Governmental Procurement ISQA 440

Goals of ProcurementSteps in the Procurement Cycle

Specifications and Work Scopes

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Procurement GoalsEquity

Integrity

Efficiency

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Procurement GoalsEconomy

Transparency

Delegation of authority

Law of agency

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Procurement GoalsNon-discrimination

Accountability

Promotion of industry

Social-economic objectives

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Procurement StagesGather informationIdentify the needSpecifications and standardsReview and authorizeSource document prep and sourcing

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Procurement StagesReview, evaluate, recommendApproval, award, issue contractAccept, certify, pay, report action, payPost award activities

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Solicitation MethodsSmall dollar/purchase cardEmergency purchasesSole source/single sourceRequest for quote (RFQ)Invitation for bids/to tender IFB/ITT

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Solicitation MethodsRequest for proposalsRequest for expression of interestReverse auctionInvitation to negotiate (ITN)Request for supplier qualifications Notice of intent (NOI)

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Solicitation CategoriesProductsProfessional servicesTechnology and related systemsPrinting and reprographicsConstructionCapital and major equipment

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Planning-Gathering InformationIdentifying trends

Forecasting the need

Devising a strategy

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The Purchase RequestBegins the cycle

Identifies the need

Assures funding is available

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Review of RequestFor completenessFor clarity Evaluate the existing supplyDetermine the potential to bundleEvaluate potential sources

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Identifying The Need And Requirements DefinitionSurveying the marketInitial cost analysisMake or buy cost analysisLeasing or renting

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Requirements DefinitionWhat 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?

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Sources Of SuppliersTrade journals/associationsManufacturers registryRegional commerce directoriesProfessional associationsInternet researchSales personsAdvertisingElectronic posting

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Suppliers ListShould be up to date

Grouped by commodity codes

Include size of the company

Evaluate past performance

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Supplier Pre-qualification Must be fair and objective

Stated by policy

Kept updated

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Advantages Of Pre-qualificationAccelerate the selection process

Prevents unnecessary solicitation cost

Allows for receiving competitive and responsive solicitations

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Disadvantages Of Pre- QualificationMay exclude small or new businesses

May be hard to maintain the listing as changes in products occur

May limit competition

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Determining the Sourcing StrategyValue of the acquisition

Number of suppliers

Amount of risk

How good is the specification

Time constraints

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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

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Specifications MustBe accurate

Clear

Concise

Unrestrictive

Foster competition

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Purpose of a SpecificationIdentify the requirementIdentify characteristics of performance or

qualityEnable responses to be evaluated equallyMaximize competition

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Types of SpecificationsDesignPerformanceCombination Brand name or equal

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Design SpecificationsDescribes how the item to be procured is

constructed or manufacturedOften restrict competitionOften expensive to prepareMay limit innovation

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Performance SpecificationsAlso 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.

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Performance Specifications Should allow for tolerances

Determine the quality of the product/service

Puts all the risk on the contractor

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Combination A combination incorporates the features of

both performance and design, also include brand names.

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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.

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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

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Standardization ProgramsResult in fewer variety of items in large

quantities being purchasedLower cost due to volume buying( item and

admin cost) Reduce inventoryProvide better inventory control

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Sources of Standards Underwriters Laboratories(UL)

Canadian Standard Association (CSA)

American National Standards Institute(ANSI)

American Society of Testing Materials(ASTM)

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Writing Technical Specifications: Who?Purchasing/supply professionalRequesting departmentPrivate consulting firmQuality control or testing agency

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Sources of SpecificationsSuppliers and manufacturers Colleagues and governmental sourcesProfessional associationsOnline resourcesOther sources

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Specification ContentAllow for maximum competitionBe complete, concise and accurateReference industry standardsNot duplicate contentIdentify physical, functional or operation to

be measured

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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

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What?Use or equal with brand name

State all measures

Use figures and tables

Illustrations, drawings, graphs if required

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Statement of WorkA 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”

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Statement of WorkNature and description of the project

Background-history

Objectives and purpose

Public entity

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