Don Buffum, CPPO, Director, Procurement and ContractsMississippi State University662-325-2861dbuffum@procurement.msstate.edu

NOTICECollege degree will be required for certification

starting in 2014!

Purpose of the session

To make you think!

What do you need to think about?

Public Purchasing is at an important crossroads – which way do we go?

Purchasing – Professional or Paper Pusher?

Management Function

Strategic FunctionOr………

Purchase Order Producer

What do you buy?

What do you buy?Office SuppliesVehiclesServicesFurnitureDriving SimulatorsBullet Proof VestsWeaponsDrugsMedical Supplies

Janitorial SuppliesScalpelsFoodDiapersUnderwearGas ChomatographsCamerasTraffic Cones and

BarrelsRock Salt

What do you buy?AirplanesHelicopterMarijuanaTree SeedlingsRadiosPhonesComputersPrinters

EVERYTHING!!

Who does it impact?What difference does it make?Who cares?

Who cares??Office Supplies –gov’t Vehicles –roads, policeServicesFurnitureDriving SimulatorsBullet Proof Vests –

save a lifeWeaponsDrugsMedical Supplies

Janitorial SuppliesScalpels – save a lifeFoodDiapersUnderwearGas ChomatographsCamerasTraffic Cones and

BarrelsRock Salt

What difference does it make??AirplanesHelicopterMarijuanaTree SeedlingsRadiosPhonesComputersPrinters

EVERYTHING!!

What do you do?Small PurchasesAdminister

Procurement CardTerm ContractsService ContractsStrategic PlanningSpec development

teamContract Negotiations

ConstructionBudget

recommendationsLegislation/policy

developmentEvaluation of terms

and conditionsCost analysisMonitoring of

Contract Administration

Which pot holes can you avoid?Splitting P.O.s;Poor Evaluations

Not making award to the actual low bid MEETING SPECS;

Having a preselected favorite in the RFP process

Which pot holes can you avoid?No Contract Administration - no one in

charge after issuing P.O. Invoice paid but nobody checks to make sure

product/service received and acceptableNo documentation of inferior performance

(hurts agency, hurts other bidders, paying for services not received)

Which pot holes can you avoid?Purchasing as a political appointmentSmall purchases from other than the contract

vendorPeople ordering things and then getting PO

after the fact (use the p-card, it’s easy and legal)

Which pot holes can you avoid?Contracts issued without an established need

(consulting, services, chemicals) Lack of contract review (‘standard’ vendor

contracts are signed without adequate review by purchasing/legal of terms and conditions – taxes, liabilities, automatic renewals, escalations)

Which pot holes can you avoid?Allowing poor planning or mismanaged

planning to be called an emergencySole source

Which pot holes can you avoid?Personal service contracts – awarding

without need, awarding without competition, no review of deliverables, splitting,

Which pot holes can you avoid?Auctioning quotes to get preferred vendor

(obtain quotes then go to favored vendor and ask him to beat the low price)

Why don’t we have more say?Lack of training?Lack of initiative?People ‘upstairs’ don’t realize our value?Other?

What do we need to do about it?

Look at ourselves in the mirror

“We have met the enemy and he is us” - Pogo

What do we need to do about it? -Training

Take ClassesIntroduction to Public

ProcurementSourcing in the Public SectorPlanning, Scheduling and

Requirement AnalysisLegal AspectsRFP’sContract Administration

Get CertifiedCPPBCPPO

What do we need to do about it? -Training

Take classes on advanced principlesContracting for

ServicesPerformance based

contractingNegotiation strategiesProject ManagementAlternative Dispute

Resolution

Change Management

Contract WritingFederal Programs

and GrantsConstructionFixed AssetsOthers….

What do we need to do about it? -TrainingRead books and articles that will help us

On the economyOn negotiation skillsOn government issues and activitiesOn productsOn anything and everything

Other ideas?

What do we need to do about it? -InitiativeFind cost savings, research and report

Document Mgmt fleet savingsVehicle fleet savingsMailroom savingsImproved Contract Administration savingsContract out or in house

Provide informationNew productsBest practicesEconomic trends

What do we need to do about it? –Initiative (continued)

Suggest revised proceduresImplement Procurement CardImprove the flow for approvals (‘E-approve’)Establish term contractsPurchasing as part of budget process

Reviewing equipment needs Suggestions on anticipated expenditures Other…..

Be a service organization

What do we need to do about it? –Initiative (continued)Take the lead on major projects/acquisitionsRelevant Performance Measures and

BenchmarkingNot how much paper (# of PO’s)Look at cost avoided/saved

Look at the big picture (organization)Hire, train and reward ‘thinking’ not

processing complianceDecentralize order taking to allow time for

value added activities.

What do we need to do about it? –Convince the people ‘upstairs’

Make it short and sweet -Concise information – don’t waste their time.

Make it sexy – it must be interesting

Meet a need – it must be important

What is our Message?We want to promote professionalism in

public purchasing

NO

What is our message?We want to increase the status of the

public purchasing professional

NO

What is our message?We want to increase the value of government

to the people thru better decision making

YES!

What is our message?Purchasing should be involved early to allow

us to add value (improved efficiency & reduced costs)

Purchasing should have responsibility and authority to avoid purchasing potholes (front page material)

What is our message?Purchasing should be involved in all aspects

of expenditures.Our ethics will keep them out of jailOur services will make them look good

How do we sell our message?Show them articles about purchasing

‘errors’ and the costsSurvey our customers and report the

results (short and sweet, but find the answers)

Show them articles about purchasing ‘success’ and the value

Evaluate % of dollars spent under purchasing to % spent without oversight –report it

How do we sell our message?Sell corporate America on the concept that

we are spending their tax dollars – don’t they want us to do it right?

Take initiative!Others?

Who do you want driving the school bus?

Bubba who has been driving since he was knee high to a grass hopper or….

A certified licensed bus driver?

Who do you want doing your taxes?

Jethro, who is good at cipherin numbers or ….

A CPA?

Who do you want as a doctor?

Granny and her boiled possum belly or….

A real doctor???

If credentials are important….

Should we ask tax payers to let an uncertified person spend millions of dollars of their money???

The ChallengeAre you ready to treat purchasing as a

profession or are you comfortable with the way it is?

Any Questions or Comments?

Dummy slide- description of programProcurement Managers wanted, are you

ready and willing?. Public purchasing is at an important crossroads and we must determine which direction we are going to go. Will we be professional paper pushers or will procurement take on a strategic management role? Where will you fit into this decision? Why don't we have more say? What do we need to do? What are we going to do? If thinking while you are eating causes indigestion, you may want to avoid this session.