Description of the procurement
Iarnród Éireann (IÉ) have a 3 year requirement for the provision of low value, high volume orders for a wide range of engineering, electrical, electronic and test components.
The anticipated annual contract value, split across multiple low value orders, is estimated to be in the region of 125 000 EUR to 150 000 EUR per annum.
The successful service provider will have a catalogue system in place (on-line and hard copy) to facilitate the wide varying needs of all engineering departments within IÉ.
IÉ require the successful service provider to have in place an infrastructure that allows for a nationwide and same day delivery (orders placed before 12:00) and next day delivery (orders placed after 12:00). In addition, IÉ are also seeking a trade counter facility to accommodate walk in requirements.
Historical purchasing data (May 2014 to January 2017) over the life of the existing agreement is as follows:
Orders Below 100 EUR — Qty 409 (Average Order Value 54.24 EUR)
Orders Between 101 EUR and 200 EUR — Qty 342 (Average Order Value 143.22 EUR)
Orders Between 201 EUR and 300 EUR — Qty 224 (Average Order Value 247.43 EUR)
Orders Between 301 EUR and 400 EUR — Qty 164 (Average Order Value 352.49 EUR)
Orders Between 401 EUR and 500 EUR — Qty 198 (Average Order Value 455.30 EUR)
Orders Between 500 EUR and 1 000 EUR — Qty 177 (Average Order Value 700.66 EUR)
The successful service provider will be required to work within an agreed service level agreement.
IÉ are also seeking, over the life of the 3 year agreement, to reduce the cost of procurement. To achieve this, IÉ will be seeking innovative procurement solutions from the successful service provider.