1. Processes and Procedures for Contracting at UO
Procurement 101
Processes and Procedures for Contracting at UO
Presented by:
Greg Shabram, Associate Director
Purchasing and Contracting Services

2. Agenda Procurement Process Overview Procurement Planning
Developing a Statement of Work
Solicitation
Special Topics in Procurement

3. Procurement Process Framework
Make / Buy Decision
Procurement Planning
Develop Statement Of Work
Solicit Proposals
Select Source / Vendor
Negotiate
Execute
Contract Administration

4. Procurement Planning
Develop Minimum Specifications and Estimate Total Dollar Value
Determine Applicable Policies and Procedures
Create and Procurement Team and Plan
Draft a Statement of Work (SOW)

5. Estimating Total Dollar Value
Total cost for each year of the project
All reasonably foreseeable costs associated with that project payable to one vendor
Take into account recurring spend, if foreseeable
If close to a competitive threshold err towards the higher amount

6. Determine Applicable Policies and Procedures
Can you buy the goods/services from a QRF, an existing price agreement, or from the eProcurement system?
Check the approvals list to determine any additional stakeholders
Use the following flow chart to determine the correct procurement process

7. Procurement Planning Flowchart
Can you buy from a QRF?
Can you buy from an established Price Agreement?
Is the purchase exempt or valued at under $25K? No No No
Buy Decision
Yes
Yes
Yes
Buy from QRF
Buy off Price Agreement
Direct Procurement
Is this only available from a Sole Source? No
Is there a limited vendor pool? No No
Is the total value less than $150K? No
Conduct RFP/ITB*
Yes
Yes
Yes
Post and buy Direct
Conduct AP
Conduct RFQ/ITB*
*An ITB is only appropriate when price is the only selection factor

8. Create a Procurement Team and Plan your Procurement
This step scales to the scope of your procurement
Could be just you issuing a PO, may be a team of multiple UO departments and stakeholders
Host a kickoff meeting
Invite team members (Dept. Staff, Campus Stakeholders, PCS Staff)
Agree on a procurement schedule based on applicable procurement process
Identify who will draft SOW and when it will be completed
Clearly indentify roles and responsibilities

9. Create a Procurement Team and Plan your Procurement – Cont.
Develop a BATNA
What happens if the procurement fails?
At what point are you willing to walk away from a vendor?
Divide needs from wants
Identify UO strategic interests addressed by the procurement.
Notify applicable departments on the approvals list (invite stakeholders to the kickoff meeting if appropriate)

10. Discussion 1
Think of the largest purchase that you plan to make this year
Estimate the value, identify the appropriate procurement process, and identify stakeholders
When do you plan to hold your kickoff meeting? Send us an outlook invite!
Be prepared to share with the group

11. Drafting Specification/SOWs
An effective SOW should clearly define what work will be done, what interim steps must be completed, who will do it, and when they will complete the work and each step. The SOW does not need to be an exhaustive list of every action necessary to complete a project, but the SOW should be detailed enough so that anyone with the appropriate background should be able to understand, without any ambiguity, what will result from the project.

12. Drafting Specification/SOWs
Every SOW should, at minimum, include the following elements:
A description of the deliverables, including any specifications or standards that those deliverables must meet.
The tasks that support the deliverables, as well as which Party (the University for the Contractor) responsible for completing those tasks.
A timeline that details when each task will be completed and when each deliverable will be delivered.
The resources (people, equipment, facilities, etc.) required for the project and the party responsible for providing those resources.
Acceptance criteria and an acceptance procedure.
A clear price for the project, that is limited to a fixed amount.

13. Discussion 2
We need a volunteer!
Let’s work as a group to draft a SOW

14. Conducting the Procurement
Goals:
Ensure Fairness
Foster Competition
Satisfy Stakeholder Interests
Get the Best Value!
*Shameless Plug* Pay With a PCard!

15. Conduct a Procurement Direct Procurement: Draft your SOW
Understand the Marketplace
Ask vendors for quotes
Negotiate
Purchase (with a PCard!)

16. Formal/Informal Procurement
Draft/Post AP, ITB, RFQ, or RFP
Review responses in accordance with terms of solicitation and UO policies
Select the best value source

17. Sole Source
Criteria:
Due to specific needs or qualifications, the goods or services required are only reasonably available from a single vendor.
Must clearly demonstrate that the SOW is the only reasonable manner UO could meet its need, and that the vendor is the only vendor in the marketplace that can fulfill that SOW.
Process:
Posted for at least 7 calendar days.
If no protests are made, the transaction may proceed.

18. Alternative Procurement
Criteria:
A limited vendor pool of at least two entities or a purchase of IT services (i.e. SaaS)
Responds to innovative business and market methods.
Contributes to UO’s productivity improvement and process redesign.
Results in comprehensive cost-effectiveness and productivity for UO.
Process:
Posted for at least 5 business days.
Must solicit bids from three vendors, one being an MWESB
Informal posting and selection criteria.
Greater opportunity to negotiate price and terms prior to award.

19. Request for Quote Criteria:
All goods and services between $25k and $150k
Selection based on best value or lowest price.
Process:
Posted for at least 5 business days.
Informal posting and selection criteria.
Must solicit bids from three vendors, one being an MWESB

20. Request for Proposal Criteria: All goods and services over $150k
Selection based on best value
Process:
Posted for at least 21 business days
Formal posting and selection criteria
Must solicit bids from three vendors, one being an MWESB
May include controlled meetings with vendors and down selection processes
Must develop a detailed scoring and source selection process

21. Invitation to Bid Criteria: All goods and services over $150k
Selection based on lowest price
Process:
Posted for at least 21 business days
Formal posting and selection criteria
Must solicit bids from three vendors, one being an MWESB
May include controlled meetings with vendors and down selection processes
Must develop a detailed scoring and source selection process

22. RFP Scenario
We’ve drafted a SOW. Lets draft an RFP and determine possible vendors.

23. Special Topics Strategic Purchasing Payment
Delegated Contracting Authority
Next Class:

24. Tools & Support Policy Training Templates
Written Procedures and Instructions
Website
Direct assistance from PCS Staff via phone, and in-person meetings
Each department is assigned a Contracts Officer and Contracts Tech. If you do not know yours let us know and we’ll put you in touch with them!

25. Questions?