change yourchange your perspective - amazon s3€¦ · all public monies paid, plus 20%, legal...

CHANGE YOURCHANGE YOUR PERSPECTIVE:

Cost Reduction and Revenue Generating gTools to Take to Your Agency

TODAY

Christina Schipansky, CPPBPrincipal Contract OfficerPrincipal Contract Officer

City of Tucson

Department of Procurement

Budget Crisis Means its Your Time to Shine!

Is your organization coming to you forIs your organization coming to you for ideas? It should be! Here’s why:

Generate Revenue– Generate Revenue– Lower Costs

Combine and Cooperate– Combine and Cooperate


Lowing Costs:The Low Hanging Fruit

• Lower your own operating costs• Recover your costsRecover your costs• Its ok to say no!

W l ? A k f i !• Want lower costs? Ask for it!– At award– At renewal


You Can Say No!You Can Say No!

Department of Transportation and Procurement staff have carefully considered the request and supporting documentation. The City appreciates yourdocumentation. The City appreciates your willingness to offer the arguments presented in support of your request. As mentioned in the letter dated May 5, 2009, the City is projectingdated May 5, 2009, the City is projecting unprecedented deficits and revenue shortfalls. The Department of Transportation is unable to accept an increase in fees for services under this contract.increase in fees for services under this contract.


Ask For It!The City is seeking opportunities to generate recurring cost savings and reductions In order torecurring cost savings and reductions. In order to evaluate your contract for renewal, please provide the following.

• Proposed price for the renewal period. IfProposed price for the renewal period. If possible, we are requesting a decrease in price for the renewal period.

• Suggested revisions to specifications or scope of gg p pwork. In addition to reduced prices, the City is willing to consider recommendations for reductions or alterations to specifications or scope f k h l i d iof work that may result in a decrease in cost.


Examine Your Internal Programs

h• Programs that are a pass through cost to the agency:g g yLiving Wage programsLocal preference programs


City of TucsonLi i W PLiving Wage Program

• Article XV of the Tucson Procurement Code• Eligible contracts:

Facility and building maintenancef ll i d liRefuse collection and recycling

Temporary employee servicesJanitorial and custodialJanitorial and custodialLandscape maintenance and weed controlPest controlSecurity and crowd managementMoving services


A Wage Comparison

Current Living Wage rates:$9.74 if benefits are offered$10.96 if benefits are not offered

Current local area market rates:$8 00 $9 00 DOE$8.00 - $9.00 DOE

Market rate savings:$4,076.80


Change Your PerspectiveChange Your Perspective

• What has the potential to generateWhat has the potential to generate revenue?

• Look for inherent opportunities• Look for inherent opportunities• Get creative!


Pricing Strategies for Revenue and Savings Opportunities

• Percentage of index based• Percentage of index based• Tiered structures• Rebate structures• Leverage potential volume


Sample Revenue LanguageTiered Structure

Offeror shall provide a revenue share proposal to be paid to the City. The proposal shall include a percentage of the material sale price to be paid to the p g p pCity following every removal cycle. The City anticipates the cooperative use of this contract by eligible agencies and therefore anticipates the receipt g g p pof a larger revenue share by all using agencies based on total volume. The revenue share amount to be paid shall be based on the aggregate volume of all p gg gusers, including cooperative users.


No Funding Does Not gMean No Program

• Think you can’t do it? Try!• Think you can t do it? Try!• The market experts are more

creative than you think!


Offerors are encouraged to propose g p pfinancial arrangements such as in-kind contributions that will be considered to co bu o s w be co s de ed o

offset costs the City may incur as proposed by the offeror. Offerors should p p y

demonstrate the dollar value of the in-kind or other services proposed. The p p

acceptance of in-kind or other services are made at the sole discretion of the Citymade at the sole discretion of the City.


The ResultsThe Results

• The materials are collected from the NRC sites at no cost to the Cityy

• The City receives a 50% share of the revenue from the sale of the materialsrevenue from the sale of the materials minus a tip fee of $17.45


More ResultsMore Results

• Recycling training and promotional events - $6,000.00 per year value$ , p y

• Commercial Waste Audits and Consulting - $10 000 per year valueConsulting $10,000 per year value

• Materials Recycling Facility (MRF) Tours $7 500 00 per year valueTours - $7,500.00 per year value


Solar Installation at Hayden Udall


So, what are you doing with , y gthat land?

• Land leases• Land leases • Energy projects with direct agency use• Energy projects with community use• Energy auditsgy


Going Green…Without the Budget

• Current CAVSARP $/kWh……. 0.075

• Negotiated PPA $/kWh…….….. 0.159 • Negotiated REC sale* $/kWh…. 0.080g $

• Bottom line to COT/TW $/kWh 0 079Bottom line to COT/TW $/kWh… 0.079


Estimated Energy: – 2 3 million kWh/yr2.3 million kWh/yr– 5% of CAVSARP

electric useSending to Tucson 647– Sending to Tucson ~647 million gallons or 1,985 acre-feet per year

C tCost: – 0.159 $/kWh, 3%/yr

escalator – 20 year term– Pricing includes

‘brown’ energy, System: 1 MWdc

2500 modules 275 T 20 t krenewable energy

attributes and other energy services

275 T-20 trackers


CAVSARP Photovoltaic S t O ti l B fitSystem Operational Benefits

• FinancialFinancial– Savings in the cost of grid energy due to lowered

demand during peak with ability to continue controls operations and some pumps

• Reliability/Securityi l d i l– Potential to use during long-term outage

(considered a very low probability)– PV is grid tied will shut down if grid goes outPV is grid tied, will shut down if grid goes out,

would require manual switching


CAVSARP Photovoltaic System E i t l Ad tEnvironmental Advantages

• Renewable fuel source (sunlight)• Reduced carbon footprint• Lower water use for photovoltaic than other

(fossil fuel/solar thermal) generation• On-site distributed generation

– locally produced energyd d t i i l– reduced transmission losses


QuestionsQuestions

Christina Schipansky, CPPBPrincipal Contract Officer

City of TucsonDepartment of Procurement

(520) [email protected]


Ethics and Conflicts of Interest Ethics and Conflicts of Interest ––A Primer for Public Purchasing OfficialsA Primer for Public Purchasing Officials

Denise M. BaintonDenise M. BaintonSusan Plimpton SegalSusan Plimpton Segal

Janis MerrillJanis MerrillBill MunchBill Munch

NIGP Career Seminar Series INIGP Career Seminar Series IMarch 9, 2010March 9, 2010

INTRODUCTION

Inappropriate relationships or contactsInappropriate relationships or contacts

INTRODUCTION

Inappropriate relationships or contacts Inappropriate relationships or contacts between public officials and vendors between public officials and vendors may fall into any one or more of themay fall into any one or more of themay fall into any one or more of the may fall into any one or more of the following categories:following categories:

• Unlawful (i.e., violating one or more statutes), with potential criminalstatutes), with potential criminal consequences

• Unlawful (i e violating one or more• Unlawful (i.e., violating one or more statutes), with potential civil consequencesU l f l (i i l ti• Unlawful (i.e., violating one or more administrative regulations)

• Not unlawful, but violating public policiesg p p• Not unlawful, but not best practice

The StatutesThe StatutesA R SA R S §§ 3838 503503A.R.S. A.R.S. §§ 3838--503503

A. Any public officer or employee of a public y p p y pagency who has, or whose relative has, a substantial interest in any contract, sale, purchase or service to such public agency shallpurchase or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from p g yvoting upon or otherwise participating in any manner as an officer or employee in such contract sale or purchasecontract, sale or purchase.

A.R.S.A.R.S. §§ 3838--503503A.R.S. A.R.S. §§ 3838 503503

B Any public officer or employee who has orB. Any public officer or employee who has, or whose relative has, a substantial interest in any decision of a public agency shall make known dec s o o a pub c age cy s a a e osuch interest in the official records of such public agency and shall refrain from participating in any manner as an officer or employee in such decision.

Framework for AnalysisFramework for Analysisyy§ 38-503

Does a public employee or officer who is participating in a decision contract saleparticipating in a decision, contract, sale, service or purchase have a pecuniary or proprietary interest in that decision contractproprietary interest in that decision, contract, sale or purchase?

A.R.S.A.R.S. §§ 3838--504: Prohibited Acts504: Prohibited ActsA.R.S. A.R.S. §§ 3838 504: Prohibited Acts504: Prohibited Acts

C. A public officer or employee shall not use orC. A public officer or employee shall not use or attempt to use the officer's or employee's official position to secure any valuable thing or valuable benefit for the officer or employee that would not ordinarily accrue to the officer or employee in th f f th ffi ' l 'the performance of the officer's or employee's official duties if the thing or benefit is of such character as to manifest a substantial andcharacter as to manifest a substantial and improper influence on the officer or employee with respect to the officer’s or employee’s duties.p p y

Framework for AnalysisFramework for Analysisyy

§ 38-504 • Because of his/her position with the public

entity, has an elected official or employee received a valuable thing or benefit that doesreceived a valuable thing or benefit that does not ordinarily accrue to the elected official or employee?employee?

• Is the valuable thing or benefit such that it could substantially and improperly influencecould substantially and improperly influence the elected official or employee with respect to his/her duties?

A.R.S. A.R.S. §§ 3838--505: Additional income 505: Additional income hibit d f ihibit d f iprohibited for servicesprohibited for services

A No public officer or employee may receiveA. No public officer or employee may receive or agree to receive directly or indirectly compensation other than as provided by law p p yfor any service rendered or to be rendered by him personally in any case, proceeding, p y y p gapplication, or other matter which is pendingbefore the public agency of which he is a public officer or employee.

. . .

A.R.S.A.R.S. §§ 3838--502: Definitions502: DefinitionsA.R.S. A.R.S. §§ 3838 502: Definitions502: Definitions

1 "Compensation" means money a1. Compensation means money, a tangible thing of value or a financial benefitbenefit.

Framework for AnalysisFramework for Analysisyy§ 38-505

H h l d ffi i l lHas the elected official or employee received or agreed to receive any

ti ( th th id d bcompensation (other than as provided by law) for a service in any case, proceeding,

li ti th tt di b fapplication or other matter pending before the public entity?

The Path of a ComplaintThe Path of a Complaintpp

Sources of complaints:

• Competing vendors• Public Entity self-reportingPublic Entity self reporting • Public Entity employees• Arizona Auditor General• Arizona Auditor General• Other State and Federal Agencies

The Path of a ComplaintThe Path of a ComplaintInvestigation:• Public Records Requests for public entity records• Civil Investigative Demand (CID) - A R S § 44-• Civil Investigative Demand (CID) - A.R.S. § 44-

1406(A)Pre-litigation discovery served upon any person for:• Documents• Interrogatories• Examinations Under Oath (EUOs) (depositions)Examinations Under Oath (EUOs) (depositions)

• Confidentiality Issues• Documents and information obtained through a

CID i EUO i fid ti l til thCID or in a EUO remain confidential until the Attorney General brings an action. A.R.S. § 44-1406(E).

The Path of a ComplaintThe Path of a ComplaintCivil Remedies:

Any person who contracts for or purchases goods• Any person who contracts for or purchases goods, materials and services in violation of the State Procurement Code is personally liable for recovery of all public monies paid, plus 20%, legal interest and costs. A.R.S. §41-2616(A).

• All persons involved in any contract, combination or conspiracy to restrain trade are subject to injunctive relief civil penalties of up to $150 000 per violationrelief, civil penalties of up to $150,000 per violation, costs and attorneys’ fees. A.R.S. §44-1407.

The Path of a ComplaintThe Path of a ComplaintC i i l R f lCriminal Referral:• A person who enters into a contract, combination or

conspiracy to restrain trade involving a government p y g gcontract is guilty of a class 4 felony. A.R.S. §44-1416(C).

• A person who intentionally or knowingly contracts for or purchases services pursuant to a scheme or artifice topurchases services pursuant to a scheme or artifice to avoid procurement code requirements is guilty of a class 4 felony. A.R.S. §41-2616(B).

• A person who violates A R S §38 503 to 505 is guilty of• A person who violates A.R.S. §38-503 to -505 is guilty of a class 6 felony (intentional or knowing violations) or a class 1 misdemeanor (reckless or negligent violations). A.R.S. §38-510(A).A.R.S. §38 510(A).

• A person found guilty of violating A.R.S. §38-503 to -505 shall forfeit his/her public employment. A.R.S. §38-510(B)510(B).

Impacting the Integrity of the Impacting the Integrity of the P t PP t PProcurement ProcessProcurement Process

One goal of public competitiveOne goal of public competitive procurement laws and regulations is to ensure that all prospective vendorsensure that all prospective vendors compete on a level playing field. Public entities should strive to eliminate badentities should strive to eliminate bad practices that could tilt that level playing fieldfield.

When one prospective vendor is providedWhen one prospective vendor is provided with an advantage that other prospective vendors are not provided i e greatervendors are not provided, i.e. greater access to information and/or to public officials that vendor may gain anofficials, that vendor may gain an advantage that other bidders do not have.

Potential TrapsPotential TrapsPotential TrapsPotential Traps

Some of the following are not unlawful—Some of the following are not unlawfulbut especially in this difficult economy, potential vendors who do not get “equalpotential vendors who do not get equal opportunity” may challenge you anyway—at least in the newspaperat least in the newspaper.


Schemes and TrapsSchemes and Traps“The Wolf in Sheep’s Clothing”

Includes “Educational Conferences Sponsored by Selected Entities”

There is no such thing as a “Free” Lunch

Potential TrapsPotential TrapsPotential TrapsPotential Traps• The “Partnership”p

Avoid the appearance of impropriety by conducting these partnerships at “arms length”partnerships at arms length .

A partnership should never be contingent upon a proposed award of contract.

Partnerships should not be administered by the businessPartnerships should not be administered by the business or purchasing office.


• Factory VisitsFactory Visits

“Vi th d t i ti ” Vi it• “View the product in action” Visits

• Spending the Evening at the Ball Park

• Hitting the Golf Links with the “Crowd”

• You are the Procurement Director of Big• You are the Procurement Director of Big Cactus Public Entity. The public entity is considering purchasing a new, state-of-the co s de g pu c as g a e , state o t eart, computer system, but hasn’t yet written the specs. The procurement could run in the millions of dollars. Mega-Vendor offers to pay your way to visit

t f t t i th t hsome out-of-state companies that have just installed its system. Mega-Vendor’s rep of course would accompany you onrep, of course, would accompany you on the tour, and pay for your meals and other expenses.expenses.

• Big Cactus has already purchased Mega-Big Cactus has already purchased MegaVendor’s computer system. (The procurement was completely on the “upprocurement was completely on the up and up.”) Mega-Vendor now invites you to its Chicago home office for training (at noits Chicago home office for training (at no cost to the Public Entity). There might even be a round or two of golf thrown ineven be a round or two of golf thrown in.

• You are the Business Manager of Big Cactus Public Entity. You are at a national conference. Mega-Vendor, from whom Big Cactus already has purchased computers, has a hospitality suite at the hotel. Anyone at the conference may go to the hospitality suite for a drink and munchies.

• Would the answer be different if BigWould the answer be different if Big Cactus had not yet purchased Mega-Vendor’s product but was currently in theVendor s product, but was currently in the procurement process?

• You are the Business Manager of BigYou are the Business Manager of Big Cactus Public Entity. You are at a national conference Mega-Vendor (a companyconference. Mega Vendor (a company that has a product that Big Cactus may need in the future) invites you and severalneed in the future) invites you and several select others from other public entities nationally to a big-ticket meal includingnationally to a big ticket meal, including drinks, at an exclusive restaurant.

• You are the Business Manager of Big Cactus Public Entity. The Entity has an ongoing relationship with Mega-Vendor. Mega-Vendor’s rep meets you at Denny’s

f Srestaurant one day for lunch. She picks up the tab. Your part of the tab comes to b $1 00about $15.00.

• You are the Business Manager of Big• You are the Business Manager of Big Cactus Public Entity. The Entity has an ongoing relationship with Mega Vendorongoing relationship with Mega-Vendor. Mega-Vendor’s rep meets you at Denny’s restaurant every Tuesday She picks uprestaurant every Tuesday. She picks up the tab. Your part of the tab comes to about $15 00 each timeabout $15.00 each time.

The Ego TripThe Ego TripThe Ego TripThe Ego TripAn out of state organization with a fancy name that includes “leadership” and “research” sends the chief administrative official a letter saying she has been “nominated” to attend the organization’s next meeting at a resort near a beach. As a prospective “member,” all expenses will be paid for coming to the meeting.

ConclusionConclusionConclusionConclusion

• Avoid the trapsAvoid the traps• Know the law

F ll th l• Follow the law• Stay out of jail• Keep your job• Stay out of the newspaperStay out of the newspaper• Avoid bid protests

Valuable Resources to Take d fAdvantage Of!

• Handout: CBA Template

• Calculating Cost/Benefit– Mind Tools CBA Tool: www.mindtools.comMind Tools CBA Tool: www.mindtools.com

• Calculating ROI– Guidelines: www.silberperformance.com

– Tips: eHow.com

– Online Tutorial ‐ ZDnet.com: http://news.zdnet.com/2422‐13569_22‐153325.html

– ROI Calculator: www.solutionmatrix.com

• Calculating TCO– Info‐Tech Free TCO & ROI Calculator: www infotech comInfo Tech Free TCO & ROI Calculator: www.infotech.com

For additional information regardingFor additional information regarding this presentation, please contact:

Rana Schultz 602‐460‐1872rana [email protected][email protected]

Th C t t Ad i i t tiTh C t t Ad i i t tiThe Contract Administration The Contract Administration FunctionFunctionFunctionFunction

Presented by:Presented by:Howard Kropp Howard Kropp –– Washington Elementary School DistrictWashington Elementary School District

J S bJ S b St t f A iSt t f A iJames Scarboro James Scarboro –– State of ArizonaState of ArizonaMichael Greene Michael Greene –– City of TempeCity of Tempe

Contract Administration Contract Administration

F l D fi itiF l D fi itiContract Administration Contract Administration

Formal DefinitionFormal Definition

Contract Administration: Contract Administration: Following the award of a contract, the Following the award of a contract, the management actions that must be taken to ensure full compliancemanagement actions that must be taken to ensure full complianceactionsactions ensureensure compliancecompliancemanagement actions that must be taken to ensure full compliance management actions that must be taken to ensure full compliance with all of the terms and conditions contained within the contract with all of the terms and conditions contained within the contract document, including price. Action steps that assure that the document, including price. Action steps that assure that the contractor is in full compliance with the entire contract Contractcontractor is in full compliance with the entire contract Contract

actionsactions ensureensure compliancecompliance

contractor is in full compliance with the entire contract. Contract contractor is in full compliance with the entire contract. Contract administration activities include payment, monitoring of administration activities include payment, monitoring of progressprogress, , inspection and acceptance, quality assurance, monitoring and inspection and acceptance, quality assurance, monitoring and surveillance modifications negotiations contract closeout andsurveillance modifications negotiations contract closeout andsurveillance, modifications, negotiations, contract closeout, and surveillance, modifications, negotiations, contract closeout, and other activities. other activities. (NIGP)(NIGP)

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Si l D fi itiSi l D fi itiContract Administration Contract Administration

Simple DefinitionSimple Definition

The process of ensuring that each party’s The process of ensuring that each party’s performance meets contract requirements performance meets contract requirements (Journal of Public Procurement (Journal of Public Procurement –– Rene G. Rendon) Rene G. Rendon)

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Wh i it i t t?Wh i it i t t?Why is it important?Why is it important?

The wellThe well--drafted contract will often be of limited drafted contract will often be of limited value, unless that contract is properly value, unless that contract is properly administered to ensure you receive all of the administered to ensure you receive all of the benefits anticipated when it was drafted benefits anticipated when it was drafted (Ernest G. Gabbard, JD., C.P.M.).(Ernest G. Gabbard, JD., C.P.M.).( , , )( , , )

Contract administration constitutes the primary Contract administration constitutes the primary part of the procurement process that assurespart of the procurement process that assurespart of the procurement process that assures part of the procurement process that assures the government gets what it paid for the government gets what it paid for (Office of Federal Procurement Policy). (Office of Federal Procurement Policy).

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Th S tTh S tThe SpectrumThe Spectrum

The specific nature and extent of contract The specific nature and extent of contract administration varies from contract to administration varies from contract to contract. contract.

It can range from the minimum It can range from the minimum ggacceptance of a delivery and payment to acceptance of a delivery and payment to the contractor to extensive involvement the contractor to extensive involvement over the term of agreement. over the term of agreement.

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K t SK t S

O i ti l E i tO i ti l E i t

Keys to SuccessKeys to Success

Organizational EnvironmentOrganizational Environment Solicitation/Sourcing PhaseSolicitation/Sourcing Phase Evaluation/Award PhaseEvaluation/Award Phase Post Award PhasePost Award Phase Post Award PhasePost Award Phase Contract Performance PhaseContract Performance Phase

C t t R l PhC t t R l Ph Contract Renewal PhaseContract Renewal Phase Warranty and CloseWarranty and Close--out Phaseout Phase

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K t SK t SKeys to SuccessKeys to Success

O i ti l E i tO i ti l E i t Foster an open, fair and supportive business Foster an open, fair and supportive business

environment with suppliers and internal customersenvironment with suppliers and internal customers

Organizational EnvironmentOrganizational Environment

Seek top management support and understanding of Seek top management support and understanding of the “procurement function” and the value it deliversthe “procurement function” and the value it delivers

Develop Contract Administration procedures and Develop Contract Administration procedures and p pp pprotocols to include training programs for contract protocols to include training programs for contract personnelpersonnel

Ensure you visibly network w/professional Ensure you visibly network w/professional y y py y porganizationsorganizations

Consider Contractor’s successful interface with Consider Contractor’s successful interface with environmentenvironment

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S li it ti /S i PhS li it ti /S i Ph Develop strong/enforceable solicitation and contract Develop strong/enforceable solicitation and contract

documentdocument

Solicitation/Sourcing PhaseSolicitation/Sourcing Phase

document document Ensure solicitation is advertised well to attract Ensure solicitation is advertised well to attract

qualified suppliersqualified suppliersq ppq pp Issue clear and complete solicitation documents that Issue clear and complete solicitation documents that

defines contract requirementsdefines contract requirementsC d tC d t li it ti f d “li t ”li it ti f d “li t ” Conduct preConduct pre--solicitation conference and “listen” solicitation conference and “listen” carefully to suppliers during bidding processcarefully to suppliers during bidding process

Issue addendums as necessary to clarify documentIssue addendums as necessary to clarify document Issue addendums as necessary to clarify documentIssue addendums as necessary to clarify document

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E l ti /A d PhE l ti /A d Ph Ensure strong and diverse evaluation committeeEnsure strong and diverse evaluation committee

C f ll l l ti it i t ffC f ll l l ti it i t ff

Evaluation/Award PhaseEvaluation/Award Phase

Carefully apply evaluation criteria to offersCarefully apply evaluation criteria to offers Utilize interviews and negotiations to ensure clear Utilize interviews and negotiations to ensure clear

understanding of top offersunderstanding of top offersunderstanding of top offersunderstanding of top offers Scrutinize past project success and track record of Scrutinize past project success and track record of

submitting firmssubmitting firms Review organizational/financial strength of firmsReview organizational/financial strength of firms Award contracts to quality driven firmsAward contracts to quality driven firms

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P t A d PhP t A d Ph Issue award notice Issue award notice

Post Award PhasePost Award Phase

Acquire insurance and bonding documentAcquire insurance and bonding document Issue Purchase OrderIssue Purchase Order Conduct “kickConduct “kick--off” meeting with awarded off” meeting with awarded

firm, endfirm, end--users and procurementusers and procurement Clearly set expectations for both contractor Clearly set expectations for both contractor

and owner and review contractual and owner and review contractual i ti trequirementsrequirements

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C t t P f PhC t t P f Ph Ensure endEnsure end--user is familiar with contract user is familiar with contract

requirements and has copy of final contractrequirements and has copy of final contract

Contract Performance PhaseContract Performance Phase

requirements and has copy of final contract requirements and has copy of final contract Conduct early and onConduct early and on--going invoice audits to ensure going invoice audits to ensure

correct pricingcorrect pricingMonitor supplier performance/inspect deliveredMonitor supplier performance/inspect delivered Monitor supplier performance/inspect delivered Monitor supplier performance/inspect delivered items to ensure complianceitems to ensure compliance

Utilize performance correcting documentation such Utilize performance correcting documentation such as Demand for Assurance and Breach of Contractas Demand for Assurance and Breach of Contractas Demand for Assurance and Breach of Contract as Demand for Assurance and Breach of Contract notices, if necessarynotices, if necessary

Be familiar with contract claims resolution Be familiar with contract claims resolution process/arbitration rules etcprocess/arbitration rules etcprocess/arbitration rules, etc. process/arbitration rules, etc.

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C t t P f PhC t t P f Ph Ensure firm is provided with all appropriate award Ensure firm is provided with all appropriate award

th i i d t d t t i f tith i i d t d t t i f ti

Contract Performance PhaseContract Performance Phase

authorizing documents and contact informationauthorizing documents and contact information Discuss invoicing and payment approval process to Discuss invoicing and payment approval process to

ensure firm is paid in accordance with agreedensure firm is paid in accordance with agreedensure firm is paid in accordance with agreed ensure firm is paid in accordance with agreed timelinetimeline

Monitor total contract expenditures to ensure Monitor total contract expenditures to ensure li ith th i d li itli ith th i d li itcompliance with authorized limitscompliance with authorized limits

Conduct supplier visits to verify production and Conduct supplier visits to verify production and quality controlquality controlquality controlquality control

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C t t R l PhC t t R l Ph Ensure term contracts are organized in a data base Ensure term contracts are organized in a data base

that tracks expiration datesthat tracks expiration dates

Contract Renewal PhaseContract Renewal Phase

pp Poll endPoll end--user on desire to renew and provide formal user on desire to renew and provide formal

opportunity to rate firm on performance criteriaopportunity to rate firm on performance criteria Be familiar with market indexes and inflationaryBe familiar with market indexes and inflationary Be familiar with market indexes and inflationary Be familiar with market indexes and inflationary

conditions to ensure fair price negotiations for conditions to ensure fair price negotiations for renewal periodrenewal periodT k i tifi t /b d t idT k i tifi t /b d t id Track insurance certificates/bonds to avoid Track insurance certificates/bonds to avoid expirationexpiration

Prepare and distribute formal renewal Prepare and distribute formal renewal ppdocumentationdocumentation

Conduct annual year end spend reviews w/suppliersConduct annual year end spend reviews w/suppliers12



W t d ClW t d Cl t Pht Ph Ensure endEnsure end--user is aware of warranty termsuser is aware of warranty terms

B d t “f ” l ti t l iB d t “f ” l ti t l i

Warranty and CloseWarranty and Close--out Phaseout Phase

Be prepared to “force” resolution on warranty claimsBe prepared to “force” resolution on warranty claims Cycle back information and knowledge gained Cycle back information and knowledge gained

through contract administration efforts into thethrough contract administration efforts into thethrough contract administration efforts into the through contract administration efforts into the replacement solicitation document replacement solicitation document –– apply lessons apply lessons learned in creating a better contractlearned in creating a better contractC di t t iti b t t tC di t t iti b t t t Coordinate transition between contractorsCoordinate transition between contractors

Ensure contract records are retainedEnsure contract records are retained

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Q ti ?Q ti ?Questions?Questions?

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