Governmental Procurement ISQA 440

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

2. Procurement Goals • Equity • Integrity • Efficiency

3. Procurement Goals • Economy • Transparency • Delegation of authority • Law of agency

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

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

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

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

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

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

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

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

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

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

14. 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?

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

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

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

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

19. 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

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

21. 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

22. Specifications Must • Be accurate • Clear • Concise • Unrestrictive • Foster competition

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

24. Types of Specifications • Design • Performance • Combination • Brand name or equal

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

26. 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.

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

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

29. 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.

30. 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

31. 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

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

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

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

35. 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

36. 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

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

38. 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”

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