public purchasing in florida roles in the purchasing process (rev. 05/27/2008)

PUBLIC PURCHASING IN FLORIDA

ROLES IN THE PURCHASING PROCESS

(rev. 05/27/2008)

ROLES IN THE PURCHASING PROCESS

PROCUREMENT CYCLE CUSTOMERS / END USERS PURCHASING PROFESSIONALS VENDORS OTHER ROLES IN THE PROCESS

ROLES IN THE PURCHASING PROCESS

PROCUREMENT CYCLE

PROCUREMENT CYCLE

Customer / End User with Purchasing support:

• Identify Need• Check Budget• Determine Requirements / Specifications• Prepare & Route Requisition

PROCUREMENT CYCLE

Purchasing with Customer / End User support:

• Review Requisition for Clarity & Authority• Check Surplus (?)• Review & Amend Specifications / Statement

of Work• Advise on Current Market Conditions• Review & Determine Purchase Method• Review / Revise / Provide Vendor List

PROCUREMENT CYCLE

Purchasing with Customer / End User support (Continued):

• Prepare & Issue Solicitation• Receive Bids & Proposals (Conduct

Negotiations, as appropriate)• Tabulate & Evaluate Responses (with Team

Support, as appropriate)• Prepare Contract / Purchase Order• Issue Contract / Purchase Order

PROCUREMENT CYCLE

Customer / End User with Purchasing support (Continued):

• Manage Contract / Purchase Order• Receive Commodities / Services• Approve Payment• Request Amendment to Contract / Purchase

Order (Exception: Purchasing has final responsibility)

• Dispute Resolution (Exception: Purchasing has final responsibility)

• Close Out / Disposal• Plan Next Steps

PROCUREMENT CYCLE - PERFORMANCE MEASURES

How can you measure the performance of the Procurement Cycle Process in your agency?

PROCUREMENT CYCLE - PERFORMANCE MEASURES

Performance Measures of the procurement process should focus on results which are: Legal & Ethical Effective Efficient Economical

ROLES IN THE PURCHASING PROCESS

CUSTOMERS / END USERS

CUSTOMERS / END USERS

Customers / End Users have some key responsibilities:

1. Understand the statutory and executive missions assigned to their entity (agency, division, program area, etc.).

2. Determine commodities, services, and schedule required to deliver their missions. May consult experts at this step.

CUSTOMERS / END USERS (2)

3. Have the capability to describe (specify) requirements in terms of performance (outcome), deliverables (outputs), and design. Few governmental requirements are unspeakable! Consider budget & other resources.

4. Arrive at the make / buy decision.5. Plan ahead.6. Work with technical advisers as required.7. Understand how to task the purchasing office.

CUSTOMERS / END USERS (3)

8. Serve on the procurement team as required.9. Manage Contract / Purchase Order including

first level dispute resolution.10. Receive commodities / services.11. Approve payment.12. Request any needed amendment to or

cancellation of Contract / Purchase Order13. Close Out / Disposal14. Plan next steps.

Purchasing can assist and guide. What’s reasonable?

ROLES IN THE PURCHASING PROCESS

PURCHASING PROFESSIONALS

PURCHASING PROFESSIONALS

1. Assist Customers / End Users in their roles.2. Understand and advise on issues involved in

the make / buy decision.3. Understand, advise, and participate in the

preparation of good specifications and statements of work (SOWs).

4. Understand and advise on types of specifications and SOWs (performance, design, combination, QPL), outputs & outcomes, and performance-based contracting.

PURCHASING PROFESSIONALS (2)

5. Understand the purchasing statutes & rules of the jurisdiction.

6. Understand the purpose and missions of public purchasing.

7. Understand how to use the former to do the latter!

PURCHASING PROFESSIONALS (3)

PROCESS RESPONSIBILITIES8. Consider this instance, the market, and

any requirements history and trends in order to proceed to the sourcing strategy.

9. Review Requisitions for clarity, completeness, authority, justification (purpose), and schedule requirements.

PURCHASING PROFESSIONALS (4)

10. Determine items of solicitation, award formula, and contract term.

11. Determine sourcing method / strategy.12. Organize & lead cross-functional

procurement team, as appropriate.

DETERMINE SOURCING METHOD

Existing agreements / master contracts (including any pursuant RFQs): State Term Contracts RESPECT (Rehabilitative Enterprises Services

& Products) PRIDE (Prison Rehabilitative Industries &

Diversified Enterprises) State Purchasing Agreements Agency contracts

DETERMINE SOURCING METHOD (2)

Discretionary / Small Non-Competitive Informal Bid Formal Competitive Solicitation

ITB – Invitation to Bid RFP – Request for Proposal ITN – Invitation to Negotiate

Single Source Emergency Etc.

PURCHASING PROFESSIONALS (5)

13. Advise Customer / End User if an extended schedule is required.

14. Review and amend Specifications / SOW.15. Provide Vendor List.16. Prepare any solicitation, formal or informal,

with appropriate general and special conditions, including schedule and outcomes.

17. Issue solicitation.18. Receive bids & proposals.

PURCHASING PROFESSIONALS (6)19. Tabulate & evaluate Bids & Proposals.

Responsiveness & Responsibility. Price and other criteria. If negotiations are involved, organize and

lead team. Rank & “short list” respondents. Develop objectives. Revise the solicitation and / or lead

respondents to revise proposals as needed to meet objectives at Best-And-Final Offer (BAFO) stage.

PURCHASING PROFESSIONALS (7)20. Prepare Contract / Purchase Order.21. Issue Contract / Purchase Order.22. Amendments, cancellations, dispute

resolution.23. Maintain purchasing records.

ROLES IN THE PURCHASING PROCESS

VENDORS

VENDORS

1. Register with purchasing authority & Department of State.

2. Review purchasing history in their market. Who is selling what to whom at what price?

3. Target their segment of the government market.

4. Review solicitation advertisements (formal & informal).

5. Act promptly to completely review and respond to solicitations.

6. Ask clear questions, promptly. Explain reasons for any request, e.g. a specification change.

VENDORS (2)

7. Participate in Vendor meetings.8. Use web based or other training tools.9. Respond fully to all solicitation requirements.10. Do not make unilateral substitutions,

omissions, or schedule changes. Ask in advance about any unfamiliar, unclear, or contradictory requirements, etc.

11. Request pre-contract meeting as appropriate (if none is scheduled).

12. Know how their performance will be measured and reported!

VENDORS (3)

13. Fulfill all Contract / Purchase Order requirements.

14. Invoice accurately as commodities are shipped or services performed.

15. Advise Customer / End User & Purchasing Agent early of any delays or other problems.

16. Be aware of formal dispute procedures but have as your goal meeting customer’s expectations, and resolving problems with the least formality & at lowest organizational level consistent with good business practice.

OTHER ROLES IN THE PROCESS

Within your agency: Accounting Attorneys Inspector General

Oversight agencies: State Purchasing Office of Supplier Diversity Bureau of Auditing, DFS State Auditor General

OTHER ROLES IN THE PROCESS (2)

Special needs: Office of Supplier Diversity Fleet Management CITS – Communications and Information

Technology Services