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Procurement 201 Purchasing Goods and Trade Services Developed by ODOT Procurement Office.

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1 Procurement 201 Purchasing Goods and Trade Services Developed by ODOT Procurement Office

2 2 Housekeeping Safety InformationSafety Information FacilitiesFacilities BreaksBreaks AccommodationAccommodation Handout packetHandout packet

3 Please… Mute your Cell Phones

4 4 Training Objectives After completion of this training, participants will be able to: Identify the roles and responsibilities for local procurement of Goods and Trade Services up to $100,000Identify the roles and responsibilities for local procurement of Goods and Trade Services up to $100,000 Describe the Small Procurement processDescribe the Small Procurement process Practice procuring Goods and Trade Services using the 3 Quote processPractice procuring Goods and Trade Services using the 3 Quote process Apply Contract Administration practices to both simple and complex purchases of Goods and Trade ServicesApply Contract Administration practices to both simple and complex purchases of Goods and Trade Services Use the Oregon Procurement Information Network (ORPIN) to find existing Price AgreementsUse the Oregon Procurement Information Network (ORPIN) to find existing Price Agreements

5 5 Agenda Contracting BasicsContracting Basics Soliciting in the Open MarketSoliciting in the Open Market Small ProcurementSmall Procurement Intermediate ProcurementIntermediate Procurement Purchase OrdersPurchase Orders Procurements over $100,000Procurements over $100,000 Contract AdministrationContract Administration ResourcesResources

6 6 Introductions Your nameYour name Where you workWhere you work What you purchaseWhat you purchase

7 Contracting Basics Section 1 Procurement 201 Purchasing Goods and Trade Services

8 8 PotentialProcurement Open Market Conducting purchase through an open solicitation process First Steps to Procurement Define the Need Define the Need The Decision To Purchase The Decision To Purchase Purchasing Authority Purchasing Authority The Buy Decision The Buy Decision

9 9 Define the Need PotentialProcurement Open Market Conducting purchase through an open solicitation process First Steps to Procurement The Decision To Purchase Purchasing Authority The Buy Decision

10 10 The Decision To Purchase Define the Need Define the Need PotentialProcurement Open Market Conducting purchase through an open solicitation process First Steps to Procurement Purchasing Authority The Buy Decision

11 11 The Buy Decision Purchasing Authority The Decision To Purchase The Decision To Purchase Define the Need Define the Need PotentialProcurement Open Market Conducting purchase through an open solicitation process First Steps to Procurement

12 12 Purchasing Authority Purchasing Authority The Buy Decision The Decision To Purchase The Decision To Purchase Define the Need Define the Need PotentialProcurement Open Market Conducting purchase through an open solicitation process First Steps to Procurement

13 13 Define the Need Define the Need Defining a business need in terms of goods and/or services to meet the need The Decision To Purchase The Decision To Purchase Determining if the potential purchase fits the mission, goals and budgetary constraints Buying via socio-economic programs and agreements before using open market The Buy Decision The Buy Decision PotentialProcurement Open Market Conducting purchase through an open solicitation process Purchasing Authority Purchasing Authority Finalizing the authority to commit funds and conduct a procurement First Steps to Procurement

14 14 Getting Started Define the needDefine the need Assess options; does it require purchasing something or hiring a contractor to do work?Assess options; does it require purchasing something or hiring a contractor to do work? Estimate the total cost of purchaseEstimate the total cost of purchase Confirm funds are authorized for the purchaseConfirm funds are authorized for the purchase Determine who has authority to conduct the purchasing processDetermine who has authority to conduct the purchasing process Define clear and specific requirementsDefine clear and specific requirements If you dont ask for it, you wont get it!If you dont ask for it, you wont get it!

15 15 Estimated total cost is based on the total cost of contract if amended to its maximum limitEstimated total cost is based on the total cost of contract if amended to its maximum limit Estimated cost for initial contract Plus estimated cost for annual renewals or additional projected work Equals estimated total cost Estimated Total Cost

16 16 Requirements for Goods Defining product specificationsDefining product specifications Product features and characteristicsProduct features and characteristics Brand name requirement (more on next slide)Brand name requirement (more on next slide) Resources for product specifications and standardsResources for product specifications and standards ODOT Qualified Products List (QPL)ODOT Qualified Products List (QPL) Established ODOT standardsEstablished ODOT standards Product catalogs and brochuresProduct catalogs and brochures Internet researchInternet research

17 17 Brand Name Specifications Requires written determination that it meets at least one of the following:Requires written determination that it meets at least one of the following: unlikely to encourage favoritism or substantially diminish competition;unlikely to encourage favoritism or substantially diminish competition; would result in substantial cost savings;would result in substantial cost savings; only one manufacturer or seller for the quality, performance or functionality required; oronly one manufacturer or seller for the quality, performance or functionality required; or requires purchase of goods or services compatible with existing goods.requires purchase of goods or services compatible with existing goods. Keep written determination in fileKeep written determination in file

18 18 Brand Name or Equal Can specify brand name or equal to establish standard of quality, performance, functionality and other characteristics requiredCan specify brand name or equal to establish standard of quality, performance, functionality and other characteristics required Does not require written determinationDoes not require written determination Does not have to meet required criteriaDoes not have to meet required criteria Must accept bids for products that meet mandatory specifications, regardless of brand nameMust accept bids for products that meet mandatory specifications, regardless of brand name

19 19 Requirements for Goods Examples of other requirementsExamples of other requirements Warranty requirementsWarranty requirements Maintenance and support requirementsMaintenance and support requirements Delivery requirementsDelivery requirements FOB Destination vs. FOB OriginFOB Destination vs. FOB Origin Delivery locations and timelinesDelivery locations and timelines Include cost of shipping and handling in bid priceInclude cost of shipping and handling in bid price Insurance requirements (more on next slide)Insurance requirements (more on next slide)

20 20 Insurance for Goods If vendor delivers goods, require: Workers Compensation for vendors with more than 1 employeeWorkers Compensation for vendors with more than 1 employee Automobile Liability covers bodily injury or property damage associated with vendors automobileAutomobile Liability covers bodily injury or property damage associated with vendors automobileRecommended: Commercial General Liability covers bodily injury and property damage caused by vendor or product purchased from vendorCommercial General Liability covers bodily injury and property damage caused by vendor or product purchased from vendor

21 21 Insurance for Goods If purchasing a vehicle, also consider: Garagekeepers Legal Liability covers damage to vehicle occurring at vendors facility when left for service, repair, storage or safekeepingGaragekeepers Legal Liability covers damage to vehicle occurring at vendors facility when left for service, repair, storage or safekeeping

22 22 Requirements for Goods Specify each requirement as Mandatory or DesirableSpecify each requirement as Mandatory or Desirable MandatoryMandatory Must reject bid if any mandatory not metMust reject bid if any mandatory not met Cost is included in bid total for low bid determinationCost is included in bid total for low bid determination DesirableDesirable Not required, but adds valueNot required, but adds value Cost generally not included in bid total for low bid determinationCost generally not included in bid total for low bid determination If not included in bid total, cost can be negotiatedIf not included in bid total, cost can be negotiated

23 23 Requirements for Goods Invite vendors to offer additional features or accessoriesInvite vendors to offer additional features or accessories Price of these not included in bid total for low bid determinationPrice of these not included in bid total for low bid determination Cost of these can be negotiatedCost of these can be negotiated

24 24 Sustainability - Buying Green City of Portland www.portlandonline.com/buygreen www.portlandonline.com/buygreenwww.portlandonline.com/buygreen Energy Efficient Energy Star logo / website at www.energystar.govEnergy Star logo / website at www.energystar.govwww.energystar.gov Recycled Content Post-consumer content is bestPost-consumer content is best EPA website: www.epa.gov/cpg/EPA website: www.epa.gov/cpg/www.epa.gov/cpg/ Non-Toxic Be wary of products labeled non-toxic without reference to certification or other details.Be wary of products labeled non-toxic without reference to certification or other details. Minimal & Recyclable Packaging Buy Local, Buy MWESB

25 25 Requirements for Services Options for defining requirements for ServicesOptions for defining requirements for Services Describe the situation and ODOTs requirements for the final outcome - contractor determines how to get it doneDescribe the situation and ODOTs requirements for the final outcome - contractor determines how to get it done Use a Statement of Work that includes:Use a Statement of Work that includes: Tasks - description of work to be doneTasks - description of work to be done Deliverables - tangible, measurable outcomes of the workDeliverables - tangible, measurable outcomes of the work Schedule – date each Deliverable must be completedSchedule – date each Deliverable must be completed

26 26 Requirements for Services Examples of other requirementsExamples of other requirements Safety standardsSafety standards Certifications or licensesCertifications or licenses Specifications for materials to be usedSpecifications for materials to be used Insurance coverage (more on next slide)Insurance coverage (more on next slide)

27 27 Insurance for Services Always require: Commercial General Liability covers bodily injury and property damage caused by vendor or product purchased from vendorCommercial General Liability covers bodily injury and property damage caused by vendor or product purchased from vendor Workers Compensation for vendors with more than 1 employeeWorkers Compensation for vendors with more than 1 employee If services require operation of vehicle, require: Automobile Liability covers bodily injury or property damage associated with vendors automobileAutomobile Liability covers bodily injury or property damage associated with vendors automobile

28 28 Insurance for Services If service for ODOT vehicle, consider: Garagekeepers Legal Liability covers damage to vehicle occurring at vendors facility when left for service, repair, storage or safekeepingGaragekeepers Legal Liability covers damage to vehicle occurring at vendors facility when left for service, repair, storage or safekeeping If theres risk of pollution, consider: Pollution Liability covers bodily injury, property damage and environmental damage caused by vendor in a sudden accidental occurrence (can include gradual accidental occurrence)Pollution Liability covers bodily injury, property damage and environmental damage caused by vendor in a sudden accidental occurrence (can include gradual accidental occurrence)

29 29 The Buy Decision Consider Buy Decision sources in priority order: 1.Surplus Property 2.Qualified Rehabilitation Facilities 3.Inmate Labor 4.DAS Statewide Price Agreement NOTE: ORS 190 Agreements such as Intergovernmental & Tribal Agreements may be used at any time in the process Open Market If Buy Decision sources do not meet your needs, the purchase may be made in the open market

30 30 The Buy Decision Required to purchase from a Buy Decision source, if it meets ODOTs needs.Required to purchase from a Buy Decision source, if it meets ODOTs needs. Often quicker process than Open Market solicitationsOften quicker process than Open Market solicitations No limit to quantities or cost of purchaseNo limit to quantities or cost of purchase

31 31 How to Find Buy Decision Sources Surplus ODOT Surplus or websiteODOT Surplus or website DAS websiteDAS website Qualified Rehabilitation Facility (QRF) DAS website includes lists of QRF providers for Goods or ServicesDAS website includes lists of QRF providers for Goods or Services Inmate Labor Websites for Oregon Corrections Enterprises or Oregon Dept of Corrections Inmate Work ActivitiesWebsites for Oregon Corrections Enterprises or Oregon Dept of Corrections Inmate Work Activities Handout

32 32 How to Find Buy Decision Sources DAS Price Agreements OPO website for list of Price AgreementsOPO website for list of Price Agreements Call Debbie Janke at (503) 986-2799Call Debbie Janke at (503) 986-2799 Oregon Procurement Information Network (ORPIN)Oregon Procurement Information Network (ORPIN) Call DAS Hotline at (503) 378-4642, Option 2Call DAS Hotline at (503) 378-4642, Option 2 Handout

33 33 Getting Access to ORPIN To obtain state employee access to ORPIN Email Debbie Janke, subject line "ORPIN Access"Email Debbie Janke, subject line "ORPIN Access" Include your preferred user nameInclude your preferred user name 6 characters or more6 characters or more alpha or numeric characters onlyalpha or numeric characters only case-sensitivecase-sensitive For assistance with ORPIN Contact Debbie Janke at (503) 986-2799 or by emailContact Debbie Janke at (503) 986-2799 or by email

34 34 ORPIN Training DAS provides hands-on classes: ORPIN Full System TrainingORPIN Full System Training ORPIN: Just the BasicsORPIN: Just the Basics iLearnOregon at https://iLearn.oregon.goviLearnOregon at https://iLearn.oregon.govhttps://iLearn.oregon.gov Check class dates and timesCheck class dates and times Register for trainingRegister for training

35 35 DAS Price Agreements Intended to provide cost effective pricing for common goods and servicesIntended to provide cost effective pricing for common goods and services Prices in the Price Agreement are the maximum limitsPrices in the Price Agreement are the maximum limits ODOT can request lower pricesODOT can request lower prices Designated as either Mandatory or ConvenienceDesignated as either Mandatory or Convenience Mandatory – Must use, with some exceptionsMandatory – Must use, with some exceptions Convenience – May useConvenience – May use

36 36 ODOT Price Agreements ODOT also has Price AgreementsODOT also has Price Agreements AsphaltAsphalt Emulsions and Recycling AgentsEmulsions and Recycling Agents Deicer, Magnesium ChlorideDeicer, Magnesium Chloride

37 37 Fleet Equipment Purchases Before contacting vendors, contact Fleet Operations to verify if there is a price agreementBefore contacting vendors, contact Fleet Operations to verify if there is a price agreement Refer to Fleet Equipment Purchase Process handout for more informationRefer to Fleet Equipment Purchase Process handout for more information If you have questions or need assistance, contact Stacie Olano at (503) 986-2755If you have questions or need assistance, contact Stacie Olano at (503) 986-2755 Handout

38 38 Process Map - Bid, Award, Pay

39 Soliciting in the Open Market Section 2 Procurement 201 Purchasing Goods and Trade Services

40 40 Process Map - Bid, Award, Pay

41 41 State of Oregon Procurement Policy ORS 279A.015 A sound and responsive public contracting system should: Instill public confidence through ethical and fair dealing, honesty and good faith on the part of government officialsInstill public confidence through ethical and fair dealing, honesty and good faith on the part of government officials Allow impartial and open competition, protecting both the integrity of the public contracting process and the competitive nature of public procurementAllow impartial and open competition, protecting both the integrity of the public contracting process and the competitive nature of public procurement

42 42 State of Oregon Procurement Policy ORS 279A.015 (continued) A sound and responsive public contracting system should: Promote efficient use of government resources, maximizing the economic investment in public contracting within this state.Promote efficient use of government resources, maximizing the economic investment in public contracting within this state. Clearly identify rules and policies that implement each of the legislatively mandated socioeconomic programs that overlay public contracting and accompany the expenditure of public funds.Clearly identify rules and policies that implement each of the legislatively mandated socioeconomic programs that overlay public contracting and accompany the expenditure of public funds.

43 43 Ethical Considerations Public employees are held to high standards of conduct Government Ethics (ORS 244) Staff declare potential or actual conflicts of interest; Agency reassigns to staff with no conflict of interestStaff declare potential or actual conflicts of interest; Agency reassigns to staff with no conflict of interest No unfair gain from public employmentNo unfair gain from public employment

44 44 Ethical Considerations Maintain public trust Promote impartial and open competitionPromote impartial and open competition Maintain a fair and level playing fieldMaintain a fair and level playing field Be good stewards of taxpayers moneyBe good stewards of taxpayers money Protect best interests of the StateProtect best interests of the State

45 45 Exceptions TGM Projects Personal Services Public Improvements Personal Services Public Improvements IT Purchases Up to $5,000 Above $150,000 $5,000. 01 to $100,000 Up to $5,000 $100,000. 01 to $150,000 FormalProcurementFormalProcurement IntermediateProcurementIntermediateProcurement SmallProcurementSmallProcurement IntermediateProcurementIntermediateProcurement OPO Procurement OPOProcurement $100,000. 01 to $150,000 ITPAM TGM FormalProcurementFormalProcurement DAS ProcurementDASProcurement Local Procurement LocalProcurement Procurement Authority & Thresholds Above $5 million DAS Authority Above $5 million DAS Authority

46 46 High Complexity–High Risk Purchases Personal ServicesPersonal Services Completed by OPOCompleted by OPO A&E and Related Services under ORS 279C; non-A&E under ORS 279BA&E and Related Services under ORS 279C; non-A&E under ORS 279B Public Improvements (Public Works)Public Improvements (Public Works) Completed by OPOCompleted by OPO Some under ORS 279C; others under ORS 279BSome under ORS 279C; others under ORS 279B BOLI or Davis-Bacon prevailing wage requirementsBOLI or Davis-Bacon prevailing wage requirements Bond requirementsBond requirements ODOT required to pay fee to BOLI for Public Works over $50,000ODOT required to pay fee to BOLI for Public Works over $50,000

47 47 High Complexity–High Risk Purchases IT Related PurchasesIT Related Purchases Completed by ITPAMCompleted by ITPAM Purchases must meet ODOTs standard specificationsPurchases must meet ODOTs standard specifications Purchases require ODOTs Chief Information Officer approvalPurchases require ODOTs Chief Information Officer approval Goods & Trades over $100,000Goods & Trades over $100,000 Completed by OPOCompleted by OPO Solicitation requirements become more complexSolicitation requirements become more complex Large contract amounts generally have more riskLarge contract amounts generally have more risk Aggressive competition for contracts; more protestsAggressive competition for contracts; more protests

48 48 Complexity & Risk Matrix Complexity Risk Complexity and Risk impact communication, process, and contract type verbal vs. written solicitationverbal vs. written solicitation simple informal solicitation vs. more formal solicitationsimple informal solicitation vs. more formal solicitation direct selection vs. competitive processdirect selection vs. competitive process purchase order vs. contractpurchase order vs. contract Low Complexity & Risk High Complexity & Risk IncreasingRisk IncreasingComplexity

49 49 Complexity & Risk Matrix Complexity Risk Determine Complexity based on factors such as: Product sophisticationProduct sophistication Federal and state requirementsFederal and state requirements Services generally considered complexServices generally considered complex Low Complexity & Risk High Complexity & Risk IncreasingRisk IncreasingComplexity

50 50 Complexity & Risk Matrix Complexity Risk Determine Risk based on assessment of: What could go wrong?What could go wrong? Likelihood of occurrence?Likelihood of occurrence? What kind of harm or loss?What kind of harm or loss? How can the risk be managed?How can the risk be managed? Low Complexity & Risk High Complexity & Risk IncreasingRisk IncreasingComplexity

51 51 Evaluating Complexity and Risk Washing outside of T-Bldg windows Complexity Product sophisticationProduct sophistication Types of servicesTypes of services Federal and state requirementsFederal and state requirementsRisk What could go wrong?What could go wrong? Likelihood of occurrence?Likelihood of occurrence? What kind of harm or loss?What kind of harm or loss? How can the risk be managed?How can the risk be managed?

52 52 Evaluating Complexity and Risk Buying or leasing a specialized copier (not on DAS Statewide Price Agreement) Complexity Product sophisticationProduct sophistication Types of servicesTypes of services Federal and state requirementsFederal and state requirementsRisk What could go wrong?What could go wrong? Likelihood of occurrence?Likelihood of occurrence? What kind of harm or loss?What kind of harm or loss? How can the risk be managed?How can the risk be managed?

53 53 Evaluating Complexity and Risk Seats for One Ford F550 Truck (Part number L45879A2) Complexity Product sophisticationProduct sophistication Types of servicesTypes of services Federal & state requirementsFederal & state requirementsRisk What could go wrong?What could go wrong? Likelihood of occurrence?Likelihood of occurrence? What kind of harm or loss?What kind of harm or loss? How can the risk be managed?How can the risk be managed?

54 Small Procurement Section 3 Procurement 201 Purchasing Goods and Trade Services

55 55 Small Procurement ORS 279B.065 Any procurement of goods or services not exceeding $5,000Any procurement of goods or services not exceeding $5,000 A Small Procurement may be awarded in any manner deemed practical or convenient, including by direct selection or awardA Small Procurement may be awarded in any manner deemed practical or convenient, including by direct selection or award

56 56 Small Procurement ORS 279B.065 A contract awarded under this section may be amended to exceed $5,000 only in accordance with rules adopted under ORS 279A.065 (Amendment must not increase contract total to exceed $6,000)A contract awarded under this section may be amended to exceed $5,000 only in accordance with rules adopted under ORS 279A.065 (Amendment must not increase contract total to exceed $6,000) A procurement may not be artificially divided or fragmented so as to constitute a Small Procurement.A procurement may not be artificially divided or fragmented so as to constitute a Small Procurement.

57 57 Complexity & Risk Matrix Complexity Risk Direct Purchase 3 Quote Process PO with attachments Market Research Direct Selection Low Complexity–Low Risk Contact one vendorContact one vendor Make purchaseMake purchase High Complexity–Low Risk Low Complexity–High Risk Market research to find appropriate goods or servicesMarket research to find appropriate goods or services Select in practical or convenient mannerSelect in practical or convenient manner High Complexity–High Risk 3 Quote process3 Quote process PO with attachmentsPO with attachments Market Research Direct Selection

58 58 Process Map - Bid, Award, Pay

59 59 Small Procurement Award in any manner deemed practical or convenientAward in any manner deemed practical or convenient Direct selectionDirect selection Competitive 3 Quote process (optional)Competitive 3 Quote process (optional) Contracting/Purchasing methodContracting/Purchasing method Pay direct from invoicePay direct from invoice SPOTS Visa cardSPOTS Visa card Purchase Order or Standard Contract (optional)Purchase Order or Standard Contract (optional)

60 60 Small Procurement Procurement ResponsibilityProcurement Responsibility Local Purchaser: Initiates and completes purchaseLocal Purchaser: Initiates and completes purchase OPO: Information and support for local purchaserOPO: Information and support for local purchaser DAS: Not involved at this threshold levelDAS: Not involved at this threshold level

61 The Magic Number

62 62 The Magic Number - $5,000 $5,000 or less: Can use SPOTS card to make purchaseCan use SPOTS card to make purchase $ 5,000 or more requires: Notification to Advocate for Minority, Women, Emerging Small Business (MWESB)Notification to Advocate for Minority, Women, Emerging Small Business (MWESB) Purchase order or contractPurchase order or contract Over $5,000 requires: Competitive solicitationCompetitive solicitation Posting on ORPINPosting on ORPIN

63 63 The Magic Number - $5,000 MWESB Notification (ORS 200.035) ODOT must provide timely notice to the Advocate for Minority, Women and Emerging Small Business (MWESB)ODOT must provide timely notice to the Advocate for Minority, Women and Emerging Small Business (MWESB) Required for each solicitation of $5,000 or more and each contract award of $5,000 or moreRequired for each solicitation of $5,000 or more and each contract award of $5,000 or more Three options to meet the requirement:Three options to meet the requirement: Self search database and fax results after awardSelf search database and fax results after award Fax for solicitation and separate fax after awardFax for solicitation and separate fax after award Post solicitation and award on ORPINPost solicitation and award on ORPIN Handout

64 64 The Magic Number - $5,000 Oregon Procurement Information Network (ORPIN) (OAR 125-247-0270) DAS requirement applies to purchases not directly related to transportationDAS requirement applies to purchases not directly related to transportation DAS requires posting a notice on ORPIN for:DAS requires posting a notice on ORPIN for: Each solicitation that exceeds $5,000Each solicitation that exceeds $5,000 Each contract award that exceeds $5,000Each contract award that exceeds $5,000

65 65 The Magic Number - $5,000 The Notice in ORPIN must provide: A general description of Goods and Services to be acquired;A general description of Goods and Services to be acquired; A reasonable and sufficient interval between the first date of the notice and bid closing. For purchases exceeding $100,000, interval must be at least seven calendar days;A reasonable and sufficient interval between the first date of the notice and bid closing. For purchases exceeding $100,000, interval must be at least seven calendar days; The name, title and address of the ODOT staff authorized to receive bids; andThe name, title and address of the ODOT staff authorized to receive bids; and Any other information ODOT deems to be appropriate.Any other information ODOT deems to be appropriate.

66 Intermediate Procurements up to $100,000 Section 4 Procurement 201 Purchasing Goods and Trade Services

67 67 Intermediate Procurement ORS 279B.070 Any procurement of goods or services exceeding $5,000 but not exceeding $150,000Any procurement of goods or services exceeding $5,000 but not exceeding $150,000 Must seek at least three informally solicited competitive price quotes or proposals from prospective contractors and keep a written record of the sources of the quotes or proposals receivedMust seek at least three informally solicited competitive price quotes or proposals from prospective contractors and keep a written record of the sources of the quotes or proposals received If three quotes or proposals not reasonably available, document effortsIf three quotes or proposals not reasonably available, document efforts

68 68 Intermediate Procurement ORS 279B.070 Award to bidder whose quote or proposal best serves the interests of agency taking into account price as well as considerations such as experience, expertise, product functionality, suitability for a particular purpose and contractor responsibilityAward to bidder whose quote or proposal best serves the interests of agency taking into account price as well as considerations such as experience, expertise, product functionality, suitability for a particular purpose and contractor responsibility A procurement may not be artificially divided or fragmented so as to constitute an Intermediate Procurement.A procurement may not be artificially divided or fragmented so as to constitute an Intermediate Procurement.

69 69 Amendment Limitations ORS 279B.070 A contract awarded under this section may be amended to exceed $150,000 only in accordance with rules adopted under ORS 279A.065A contract awarded under this section may be amended to exceed $150,000 only in accordance with rules adopted under ORS 279A.065

70 70 Amendment Limitations Intermediate Procurements – ODOT AuthorityIntermediate Procurements – ODOT Authority Cumulative amount of amendments cannot exceed 25% of original contract amountCumulative amount of amendments cannot exceed 25% of original contract amount

71 71 Amendment Limitations Intermediate Procurements – DAS AuthorityIntermediate Procurements – DAS Authority If contract total will exceed $150,000, must obtain prior approval from DAS for Special ProcurementIf contract total will exceed $150,000, must obtain prior approval from DAS for Special Procurement Anticipated Amendments – No limit to amendments until contract total reaches $150,000Anticipated Amendments – No limit to amendments until contract total reaches $150,000 Unanticipated Amendments – Prior OPO or DAS approval is required to exceed 20% of original contract amountUnanticipated Amendments – Prior OPO or DAS approval is required to exceed 20% of original contract amount

72 72 Intermediate Procurement Procurements over $5,000 up to $150,000Procurements over $5,000 up to $150,000 Competitive process required –Competitive process required – Seek to obtain 3 quotes or proposalsSeek to obtain 3 quotes or proposals Keep written record of quotes or proposals receivedKeep written record of quotes or proposals received Document efforts if 3 are not availableDocument efforts if 3 are not available Award to quote that best serves interests of AgencyAward to quote that best serves interests of Agency Lowest bid or other considerationsLowest bid or other considerations Contracting methodContracting method Purchase OrderPurchase Order ContractContract

73 73 Intermediate Procurement Procurement ResponsibilityProcurement Responsibility Local Purchaser:Local Purchaser: Initiate and complete purchase of $100,000 or lessInitiate and complete purchase of $100,000 or less Submit Purchase Requisition to OPO if over $100,000Submit Purchase Requisition to OPO if over $100,000 OPO: Complete procurement if over $100,000OPO: Complete procurement if over $100,000 DAS: Not involved at this threshold levelDAS: Not involved at this threshold level

74 74 Complexity & Risk Matrix Complexity Risk Phone Quotes PO ITBContract Request for Bid PO with attachments Low Complexity – Low Risk Solicit quotes by phoneSolicit quotes by phone Purchase Order (PO)Purchase Order (PO) High Complexity – Low Risk Low Complexity – High Risk Written solicitationWritten solicitation Email/Fax to vendors or post on ORPINEmail/Fax to vendors or post on ORPIN PO with attachmentsPO with attachments High Complexity – High Risk More formal written solicitationMore formal written solicitation Email/Fax to vendors or post on ORPINEmail/Fax to vendors or post on ORPIN ContractContract Request for Bid PO with attachments

75 75 Process Map - Bid, Award, Pay

76 76 Market Research Identify potential vendorsIdentify potential vendors Vendors previously used by ODOTVendors previously used by ODOT Database of certified MWESBDatabase of certified MWESB ODOTs Small Contracting Program databasesODOTs Small Contracting Program databases ODOTs Contractor Emergency Registry System (CERS)ODOTs Contractor Emergency Registry System (CERS) Oregon Procurement Information Network (ORPIN)Oregon Procurement Information Network (ORPIN) Telephone bookTelephone book InternetInternet Handout

77 77 Identifying Potential Vendors Qualified Products List (QPL)Qualified Products List (QPL) List of products that meet ODOT specificationsList of products that meet ODOT specifications Includes contact info for manufacturers and vendors for information about product specificationsIncludes contact info for manufacturers and vendors for information about product specifications Does not limit who you purchase from; do market research to identify potential vendorsDoes not limit who you purchase from; do market research to identify potential vendors

78 78 Identifying Potential Vendors If unable to locate three or more local vendorsIf unable to locate three or more local vendors Conduct market research for vendors outside localeConduct market research for vendors outside locale Check our specifications and requirements; are they unnecessarily restrictive?Check our specifications and requirements; are they unnecessarily restrictive?

79 79 Prepare Solicitation Prepare solicitation documentation so each vendor is given the same informationPrepare solicitation documentation so each vendor is given the same information Script for phone quotesScript for phone quotes Request for Bids formRequest for Bids form Intermediate Invitation to Bid formIntermediate Invitation to Bid form Additional attachments, such as:Additional attachments, such as: Product SpecificationsProduct Specifications Statement of WorkStatement of Work Special Terms and ConditionsSpecial Terms and Conditions Insurance RequirementsInsurance Requirements

80 80 Notice of Solicitation Timely notification to MWESB Advocate of solicitationTimely notification to MWESB Advocate of solicitation Complete self-search of MWESB database and include certified businesses in pool of vendors to be contactedComplete self-search of MWESB database and include certified businesses in pool of vendors to be contacted Fax notification form of solicitationFax notification form of solicitation Post solicitation on ORPIN (Required when under DAS Authority)Post solicitation on ORPIN (Required when under DAS Authority) Keep documentation

81 81 Contact Vendors Contact vendors to obtain minimum of 3 quotesContact vendors to obtain minimum of 3 quotes Communicate to vendors by phone or written solicitationCommunicate to vendors by phone or written solicitation If unable to obtain 3 quotes, document efforts made to complyIf unable to obtain 3 quotes, document efforts made to comply Document bid information receivedDocument bid information received Phone - Document on Purchase Phone Quote formPhone - Document on Purchase Phone Quote form Email or Faxed - Keep bid forms received from vendorsEmail or Faxed - Keep bid forms received from vendors Keep documentation

82 82 Evaluation and Selection Evaluate and select vendor on basis specified in solicitation:Evaluate and select vendor on basis specified in solicitation: Lowest bidLowest bid Must meet all mandatory specificationsMust meet all mandatory specifications Use total price of required products or services as bid to determine low bid; do not include price of desirable featuresUse total price of required products or services as bid to determine low bid; do not include price of desirable features

83 83 Evaluation and Selection Evaluate and select vendor on basis specified in solicitation:Evaluate and select vendor on basis specified in solicitation: Best serves ODOT interestsBest serves ODOT interests Must meet all mandatory specificationsMust meet all mandatory specifications Desirable features considered in selectionDesirable features considered in selection Price or cost is one of the evaluation criteriaPrice or cost is one of the evaluation criteria Document the basis for selection and how it best serves ODOTs interestDocument the basis for selection and how it best serves ODOTs interest

84 84 Evaluation and Selection Bidder must be responsive and responsibleBidder must be responsive and responsible Responsive – Complied with all requirements of solicitationResponsive – Complied with all requirements of solicitation Responsible –As defined in ORS 279B.110 or ORS 279C.375Responsible –As defined in ORS 279B.110 or ORS 279C.375 If ODOT determines the apparent winning bidder is not responsive or not responsible, document the basis for that determinationIf ODOT determines the apparent winning bidder is not responsive or not responsible, document the basis for that determination Handout

85 85 Award Contract Notify selected bidder and send contractNotify selected bidder and send contract PO with standard terms and conditions and other attachmentsPO with standard terms and conditions and other attachments Contract, exhibits and attachmentsContract, exhibits and attachments Notification to other biddersNotification to other bidders Can do as a courtesy; its not requiredCan do as a courtesy; its not required Email results with bid tab of bidders and bid pricesEmail results with bid tab of bidders and bid prices Keep documentation

86 86 Notice of Award Timely notification to MWESB Advocate of contract awardTimely notification to MWESB Advocate of contract award Fax notification of self search and award; orFax notification of self search and award; or Fax notification form for award; orFax notification form for award; or Post award on ORPIN (required when under DAS authority)Post award on ORPIN (required when under DAS authority) Keep documentation

87 87 Phone Solicitation Best limited to simple, one-time purchase of goodsBest limited to simple, one-time purchase of goods Market ResearchMarket Research Search MWESB databaseSearch MWESB database Identify vendors to obtain minimum of 3 quotesIdentify vendors to obtain minimum of 3 quotes Prepare SolicitationPrepare Solicitation Fill out top section of Purchase Phone Quote formFill out top section of Purchase Phone Quote form Prepare a script of what to tell vendorsPrepare a script of what to tell vendors Handout

88 88 Phone Solicitation Contact VendorsContact Vendors Call vendors; describe product or services neededCall vendors; describe product or services needed Confirm vendors can meet required specificationsConfirm vendors can meet required specifications Obtain price quotesObtain price quotes Document vendor contacts and quotes on Purchase Phone Quote formDocument vendor contacts and quotes on Purchase Phone Quote form

89 89 Phone Solicitation Evaluate Bids and Select VendorEvaluate Bids and Select Vendor Compare quotes obtained from vendorsCompare quotes obtained from vendors Reject quotes that are not responsiveReject quotes that are not responsive Award is typically based on lowest bidAward is typically based on lowest bid If selecting other than lowest bid, document how award best meets ODOTs interestIf selecting other than lowest bid, document how award best meets ODOTs interest

90 90 Phone Solicitation Award ContractAward Contract Send PO with terms and conditions to selected vendorSend PO with terms and conditions to selected vendor Send MWESB notification of self-search and awardSend MWESB notification of self-search and award If under DAS Authority, post Purchase Phone Quote on ORPINIf under DAS Authority, post Purchase Phone Quote on ORPIN Make PurchaseMake Purchase

91 91 Solicitation Exercise Lets buy attenuators! Exercise

92 92 Lets buy attenuators! Activity Disclaimer This activity is very loosely based on actual ODOT purchases.This activity is very loosely based on actual ODOT purchases. The scenario, technical specifications, and bid information do not reflect actual work zone safety requirements, approved product or delivery specifications, or actual product costs.The scenario, technical specifications, and bid information do not reflect actual work zone safety requirements, approved product or delivery specifications, or actual product costs. The information compiled for this activity was imaginatively compiled and embellished on by OPO trainers solely for procurement training purposes.The information compiled for this activity was imaginatively compiled and embellished on by OPO trainers solely for procurement training purposes.

93 93 Lets buy attenuators! 3-Quote Checklist Define NeedDefine Need Expenditure & Procurement Authority in place?Expenditure & Procurement Authority in place? Available through Buy Decision sources?Available through Buy Decision sources? Is purchase IT, PSK, PW/PI, or GTS over $100,000?Is purchase IT, PSK, PW/PI, or GTS over $100,000? Assess complexity and riskAssess complexity and risk Complete self-search for MWESBComplete self-search for MWESB Identify vendors to contact for minimum of 3 bidsIdentify vendors to contact for minimum of 3 bids Complete solicitation documentComplete solicitation document Evaluate bids and make selectionEvaluate bids and make selection Complete MWESB notification formComplete MWESB notification form

94 94 Written Solicitation Not required; recommended for most purchasesNot required; recommended for most purchases Market ResearchMarket Research Prepare SolicitationPrepare Solicitation Request for Bid or Intermediate ITB formRequest for Bid or Intermediate ITB form Specify how bids must be submitted and deadlineSpecify how bids must be submitted and deadline Describe selection criteria to be used for awardDescribe selection criteria to be used for award Include written specifications or statement of workInclude written specifications or statement of work Include sample of contract terms and conditions, and other attachments when applicableInclude sample of contract terms and conditions, and other attachments when applicable

95 95 Request for Bid New for written 3-Quote solicitationNew for written 3-Quote solicitation Limited to simple, one-time purchase of goodsLimited to simple, one-time purchase of goods Generally used with a Purchase OrderGenerally used with a Purchase Order Low to medium complexity or riskLow to medium complexity or risk Not recommended for servicesNot recommended for services Purchase Order lacks important provisionsPurchase Order lacks important provisions Handout

96 96 Intermediate Invitation to Bid Two versions available online: Intermediate ITB for GoodsIntermediate ITB for Goods Includes a comprehensive contractIncludes a comprehensive contract For high complexity or high risk purchases of goodsFor high complexity or high risk purchases of goods Intermediate ITB for ServicesIntermediate ITB for Services Includes a comprehensive contractIncludes a comprehensive contract Recommended for procuring all trade servicesRecommended for procuring all trade services Handout

97 97 Written Solicitation Contact VendorsContact Vendors Send solicitation documents by email or faxSend solicitation documents by email or fax When DAS authority, post solicitation on ORPINWhen DAS authority, post solicitation on ORPIN Receive completed bid formsReceive completed bid forms Evaluate Bids and Select VendorEvaluate Bids and Select Vendor Evaluate bids based on requirements specified in the solicitationEvaluate bids based on requirements specified in the solicitation Select based on criteria specified in the solicitationSelect based on criteria specified in the solicitation

98 98 Written Solicitation Award ContractAward Contract Notify selected bidder; send PO or contractNotify selected bidder; send PO or contract Courtesy notice with bid tab to other bidders (optional)Courtesy notice with bid tab to other bidders (optional) Send MWESB notification of award or post notice on ORPIN, if under DAS AuthoritySend MWESB notification of award or post notice on ORPIN, if under DAS Authority Make PurchaseMake Purchase

99 Purchase Orders Section 5 Procurement 201 Purchasing Goods and Trade Services

100 100 Purchase Order Responsibilities Financial Administration and Standards Manual Chapter 15.1 Issuing Purchase Orders POs are sensitive inventoryPOs are sensitive inventory Keep in a secure locationKeep in a secure location Record issuance of each PO in log provided with pad of POsRecord issuance of each PO in log provided with pad of POs Upon issuance of all POs in pad, forward log to Financial Services for reconciliationUpon issuance of all POs in pad, forward log to Financial Services for reconciliation Handout

101 101 Purchase Order Forms Order Purchase Orders from ODOT Storeroom (Form 734-1036)Order Purchase Orders from ODOT Storeroom (Form 734-1036) Electronic Purchase Order available on IntranetElectronic Purchase Order available on Intranet Financial Services payment forms http://intranet.odot.state.or.us/fsb/forms/payment_f orms.htmFinancial Services payment forms http://intranet.odot.state.or.us/fsb/forms/payment_f orms.htm

102 102 Purchase Order Forms When using electronic Purchase Order: Employ unused PO number from PO pad and ensure number is not used for another purchaseEmploy unused PO number from PO pad and ensure number is not used for another purchase Fill out electronic PO onlineFill out electronic PO online Print PO and obtain approval signature on printoutPrint PO and obtain approval signature on printout Make copies and distribute appropriatelyMake copies and distribute appropriately

103 103 Purchase Order Requirements Purchase Order (PO) required for:Purchase Order (PO) required for: Purchases of $5,000 or morePurchases of $5,000 or more Purchases under $5,000, when required by vendorPurchases under $5,000, when required by vendor To order off existing contract or price agreement, when requiredTo order off existing contract or price agreement, when required Purchase Order NOT required:Purchase Order NOT required: For invoice payment on existing contract or price agreement, when the contract or price agreement doesnt require a PO when submitting ordersFor invoice payment on existing contract or price agreement, when the contract or price agreement doesnt require a PO when submitting orders

104 104 Using Purchase Orders How is Purchase Order being used? (Option A) as legally binding contract(Option A) as legally binding contract Send PO, standard terms & conditions, and other attachments to vendor; keep copiesSend PO, standard terms & conditions, and other attachments to vendor; keep copies (Option B) as ordering form(Option B) as ordering form Reference contract or price agreement number on POReference contract or price agreement number on PO Do not include PO standard terms and conditions; they do not applyDo not include PO standard terms and conditions; they do not apply Handout

105 105 Using Purchase Orders Send PO and other attachments to vendorSend PO and other attachments to vendor Keep copies for your filesKeep copies for your files Approved by signature on PO approves payment of invoice; separate signature on invoice not requiredApproved by signature on PO approves payment of invoice; separate signature on invoice not required Handout

106 106 Purchase Order as a Contract Requirements not written in the contract are not legally enforceableRequirements not written in the contract are not legally enforceable Use attachments for additional requirementsUse attachments for additional requirementsExamples: Technical specificationsTechnical specifications Statement of WorkStatement of Work Insurance requirementsInsurance requirements Map of project siteMap of project site In Special Terms & Conditions include language to incorporate the attachments into the contract by referenceIn Special Terms & Conditions include language to incorporate the attachments into the contract by reference

107 107 Purchase Order as a Contract Anticipated AmendmentsAnticipated Amendments Applies to purchases under DAS authorityApplies to purchases under DAS authority Identify anticipated circumstances which would require amending the PO (contract)Identify anticipated circumstances which would require amending the PO (contract) List anticipated amendments on PO or attachmentList anticipated amendments on PO or attachment Anticipated amendments can exceed 20% of original contract amount without OPO or DAS approvalAnticipated amendments can exceed 20% of original contract amount without OPO or DAS approval Amending a Purchase OrderAmending a Purchase Order Contact the ODOT Procurement Office for guidanceContact the ODOT Procurement Office for guidance

108 108 Solicitation Exercise Envelope Opening Machine Exercise

109 109 Envelope Opening Machine Scenario DMV has an aging and technologically deficient envelope opening system. A dramatic increase in mail volume over the past two years has caused a back log of DMVs income business-mail processing time. DMV wants to obtain a higher capacity envelope opening machine with more robust features and increased safety to meet the increasing demands of mail handling. The DMV manager has approved up to $13,000 for purchase of a new system.

110 110 Envelope Opening Machine 3-Quote Checklist Assess complexity and riskAssess complexity and risk Fax MWESB solicitation notificationFax MWESB solicitation notification Prepare Request for Bid solicitation documentPrepare Request for Bid solicitation document Complete Purchase Order form for purchaseComplete Purchase Order form for purchase Fax MWESB award notificationFax MWESB award notification

111 111 Solicitation Exercise Gettings Creek State Rest Area Exercise

112 112 Gettings Creek Septic Tanks Scenario The Gettings Creek State Rest Area (SRA) septic tanks are out of compliance with DEQ regulations. All of the tanks need to be pumped out and the walls sprayed down and cleaned with clean or gray water. Based on traffic and SRA usage, the work must be done between the hours of 8 pm and 5 am. All work must be completed in no more than 2 days. The District Manager has approved up to $18,000 to have this work completed.

113 113 3-Quote Checklist Assess complexity and riskAssess complexity and risk Review Intermediate Invitation to Bid for Services solicitation documentReview Intermediate Invitation to Bid for Services solicitation document Meet MWESB notification by posting Intermediate ITB on ORPINMeet MWESB notification by posting Intermediate ITB on ORPIN Gettings Creek Septic Tanks

114 114 What if… The estimated cost was under $100,000, yet all bids came in over $100,000?! Contact ODOT Procurement Office (OPO)Contact ODOT Procurement Office (OPO) Send all solicitation documentation to OPOSend all solicitation documentation to OPO OPO will review the documentationOPO will review the documentation If it complies with requirements, OPO will award the contractIf it complies with requirements, OPO will award the contract If it doesnt comply with requirements, OPO will cancel and redo the solicitationIf it doesnt comply with requirements, OPO will cancel and redo the solicitation

115 Procurements over $100,000 Section 6 Procurement 201 Purchasing Goods and Trade Services

116 116 Procurement Authority Local purchaser not authorized to solicit for: Goods and Trade Services over $100,000 – Send Purchase Requisition to OPOGoods and Trade Services over $100,000 – Send Purchase Requisition to OPO Public Improvements (or Public Works) – Send Purchase Requisition to OPOPublic Improvements (or Public Works) – Send Purchase Requisition to OPO Personal Services – Send Personal Services Request form to OPOPersonal Services – Send Personal Services Request form to OPO IT Related Purchases – Contact IT Procurement and Asset Management (ITPAM)IT Related Purchases – Contact IT Procurement and Asset Management (ITPAM)

117 117 Complexity & Risk Matrix Complexity Risk Low Complexity Low Risk High Complexity High Risk High Complexity Low Risk Higher complexity: More variations available in products and servicesMore variations available in products and services Federal funding includedFederal funding included Public Improvement or Public WorksPublic Improvement or Public Works Higher risk: Larger projects have more opportunities for things to go wrongLarger projects have more opportunities for things to go wrong When things go wrong, often larger impact on ODOT or publicWhen things go wrong, often larger impact on ODOT or public Low Complexity High Risk

118 118 Local Purchaser Responsibilities Define needDefine need Obtain approval to purchaseObtain approval to purchase Develop specifications or statement of workDevelop specifications or statement of work Define criteria to be used to select vendorDefine criteria to be used to select vendor Send Purchase Requisition to OPOSend Purchase Requisition to OPO Work collaboratively with OPO staff throughout solicitationWork collaboratively with OPO staff throughout solicitation Refer vendors to ODOT point of contact during open solicitation (from advertising to award)Refer vendors to ODOT point of contact during open solicitation (from advertising to award)

119 119 OPO Responsibilities Receives Purchase Requisition and determines procurement authorityReceives Purchase Requisition and determines procurement authority Related to Transportation – ODOT Authority OPO conducts all solicitations over $100,000OPO conducts all solicitations over $100,000 Not Related to Transportation – DAS Authority OPO conducts solicitations $100,000. 01 to $5 millionOPO conducts solicitations $100,000. 01 to $5 million DAS conducts solicitations over $5 millionDAS conducts solicitations over $5 million When DAS conducts solicitation, OPO:When DAS conducts solicitation, OPO: Sends Purchase Request to DASSends Purchase Request to DAS Collaborates with DAS on local purchasers behalfCollaborates with DAS on local purchasers behalf

120 120 OPO Responsibilities Consults with customer and provides periodic updates of procurement statusConsults with customer and provides periodic updates of procurement status Prepares solicitation documentsPrepares solicitation documents Prepares Request for Bid, ITB or RFP documentPrepares Request for Bid, ITB or RFP document Reviews and edits specifications, statement of work and attachmentsReviews and edits specifications, statement of work and attachments Obtains DOJ legal sufficiency review, when requiredObtains DOJ legal sufficiency review, when required

121 121 Solicitation Methods and Forms Intermediate Procurement options (over $100,000 up to $150,000)Intermediate Procurement options (over $100,000 up to $150,000) Request for BidRequest for Bid Intermediate Invitation to BidIntermediate Invitation to Bid Invitation to Bid (ITB)Invitation to Bid (ITB) Request for Proposal (RFP)Request for Proposal (RFP) Formal Procurements options (over $150,000)Formal Procurements options (over $150,000) Invitation to Bid (ITB)Invitation to Bid (ITB) Request for Proposal (RFP)Request for Proposal (RFP)

122 122 Invitation to Bid (ITB) ITB used to conduct Competitive Sealed Bidding Advantages: Typically faster than RFP processTypically faster than RFP process Solicitation posted on ORPIN minimum of 14 daysSolicitation posted on ORPIN minimum of 14 days Promotes price competition between vendorsPromotes price competition between vendors The solicitation document becomes the contractThe solicitation document becomes the contract

123 123 Invitation to Bid (ITB) ITB used to conduct Competitive Sealed Bidding Disadvantages: Must describe exactly what you require in the specificationsMust describe exactly what you require in the specifications Sometimes difficult to evaluate bid info to determine if it meets all the mandatory specificationsSometimes difficult to evaluate bid info to determine if it meets all the mandatory specifications Must select lowest bid even if another bid meets ODOTs need betterMust select lowest bid even if another bid meets ODOTs need better Limited negotiations of contract allowedLimited negotiations of contract allowed

124 124 Request for Proposal (RFP) RFP used to conduct Competitive Sealed Proposal Advantages: Can select based on criteria in addition to priceCan select based on criteria in addition to price Can solicit proposals for solutions to a problemCan solicit proposals for solutions to a problem Can negotiate contract after selection (including cost)Can negotiate contract after selection (including cost)

125 125 Request for Proposal (RFP) RFP used to conduct Competitive Sealed Proposal Disadvantages: Takes more time than ITB processTakes more time than ITB process Solicitation posted on ORPIN a minimum of 30 daysSolicitation posted on ORPIN a minimum of 30 days Requires extensive evaluation, scoring and ranking of proposalsRequires extensive evaluation, scoring and ranking of proposals Contract is separate from the solicitation documentContract is separate from the solicitation document

126 126 OPO Responsibilities Contact with vendorsContact with vendors Posts solicitation documents on ORPINPosts solicitation documents on ORPIN ODOTs single point of contact for solicitationODOTs single point of contact for solicitation Responds to requests for clarification and protestsResponds to requests for clarification and protests Prepare and issue addenda, when neededPrepare and issue addenda, when needed Evaluation and SelectionEvaluation and Selection Receives bids or proposalsReceives bids or proposals Completes pass/fail administrative evaluation of bids or proposalsCompletes pass/fail administrative evaluation of bids or proposals Facilitates evaluation of bids or proposals by customers evaluation teamFacilitates evaluation of bids or proposals by customers evaluation team

127 127 OPO Responsibilities Award and ContractAward and Contract Issues Notice of Intent to Award to selected vendorIssues Notice of Intent to Award to selected vendor Notifies competing vendors of intent to awardNotifies competing vendors of intent to award Responds to protestsResponds to protests Obtains required documents from selected vendorObtains required documents from selected vendor Assists with negotiations of contract, when requestedAssists with negotiations of contract, when requested Prepares contract documentPrepares contract document Obtains DOJ legal sufficiency review of contract, when requiredObtains DOJ legal sufficiency review of contract, when required Obtains required signatures on contractObtains required signatures on contract Distributes copies of executed contractDistributes copies of executed contract Maintains procurement file for solicitation and awardMaintains procurement file for solicitation and award

128 Contract Administration Section 7 Procurement 201 Purchasing Goods and Trade Services

129 129 ITB Xxx xxx x x xxxx xxx xxxx xx x VENDOR Award & Execute Contract Contract Management Contract Administration Procurement Overview

130 130 Process Map - Bid, Award, Pay

131 131 Scoping Contract Administration Complexity Risk Minimal Contract Administration Active Contract Administration IncreasingRisk IncreasingComplexity Impact of Complexity and Risk on Contract Administration Level of effortLevel of effort Degree of detailDegree of detail TimelinesTimelines Complexity Risk LowComplexity & Risk IncreasingRisk IncreasingComplexity HighComplexity

132 132 Contract Administrator The officer, employee, or other individual designated in writing as Contract Administrator in the contractThe officer, employee, or other individual designated in writing as Contract Administrator in the contract Responsible for administering the contract; can delegate duties, but not the responsibilityResponsible for administering the contract; can delegate duties, but not the responsibility Good contract administration starts with knowing whats in the contractGood contract administration starts with knowing whats in the contract

133 133 Effective Contract Administration For Goods OrderOrder Receive and inspectReceive and inspect Accept or rejectAccept or reject Pay invoice(s)Pay invoice(s) Monitor contract expirationMonitor contract expiration For Services Assure contractor does all work required in the contractAssure contractor does all work required in the contract Assure performance effort is appropriate and proficientAssure performance effort is appropriate and proficient Assure satisfactory qualityAssure satisfactory quality Assure timeliness of performanceAssure timeliness of performance Assure compensation is within available contract limitsAssure compensation is within available contract limits Evaluate and document performanceEvaluate and document performance Monitor contract expirationMonitor contract expiration Document - Document - Document

134 134 Contract Administration of Goods OrderOrder Follow ordering requirements in the contractFollow ordering requirements in the contract Receive and InspectReceive and Inspect If damage is visible, refuse shipment and contact vendorIf damage is visible, refuse shipment and contact vendor Verify correct goods included in shipmentVerify correct goods included in shipment Inspect goods for damage and functionalityInspect goods for damage and functionality

135 135 Contract Administration of Goods Accept or rejectAccept or reject Document acceptance on packing slip and sign PO received byDocument acceptance on packing slip and sign PO received by Or if rejected, contact vendor and arrange for return of itemOr if rejected, contact vendor and arrange for return of item

136 136 Contract Administration of Goods Pay invoicePay invoice Ensure invoice reflects only goods received and acceptedEnsure invoice reflects only goods received and accepted Ensure that amounts charged comply with contract requirementsEnsure that amounts charged comply with contract requirements Short pay invoices to correct amounts when needed – document reasons for adjustments on invoice and notify vendorShort pay invoices to correct amounts when needed – document reasons for adjustments on invoice and notify vendor ODOT

137 137 Contract Administration of Goods Pay invoice (continued)Pay invoice (continued) Send Financial Services the invoice, the approved PO and written verification that goods were receivedSend Financial Services the invoice, the approved PO and written verification that goods were received Invoices must be paid within the number of days specified in the contract, typically Net 30Invoices must be paid within the number of days specified in the contract, typically Net 30 If payment is after 45 days from receipt of invoice, ODOT may be charged a penalty for late paymentIf payment is after 45 days from receipt of invoice, ODOT may be charged a penalty for late payment

138 138 Contract Administration of Goods Monitor contract expiration dateMonitor contract expiration date Do not order goods after contract expirationDo not order goods after contract expiration If extending contract, execute amendment before contract expiresIf extending contract, execute amendment before contract expires Goods ordered and received prior to contract expiration can be paid for after contract expirationGoods ordered and received prior to contract expiration can be paid for after contract expiration To pay out of current budget, goods must be received before end of biennium and paid for prior to biennium payment deadlineTo pay out of current budget, goods must be received before end of biennium and paid for prior to biennium payment deadline

139 139 Contract Administration of Services Assure contractor does all work required in the contractAssure contractor does all work required in the contract Periodically check that services performed are in the contractPeriodically check that services performed are in the contract Dont pay for services that are:Dont pay for services that are: Not in the contractNot in the contract In the contract, but not being performedIn the contract, but not being performed

140 140 Contract Administration of Services Assure performance effort is appropriate and proficientAssure performance effort is appropriate and proficient For time and materials contract, contractors employees should be well managed by their supervisor and kept productive as much as possibleFor time and materials contract, contractors employees should be well managed by their supervisor and kept productive as much as possible Apprentices should not be doing journeyman workApprentices should not be doing journeyman work

141 141 Contract Administration of Services Assure satisfactory qualityAssure satisfactory quality Inspect the work deliverables to confirm they meet the requirements in the contractInspect the work deliverables to confirm they meet the requirements in the contract Document issues and contact contractorDocument issues and contact contractor If requirements in the contract are clear, ODOT doesnt pay for additional work to correct issuesIf requirements in the contract are clear, ODOT doesnt pay for additional work to correct issues If requirements not in the contract or not clear, ODOT may have to pay extraIf requirements not in the contract or not clear, ODOT may have to pay extra

142 142 Contract Administration of Services Assure timeliness of performanceAssure timeliness of performance Track date work deliverable is completed against schedule in contractTrack date work deliverable is completed against schedule in contract If late, be proactive on next deliverableIf late, be proactive on next deliverable Check status with contractor before next due dateCheck status with contractor before next due date If delays are anticipated, ask what steps theyre taking to complete deliverable on timeIf delays are anticipated, ask what steps theyre taking to complete deliverable on time Report late deliverables on performance evaluationReport late deliverables on performance evaluation

143 143 Contract Administration of Services Assure compensation is within available contract limitsAssure compensation is within available contract limits Prices or rates used on invoice must be within contract limitsPrices or rates used on invoice must be within contract limits Total amount of all invoices paid must not exceed total contract amountTotal amount of all invoices paid must not exceed total contract amount

144 144 Contract Administration of Services Evaluate and document performanceEvaluate and document performance Complete a written performance evaluation to document quality of contractors performanceComplete a written performance evaluation to document quality of contractors performance Provide contractor a copy and an opportunity to respondProvide contractor a copy and an opportunity to respond Can consider documented performance for award of future contractsCan consider documented performance for award of future contracts

145 145 Contract Administration of Services Monitor contract expiration dateMonitor contract expiration date Do not authorize services after contract has expired; all work must stop!Do not authorize services after contract has expired; all work must stop! If extending contract, execute amendment before contract expiresIf extending contract, execute amendment before contract expires Services performed prior to contract expiration can be paid for after contract expirationServices performed prior to contract expiration can be paid for after contract expiration

146 146 Change Management Amend contract in writing to:Amend contract in writing to: Change requirementsChange requirements Add or remove servicesAdd or remove services Add, remove, or modify list of goodsAdd, remove, or modify list of goods Change billing rates or price listChange billing rates or price list Increase or decrease total contract amountIncrease or decrease total contract amount Change schedule of work deliverable due datesChange schedule of work deliverable due dates Change contract expiration dateChange contract expiration date Cannot add money to contract unless providing additional products or servicesCannot add money to contract unless providing additional products or services

147 147 Change Management Amendments may require DOJ legal sufficiency approvalAmendments may require DOJ legal sufficiency approval All required signatures must be obtained before terms of amendment are effectiveAll required signatures must be obtained before terms of amendment are effective

148 148 Change Management Small ProcurementsSmall Procurements Amended contract cannot exceed $6,000Amended contract cannot exceed $6,000 Intermediate Procurements – ODOT AuthorityIntermediate Procurements – ODOT Authority Cumulative amount of amendments cannot exceed 25% of original contract amountCumulative amount of amendments cannot exceed 25% of original contract amount

149 149 Change Management Intermediate Procurements – DAS AuthorityIntermediate Procurements – DAS Authority If contract total will exceed $150,000, must obtain prior approval from DAS for Special ProcurementIf contract total will exceed $150,000, must obtain prior approval from DAS for Special Procurement Anticipated Amendments – No limit to amendments until contract total reaches $150,000Anticipated Amendments – No limit to amendments until contract total reaches $150,000 Unanticipated Amendments – Prior OPO or DAS approval is required to exceed 20% of original contract amountUnanticipated Amendments – Prior OPO or DAS approval is required to exceed 20% of original contract amount

150 150 Records Retention Keep Documentation of Solicitation, Selection and AwardKeep Documentation of Solicitation, Selection and Award Documentation sent to potential biddersDocumentation sent to potential bidders Bids receivedBids received Evaluation of bidsEvaluation of bids Special OPO or DAS approvalsSpecial OPO or DAS approvals Written explanation of bid rejectionsWritten explanation of bid rejections Basis of selection if not lowest bidBasis of selection if not lowest bid Notice of award to vendorsNotice of award to vendors Purchase Order or ContractPurchase Order or Contract

151 151 Records Retention Not subject to public records requestsNot subject to public records requests Proprietary information such as vendor trade secretsProprietary information such as vendor trade secrets Confidential information such as comments or advice ODOT receives from DOJConfidential information such as comments or advice ODOT receives from DOJ Keep this documentation separate in the file or keep in a separate fileKeep this documentation separate in the file or keep in a separate file

152 152 Records Retention Contract administration documentationContract administration documentation InvoicesInvoices Contract amendmentsContract amendments Correspondence with vendor, including emailsCorrespondence with vendor, including emails Performance evaluationsPerformance evaluations Keep records for 6 years after purchase or contract expiration; then destroyKeep records for 6 years after purchase or contract expiration; then destroy Keep 10 years after substantial completion if contract includes federal funds and for construction, alteration or repair of public improvementsKeep 10 years after substantial completion if contract includes federal funds and for construction, alteration or repair of public improvements

153 153 Purchasing Jeopardy Jeopardy

154 Resources and Wrap Up Section 8 Procurement 201 Purchasing Goods and Trade Services

155 155 Points of Contact ODOT Procurement Office assists with: Defining NeedDefining Need Solicitation and SelectionSolicitation and Selection Award and NegotiationAward and Negotiation Performance IssuesPerformance Issues Changes & AmendmentsChanges & Amendments Billing Rate Review and AcceptanceBilling Rate Review and Acceptance Invoice Review and ProcessingInvoice Review and Processing

156 156 Online Resources - Intranet OPOs Home Page: http://intranet.odot.state.or.us/opo/ http://intranet.odot.state.or.us/opo/ Finding it: ODOT Home Topics A-F, Contracts Whats available: Contact UsContact Us Request OPO ServicesRequest OPO Services Forms and TemplatesForms and Templates Procurement-related TrainingProcurement-related Training Use A-Z Index to find what youre looking for

157 157 Training Available Classes Procurement 101: Contracting BasicsProcurement 101: Contracting Basics Procurement 201: Purchasing Goods and Trade ServicesProcurement 201: Purchasing Goods and Trade Services Fiscal and Procurement ResponsibilitiesFiscal and Procurement Responsibilities Coming in Spring 2012 Contract Administration for ESB ContractsContract Administration for ESB Contracts

158 158 Training Available Online Training and Resources Speaking ProcurementSpeaking Procurement First Steps to Procuring Goods and ServicesFirst Steps to Procuring Goods and Services Authority to ProcureAuthority to Procure MWESB NotificationMWESB Notification Small Procurement of Goods and Trade ServicesSmall Procurement of Goods and Trade Services Intermediate Procurement – Legal RequirementsIntermediate Procurement – Legal Requirements Intermediate Procurement – 3-Quote ChecklistIntermediate Procurement – 3-Quote Checklist and more to come!and more to come!

159 159 Training Objectives After completion of this training, participants will be able to: Identify the roles and responsibilities for local procurement of Goods and Trade Services up to $100,000Identify the roles and responsibilities for local procurement of Goods and Trade Services up to $100,000 Describe the Small Procurement processDescribe the Small Procurement process Practice procuring Goods and Trade Services using the 3 Quote processPractice procuring Goods and Trade Services using the 3 Quote process Apply Contract Administration practices to both simple and complex purchases of Goods and Trade ServicesApply Contract Administration practices to both simple and complex purchases of Goods and Trade Services Use the Oregon Procurement Information Network (ORPIN) to find existing Price AgreementsUse the Oregon Procurement Information Network (ORPIN) to find existing Price Agreements

160 Thank you for your participation! A training evaluation survey will be emailed to you soon We appreciate your feedback Developed by ODOT Procurement Office


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