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Running Head: PROCUREMENT PROJECT 1

PROCUREMENT PROJECT

Student number : W20048453

Professor’s name : Dr. Victor Samwinga

Course title : Procurement and Supply Chain Management

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Riverside Sunderland city Procurement manual

Executive summary

The paper focuses on providing a directive guide for the Sunderland city council in

developing sustainable housing projects for its local communities. It focuses on the techniques of

procurement which will be applicable in sourcing the needed expertise in the project. Digital

technologies are applied to ensure that all the needed services and products are made known to

the public to help interested suppliers and professionals send their proposals for placement into

the project.

Factors surrounding the use of available financial resources are discussed in the paper as

well. The project has limited finances, which are sourced from the city council as well as the

private investors involved in the project. Following the budget line and ensuring all resources are

directed towards the indented channels is made possible by outlining the prices from the

respective services and products that will be required. The procurement technique allows the city

council to meet the time deadlines which have been set. It ensures that they have adequate time

to evaluate the skill sets and compensations for the interested individuals. The properties to be

included on a standard form of contract are listed to ensure that the project managers understand

what aspects will make certain tender submissions better than others. It outlines the kind of talent

and skills that will be required from the contractors. The discussion outlines the special designs

of construction are developed in the Riverside Sunderland city.

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Contents

Introduction ................................................................................................................................5

Procurement framework ..........................................................................................................5

Organization of procurement .......................................................................................................7

Overview of the process of procurement..................................................................................7

Procurement authority .............................................................................................................9

Contract award ........................................................................................................................9

Acquisition planning and procurement strategy ......................................................................... 10

Standard form contract .......................................................................................................... 10

Sourcing.................................................................................................................................... 11

Management of submissions ..................................................................................................... 12

Tender opening committee .................................................................................................... 12

Safeguarding operations of electronic-tendering .................................................................... 12

Modification or withdrawal of submissions ........................................................................... 14

Evaluation of submissions ......................................................................................................... 14

Evaluation criteria ................................................................................................................. 14

Evaluation methodologies ..................................................................................................... 15

Financial evaluation .............................................................................................................. 16

Negotiations .......................................................................................................................... 17

Reviews by committee on contracts ....................................................................................... 18

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Contract finalization and issuance ............................................................................................. 18

Contract finalization discussion ............................................................................................. 18

Contract issuance .................................................................................................................. 19

Conclusion ................................................................................................................................ 20

Recommendations ..................................................................................................................... 21

References ................................................................................................................................ 21

Glossary .................................................................................................................................... 24

Appendix A: Procurement plan sample format .......................................................................... 25

Appendix B: Contract register sample report ............................................................................. 25

Appendix C: Evaluation of contract award sample report .......................................................... 26

Appendix D: Service Demand & Deliver………………………………………………………..25

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Introduction

Forecasting and development of specific strategies are operations that influence the future

outcomes in any community. Planning decisions that are made contribute to shaping society in

determining the kind of homes individuals will live in, the working environment that we operate

in, the placement of areas for relaxing, and the traveling roads that community members will use.

The local authorities establish local plans in pursuit of improving the livelihood of the members.

The city council of Sunderland has statutory duty to transform the city through being able to

understand how the assets of the city, such as land and property required to be protected as a way

of meeting the issues that the city is facing. It is crucial to establish an environment that supports

investments from private institutions to ensure that the determined needs in development can be

fulfilled.

Riverside Sunderland is a project that involves developing a new urban quarter by the

city council of Sunderland in collaboration with investors such as Vitality Life. The plan is to be

executed on a superb riverside site in the central part of the city. The city council hopes to build

around one thousand homes which are to be occupied by approximately two thousand and five

hundred individuals (Ahmad.et.al, 2019)The plan also involves using around one million square

feet of area to develop offices that could offer jobs for a labor force ranging between eight

thousand and ten thousand workers.

Procurement framework

The local plan developed in the city is directed towards establishing a flexible strategic

agenda that will outline the development operations. The framework will showcase the

conditions necessary for making the plan successful and assist in encouraging and supporting

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activities that are oriented toward development. The city will benefit from its capability to open a

window where businesses are promoted, and growth is encouraged. Some of these advantages

include job opportunities for the locals, offering homes that can meet the needs and expectations

of the communities within the city, and dealing with the inequalities and scarcity issues within

the surrounding. The plan will allow the local authorities to protect the natural and historic

environment assets within the city and increase the value around these assets.

Client and stakeholder needs

The main factors that have necessitated the development of this master plan are the

promotion of active citizenship and sociability among the community member, reduction of

carbon footprint, conservation of energy through having digitally enabled homes, improvement

of social infrastructure, and well as encouraging private investments. The city authorities are

only trying to integrate those aspects which they believe would make the living environment

better in the area (Ban.et.al, 2019). Realizing the goal of creating jobs among the locals is also an

important element that is fueling the strategic framework.

Client needs

The Sunderland city council seeks to ensure that the duty that the local people have

bestowed on them is carried out efficiently. They plan to drive the community to better living

standards by eliminating the problems ailing the city for so long. Their responsibility is to create

job opportunities and develop strategies to ensure that the locals can retain those jobs. The

development of environmentally friendly neighborhoods will ensure that the city can attract other

individuals seeking to live in places where people are conscious of nature. Moreover, the plan

will ensure that there is maximum use of the open spaces within the city. Using natural assets

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such as land sparingly and adequately is something that the local authorizes have been longing to

do. They want to ensure that they maximize the city communities by creating opportunities to

add to the neighborhoods.

Stakeholder needs

The private investors involved in the project are driven by their need to tap the

opportunity to share the benefits resulting from selling the houses. They also want to ensure that

they can tap future opportunities from the plan since they will be in touch with the local

authorities. The fact that the plan has very guaranteed fruitful benefits is a big driving force for

private investors. It ensures that they get to portray an image of being socially driven to meet

societal needs. The opportunity allows investors in the housing industry to make their entry into

the city and be able to ensure that the most sustainable housing options are adopted. It is an eye-

opener to them for the plans of restructuring houses within this locality. In addition, they expose

themselves to the possibility of being allowed to invest in future projects that yield more returns.

Organization of procurement

Overview of the process of procurement

Acquisition of individuals with the needed skill set to work on making the policy

framework a reality is as important as the whole process of making plans. It is crucial to entrust

the future of a city to the best-suited professionals in the housing industry. External factors such

as arrangements of funding and the city regulations in construction will be essential in selecting

the most applicable procurement technique in this scenario. One has to consider how other public

works procurement procedures have been conducted to determine how fit the selected method is.

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Riverside Sunderland city Procurement manual

Source:(https://images.app.goo.gl/RMi4mdy7fdR8VVUb6)

The plan to build independent and sustainable neighborhoods will necessitate the hiring of

contractors with the capability to build therequired houses, specialists in IT to be involved in

making the homes digitally convenient, and contractors who can build the required roads within

the structured community.

The stakeholders have to ensure that they take financial budgets and time deadlines into

account when selecting the procurement method to apply. With a very short deadline and high

expectations to meet, it is crucial to use a procurement technique that will allow the client to

quickly access the needed talent. In this case, therefore, the electronic procurement technique

will be suited to professional sourcing skills which are needed in the project. The technique

ensures that only the registered users will be able to place their bids for the opportunity. It allows

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the client to have an easy time during the assessment of the applications that are set. Considering

the city council ought to ensure that all interested contractors get a chance to try and acquire the

employment position, there should be open communication to the community.

Procurement authority

The city council commissioner should delegate the procurement duties to the appropriate

officials to ensure that authorized individuals can ensure this process is completed successfully.

There should be a review committee that should govern the operations against fraudulent

activities. They ought to ensure that the activities carried out during the sourcing of services are

conducted fairly and without any malpractices. The procurement officer will ensure that

necessary procurement capacity and infrastructure are set up to allow the operations to run

smoothly. The review committee ought to be involved in scenarios where the appointed

authorities are undecided on the most suitable candidates for the position. The table shows

circumstances and accesses whether or not the committee could be required.

Scenarios Requires review committee

More than one submission is approved Yes

Only one tender submission is approved No

Claims of irregularities arise Yes

The contract notice fails to be displayed to the

public

Yes

The selected candidate has higher prices than

the budgeted ones

Yes

Contract award

Only the tender submissions that meet the necessary criteria of the project should be

awarded the opportunity to work with this city. Using digital means in procuring experts to fill

the positions set in the project will ensure the local authorities follow the outlined employment

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rules and avoid discrimination against certain groups of people. The city council will be able to

attract a large pool of professionals who are in need of a job. As a result, they will have a larger

group of highly skilled people, and thus they will be in a position to select contractors who are

most suited for the job (Dada.et.al, 2017). The technique will ensure that the skills of the

interested party are put to the test and determined to be fitting perfectly in this arena. Therefore,

the client will be in a position to source the expertise who can realize all the goals and objectives

set aside in the project.

Acquisition planning and procurement strategy

Standard form contract

Designing and outlining the standard contract form is useful in ensuring that the most

suited contractors can be identified at ease since their ideas will line up with the expectations that

a project has. In this case, a standard form of contract will ensure that the local authorities can

determine the role and responsibilities the contracting parties will have in relation to the

practiced construction work. They will point out those parties that have shown promising relation

to achieving what is expected in the development of Riverside Sunderland neighborhoods. The

standard form of contract should include the roles that a contractor will be playing in the project,

the tools they will use in achieving the perfect project which is envisioned, and the time duration

they could possibly take to complete the tasks.

The standard form of contract that will be utilized in this project is the Joint contract

tribunal since it will ensure the project managers can outline all processes within the project with

their respective prices. The contract will include prescriptions and guidance on the processes

concerning the administration of the contract. It will help ensure that the contracting parties

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include all their capabilities in efficiently meeting the project's requirements. The local

authorities will be able to outline all the important aspects that any contract given should have. In

doing these, they will be in a position where they can select the outstanding contract and ensure

that they can follow all the necessary requirements. The most suitable standard form of contract

will showcase all the procedures involving building all the one thousand smart homes. It should

outline the necessary financial budget that is set as well as point towards the fulfillment of the

time deadline. It is critical in development over the most likely scenario of ensuring that the

master plan becomes a reality. The JCT contract will allow the local authority to utilize the

Riverside Sunderland city master plan to ensure that all designs and construction operations are

majorly controlled by the city council.

Sourcing

The client should ensure that the contractors source the construction materials locally in

the effort of reducing costs which could be attributed to getting materials from companies that

are far away. It would guarantee that the shipment and delivery costs are eliminated, and

therefore the overall prices of the goods would be lower. Moreover, using a specific supplier to

provide the materials would ensure that they offer reasonable prices to the city council and also

have felt entitled to deliver the best quality items (Rane.et.al, 2019). In doing this, the costs that

are incurred due to the purchase of faulty products which are of poor quality would be reduced.

Utilization of the expert opinions would allow the stakeholders to avoid incidents where they are

overcharged in purchasing the products leaving the tasks of purchasing materials to given experts

would allow consistency and lower the chances of having inconsistencies within the construction

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process (Delmonico.et.al, 2018). It would be essential to source small sizes of construction

materials and make other orders of purchases as soon as need be to allow the accounting of all

items and avoid misplacement of materials, which could negatively influence cost reduction

efforts.

Management of submissions

Tender opening committee

The authorized personnel should ensure that the people involved in the projects are given

the independence to analyze the tender submissions sent through the electronic-tendering

opportunities. At last, two city council members should be included in the committee to ensure

that the procurement process can be trusted. The committee is expected to keep the information

confidential to safeguard the integrity of the process.

Safeguarding operations of electronic-tendering

It is essential to ensure that the uploaded tenders are scanned for viruses before being

downloaded and utilized in procurement. The city council will be required to check on various

aspects of the contracts submitted in assessing and awarding the most deserving contractors the

tender of carrying our construction of the designed beautiful neighborhoods. Even though the

local authorities have to consider the indicated cost that different contractors have listed to be

given as compensation for their good work in the project,they will have to look at the quality of

services, the capability of aspiring contractors to meet the environmental needs, the innovative

aspect of the parties as well as the accessibility of those talents. The tender submissions will have

listed out all the characteristics that make given contracting parties efficient in handling the said

project. Thus it will be easier to list out those aspects that make them economically advantageous

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to the project. The checklist below can be used for purposes of references when assessing the

submissions.

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Sample Tender Checklist

Source :(https://images.app.goo.gl/tSTmfMyetbk4aA3V8)

Modification or withdrawal of submissions

The tenders which will be received after the deadline of application has ended should not

be considered. The procurement committee should ensure that these tenders are withdrawn from

the list of probable tenders that will be assessed. It should be noted that the submissions which

are modified in any manner by the applicants after submission will not be used. The city council

ought to implement the assessment technique which focuses on settling with the most

economically advantageous tender. The strategy will ensure the contracting party focuses not

only on the price to be incurred after hiring the given individuals but also on the overall aspects

revolving aroundthe whole construction process (Fahimnia.et.al, 2019). For instance, considering

that the project is geared towards lowering carbon footprint, the local authorities can better

identify with contractors whose methods of construction are environmentally friendly. Moreover,

they should check for the submissions that have the most reasonable and realizable goals in

connection with the outcomes of the project.They should print out a contract notice that

elaborates the most economically advantageous tender to hint at the principles required in

making their submissions and making it clear on the factors that will determine how suitable a

tenderer is in meeting the essential plans within the project.

Evaluation of submissions

Evaluation criteria

There are two steps that should be conducted in the evaluation of the submission and

determine their suitability to the contract. The local authorities of Sunderland city should conduct

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an evaluation of the technical capability of the interested party by using the individual weighted

method to evaluate the technical advantage that the individuals have over other parties. Their

past jobs can be used as a reference to determining how capable they can be of handling this

huge contract. It is also crucial to determine the pricing strategy which is listed out.

Evaluation methodologies

The selected evaluation committee should check on the pricing of the tenderers to

compare those that have the lowest and most reasonable prices. The tenders are to be positions

based on the overall score in order to select the one with the highest score. The tender that

appears to have high scores in maintaining relatively low cost and high-efficiency skills will

have the capability to reach the outcomes the council wants and has developed. Proposals with

low prices and sufficient technical skills required in the project should be considered fit (Ghosh,

2019). Also, the committee of evaluation of the tenders should look for the submissions that

include the best combination scores in regard to skills and alignment with the objectives of the

project. The table below is a sample of reports of evaluation of contract award.

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Financial evaluation

In the construction industry, pricing refers to the action of settling at a certain amount to

represent the compensation needed for specific given services. Realizing a project as big as the

Riverside Sunderland masterplan, making cost considerations is essential in avoiding delays

during construction or having money-related issues which could hinder the realization of the

goals. A reasonable and achievable pricing mechanism has to be utilized to ensure that financial

resources are allocated in all the operations that need funding. The first step would be to come up

with a conclusive report of all the available financial resources which are to be directed into the

project. The stakeholders should now make necessary decisions in regard to the amount of

money to be spent in each house and the payment the contractor should receive within the

created time frame.

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Source:( https://images.app.goo.gl/KZUBioQcmmXBVnFL7)

Negotiations

Necessary negotiations with the hired contractors are to be made to ensure that the city

council comes to an agreement on the amount of money the skills and expertise they bring to the

table are worth. All the operations within the project should be carried out within the £ 160

million budget. It, therefore, implies that all the financial operations have to be conducted with

precisions and accounted for throughout the project to help maximize their utilization (Yang &

Yu, 2019). The local authorities should ensure that they create a plan for affordable prices.

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Reviews by committee on contracts

In the construction contracts, such as in this project, the price that the suppliers who want

to be involved will offer is the tender, while the prices that are agreed upon are the contract

sums. In most cases, the prices in such projects will have room for negotiat ion and adjustments.

Therefore, the city council has to set up a certain price range which will be used to come up with

the most favorable prices. The prices would be expected to vary when the selected architect may

necessitate the established designs, quantities of materials, their respective quality, or the

necessary working condition to be changed in any given manner. Moreover, the project pricing

mechanisms should include the uncertainty of natural occurrences or other events such as the

failure of the supplier to deliver the needed items. Events leading to loss of materials will add

more incurred costs to the project, and thus they should be accounted for when developing a

pricing strategy. There is a need to ensure that some sum of money is included as an allowance

for price changes or inflation that might occur in the future during the progress of the project.

Costs resulting from statutory fees ought to be included to ensure that they can be allocated a

given sum to avoid interference with the payments to other stakeholders in the project.

Contract finalization and issuance

Contract finalization discussion

The city council has made a good decision of pairing with partners who have greater

experience in the housing market, and thus, the stakeholders can be used in making designs of

the houses and, as a result, lower the cost. Sourcing professional skills in making design models

could be an expensive experience. However, allowing the stakeholders and the client to be

directly involved in the development of houses that have certain designs could be useful in

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lowering the costs. The Sunderland city council can ensure that the models with the same

number of rooms follow one given design, and those that are anticipated to be mansionettes have

another design. In this case, therefore, only a limited number of designs would be needed, which

would be assimilated into the other homes (de Sousa Jabbour.et.al, 2017). This would encourage

uniformity in the neighborhood and also encourage better use of the natural and environmental

assets.

Contract issuance

After the committee finalizes the contract has made all the necessary discussions, it will

be an opportunity to decide the fit procedures of issuing the contract. All the working terms

should be listed out, and the arrangement for reaching out to the suppliers who have won the bid

should be on the way. The submissions with the most appropriate and well-aligned goals will be

analyzed, and the fitting contractor will be allowed to work with the city council.

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Conclusion

The master plan that the city council of Sunderland has created is useful in offering

sustainable housing options to its locals. It will allow the city to utilize its natural and land assets

to allow more growth within the community. Partnering with private investors will help the city

council source financial assistance while allowing those involved to get returns from their

investments. The project will allow the local community to reduce their carbon footprint and be

conscious of the environmental consequences of human activities. It is a brilliant idea of the local

authorities to create job opportunities for its local members who will help immensely in being

productive to societal development while being able to gain finances from these actions. The

success of a procurement process depends on the effectiveness of the committee members and

the stakeholders involved in the acquisition of the needed talents. It is crucial to ensure that the

process is reviewed and that any errors are corrected before the finalization of the discussions.

The local authorities will be able to benefit from the outlined procurement methods as well as the

devised mechanisms for pricing.

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Recommendations

It is always useful to select the tender submissions whose goals can be related to the

financial resources and the needed kind of expertise. The selection of efficient suppliers in

providing necessary materials always helps speed up the operations of the project.It is always

essential in any project to ensure that the entrusted contractors share the client's goals. Finding a

contractor who will not only have the needed skill sets but also require low compensation will

ensure that the client is able to save financial resources, which can be directed in the project to

make an outstanding difference in speeding up the operations (Villena, 2019). The project's

success will allow the future authorities to have even bigger goals that could potentially see the

whole city embrace cohesion and growth in its economy.

All the procurement procedures should be followed to the letter if the stakeholders wish

to have better chances of acquiring the talents and services they are in need of. Public projects

must follow the necessary procurement processes to prevent irregularities such as discrimination

and corruption. In doing so, the public members can have equal chances of acquiring the desired

positions within their skill set. It is the duty of the evaluation committee to help the city council

to choose the best contractors who will help ensure the operations of the projects are reached.

Financial resources should be evaluated to determine the extent to which the services which are

to be sourced should be priced.

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References

Ahmad, T., Aljafari, R., & Venkatesh, V. (2019). The government of Jamaica’s electronic

procurement system: experiences and lessons learned. Internet Research.

Ban, G. Y., Gallien, J., & Mersereau, A. J. (2019). Dynamic procurement of new products with

covariate information: The residual tree method. Manufacturing & Service Operations

Management, 21(4), 798-815.

Dada, M., Petruzzi, N. C., & Schwarz, L. B. (2017). A newsvendor’s procurement problem when

suppliers are unreliable. Manufacturing & Service Operations Management, 9(1), 9-32.

Delmonico, D., Jabbour, C. J. C., Pereira, S. C. F., de Sousa Jabbour, A. B. L., Renwick, D. W.

S., & Thomé, A. M. T. (2018). Unveiling barriers to sustainable public procurement in

emerging economies: Evidence from a leading sustainable supply chain initiative in Latin

America. Resources, Conservation and Recycling, 134, 70-79.

de Sousa Jabbour, A. B. L., Luiz, J. V. R., Luiz, O. R., Jabbour, C. J. C., Ndubisi, N. O., de

Oliveira, J. H. C., & Junior, F. H. (2017). Circular economy business models and

operations management. Journal of cleaner production, 235, 1525-1539.

Fahimnia, B., Pournader, M., Siemsen, E., Bendoly, E., & Wang, C. (2019). Behavioral

operations and supply chain management–a review and literature mapping. Decision

Sciences, 50(6), 1127-1183.

Ghosh, M. (2019). Determinants of green procurement implementation and its impact on firm

performance. Journal of Manufacturing Technology Management.

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Rane, S. B., Narvel, Y. A. M., & Bhandarkar, B. M. (2019). Developing strategies to improve

agility in the project procurement management (PPM) process: Perspective of business

intelligence (BI). Business Process Management Journal.

Villena, V. H. (2019). The missing link? The strategic role of procurement in building

sustainable supply networks. Production and Operations Management, 28(5), 1149-1172.

Yang, J., & Yu, K. (2019). The role of an integrated logistics and procurement service offered by

a 3PL firm in the supply chain. Journal of Management Analytics, 6(1), 49-66.

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Glossary

The section includes summary of the relevant terms which are applied in this procurement

manual.

Award It is the authorization that one gets after the

review committee recommends it.

Bid A response to a solicitation from a supplier

Contract An agreement which is sealed legally between

a supplier and an organization establishing the

terms and conditions of employment.

Contractor Any party to a procurement contract with a

firm

E-tendering Electronic procurement which occurs once the

activities of acquiring a procurement are done

using digital technologies.

Procurement The acquisition by lease or purchase of items,

property, services or works

Proposal An offer in response to a request for proposal

Review committee City council staff members who are required

to regulate the operations of procurement

acquisition.

Sourcing Identification process involving acquiring

suitable suppliers

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Appendix A: Procurement plan sample format

Source:( https://images.app.goo.gl/WK94aSA61rPyoQ6R9)

Appendix B: Contract register sample report

Source: (https://images.app.goo.gl/9XeroiYBcaG5hzXn6)

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Appendix C: Evaluation of contract award sample report

Source:( https://images.app.goo.gl/KZUBioQcmmXBVnFL7)

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Appendix D: Service Demand & Delivery

Source; (https://images.app.goo.gl/1MJS6yL8XeQNshDCA)