Governmental Procurement ISQA 440 Goals of Procurement Steps in the Procurement Cycle Specifications and Work Scopes 1

Procurement Goals Equity Integrity Efficiency 2

Procurement Goals Economy Transparency Delegation of authority Law of agency 3

Procurement Goals Non-discrimination Accountability Promotion of industry Social-economic objectives 4

Procurement Stages Gather information Identify the need Specifications and standards Review and authorize Source document prep and sourcing 5

Procurement Stages Review, evaluate, recommend Approval, award, issue contract Accept, certify, pay, report action, pay Post award activities 6

Solicitation Methods Small dollar/purchase card Emergency purchases Sole source/single source Request for quote (RFQ) Invitation for bids/to tender IFB/ITT 7

Solicitation Methods Request for proposals Request for expression of interest Reverse auction Invitation to negotiate (ITN) Request for supplier qualifications Notice of intent (NOI) 8

Solicitation Categories Products Professional services Technology and related systems Printing and reprographics Construction Capital and major equipment 9

Planning-Gathering Information Identifying trends Forecasting the need Devising a strategy 10

The Purchase Request Begins the cycle Identifies the need Assures funding is available 11

Review of Request For completeness For clarity Evaluate the existing supply Determine the potential to bundle Evaluate potential sources 12

Identifying The Need And Requirements Definition Surveying the market Initial cost analysis Make or buy cost analysis Leasing or renting 13

Requirements Definition What do we want to purchase? Who will be the reviewer? Why do we need the good or service? How will we structure the requirements definition? 14

Sources Of Suppliers Trade journals/associations Manufacturers registry Regional commerce directories Professional associations Internet research Sales persons Advertising Electronic posting 15

Suppliers List Should be up to date Grouped by commodity codes Include size of the company Evaluate past performance 16

Supplier Pre-qualification Must be fair and objective Stated by policy Kept updated 17

Advantages Of Pre-qualification Accelerate the selection process Prevents unnecessary solicitation cost Allows for receiving competitive and responsive solicitations 18

Disadvantages Of Pre- Qualification May exclude small or new businesses May be hard to maintain the listing as changes in products occur May limit competition 19

Determining the Sourcing Strategy Value of the acquisition Number of suppliers Amount of risk How good is the specification Time constraints 20

What Is a Specification? A specification is a purchase description It tells what the end product should look like or what it must do Provide a method of determining if the need is satisfied 21

Specifications Must Be accurate Clear Concise Unrestrictive Foster competition 22

Purpose of a Specification Identify the requirement Identify characteristics of performance or quality Enable responses to be evaluated equally Maximize competition 23

Types of Specifications Design Performance Combination Brand name or equal 24

Design Specifications Describes how the item to be procured is constructed or manufactured Often restrict competition Often expensive to prepare May limit innovation 25

Performance Specifications Also called functional specifications Describe what and how the product or service must execute the desired operation in order to achieve a specific result or outcome. 26

Performance Specifications Should allow for tolerances Determine the quality of the product/service Puts all the risk on the contractor 27

Combination A combination incorporates the features of both performance and design, also include brand names. 28

Brand Name or Approved Equal Identifies a product manufactured by a specific firm, includes make, model and specific product information, but allows for all other know brands of other manufacturers to be accepted. 29

Brand Name Are established through labeling and become industry standards Should be avoided unless the words or equal are used Should not be identified as the preferred product 30

Standardization Programs Result in fewer variety of items in large quantities being purchased Lower cost due to volume buying( item and admin cost) Reduce inventory Provide better inventory control 31

Sources of Standards Underwriters Laboratories(UL) Canadian Standard Association (CSA) American National Standards Institute(ANSI) American Society of Testing Materials(ASTM) 32

Writing Technical Specifications: Who? Purchasing/supply professional Requesting department Private consulting firm Quality control or testing agency 33

Sources of Specifications Suppliers and manufacturers Colleagues and governmental sources Professional associations Online resources Other sources 34

Specification Content Allow for maximum competition Be complete, concise and accurate Reference industry standards Not duplicate content Identify physical, functional or operation to be measured 35

What? Identify all exceptions Do not use abbreviations Use “ shall ” “ will ” or “ must ” to indicate mandatory provisions Use “ should ” or may ” for non-mandatory provisions 36

What? Use or equal with brand name State all measures Use figures and tables Illustrations, drawings, graphs if required 37

Statement of Work A statement of work is key to the service contract as the specification is to the product contract “ A good statement of work will outline the specific services the contractor is expected to perform ” 38

Statement of Work Nature and description of the project Background-history Objectives and purpose Public entity 39