1. 1 Purchasing and Procurement Processes Module Four Revision Date: 2/06/2015

2. 2 COURSE INTRODUCTION Course Overview & Learning Objectives Course Expectations Training Approach & Participation Protocol

3. 3 © WA Department of Enterprise Services Mutual Respect General guidelines for online meetings: Interact Engage Participate

4. 4 © WA Department of Enterprise Services Training Credit To complete the module and receive credit, you will be expected to achieve a 80% on the module assessment. Employees should log into LMS to complete each module assessment. Use of the participant workbook is encouraged in the assessment!

5. 5 © WA Department of Enterprise Services Course Overview Course will be delivered in four modules:  Module 1: Purchasing & Procurement Overview  Module 2: Choosing a Route for Purchases of Goods and Procurement of Services  Module 3: Competitive Procurements, Amendments, and Exemptions  Module 4: Purchasing & Procurement Processes

6. 6 © WA Department of Enterprise Services Module Overview

7. 7 © WA Department of Enterprise Services Learning Objectives As a result of this training participants will be able to:  Identify purchasing and procurement needs and outcomes  Describe the importance of communicating need within the agency  Identify scope, timeline, requirements and vendors as part of the planning process  Discuss how to evaluate and select a vendor  Apply the purchasing and procurement planning phases

8. 8 THE PLANNING PROCESS Identify the Need and Outcomes Communicate Need Within Agency Identify Scope, Timeline and Requirements Identify Vendors Define Scope and/or Statement of Work

9. 9 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

10. 10 © WA Department of Enterprise Services Collaboration and Planning Collaboration is important – Work with Business Owners, Subject Matter Experts and Stakeholders

11. 11 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Why does your agency purchase goods and services?

12. 12 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Critical Thinking & Outcomes of a Purchase or Procurement

13. 13 © WA Department of Enterprise Services Communicate Agency Need Step 2

14. 14 © WA Department of Enterprise Services Purchasing vs. Procurement  Purchasing - the process of obtaining goods and services for the State of Washington.  Procurement - the combined functions of identifying needs, initiating a procurement project, selecting a vendor, contracting with a vendor, purchasing of the goods or services, managing the resulting contract.

15. 15 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 Identify and define the scope and overall contract timeline

16. 16 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 What is NOT in Scope?

17. 17 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3

18. 18 © WA Department of Enterprise Services Identify Vendors Step 4

19. 19 © WA Department of Enterprise Services Define Scope and/or Statement of Work Step 5 Scope or Work vs. Statement of Work

20. 20 © WA Department of Enterprise Services Define Statement of Work Step 5

21. 21 SOLICITATION AND SELECTION Communicate Formal Need With Vendors Evaluate Vendors Select Vendor

22. 22 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

23. 23 © WA Department of Enterprise Services Communicate Formal Need to Vendors Step 6 Communicate

24. 24 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6 Solicitation NeedRFQRFQQRFP/RFB Standard, Ongoing Purchase XX Many Vendors Offer This XX Cost is the Most Important Factor X Vendor Qualifications and Performance Important in Addition to Cost XX Vendor Specialization / Few Offer This X Complex Project Needs X Solution Required to Meet Need X

25. 25 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6

26. 26 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6

27. 27 © WA Department of Enterprise Services Communicate Formal Need with Vendors - Step 6 Evaluation Process (Step 7)

28. 28 © WA Department of Enterprise Services Communicate Formal Need w/ Vendors - Cost Sheets Step 6 Vendor NameCost Time Materials Total: Vendor NameDeliverable Cost Deliverable A Deliverable B Deliverable C Total: Vendor Name Hourly Rate HoursTotal Staff level Total:

29. 29 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Objectives  Provide clear direction and guidance  Ensure integrity of fair evaluation process  Create a documented process  Recommend for contract award

30. 30 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Step Considerations  Confidentiality and Security  Conflict of Interest  Evaluation Milestones  Evaluator Availability?

31. 31 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Roles include ….

32. 32 © WA Department of Enterprise Services Evaluate Vendors Step 7

33. 33 © WA Department of Enterprise Services Evaluate Vendors Step 7 Technical Evaluation Technical Evaluation Criteria Points (Weighted Score) 1 Executive Summary (75 points max) and Vendor Identifying Information (25 points max) 100 2 Qualifications of Firm (300 points max) 300 3 Approach to Scope of Work (300 points max) 300 4 Qualifications of Proposed Key Personnel (200 points max) 200 5 Corporate References (100 points max) 100 6 Total Weighted Score 1000

34. 34 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluations Vendor NameCost Vendor A$150,000 Vendor B$175,000 Vendor C$180,000

35. 35 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluation Cost Componen t Vendor AVendor BVendor C Supplies$50,000$60,000$70,000 Staff$50,000$90,000 Administrative Expenses $20,000$5,000 Profit/Overhead$30,000$20,000$15,000 Total$150,000$175,000$180,000

36. 36 © WA Department of Enterprise Services Select Vendor Step 8 Once the evaluation is complete Award to Highest Scoring Bidder OR Reject all Bids or Re-Issue the Solicitation

37. 37 © WA Department of Enterprise Services Select Vendor Step 8 Once all bidders have been notified, conduct debriefings if requested. Following the award, as you get ready to negotiate and establish a contract make sure the solicitation files are complete.

38. 38 POST-PROCUREMENT Negotiate Contract Contract Execution and Management

39. 39 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

40. 40 © WA Department of Enterprise Services Negotiate Contract Step 9

41. 41 © WA Department of Enterprise Services Contract Execution and Management Transition Step 10

42. 42 © WA Department of Enterprise Services Ongoing Contract Management Schedule Monitoring Risk Mitigation Compliance with T&C Approve Contractor Invoices Contract Execution and Management Transition Step 10

43. 43 © WA Department of Enterprise Services Summary & Key Points  Identified purchasing and procurement needs and outcomes  Described the importance of communicating need within the agency  Identified scope, requirements and timeline, and vendors as part of the planning process  Discussed how to evaluate and select a vendor  Applied the purchasing and procurement planning phases

44. 44 © WA Department of Enterprise Services Next Steps  Complete test and achieve 80% or higher  Complete evaluation form

45. 45 QUESTIONS Questions after the training? Call Cheryl Shaw at (360) 407-9376.