Inspira Capital Procurement Contract: Supply Chain Analysis Report

This report provides a comprehensive analysis of Inspira Capital's procurement process for a cleaning contract, focusing on the new 20-story grade A office building in Singapore. It outlines the strategic approach to identifying potential service providers, emphasizing alignment with Inspira Capital's goals and the importance of selecting companies with the required resources and capabilities. The report details the procurement process, including the recognition of need, purchase requisition, quotation requests, and contract negotiation. It also explores risk management strategies, such as assigning risks, performing audits, and writing detailed contract terms. Furthermore, the report specifies the requirements for bid submissions, the evaluation of bids, and the expected service levels, including key performance indicators (KPIs) for cleaning services. It also addresses the consequences of failing to meet these standards and the importance of managing compliance and supplier relationships through collaborative practices, communication, and mutual trust. The report concludes by emphasizing the significance of agency-supplier relationships and the overall process of ensuring high-quality cleaning services.

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INSPIRA CAPITAL PROCUREMENT CONTRACT
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Executive summary
Supply chain management procedures play an important role in sourcing services.
Companies should set up proper supply chain policies to manage the relationship with the
suppliers. This report focuses on Inspira Capital, which intends to contract a cleaning company
to help in the new 20 storey grade A house. The need for a new cleaning company raises the
need to develop supply chain procedures. The supply chain procedures in the report have
elements such as criteria for identifying potential suppliers. The identification procedures state
that the chosen company should match the strategic goals of the company. The report further
focuses on control measures to prevent potential procurement risks from happening during
service delivery. The risk controls prevent the suppliers from failing to meet the standards set in
the contract. The report further identifies the evaluation standards that the audit team will follow
to establish whether the service level is met. The service level is evaluated using key
performance indicators, which the cleaning company should uphold at all times. Failure to meet
the set standards could result in dire consequences such as,
1. Contract termination
2. Legal procedures
3. Withholding of payment

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Inspira capital’s method of identifying potential service providers................................................5
The procurement process.................................................................................................................6
Inspira Capital’s measurement to manage procurement risks.........................................................7
Inspira Capital requirements for submission of bids.......................................................................8
Evaluation of the submitted bids.....................................................................................................8
Inspira Capital expected service levels..........................................................................................10
Cleaning key performance indicators............................................................................................12
Improved cleanliness and hygiene.............................................................................................12
Increased recycling and plants maintenance..............................................................................13
The consequences of failure..........................................................................................................13
Management of compliance and supplier relationship..................................................................13
Collaborative relationships........................................................................................................13
Communication..........................................................................................................................14
Mutual trust................................................................................................................................14
Joint problem solving.................................................................................................................14
Escalation of disputes.................................................................................................................15
Agency-supplier relationship.....................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

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Introduction
Inspira Capital is a strategic co-investment partner that offers capital and services. The
company is dedicated to providing technological, manpower and relationship-based solutions to
the clients. The company believes in collaborating with the customers to come up with suitable
solutions for problems. The company is made up of former CEOs who help company owners to
reach top-notch success. Additionally, Inspira Capital builds profits from investors through
entrepreneurial engagements. The company backs entrepreneurs with financial and intellectual
resources. The resources at the entrepreneurs' disposal play a huge role in achieving full
potential.
This report focusses on Inspira Capital, which has offices in Singapore. The company has
successfully acquired a new 20 floors grade A office building within the business district. The
company intends to source for external cleaning services, which are currently performed by in-
house cleaners. The transition requires supply chain experts in the company to oversee the
sourcing and awarding of the cleaning contract (Ali, 2018). Therefore, the report has developed
smooth procedures for undertaking supply chain processes from the initial stage to contract
performance. The issues discussed in the report include,
1. Details of submitting bids
2. Methods of evaluating the submitted bids.
3. The required service levels
4. The key performance indicator
5. The consequences of failure
6. The management of supplier relationships

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Inspira capital’s method of identifying potential service providers
Inspira capital has set certain procedure for selecting the best service providers. The
procedure is made up of six steps, which the procurement department follows strictly. The steps
include,
Strategic analysis – Inspira Capital begins the procurement procedure by emphasizing the
company strategies. The emphasis is put on the mission and the vision of the company to ensure
that the procurement meets Inspira Capital goals. The procurement department aims at selecting
the suppliers who can uphold the company objectives (Andreasen, 2012).
Identification of the best candidates – the procurement department will identify the core
and non-core activities that require achievement (Ślaski, 2017). In this case, Inspira Capital is
looking for cleaning experts. Therefore, Inspira will checks for the best candidates with a past
track record of excellence in cleaning activities. The cleaning company of choice should have
adequate resources such as the best cleaners and machinery for work.
Defining requirements – Inspira Capital follows by settimg requirements that the cleaning
company should meet. The various requirements include,
1. The cleaning company should provide employees during all workdays
2. The company should provide machinery and other utilities for cleaning
3. The company should indemnify Inspira Capital from liabilities arising from injuries
suffered by the employees.
4. The company should ensure the highest level of cleanliness and safety at all times.

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Selecting the service provider – Inspira Capita will require that the cleaning company
should have operations that align with own strategies. The selected company should have
adequate resources and capabilities to fulfil the set duties (Pricop, 2012).
Transitioning the operations – Inspira Capital will then communicate with the previous
cleaning employees about the incoming changes to create readiness and awareness (Orton,
2015). The current employees should ensure a smooth hand over of operations to the incoming
company.
Managing the relationship – Inspira capital will monitor and evaluate the performance of
the company to ensure adherence to contract terms. The evaluation will enable early detection of
issues that could strain the relationship in the future.
The procurement process
(Mann, 2012) highlights the following procurement processes.
1. Recognition of need – Inspira capital begins the process by identifying the requirement
for a cleaning company based on the need to clean the new storey building.
2. Purchase requisition – the hygiene department follows up by drafting a requisition for
contracting a cleaning company.
3. Review of request – the purchasing department then checks the purchase requisition to
identify possibility and necessity.
4. Quotation request – the procurement team after receiving a purchase requisition sends a
request for quotation to suitable vendors
5. Negotiation and contract – the fifth stage involves asking vendors send service quotations
for consideration and the procurement team selects the best. After selection, the company
signs a contract with the company.

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6. Receipts of services – finally, Inspira Capital requires the contracted company provides
to cleaning services as per the contract terms.
Inspira Capital’s measurement to manage procurement risks
Assigning risks – Inspira capital begins by assigning risks to the cleaning company to
create adequate indemnification from the accruing losses and expenses (Irani, 2014). The
cleaning is required to indemnify Inspira capital from any risks happening to the employees
while carrying out daily duties. Additionally, Inspira will ensure that the cleaning experts work
in favourable conditions that observe the health and safety regulations of Singapore to prevent
danger on cleaning experts.
Performing audits and compliance checks – Inspira Capital will then undertake
continuous audits on the employees to ensure observance of safety while working (Il-Hyun,
2012). For example, internal auditors will constantly check whether the cleaning experts have the
right machinery and protective gears for work to prevent injury.
Writing down the contract terms – Inspira Capital will make sure to write down the terms
and conditions of the contract in the presence of legal experts’ to prevent ambiguity of some
clauses. The contracted company should undertake to accept the terms and conditions without
failure. Additionally, the contract will state the expected service levels and state the
consequences of failure (Gunasekaran, 2014).

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Holding the contracted company responsible – Inspira Capital will insist on holding the
cleaning company accountable to uphold the contract terms and conditions by renewing contracts
based on performance levels (Giordani, 2014). Auditors will give a performance score rating
derived from continuous audits on the work performed. The performance score will determine
whether the cleaning company will get a new contract with better terms.
Inspira Capital requirements for submission of bids
Potential suppliers should visit the e-procurement portal and follow the following procedures.
i. Download specification documents in PDF format for the cleaning contract.
ii. Ask for additional information from the procurement team
iii. Submit documents on the E-portal to express interest in fulfilling the tender requirements.
After the first step, the applicants should pay 1000 Singapore dollars to the company’s account,
which is refundable if the bid fails.
i. Other methods of tender submission include,
ii. Sending the expression of interest by post
iii. Personal delivery to the procurement department
The procurement process will observe the following rules and regulations of submission
i. Employees or persons related to the company cannot participate in the tender
ii. Persons expressing interest should not pay any monies to the procurement officials.
iii. The participants should offer true information about the company resources and ability to
execute the cleaning activities.
Evaluation of the submitted bids
1. Creation of a statement of work – Inspira Capital will begin by developing a statement
that defines work requirements that the cleaning company should fulfil (Bettis, 2014).

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The statement will include the contract price and duration that the company will perform
the cleaning duties.
2. Creation of a request for information that describes the contract terms and conditions -
The document will help Inspira Capital to compare applicant proposals to identify who
best meets the set requirements (Arditti, 2015). The best bidder will be the one who
offers something extra in addition to the stated terms and conditions. For example, the
use of advanced technology or price reduction.
3. Release of request for information – Inspira Capital will follow up by releasing the
request for proposal and statement of work to the public (Essawy, 2012). Inspira Capital
will advertise the request for services on public media such as newspapers and websites.
The capable suppliers should react by submitting bids showing the ability to perform the
stated duties.
4. Response evaluation- the procurement team will then check the submitted bids to identify
suitability to perform the cleaning tasks. The companies passed as suitable should portray
adequacy in terms of resources and experience in performing similar activities (Bish,
2012).
5. Development of a shortlist – the evaluation team will then assign scores to the submitted
bids (Kumar, 2015). The bids with the highest scores are shortlisted in order of
superiority for easy narrowing down to the best candidate.
6. Creation of a request for proposals – Inspira Capital then sends request for proposal to the
suppliers selected in the shortlisting stage (Nitsche, 2018). The request for proposal
outlines the requirements of the contract, which customers should follow to the letter.

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7. Release of request for proposal- Inspira Capital sends the request for proposal to the
shortlisted suppliers through appropriate means such as email or personal delivery to the
contractors’ premises.
8. Evaluation of responses – Inspira Capital procurement team then receives the responses
to the requests for proposals and evaluates to identify the suppliers who best meet the
specifications of the statement of work.
9. Selection of preferred contractor – Inspira Capital then performs evaluation on a scale
depending on the coverage of requirements. The highest rating contractor wins the
bidding process and a contract is drafted in readiness for signing (Orto, 2015).
10. Agreement of contract – Inspira Capital ends the process by delivering the contract to the
winning contractor for signing.
Inspira Capital expected service levels
Inspira capital follows up the supplier selection by drawing up tables that specify the
expected service levels for the cleaning company. The areas of concern for cleanliness include
toilets, staff kitchens, offices, corridors and reception, internal stairs and lifts.
Toilets
Task Frequency Comments
Cleaning toilet bowls Daily
Cleaning urinals and walls Daily
Cleaning sinks and taps Daily
Emptying trash cans Daily Ensure all bins are emptied
Refill handwashing soaps Daily Use medically proven soaps
Clean walls Daily Do not interfere with painting

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Clean roller towels Daily Replace with white towels
Staff kitchens
Task Frequency Comments
Empty the trash cans Daily
Clean up the floors Daily Dry floors properly
Roller towels Daily Use white towels
Clean utensils Daily
Offices
Task Frequency Comments
Empty bins Daily
Floor cleaning Daily Dry floors completely
Desk cleaning Daily After work hours
Corridors and reception
Task Frequency Comments
Clean windows and floors Daily
Empty trash cans Daily Morning and evening

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Vacuuming Daily
Stairs
Task Frequency Comments
Pick up trash Daily Collect during the day
Wash floors Daily Dry floors completely
Wipe the handles Daily
Lifts
Task Frequency Comments
Pick up trash Daily
Vacuum cleaning Daily
Wash floors Daily
Other cleaning requirements
1. Deep cleans will depend on the usage of an office.
2. The cleaning team should keep the area outside the premise clean from trash.
3. The teams will also maintain the flower gardens along paths.
4. The cleaning team will clean the corridors and verandahs many times during the day due
to a high rate of use.
5. The cleaning company should ensure that the windows are free from dust.
6. The cleaning team should open the windows and louvres to allow free flow of air.
7. The cleaning team will ensure proper disposal of garbage.
8. The cleaning company will perform recycling where necessary.