oklahoma house of representatives government modernization committee
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Oklahoma House of Representatives Government Modernization Committee. November 8, 2011. Four Phases of Purchasing. Determining a contract need Solicitation and acquisition of the need Management of the contract performance Contract close-out and lessons learned - PowerPoint PPT PresentationTRANSCRIPT
November 8, 2011
Oklahoma House of RepresentativesGovernment Modernization Committee
Four Phases of Purchasing
1. Determining a contract need
2. Solicitation and acquisition of the need
3. Management of the contract performance
4. Contract close-out and lessons learned
Review practices from TX, KS, AR, NV, FL, and private sector
Current State of State Government Purchasing
• Decentralized procurement at agency-level
• Lack consistency across bids– Terms & Conditions– Scope of work (especially large bids)– Methodology– Evaluation criteria determined post-vendor response
• Oversight is spotty
• Lack expertise into different bid types (e.g. IT, Construction)
• Contract performance management rarely occurs
• Vendors learn the “personality” of the bidding entity
• Lack historical performance trending across state and/or states
General Best Practices
• Centralized Purchasing with specific focus– Consistent terms & conditions across agencies– Consolidate and cooperative purchasing power– Assign bid type-specific experts (IT, Construction)– Standards for sections—project management, performance, status
reporting, technical – Capture cost and schedule benchmarks—internal and external to the
State
• Establish and communicate a consistent Purchasing methodology– Agency to Purchasing process
• Bid Requirements, Feasibility studies• Internal review for approval to bid• Solicitation development best practices• Vendor target list
– Purchasing to Vendor process• Communication of solicitation process and bid status• Clarification of evaluation criteria• Timing between solicitation, award, and initiation• Establish contract performance management process
IT Solicitation Best Practices - Content
• Distinguish between project types– Software Implementation– Desktop/Server Licensing– Hardware– Establish project requirements to solicit by type– Consider RFI’s for complex, large or new efforts
• Vendor Solicitation and Engagement– Seek consistency in solicitations– Establish specific evaluation criteria prior to bid release– State project management based on risk assessment– Leverage scenario-based reviews in addition to paper response– For complex projects, establish engagement period first
• Time & materials, with not to exceed amount• Implementation could be stopped if engagement fails
– Upon finalists, engage in open discussions regarding• Scope• Risks• Cost• Schedule
– Identify opportunities for collaborative solicitations
IT Solicitation Best Practices - Retainage
• Software project licenses: – 40/40/20 or 30/30/40 splits– Contract, Installation, 90- or 180-day post
implementation
• Services: – Hold back 10% until project completion– Tie to deliverable
• Acceptance and Penalty clauses • 10% penalty if rejected more than 2 times• 10% bonus is accepted first time