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Chicken Soup for the Purchasers’ Soul The greatest power we have as purchasers is the power of competition.

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Presentation on theme: "Chicken Soup for the Purchasers’ Soul The greatest power we have as purchasers is the power of competition."— Presentation transcript:

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2 Chicken Soup for the Purchasers’ Soul

3 The greatest power we have as purchasers is the power of competition.

4 The inability to obtain competition. What are some causes?

5 * One source. >Multiple distributors >Distributor arrangements

6 Is it fair to other manufacturers of similar products? Is it in the best interest of the State? Is there a secondary compelling reason?

7 *of equipment *of accessories *of replacement parts *of service, professional service… is the paramount (most important) consideration.

8 *for trial *for testing *for resale *from a public utility

9 “…[when an] award to a specific supplier…is a condition of a donation that will fund the full cost of the [item]…” Utah Code 63G-6-410

10 The purpose of the sole source request is to justify not using competition – the greatest power we have.

11 If you were an auditor reading the sole source request five years in the future, and if you (the auditor) could ask no questions of the original parties involved, would you be able to look at the facts presented and be satisfied that the tax dollars were appropriately spent even though competition was not obtained?

12 *the preferred source, *the most convenient source, *the favorite source,… It is the Only Source.

13 The purchasing officer is the sole judge and may specify the application and the duration. In cases of reasonable doubt, competition should be solicited. If over $50,000, it must be posted for at least 5 working days.

14 Negotiate Everything >price >delivery >payment terms

15 *Read carefully. *Respond fully. *Give all the facts. *Leave out the fluff often found in sales brochures.

16 *Not using the most current revision of the form. *All requests related to IT go to DTS first. *The agency contract term and renewal options omitted. *A quote from the supplier is not included. *[The results of any negotiation not mentioned, nor the acceptance of Ts & Cs by the supplier.] *The RQS number for purchase orders is omitted. *The description is not descriptive enough to assign to the purchasing agent handling that commodity. *Total cost to include all renewal periods for an agency contract. If the amount is exceeded during the contract, a new sole source request is required.

17 *Explain in detail all the facts. > Is it defensible if challenged? > If a protest is successful, a bid must be done. > If there is any question bid it out. *Check all that apply and fill in the required information.

18 The devil is in the detail and… diety is in the difference. ===***===

19 When does an emergency justify a sole source purchase?

20 When is an emergency an emergency?

21 “An emergency is a situation that poses an immediate risk to life, health, property or the environment. ”lifehealth propertyenvironment

22 If there is not an immediate risk, there is time to obtain more than one quote.

23 “…emergency procurements shall be made with as much competition as practicable under the circumstances.” “A written determination of the basis for the emergency and for the selection of the particular contractor shall be included in the contract file.” Utah Code 63G-6-411

24 When writing the “determination” use the same acid test as for writing a sole source justification.

25 *Confer with the state purchasing agent as soon as possible. *Create an RQS and provide the number to the purchasing agent, and… * all documentation. ===***===

26 Use the “Telephone Quotations Sheet” for *emergency purchases *purchases under $5,000

27 *”The Agencies are authorized…. Provided that:” *”Instructions to the Agency:” ===***===

28 Enough Chicken Soup…Now My Soul Wants Chocolate!


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