; or where a tender is unclear on what it is describing;
or if a tender contains minor mistakes or omissions. This would have to be properly
documented by the Evaluation Team. Subsequent to this process, if Hello
Packaging has short-listed the proposals to two (2) or more suppliers who both offer
competitive prices, negotiations would be held with the short-listed bidders to select
thesupplier and ensure clarity on potential contractual terms, schedule, work scope
and specifications, quality standards and reporting mechanisms. The Evaluation
Team would then convene with the rest of the Procurement Committee and
determine the most suitable bidder.

Once cost-effective, a formal site visit would be conducted to enhance the

qualification status of the potential supplier. As travel expenses cannot be
accommodated at this moment due to Hello Packaging’s budget constraints, the
company will opt for a virtual site visit of the supplier’s facility to ensure our order can
be fulfilled and processed.

Where the team agrees that the supplier is competent, upholds ethical principles that
are consistent with Hello Packaging’s Code of Ethics and Conduct and no concerns
are voiced, the Procurement Manager (who would be serving as Chairperson of the
Contract Approvals Committee) would be required to liaise with the Managing
Director of Hello Packaging to contract authority for approval and award of the
Contract.
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Once the approval is granted in writing, a letter would then be formally issued to the
successful tenderer to notify him/her of his/her acceptance of the contract award.
The Contract Approval Form template to be used by the project team is appended at
Appendix V.

Following this, Hello Packaging must notify all tenderers of the contract award
decision before it concludes the contract with the winning tenderer. A standstill
period (minimum of 10 to 20 calendar days) must be observed between the issuance
of these notification letters of contract award decision and the contract conclusion.

To facilitate contract conclusion, a date would have to be agreed upon to invite the
successful tenderer to Hello Packaging. At this juncture, Hello Packaging would
enter into a Firm Fixed Price contractual agreement with its successful tenderer.

EVALUATION

As mentioned in the previous section, the Evaluation Committee would be required

to use Hello Packaging’s Preferred Suppliers (Approved List of Suppliers) which
provides a range of suppliers in good standing. Therefore, each of the preferred
suppliers will be individually assessed to determine an awardee for the contract 10.

The tool of choice to aid in the determination of the most acceptable supplier is that
of a weighting system. This weighted system encompassescategories of price,
formality, quality, cost and other. Each category identifies specific criteria with an
associated score. The supplier must earn the minimum threshold of 50% of the
overall weighting to pass each criteria. Upon successful fulfilment of the criteria, a
weighted supplier score is applied, as reflected in the matrix below.

The weighted supplier scores provide a quantitative mechanism whereby the

supplier with the highest score is selected as the supplier to be awarded the
contract. Additionally, the implementation of the weighted score ensures that Hello
Packaging continues to demonstrate transparency and accountability, whilst
upholding the ‘value for money’ principle.

Category Criteria11 Overall Method Weighted

Weighting Supplier
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Score

Price Cost of Industrial Laser 25% Pass/Fail

Die Cutting Machine

Formality Suppliers must tender a 5% Pass/Fail

copy of the original asset
purchase invoice proving
that the machine is not
more than two (2) years
old.

An independent audit 5% Pass/Fail

report prepared within the
last two (2) yearsto
guarantee operational
sustainability and good
financial health.

Supplier viability directly 5% Pass/Fail

relates to the likelihood
the supplier will fulfil the
premises made.

References from four (4) 5% Pass/Fail

clients over the last two
(2) years, with 2 being
former clients and 2 being
current clients to support
evidence of performance
and ethical conduct.

Quality Technological advantage 3% Pass/Fail

pertaining to how often the
supplier leads the market
with the introduction of
new products and
technology.
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Inbound transportation 3% Pass/Fail

pertaining to geographical
location and any possible
barriers to delivering the
machine to Hello
Packaging’s production
plant

Lead Time, with specific 7% Pass/Fail

reference to the timeline
between placing the order
and confirming receipt.

Scope specifications are 25% Pass/Fail

met.

Other Availability of in-house 10% Pass/Fail

available expertise for
maintenance of the
machine.

Ability of supplier to 5% Pass/Fail

provide a subject matter
expert to conduct a tutorial
with all end users for the
product at Hello
Packaging.

Evidence of acceptance of 2% Pass/Fail

the general terms and
conditions of Hello
Packaging, inclusive of
performance security,
warranty, delivery
schedule and payment
terms.

Total 100%
PROCUREMENT RISK MANAGEMENT
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Hello Packaging’s company policy upholds the importance of cultivating a risk

culture which enables responsible risk taking and risk-informed decision-making.
This has been an avenue to foster opportunity management, foresight, and
innovation, rather than an approach that focuses only on avoiding harm and reacting
to issues as they arise. Hello Packaging seeks to ensure that risk management and
quality assurance go hand-in-hand. As such, a cross functional team would convene
with the in-house Subject Matter Experts in the fields of IT and Engineering.
Communication and consultation shall take place weekly to inform risk
identification, assessment, and treatment, and to have ongoing monitoring,
reporting and review. This would then be summarized in the form of a Risk Matrix
and updated accordingly.

Risk Identification

Hello Packaging has traditionally used Documentation Reviews, Expert Judgement

and Brainstorming as tools and techniques in performing risk identification and
hence, said tools and techniques shall be applied to the process of procuring the
Industrial Laser Die Cutting Machine. Each risk, identified through the relevant
prescriptive processes listed above, would be recorded in the Risk Matrix.

Assessment

Risk assessment at Hello Packaging is an iterative process of risk identification,

analysis, and evaluation with the objective of providing sufficient information at
appropriate intervals for risk-informed management decisions. This will ensure
greater acceptance of risk-taking opportunities while ensuring rigorous due diligence,
treatment, monitoring and control. Consequently, the Risk Matrix will be treated as a
living and active document that would constantly be updated to reflect new risks as
they arise and provide possible mitigating strategies to curtail same.

Treatment
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Where threats may arise to Hello Packaging in the procurement of the Industrial
Laser Die Cutting Machine, the company will consider applying one or more of the
following risk treatment measures:
1. Terminate- to seek to eliminate activities that triggers such a risk;
2. Transfer- to pass ownership and/or liability to a third party, the lessor;
3. Mitigate- to reduce the likelihood and/or impact of the risk being below
the threshold of acceptability; and
4. Tolerate - to tolerate the risk level.

In the case of opportunities, Hello Packaging will consider applying one or more of
the following risk treatment measures:
1. Exploit- to maximize the likelihood that the risk occurs;
2. Experiment- to test new solutions in uncertain contexts;
3. Enhance- to increase the likelihood or impact through reinforcing the
trigger condition or increasing exposure; and
4. Accept- no treatment applied.

The risk register utilised by Hello Packaging will comprise seven (7) components,

namely:

a. Risk Description- An overview of what the various risks entail;

b. Impact- An overview of what consequences could ensue should the

risk be realised;

c. Category- The risk is then classified by a particular subject/theme;

d. Probability- A range of 1-5 would be utilized, with 1 being the lowest

possibility of the risk occurring and 5 being the highest possibility or the

expectation that this will undoubtedly occur;

e. Impact - A range of 1-5 would be utilized, with 1 being the lowest

impact to Hello Packaging, provided the risk is realised and 5 being

the highest impact, with detrimental consequences for Hello

Packaging, which would detrimentally affect Hello Packaging;

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f. Score- Hello Packaging would calculate the score by multiplying the

figures assigned under the impact and the probability of each risk. The

scores allocated to each risk would determine the importance and

expedience in treating with same; and

g. Mitigating Strategy- Hello Packaging would then propose strategies

to be implemented to reduce the possibility of each risk being realised

as according to the project management adage, ‘prevention is less

expensive than the cure’.

Based on the foregoing, a preliminary assessment of the risks for the procurement of

the Industrial Laser Die Cutting machine has been undertaken and included in the

risk matrix hereinbelow:

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Risk Matrix12

Risk Impact Category Probability Impac Score Mitigating Strategy

Description t
(1-5)
(1-5)
Threat of The threat of Covid- Cost 5 5 25 Management can choose to
COVID-19. 19 can greatly impact Management defer the scheduled delivery
social gatherings, and the date of executing the
forcing events like lease agreement to a later date
weddings to be when the impact of Covid-19
cancelled. This can has subsided.
result in a significant
Hello Packaging will maintain
loss in planned
good business relationships
earnings while still
with its stakeholders to
having to fulfill the
maximize on business ventures
financial obligations
that can be pursued during the
of the lease
upcoming Christmas and
agreement, thereby
Carnival 2021 season.
defeating the object
and purpose of
procuring at this point
in time.
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Compromised Tasks may not be Planning/ 5 4 20 Hello Packaging will review

ability of Hello accomplished Communicatio operational policies to see
Packaging's according to the n where fast track procedures
staff to fulfill schedule or can be implemented to
their functional according to the expedite procurement.
duties related to quality standards
Human Resource Management
the identified due to
policies and budgets will also
procurement. social distancing
be assessed to see if overtime
policies to manage
pay can be offered to staff who
the spread of Covid-
may need to work longer
19.
hours, given limitations.

Selected Reduced number of Contract 2 5 10 A General Conditions of

supplier not in proposals from Management Contract will be attached to the
agreement with potential suppliers. solicitation document so that all
general terms Lengthy negotiations suppliers who participate in the
and conditions and inability to close tendering process will have a
of contract. contract with supplier. clear understanding of the
Orders for Carnival terms and conditions.
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2021 and the 2020 On submission of the bids, all

wedding season will suppliers will have to indicate
have to be that they accept the general
abandoned or terms and conditions that were
outsourced which can attached to the solicitation
result in Hello document.
Packaging being
required to re-do the
tendering process.

.
Delays in Late delivery can Planning 2 4 8 The imposition of financial
delivery from compromise penalties for breach of contract
supplier. production plans would foster greater adherence
resulting in a loss of to the schedule.
revenue.
Stakeholders will be promptly
Failure to deliver the informed should there be any
machine within the delays in production to
stipulated time frame preserve the reputation of
can amount to a Hello Packaging.
breach in contract.
No local supplier Hello Packagingwill Planning 2 3 6 Hello Packaging will extend
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of the machine. have to initiate a the duration of the tendering

separate period to allow more time for
procurement action prequalified suppliers to submit
for an external bids. If this fails, Hello
supplier, resulting in Packaging will go beyond the
lost time to confirm prequalified list to find other
orders. The most local suppliers.
immediate orders for
If all of these attempts
the June-August
fail,Hello Packaging will have
2020 wedding
no choice but to initiate a new
season may have to
procurement action targeting
be cancelled.
international suppliers. Focus
will then be placed on
Christmas 2020, rather than
the June-August 2020 wedding
season.

Hello Packaging will arrange

Inadequately Losses in production Planning 1 5 5
for an additional training, in
trained end- and exposure to
the form of an intensive one-
users of the potential damage.
week training course.
machine.
Hello Packagingwill also
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source instruction manuals in

video and graphic formats to
cater to different learning
styles among end users.

Budgetary Budgetary constraints Planning 1 2 2 Comprehensive cash flow

constraints can lead to a delay in projections will be undertaken
acquiring the in consultation with the Finance
machine which can Department of Hello
negatively affect the Packaging.
ability to make lease
A contingency will be set aside
payments, to accept
for any budget shortfalls.
orders and to
produce orders.
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VENDOR MANAGEMENT

Once the supplier has been evaluated, approved and contracted, Hello Packaging
will facilitate vendor management through the principles of open communication and
continuous monitoring of supplier performance. The project team would be required
to ensure that the Industrial Laser Die Cutting machine will be delivered on time, on
schedule and within the stated budget of TT$500,000.

The supplier will also be encouraged to notify Hello Packaging if any amendments
to the agreed upon schedule for delivery are to be made and to specify in writing,
any expected delays. Regardless, the project team would be required to meticulously
review the said schedule and communicate with the supplier to ensure that the
machine is delivered pursuant to the agreed upon date of delivery.

Upon delivery of the said machine, Hello Packaging’s in-house Subject Matter
Experts will conduct the necessary inspections to ensure that the machine’s
dimensions and specifications are consistent with what was agreed. An assessment
would also be undertaken to ensure that the quality and general performance of the
machine meets the requisite standards as would have initially been agreed upon.
The Plant Manager would also be required to examine the machine to ensure that
there are no patent defects. Where defects and specifications are not in compliance
with the contract awarded, the machine would have to be immediately returned to
the supplier and a replacement would have to be sent within one (1) week due to the
urgency and great need for the machine to Hello Packaging. Only when the
machine meets all the functional, technical and performance requirements that are
specified in the contract can the Project Manager accept the delivery in writing.

Additionally, the supplier would be required, when delivering the machine to Hello
Packaging, to have an engineer/Subject Matter Expert from their company present
to demonstrate and provide a tutorial to all end-users i.e. operations technicians,
production line workers and other operators of the Industrial Die Cutting Machine.
The contract will also specify that the vendor would be required to provide manuals
in English.
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Upon the completion of this exercise, Hello Packaging would inform the vendor in
writing and via email, the date and time that the machine was delivered and that an
inspection was done by Hello Packaging’s Plant Manager and Engineer. The email
will also state that the tutorial was conducted by an Engineer of the vendor and that
Hello Packaging received the agreed upon manuals in English, per the contract.

After having officially received the machine in writing, Hello Packaging intends to
enter into contractual arrangements with several wedding planning companies in
anticipation of the June-August 2020 wedding season peak. These collaborations
would mean that the machine would be in high use and would be expected to cut, at
minimum, 10,000 boxes over a two (2) hour period. However, given that the machine
is not brand new, Hello Packaging envisions that for every 10,000 boxes produced
over the said two (2) hour period, the possibility of eight hundred (800) defects on
any cuts and/or prints would exist.

Hello Packaging, in seeking to maintain and ensure quality over the duration of the
lease arrangement, will convene a ‘review meeting’ once annually over the three (3)
year lease arrangement with the end-users of the said machine, the Project Manager
and a representative of the supplier. At the said review meeting, a Feedback
Assessment Form, structured as a checklist, would be circulated for completion by
all participants at the meeting and a satisfaction score would be ascertained. This
score would indicate whether there have been any further decreases in functionality
and durability. Moreover, subsequent to the delivery of customized orders, Hello
Packaging will seek feedback from customers on their order. The evaluation reports
derived from these reviews would be transmitted to the supplier to provide feedback.

Furthermore, while Hello Packaging will pursue a finance lease thereby bearing
costs for maintenance and insurance, the project team will track these life-cycle
costs and analyse against the company’s budget to compare planned and actual
expenditure. If Hello Packaging’s reports and analysis reveal that maintenance is
occurring too regularly and that actual life-cycle costs will exceed the budgeted
amount, discussions will be held with the vendor since this may warrant a
replacement of the unit. Costs for replacing the unit will be borne by the vendor.
 26

The following are key performance indicators (KPIs) that will be used in conjunction
with the methods described above to monitor the vendor’s performance:

1. Required delivery date vs actual delivery date;

2. Ordered specifications vs delivered specifications; and
3. Timeliness of response to queries/requests from Hello Packaging.

The Project Team and the Contracts Department will be required to convene a
meeting upon the closure of the procurement of the said Industrial Die Cutting
machine i.e. upon the expiration of the said Fixed Firm Price Contract. At this
meeting, both parties will review the successes and challenges of the procurement
actionand suggest recommendations to improve tools and techniques. Once these
strengths and weaknesses have been identified and documented, the team would
then be required to input same in the ‘Lessons Learned’ template as part of the
standardized procurement documentation. This document will be saved in the
Company’s internal share drive under a folder captioned ‘Lessons Learned’ for future
procurement and will contribute to the general lessons learned review for the entire
project.
 27

STANDARDIZED PROCUREMENT DOCUMENTATION

The following is a list of procurement documents appended to the Procurement

Management Plan, with the exception of the risk register which is included under the
risk management section. Developed by the Project Management Office (PMO) of
Hello Packaging, these templates will be used by all members of the project team
as inputs and outputs of the procurement process to establish guidelines, document
decisions and serve as a basis for updates to organizational process assets.

 Excerpt from Hello Packaging’s Firm Fixed Price (FFP) Contracts

(Appendix II)13:

● The team will be required to utilize a Firm Fixed Price Contract in the
negotiations and awarding of the contract to the selected supplier. A
Firm Fixed Price Contract is a commonly used contract type, favoured
by buyers since the price for goods is set at the outset and not subject
to change unless the scope of work changes. An excerpt of the
payment terms is included in the appendix.

 Requirements documentation (Appendix VI)14:

● The team will be required to refer to these documents which contain a

description of the functional, technical and performance specifications
that the supplier must satisfy; and a description of any other additional
requirements with contractual or legal implications including safety,
permits or licenses.

 Responsibility Assignment Matrix (Appendix VII) 15:

● The team will be required to refer to this table (“RACI”) showing how
project resources are assigned to each work package. The team will
see the assignment of areas of responsibility, accountability,
consultation and information to each team member.
 28

 Risk register:

● The team will be required to refer to this table showing the list of risks,
the results of risk planning and risk response analysis, and risk
mitigation strategies. As noted in the previous section, this is a ‘live’
document that the team will revisit and update accordingly.

 Stakeholder register (Appendix VIII)16:

● The team will be required to refer to this table showing details of the
project participants and their interest in the project, including
contractual and legal personnel.

 Prequalified list of suppliers (Appendix IX):

● The team will be required to utilize this list of vetted suppliers for the
tendering process to streamline the steps needed to advertise the
opportunity and shorten the timeline for the seller selection process.

 General Conditions of Contract (Appendix X)17:

● The team will be required to refer to and utilize this document outlining
Hello Packaging’s general conditions of contract for the provision of
goods. This document forms part of the formal procurement policies of
Hello Packaging and must be accepted by all suppliers who wish to
submit bids.

 Issues Log (Appendix XI)18:

● All team members will be required to use this log to record issues that
arise during contract administration and that are the subject of
disagreement in discussions among stakeholders. It will give a further
record of those issues that are open and closed.

 Feedback Form (Appendix XII)19:

● The team will be required to use this form as a tool to collect feedback
from stakeholders during review meetings to improve current and
future processes.
 29

 Lessons Learned (Appendix XIII)20:

● The team will be required to fill out this form during the close
procurement stage so that the Project Manager can collect feedback
on successes, challenges and recommendations for future projects.

 Procurement Closeout Report (Appendix XIV)21:

● Inputs from team members and stakeholders will allow the Project
Manager to complete this formal report of the procurement that
includes lessons learned and a general review of the procurement
process.
 30

APPENDICES
 31

APPENDIX I

LEASE OR BUY ANALYSIS

LEASE $ BUY $

SUGGESTED $500,000 SUGGESTED $450,000

LEASE PRICE RETAIL PRICE

REFUNDABLE $80,000 DOWN $135,000

SECURITY PAYMENT
DEPOSIT REQUIRED
(30%)

TOTAL INITIAL $580,000 RESALE ($380,000)

LEASE PRICE VALUE AFTER
DEPRECIATION

- - INTEREST 18%
RATE FOR
COMMERCIAL
LOAN FROM
FINANCIAL
INSTITUTION

- - FEES/CHARGE $30,000
S FOR LOAN
FINANCING

MAINTENANCE $25,000 MAINTENANCE $25,000

COST COST

- - TOTAL COST $561,000

OF LOAN
 32

(inclusive of
interest and
charges)

PROJECTED $13,889 PROJECTED $15,583

MONTHLY LEASE MONTHLY
PAYMENT LOAN
PAYMENT

LEASE TERM 3 YEARS TERM OF 3 YEARS

(YEARS) LOAN (YEARS)

PROJECTED $500,000.00 PROJECTED $560,988.00

OVERALL OVERALL
AMOUNT TO BE AMOUNT TO
PAID OVER 3 BE PAID OVER
YEARS 3 YEARS

CASH FLOW PROJECTIONS IN TTD FOR HELLO PACKAGING

1 Jan 2020 – 31 Dec 2020

Projected revenue $12,000,000

Projected total costs (staff; production; $7,000,000

sales; marketing; overhead;
administration; logistics; maintenance,
insurance, taxes on equipment;
miscellaneous)

Net income $5,000,000

Amount already earmarked for savings, $4,820,000

reinvestment and other approved projects

Amount available for new commitments $180,000

 33

Amount available for new commitments $15,000

per month

APPENDIX II
FIRM FIXED PRICE CONTRACT (EXCERPT)
 34

PRICE AND PAYMENT

A. Firm Fixed Price.
In consideration for the Work to be performed by the Contractor, Hello Packaging
agrees to pay the Contractor the following firm fixed price of [amount in words]
(amount in numbers).
The firm fixed price includes interim amounts payable on a monthly basis for a period
of three (3) years, following receipt of an invoice from the Contractor.
B. Invoices.
Each invoice shall be submitted cross-referencing the designated Hello Packaging
purchase order number for this Contract. The final monthly invoice submitted by the
Contractor shall be marked ‘FINAL’ and shall be accompanied by a full invoice for
the firm fixed price. All invoices shall be submitted electronically to
[email protected] and by mail to:
Hello Packaging Ltd.
#103-107 Block 2E Gateways Complex
Longdenville
Chaguanas
Trinidad and Tobago
Attention: Chief Finance Officer
C. Payment.
Hello Packaging’s payments under this Contract will be made following Hello
Packaging’s review and approval of the invoice. The payment term on all invoices
will be net (30) days from Hello Packaging’s receipt and approval of the Contractor’s
invoice. Hello Packaging shall complete its review of the Contractor’s invoice no later
than ten (10) days from the receipt of the Contractor’s invoice.
Payment shall be in Trinidad and Tobago Dollars (TTD). The remittance address, if
payment is made by cheque, shall be:
[Supplier Address]
The remittance address, if payment is to be made by wire transfer, shall be:
[Supplier Address]

APPENDIX III
 35

LETTER OF INVITATION TO TENDER

Dear Sir/Madam,

SUBJECT: Selective Call for Tenders for the Procurement of aFully Digital Industrial
Laser Die-Cutting Machine

CONTRACT NO: 2020/L 138-202016 DATE: XX/XX/2020

Hello Packaging has decided to procure additional equipment in the form of one (1)
Industrial Laser Die Cutting Machine.
Your company is invited to tender for the above-mentioned work, as the company
has opted to invite our Approved List of Suppliers.
Tenders must be lodged in accordance with the Tender Conditions in the attached
Procurement and Bidding Documents.
Tenders must be:
- either sent by registered post or by private courier service, not later than
XX/XX/2020 (the postmark, the date of dispatch or the date of the receipt being
taken as a proof), to the following address:

#103-107 Block 2E
Gateways Complex,
Longdenville,
Chaguanas,
Trinidad and Tobago

- or delivered by hand (by the tenderer in person or by an authorised

representative) to the same address, not later than XX:00pm on XX/XX/2020.

In this case, a receipt must be obtained from Hello Packaging as proof of

submission, signed and dated by the official in tendering department who took
delivery. The department is open from 8.00am to 4:00pm from Monday to Thursday,
and from 8.00 am to 3.00 pm on Fridays. It is closed on Saturdays, Sundays and
National Holidays.
 36

Any queries regarding this tender are to be referred to Mr. Johnson on:
[email protected] or 1-868-713-2156.

Best Regards,
_______________________
Mrs. Carlene Bissessar
Procurement Manager of Hello Packaging
Email: [email protected]
 37

APPENDIX IV

HELLO PACKAGING LTD.

Leading Supplier of Packaging Solutions
in Trinidad and Tobago

#103-107 Block 2E Gateways Complex

Longdenville, Chaguans
Phone #532-8967 Fax #532-0009
Email: [email protected]

REQUEST FOR QUOTATION

Hello Packaging seeks to procure one (1) Industrial Laser Die Cutting machine to
expand production capacity. Quotations are therefore invited for the lease of one (1)
Industrial Laser Die Cutting Machineover a three (3) year period.

Price Offer:
Your price offer must be exclusive of maintenance, insurance and taxes.

Delivery terms:
DAP (Delivered at place). Hello Packaging will not bear any costs of transport to our
plant facility.

General Terms and Conditions

Your participation in this process demonstrates that you already accepted Hello
Packaging’s General Terms and Conditions of Contract during the prequalification
process. Please confirm again on the last page of this document.

ANNEX A – TECHNICAL OFFER FORM

 38

Requirements
Category Requirements
Technical Max Width: 18″ (457 mm)

Unwind/Rewind Mandrel Diameter: 3″

(76 mm) standard

Control System: Intelli-GENT™ control

system
User Controls: Touchscreen GTI
Pendant Arm
Footprint: 8′ x 6′ x 7.65′ - Base Platform
Welded Steel Frame, Aluminum Front
Plate
Cabinet Size: 8′ (2.4 m)
Machine not older than 2 years.
Functional Must be able to cut the following
materials:

PSA, Polyester, cork, foam, neoprene,

silicone, PU, PE, PET, polycarbonate,
polyethylene, polypropylene, thin foil,
metal, ablation of metals bonded to
polyester or similar substrates,
abrasives, adhesives, fabric, paper,
plastic, rubber, textiles

Performance Max Speed: Up to 500 ft/min (152

m/min)
Output: Cut 10,000 boxes in 2 hours
Registered Cut Tolerance: +/- 0.002 inch
(50 microns)
Easy and quick integration of software
upgrades and tech advances
Instant verification of cuts for no more than
800 defects per 10,000 cuts

Your Offer:
Category Requirements Services*
 39

*In this column, list name, address and contact number of local agents who
can provide after-sales and maintenance services.

Signed: [signature] [position/title] [date]

ANNEX B – FINANCIAL OFFER FORM

Quantity Description, including Cost Breakdown

Subtotal
VAT
Shipping EXCLUDED
TOTAL COST IN TTD
 40

Quotation valid for

_____ days.

Any comments:

Expected Date of Delivery:

Warranties:

By submitting a quotation, [your company] confirms acceptance of the

General Conditions of Contract of Hello Packaging: (please tick)

Please include with this bid the following documents:

1) A copy of the original asset purchase invoice to prove age of machine.
2) An independent audit report prepared within the last 2 years.
3) References from two (2) current clients and two (2) former clients.

Signed by: [signature] [position title [date]

[company stamp]

APPENDIX V
HELLO PACKAGING LTD.
Leading Supplier of Packaging Solutions in Trinidad and Tobago
#103-107 Block 2E Gateways Complex, Longdenville, Chaguanas
Phone #532-8967 Fax #532-0009 Email: [email protected]
CONTRACT APPROVAL FORM
The purpose of this form is to document the need for the contracted goods or services, the
availability of funding, the approval of appropriate personnel, compliance with mandated
 41

procurement procedures and compliance with Hello Packaging’s Ethical Code of Conduct and
general contracting guidelines.
REQUESTING DEPARTMENT: ____________________ DATE INITIATED:___________
CONTRACT WITH : ______________________________ DATE: ___________________
CONTACT NAME/EMAIL:________________________ AMOUNT:________________
CONTRACTPURPOSE:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________
CONTRACT TYPE: ____________________________ DURATION:_______________
All companies must have a requisition for payment purposes.
Organization #: _______________________ Account#:_______________________
Has Hello Packaging Ltd contracted with this vendor in the past or is a renewal or extension of a
previously approved contract? Yes ____ No_____
If YES, attach a copy of the relevant agreement.

FOR CONTRACT APPROVAL COMMITTEE USE ONLY

Administrative Evaluation and Review of Bids done by: APPROVAL SIG. OF OFFICERS:

Chief Legal Officer: YES: _____ NO:______ ___________________

Human Resource Officer II YES: _____ NO: ______ ___________________

Sales & Marketing Rep: YES: _____ NO: ______ ___________________

Production Rep: YES: _____ NO: ______ ___________________

Finance Rep: YES: _____ NO: ______ ___________________

COMMENTS/RECOMMENDATIONS:
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________

The Procurement Manager (Chairman of Procurement Team) :

I certify that I have overseen and actively approved all evaluation and negotiation procures of
The Contract Approval Committee and have not participated in any acts of on-transparency that
can potentially negatively affect Hello Packaging Limited. I have read the terms of Hello
Packaging’s Contract Agreements and have appropriate authority to submit this Contract Award
Agreement on behalf of my team to The Managing Director. I further certify that the draft
agreement is complete and includes all exhibits, attachments and pages. I hereby seek
 42

approval to issue the company’s handwritten acceptance of bid to our successful bidder,
pending your review of this submission with all attachments.
Procurement Manager (Chairman of Procurement Committee) Chief Legal Officer
Signature: _________________ ___________________
Date: _________________ __________________

APPENDIX VI

Requirements for an Industrial Die-Cutting Machine

(TEMPLATE)

1. Executive Summary
1.1 Project Overview
 43

Under this project, Hello Packaging will procure one (1) Industrial Laser Die Cutting machine
to fulfil custom orders requiring unique and intricate designs.

2. Product Description
2.1 Product Context
Hello Packaging is already a national leader in biodegradable packaging solutions for
industries and smaller clientele. This machine will, for the first time, allow Hello Packaging
to accept custom orders for special events which require a level of precision and
customization that current systems do not offer.

2.2 User Characteristics

The machine will be used by the Production Unit, led by the Production Manager and staffed
and serviced by production line workers and technicians.

2.3 Assumptions
Hello Packaging assumes that this machine is available from a local supplier, but will
consider as a second option, a supplier not located in Trinidad and Tobago.
Hello Packaging also further assumes that the new machine will be easily integrated into
the current machine set-up, with limited tweaks to programming software for setup.

2.4 Constraints
Hello Packaging is aware that depending on the model, a total upgrade of systems may
have to be undertaken to integrate the laser die cutting machine.

2.4 Dependencies
The machine to be leased should not be older than two (2) years. In this regard and
depending on the volume of output, the machine may require maintenance every 2-3
months. If a newer model is available during the 3-year lease and the current leased model
becomes outdated, Hello Packaging will discuss upgrading with the supplier.

3. Requirements
Priority 1 – This is a ‘must have’ feature
Priority 2 – This can improve on expected results and realize added benefits
Priority 3 – This would be ‘nice to have’ but is not a necessity.
Requirements can also include stipulations on quality checks and controls; maintenance
schedule of the machine; security features and concerns; portability of the machine; origin of
component parts; availability of component parts; and features to facilitate integration into
the current production environment.

3.1 Technical Requirements

Requiremen Requirement Priorit SME Approved Date of
t# Description y Review/
Approval
1 Max Width: 18″ 1 Approved 01/03/2020
(457 mm)
 44

2 Unwind/Rewind 1 Approved 01/03/2020

Mandrel
Diameter: 3″
(76 mm)
standard

3 Control 1 Approved 01/03/2020

System: Intelli-
GENT™
control system
4 User Controls: 1 Approved 01/03/2020
Touchscreen
GTI Pendant
Arm
5 Footprint: 8′ x 1 Approved 01/03/2020
6′ x 7.65′ -
Base Platform
6 Welded Steel 2 Approved 01/03/2020
Frame,
Aluminum
Front Plate
7 Cabinet Size: 2 Approved 01/03/2020
8′ (2.4 m)

3.2 Functional Requirements

Requiremen Requirement Priority SME Approved Date of
t# Description Review/
Approval
1 Must be able 1 Approved 01/03/2020
to cut the
following
materials:

PSA,
Polyester,
cork, foam,
neoprene,
silicone, PU,
PE, PET,
polycarbonate
, polyethylene,
polypropylene
Thin foil, metal
Ablation of
metals
bonded to
polyester or
similar
 45

substrates
Abrasives,
adhesives,
fabric, paper,
plastic,
rubber,
textiles

3.3 Performance Requirements

Requiremen Requirement Priorit SME Approved Date of
t# Description y Review/
Approval
1 Max Speed: 1 Approved 01/03/2020
Up to 500
ft/min (152
m/min)

2 Output: Cut 1 Approved 01/03/2020

10,000 boxes
in 2 hours
3 Registered 1 Approved 01/03/2020
Cut
Tolerance: +/-
0.002 inch (50
microns)
4 Easy and 1 Approved 01/03/2020
quick
integration of
software
upgrades and
tech advances
5 Instant 1 Approved 01/03/2020
verification of
cuts no more
than 800
defects per
10,000 cuts

4. Requirements Confirmation and Sign-Off

Date Stakeholder Stakeholder
Name Position/Title
01/03/2020 Ryan Khan-Soong Plant Manager
01/03/2020 Giselle Peters SME
01/03/2020 Harry Singh Supervisor –
 46

Production Line
01/03/2020 Jerry Rampaul Lead Technician
01/03/2020 Faizal Mohammed Managing
Director
 47

APPENDIX VII

RESPONSIBILITY ASSIGNMENT MATRIX (TEMPLATE)

TABLE SHOWING RESPONSIBILITIES FOR PROCUREMENT

Activity Sponsor Project Team Team Team Team Team Customer

(Mr. Manager Member Member Member Member Member End User
Mohammed,
Managing
Director)

Develop I A R R R R R C
Procurement
Management
Plan
Prepare C R R I I I A C
context
Develop I A C C C C R I
procurement
strategy
Decide C R A C C C C I
contract type
Prepare risk C C R R A C R I
matrix
Collate I R C C C C A I
standardized
documentatio
n
Define I C R C R A C I
contract
 48

approval
process
Develop I C C A C C R I
evaluation
criteria
Determine I A R C C C R I
vendor
management
strategy

*A – Accountable *C – Consult
*R – Responsible *I – Inform
 49

APPENDIX VIII

STAKEHOLDER REGISTER (TEMPLATE)

Stakeholder Interest in Project Priority Support/

Mitigation
Strategies
Mr. Mohammed – Generating new Key Consult and keep
Managing Director business for informed during
and Owner of Hello company, preparation of
Packaging increased profits, procurement
expansion of management plan
clientele and and during project
services as a whole

Plant Manager Addition of capacity Key Consult and involve

to production line in decision-making
which will allow the processes
creation of custom
designs but will
also require
strategies for
training personnel
and for equipment
maintenance

Director, Marketing Custom orders Key Consult and involve

& Sales fulfilled by new in decision-making
machine can create processes
opportunities for
higher profits

Chief Finance Lease agreement Key Consult and involve

Officer and costs of in decision-making
maintenance, processes
insurance and
taxes will affect
company’s
accounts

Senior Legal Lease agreement Key Consult and involve

Officer and contracts need in decision-making
to be vetted and processes
reviewed to protect
and secure
company’s
interests
 50

Planning Manager The lease of the Key Consult and involve

new machine may in decision-making
impact strategic processes
planning for the
company as a
whole

Customers In exchange for Key Continue to monitor

payment, they feedback during
expect to receive vendor
their custom orders management
according to the process, through
quantity and quality the use of surveys
requested and feedback.
Keep customers
informed while
developing
procurement plan.
 51

APPENDIX IX

LIST OF PRE-QUALIFIED SUPPLIERS

Supplier Name Date of Pre-qualification

Green Methods Industrial Solutions Ltd. 15/04/2019
R & Co Company Ltd 15/04/2019
Lightning Strike Industrial Services Ltd. 15/04/2019
Jerry & Sons Ltd. 08/10/2019
Your Industrial Supplies Ltd. 08/10/2019
Central Industrial Solutions Ltd. 08/10/2019
Machines & More Ltd. 08/10/2019

*These suppliers are all prequalified based on previous assessments undertaken by

Hello Packaging in 2019.
 52

APPENDIX X

HELLO PACKAGING’S GENERAL CONDITIONS OF CONTRACT

1. LEGAL STATUS OF THE PARTIES: Hello Packaging Ltd. and theContractor

shall also each be referred to as a “Party” hereunder, and:

1.1. The Contractor shall have the legal status of an independent contractor vis-à-vis
Hello Packaging, and nothing contained in or relating to the Contract shall be
construed as establishing or creating between the Partiesthe relationship of
employer and employee or of principal and agent. The officials,
representatives,employees, or subcontractors of each of the Parties shall not be
considered in any respect as being theemployees or agents of the other Party, and
each Party shall be solely responsible for all claims arising outof or relating to its
engagement of such persons or entities.

2. OBSERVANCE OF THE LAW: Both Parties shall comply with all laws,
ordinances, rules, and regulations of the Republic of Trinidad and Tobago bearing
upon the performance of its obligations under the Contract. In addition, the
Contractor shall maintaincompliance with all obligations relating to its registration as
a qualified vendor of goods or services to Hello Packaging,as such obligations are
set forth in Hello Packaging vendor registration procedures.

3. ASSIGNMENT:
3.1 The Contractor may not assign, transfer, pledge or make any otherdisposition of
the Contract, of any part of the Contract, or of any of the rights, claims or obligations
underthe Contract except with the prior written authorization of Hello Packaging. Any
such unauthorized assignment,transfer, pledge or other disposition, or any attempt to
do so, shall not be binding on Hello Packaging.

4. SUBCONTRACTING:In the event that the Contractor requires the services of

subcontractors to perform anyobligations under the Contract, the Contractor shall
obtain the prior written approval of Hello Packaging. Hello Packaging shallbe
entitled, in its sole discretion, to review the qualifications of any subcontractors and
to reject any proposedsubcontractor that Hello Packaging reasonably considers is
not qualified to perform obligations under the Contract.The terms of any subcontract
shall be subject to, andshall be construed in a manner that is fully in accordance
with, all of the terms and conditions of the Contract.

5. DELIVERY OF GOODS: The Contractor shall hand over or make available the
goods, and Hello Packaging shallreceive the goods, at the place for the delivery of
the goods and within the time for delivery of the goodsspecified in the Contract. The
Contractor shall provide to Hello Packaging such shipment documentation
 53

(including,without limitation, bills of lading, airway bills, and commercial invoices) as

are specified in the Contract or,otherwise, as are customarily utilized in the trade. All
manuals, instructions, displays and any otherinformation relevant to the goods shall
be in the English language unless otherwise specified in theContract. Unless
otherwise stated in the Contract (including, but not limited to, in any “INCOTERM”
orsimilar trade term), the entire risk of loss, damage to, or destruction of the goods
shall be borne exclusivelyby the Contractor until physical delivery of the goods to
Hello Packaging in accordance with the terms of theContract. Delivery of the goods
shall not be deemed in itself as constituting acceptance of the goods by Hello
Packaging.

6.INSPECTION OF THE GOODS: If the Contract provides that the goods may be
inspected prior to delivery,the Contractor shall notify Hello Packaging when the
goods are ready for pre-delivery inspection. Notwithstandingany pre-delivery
inspection, Hello Packaging or its designated inspection agents may also inspect the
goods upon delivery in order to confirm that the goods conform to applicable
specifications or other requirements of theContract. All reasonable facilities and
assistance, including, but not limited to, access to drawings andproduction data,
shall be furnished to Hello Packaging or its designated inspection agents at no
charge therefore.Neither the carrying out of any inspections of the goods nor any
failure to undertake any such inspectionsshall relieve the Contractor of any of its
warranties or the performance of any obligations under theContract.

7.PACKAGING OF THE GOODS: The Contractor shall package the goods for
delivery in accordance withthe highest standards of export packaging for the type
and quantities and modes of transport of the goods.The goods shall be packed and
marked in a proper manner in accordance with the instructions stipulatedin the
Contract or, otherwise, as customarily done in the trade, and in accordance with any
requirementsimposed by applicable law or by the transporters and manufacturers of
the goods. The packing, inparticular, shall mark the Contract or Purchase Order
number and any other identification informationprovided by Hello Packaging as well
as such other information as is necessary for the correct handling and safedelivery of
the goods. Unless otherwise specified in the Contract, the Contractor shall have no
right to anyreturn of the packing materials.

8.WARRANTIES: Unless otherwise specified in the Contract, in addition to and

without limiting any otherwarranties, remedies or rights of Hello Packaging stated in
or arising under the Contract, the Contractor warrantsand represents that:

8.1 The goods, including all packaging and packing thereof, conform to the
specifications of theContract, are fit for the purposes for which such goods are
ordinarily used and for any purposesexpressly made known in writing in the
Contract, and shall be of even quality, free from faults anddefects in design, material,
manufacturer and workmanship;
 54

8.2 The goods are of the quality, quantity and description required by the Contract,
including whensubjected to conditions prevailing in the place of final destination;

8.3 The goods are free from any right of claim by any third-party, including claims of
infringement of anyintellectual property rights, including, but not limited to, patents,
copyright and trade secrets;

8.4 During any period in which the Contractor’s warranties are effective, upon notice
by Hello Packaging that thegoods do not conform to the requirements of the
Contract, the Contractor shall promptly and at itsown expense correct such non-
conformities or, in case of its inability to do so, replace the defectivegoods with
goods of the same or better quality or, at its own cost, remove the defective goods
andfully reimburse Hello Packaging for the purchase price paid for the defective
goods; and,

8.5 The Contractor shall remain responsive to the needs of Hello Packaging for any
services that may berequired in connection with any of the Contractor’s warranties
under the Contract.

9.ACCEPTANCE OF GOODS: Under no circumstances shall Hello Packaging be

required to accept any goods thatdo not conform to the specifications or
requirements of the Contract. Hello Packaging may condition its acceptanceof the
goods upon the successful completion of acceptance tests as may be specified in
the Contract orotherwise agreed in writing by the Parties. In no case shall Hello
Packaging be obligated to accept any goodsunless and until Hello Packaging has
had a reasonable opportunity to inspect the goods following delivery. If theContract
specifies that Hello Packaging shall provide a written acceptance of the goods, the
goods shall not bedeemed accepted unless and until Hello Packaging in fact
provides such written acceptance. In no case shallpayment by Hello Packaging in
and of itself constitute acceptance of the goods.

10.REJECTION OF GOODS: Notwithstanding any other rights of, or remedies

available to Hello Packaging under theContract, in case any of the goods are
defective or otherwise do not conform to the specifications or otherrequirements of
the Contract, Hello Packaging at its sole option, may reject or refuse to accept the
goods, andwithin thirty (30) days following receipt of notice from Hello Packaging of
such rejection or refusal to accept the goods, the Contractor shall, in sole option of
Hello Packaging:
10.1 repair the goods in a manner that would enable the goods to conform to the
specifications or otherrequirements of the Contract; or,

10.2 replace the goods with goods of equal or better quality;and,

 55

10.3 pay all costs relating to the repair or return of the defective goods as well as the
costs relating to thestorage of any such defective goods and for the delivery of any
replacement goods to Hello Packaging.
10.4 In the event that Hello Packaging elects to return any of the goods for the
reasons specified above, Hello Packaging may procure the goods from another
source. In addition to any other rights or remedies availableto Hello Packaging under
the Contract, including, but not limited to, the right to terminate the Contract,
theContractor shall be liable for any additional cost beyond the balance of the
Contract price resulting fromany such procurement, including, inter alia, the costs of
engaging in such procurement, and Hello Packaging shallbe entitled to
compensation from the Contractor for any reasonable expenses incurred for
preserving andstoring the goods for the Contractor’s account.

11. FORCE MAJEURE; OTHER CHANGES IN CONDITIONS:

11.1 In the event of and as soon as possible after the occurrence of any cause
constituting force majeure, theaffected Party shall give notice and full particulars in
writing to the other Party, of such occurrence or cause if the affected Party is thereby
rendered unable, wholly or in part, to perform its obligations andmeet its
responsibilities under the Contract. The affected Party shall also notify the other
Party of anyother changes in condition or the occurrence of any event which
interferes or threatens to interfere withits performance of the Contract. Not more than
fifteen (15) days following the provision of such notice offorce majeure or other
changes in condition or occurrence, the affected Party shall also submit astatement
to the other Party of estimated expenditures that will likely be incurred for the
duration of thechange in condition or the event of force majeure. On receipt of the
notice or notices required hereunder,the Party not affected by the occurrence of a
cause constituting force majeure shall take such action as itreasonably considers to
be appropriate or necessary in the circumstances, including the granting to
theaffected Party of a reasonable extension of time in which to perform any
obligations under the Contract.

11.2 Force majeure as used herein means any unforeseeable and irresistible act of
nature, any act of war(whether declared or not), invasion, revolution, insurrection,
terrorism, or any other acts of a similarnature or force, provided that such acts arise
from causes beyond the control and without the fault ornegligence of the Contractor.

12. TERMINATION:
12.1 Either Party may terminate the Contract for cause, in whole or in part, upon
thirty (30) days notice, inwriting, to the other Party. The initiation of conciliation or
arbitral proceedings shall not be deemed to be a “cause” for or otherwise to be in
itself atermination of the Contract. Hello Packaging may terminate the Contract at
any time by providing written notice to the Contractor in any casein which the
mandate of Hello Packaging applicable to the performance of the Contract or the
funding of Hello Packaging applicable to the Contract is curtailed or terminated,
 56

whether in whole or in part. In addition, unlessotherwise provided by the Contract,

upon sixty (60) day’s advance written notice to the Contractor, Hello Packaging may
terminate the Contract without having to provide any justification therefore.
 57

APPENDIX XI

ISSUES LOG (TEMPLATE)

OPEN ISSUES
Name Date Opened Originator Potential Progress
Impact

CLOSED ISSUES
Name Date Opened Originator How Resolved Date Closed
 58

APPENDIX XII

PROCUREMENT FEEDBACK FORM (TEMPLATE)

Stakeholder: ___________________ Date: ________________

Rating Scale: 1 (Extremely Poor), 2 (Poor), 3 (Average), 4(Good), 5 (Excellent)

6(N/A)
1. Please rate our quality of deliverables: 
2. Please rate our ability to adhere to the project schedule: 
3. Please rate our ability to adhere to the budget: 
4. Please rate our ability to manage stakeholder relationships: 
5. Please rate the effectiveness of our communications: 
6. If you were involved in any monitoring and control activities,
please rate our ability to effectively monitor and control: 
7. Please give an overall rating, based on your answers above: 
Any comments:
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
__________________

Thank you for your time! We value your feedback and will try to integrate your
suggestions in our processes.
 59

APPENDIX XIII

PROCUREMENT LESSONS LEARNED (TEMPLATE)

Date: ________________
As we, the Project Team, seek to improve current and future processes, we thank
you for your inputs on what worked well () and what could be done better next
time ( ). These lessons learned will be used to update Hello Packaging’s
organizational process assets to assist future project teams.

Criteria Plan Actual Lessons Learned

() / ()

Risks and Countermeasures

Anticipated Unanticipated

Communication Plan Implementation

What worked well  What could be done better 

Other Learnings
What worked well  What could be done better 
 60

APPENDIX XIV

PROCUREMENT CLOSEOUT REPORT (TEMPLATE)

Date: ________________
The contents of this general review of the procurement action will be incorporated in
the more comprehensive Project Closeout Report.

Task or Item Satisfactory Average Unsatisfactor Comments

Description y
 61

NOTES
 1
. According to urbandictionary.com, this is a “snapshot of a food moment posted on

Instagram, usually intended to make others jealous about the current libations one is

consuming or has prepared”.

2
. See DeltaModTech website for definitions of Industrial Die Cutting Machine.
3
.Ibid.
4
.Image sourced from DeltaModTech.
5
.These advantages of leasing sourced from Sollish and Semanik, Desk Manual, pp.

289-290.
6
.Definition of a finance lease sourced from Sollish and Semanik, Desk Manual. p. 288.
7
.Images sourced from Google Image search.
8
.Definition of Firm Fixed Price Contract sourced from Sollish and Semanik, Desk

Manual, p. 94.
9
.Guidance on the Contract Approval Process sourced from Sollish and Semanik, Desk

Manual, p. 94.
10
.See Kloppenborg, Contemporary Project Management, pp. 327-330.
11
.Evaluation criteria formulated using various precedents by international organizations,

including the Procurement Manual of the United Nations Office for Project Services.
12
.UNDP’s Risk Management in International Development Projects and Enterprise Risk

Management Policy consulted for elaboration of risk register.

13
. This template of a Firm Fixed Price Contract adapted

from:http://www.acqnotes.com/Attachments/FFP-Contract%20Template.pdf.
14
.Requirements documentation template adapted from:https://www.ebrd.com/work-with-

us/procurement/project-procurement/standard-procurement-documents.html.
15
.Responsibility Assignment Matrix (RACI) sourced from Kloppenborg, Contemporary

Project Management, p. 217.

 16
.Stakeholder Register sourced from Kloppenborg, Contemporary Project Management,

p.123.
17
.General Conditions of Contract adapted from:https://content.unops.org/service-Line-

Documents/Procurement/UNOPS-General-Conditions-Services-2017_EN.PDF.
18
.Issues Log sourced from Kloppenborg, Contemporary Project Management, p. 133.
19
.Feedback Form sourced from Kloppenborg, Contemporary Project Management, p.

426.
20
.Lessons Learned sourced from Kloppenborg, Contemporary Project Management,

p.428.
21
.Procurement Closeout Report sourced from Kloppenborg, Contemporary Project

Management, p.430.

WORKS CITED
DeltaModTech. “Laser Die Cutting Machines: Industrial Die Cutting Solutions.”

DeltaModTech,https://www.deltamodtech.com/machinery/laser-die-cutting/. Accessed

3 Mar 2020.
DeltaModTech. “Die Cutting Machines.”

DeltaModTech,https://www.deltamodtech.com/machinery/die-cutting-machines/.

Accessed 7 Mar 2020.

European Bank for Reconstruction and Development. “Standard Procurement Documents

and Guidance Notes.” https://www.ebrd.com/work-with-us/procurement/project-

procurement/standard-procurement-documents.html. Accessed 10 Mar 2020.

Kloppenborg, Timothy. Contemporary Project Management: Organize/ Plan/ Perform.

Stamford: Cengage Learning, 2015.

Office of Procurement Regulation. “Resource Centre.” https://oprtt.org/resource-centre.

Accessed 12 Mar 2020.

Sollish, Fred and John Semanik. The Procurement and Supply Manager's Desk Reference.

2nd ed., John Wiley and Sons Inc., 2012.

UNDP. Enterprise Risk Management Policy.13 Mar 2019,

https://popp.undp.org/UNDP_POPP_DOCUMENT_LIBRARY/Public/AC_Accountability_

Enterprise%20Risk%20Management%20Policy%20(2016).pdf. Accessed 10 Mar 2020.

UNDP – Global Fund and Health Implementation. Risk Management in International

Development Projects. 2016, https://undphealthimplementation.org/functional-areas/risk-

management/introduction-to-risk-management/risk-management-in-international-

development-projects/. Accessed 10 Mar 2020.

United Nations for Project Services. General Conditions of Contract: Contracts for the

Provision of Services.https://content.unops.org/service-Line-

Documents/Procurement/UNOPS-General-Conditions-Services-2017_EN.PDF.

Accessed 15 Mar 2020.

United Nations Office for Project Services. Procurement Manual. Copenhagen: UNOPS,

2019, https://content.unops.org/service-Line-Documents/Procurement/UNOPS-
Procurement-Manual-2019_EN.pdf. Accessed 6 Mar 2020.