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Oklahoma House of Representatives Government Modernization Committee

Oklahoma House of Representatives Government Modernization Committee. November 8, 2011. Four Phases of Purchasing. Determining a contract need Solicitation and acquisition of the need Management of the contract performance Contract close-out and lessons learned

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Oklahoma House of Representatives Government Modernization Committee

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  1. Oklahoma House of RepresentativesGovernment Modernization Committee November 8, 2011

  2. Four Phases of Purchasing • Determining a contract need • Solicitation and acquisition of the need • Management of the contract performance • Contract close-out and lessons learned Review practices from TX, KS, AR, NV, FL, and private sector

  3. Current State of State Government Purchasing • Decentralized procurement at agency-level • Lack consistency across bids • Terms & Conditions • Scope of work (especially large bids) • Methodology • Evaluation criteria determined post-vendor response • Oversight is spotty • Lack expertise into different bid types (e.g. IT, Construction) • Contract performance management rarely occurs • Vendors learn the “personality” of the bidding entity • Lack historical performance trending across state and/or states

  4. General Best Practices • Centralized Purchasing with specific focus • Consistent terms & conditions across agencies • Consolidate and cooperative purchasing power • Assign bid type-specific experts (IT, Construction) • Standards for sections—project management, performance, status reporting, technical • Capture cost and schedule benchmarks—internal and external to the State • Establish and communicate a consistent Purchasing methodology • Agency to Purchasing process • Bid Requirements, Feasibility studies • Internal review for approval to bid • Solicitation development best practices • Vendor target list • Purchasing to Vendor process • Communication of solicitation process and bid status • Clarification of evaluation criteria • Timing between solicitation, award, and initiation • Establish contract performance management process

  5. IT Solicitation Best Practices - Content • Distinguish between project types • Software Implementation • Desktop/Server Licensing • Hardware • Establish project requirements to solicit by type • Consider RFI’s for complex, large or new efforts • Vendor Solicitation and Engagement • Seek consistency in solicitations • Establish specific evaluation criteria prior to bid release • State project management based on risk assessment • Leverage scenario-based reviews in addition to paper response • For complex projects, establish engagement period first • Time & materials, with not to exceed amount • Implementation could be stopped if engagement fails • Upon finalists, engage in open discussions regarding • Scope • Risks • Cost • Schedule • Identify opportunities for collaborative solicitations

  6. IT Solicitation Best Practices - Retainage • Software project licenses: • 40/40/20 or 30/30/40 splits • Contract, Installation, 90- or 180-day post implementation • Services: • Hold back 10% until project completion • Tie to deliverable • Acceptance and Penalty clauses • 10% penalty if rejected more than 2 times • 10% bonus is accepted first time

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