procurement 201 purchasing goods and trade services developed by odot procurement office

Procurement 201Procurement 201Purchasing Goods and Trade Purchasing Goods and Trade ServicesServices

Developed by ODOT Procurement OfficeDeveloped by ODOT Procurement Office

22

HousekeepingHousekeeping

• Safety InformationSafety Information

• FacilitiesFacilities

• BreaksBreaks

• AccommodationAccommodation

• Handout packetHandout packet

Please…Please…

Mute your Cell Mute your Cell PhonesPhones

44

Training ObjectivesTraining Objectives

After completion of this training, participants After completion of this training, participants will be able to:will be able to:• Identify the roles and responsibilities for local Identify the roles and responsibilities for local

procurement of Goods and Trade Services up to procurement of Goods and Trade Services up to $100,000$100,000

• Describe the Small Procurement processDescribe the Small Procurement process

• Practice procuring Goods and Trade Services using Practice procuring Goods and Trade Services using the ‘3 Quote’ processthe ‘3 Quote’ process

• Apply Contract Administration practices to both simple Apply Contract Administration practices to both simple and complex purchases of Goods and Trade Servicesand complex purchases of Goods and Trade Services

• Use the Oregon Procurement Information Network Use the Oregon Procurement Information Network (ORPIN) to find existing Price Agreements(ORPIN) to find existing Price Agreements

55

AgendaAgenda

• Contracting BasicsContracting Basics

• Soliciting in the Open MarketSoliciting in the Open Market

• Small ProcurementSmall Procurement

• Intermediate ProcurementIntermediate Procurement

• Purchase OrdersPurchase Orders

• Procurements over $100,000Procurements over $100,000

• Contract AdministrationContract Administration

• ResourcesResources

66

IntroductionsIntroductions

• Your nameYour name

• Where you workWhere you work

• What you purchaseWhat you purchase

Contracting Contracting BasicsBasics

Section 1Section 1


88

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Open MarketOpen Market Conducting purchase throughConducting purchase throughan open solicitation processan open solicitation process

First Steps to ProcurementFirst Steps to Procurement

Definethe NeedDefine

the Need

The Decision

To Purchase

The Decision

To Purchase

PurchasingAuthority

PurchasingAuthority

The “BuyDecision”The “BuyDecision”

99

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The Decision

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PurchasingAuthority

The “BuyDecision”

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First Steps to ProcurementFirst Steps to ProcurementPurchasingAuthority


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1212

PurchasingAuthority

PurchasingAuthority


The Decision

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The Decision

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1313


the NeedDefining a business need in termsDefining a business need in termsof goods and/or services to meet the needof goods and/or services to meet the need

The Decision

To Purchase

The Decision

To Purchase

Determining if the potential purchase fitsDetermining if the potential purchase fitsthe mission, goals and budgetary constraintsthe mission, goals and budgetary constraints

Buying via socio-economic programs andBuying via socio-economic programs andagreements before using open marketagreements before using open market

The “BuyDecision”The “BuyDecision”

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PurchasingAuthority

PurchasingAuthority

Finalizing the authority to commit fundsFinalizing the authority to commit fundsand conduct a procurementand conduct a procurement


1414

Getting Started Getting Started

• Define the needDefine the need• Assess options; does it require purchasing Assess options; does it require purchasing

something or hiring a contractor to do work?something or hiring a contractor to do work?

• Estimate the total cost of purchaseEstimate the total cost of purchase• Confirm funds are authorized for the purchaseConfirm funds are authorized for the purchase• Determine who has authority to conduct the Determine who has authority to conduct the

purchasing processpurchasing process

• Define clear and specific requirementsDefine clear and specific requirements• If you don’t ask for it, you won’t get it!If you don’t ask for it, you won’t get it!

1515

• Estimated total cost is based on the Estimated total cost is based on the total cost of contract if amended to it’s total cost of contract if amended to it’s maximum limitmaximum limit

Estimated cost for initial contractEstimated cost for initial contract

Plus estimated cost for annual Plus estimated cost for annual renewals or additional projected renewals or additional projected workwork

EqualsEquals estimated total estimated total costcost

Estimated Total CostEstimated Total Cost

1616

Requirements for GoodsRequirements for Goods

• Defining product specificationsDefining product specifications• Product features and characteristicsProduct features and characteristics• Brand name requirement (more on next slide)Brand name requirement (more on next slide)

• Resources for product specifications and Resources for product specifications and standardsstandards• ODOT Qualified Products List (QPL)ODOT Qualified Products List (QPL)• Established ODOT standardsEstablished ODOT standards• Product catalogs and brochuresProduct catalogs and brochures• Internet researchInternet research

1717

Brand Name Specifications Brand Name Specifications

• Requires Requires writtenwritten determinationdetermination that it that it meets at least one of the following:meets at least one of the following:

• unlikely to encourage favoritism or unlikely to encourage favoritism or substantially diminish competition;substantially diminish competition;

• would result in substantial cost savings;would result in substantial cost savings;

• only one manufacturer or seller for the quality, only one manufacturer or seller for the quality, performance or functionality required; orperformance or functionality required; or

• requires purchase of goods or services requires purchase of goods or services compatible with existing goods.compatible with existing goods.

• Keep written determination in fileKeep written determination in file

1818

Brand Name or Equal Brand Name or Equal

• Can specify brand name “or equal” to Can specify brand name “or equal” to establish standard of quality, establish standard of quality, performance, functionality and other performance, functionality and other characteristics requiredcharacteristics required

• Does not require written determinationDoes not require written determination

• Does not have to meet required criteriaDoes not have to meet required criteria

• Must accept bids for products that meet Must accept bids for products that meet mandatory specifications, regardless of brand mandatory specifications, regardless of brand namename

1919


• Examples of other requirementsExamples of other requirements

• Warranty requirementsWarranty requirements

• Maintenance and support requirementsMaintenance and support requirements

• Delivery requirements Delivery requirements • FOB Destination vs. FOB OriginFOB Destination vs. FOB Origin• Delivery locations and timelinesDelivery locations and timelines• Include cost of shipping and handling in bid Include cost of shipping and handling in bid

priceprice

• Insurance requirements (more on next slide)Insurance requirements (more on next slide)

2020

Insurance for GoodsInsurance for Goods

If vendor delivers goods, require:If vendor delivers goods, require:• Workers’ CompensationWorkers’ Compensation for vendors with for vendors with

more than 1 employeemore than 1 employee

• Automobile LiabilityAutomobile Liability covers bodily injury or covers bodily injury or property damage associated with vendor’s property damage associated with vendor’s automobileautomobile

Recommended:Recommended: • Commercial General LiabilityCommercial General Liability covers bodily covers bodily

injury and property damage caused by vendor injury and property damage caused by vendor or product purchased from vendoror product purchased from vendor

2121

Insurance for GoodsInsurance for Goods

If purchasing a vehicle, also If purchasing a vehicle, also consider:consider:• Garagekeepers’ Legal Liability Garagekeepers’ Legal Liability covers covers

damage to vehicle occurring at vendor’s damage to vehicle occurring at vendor’s facility when left for service, repair, storage or facility when left for service, repair, storage or safekeeping safekeeping

2222


• Specify each requirement as Mandatory or Specify each requirement as Mandatory or DesirableDesirable

• MandatoryMandatory• Must reject bid if any mandatory not metMust reject bid if any mandatory not met• Cost is included in bid total for low bid Cost is included in bid total for low bid

determinationdetermination

• DesirableDesirable• Not required, but adds valueNot required, but adds value• Cost generally not included in bid total for Cost generally not included in bid total for

low bid determinationlow bid determination• If not included in bid total, cost can be If not included in bid total, cost can be

negotiatednegotiated

2323


• Invite vendors to offer additional features Invite vendors to offer additional features or accessoriesor accessories• Price of these not included in bid total for low Price of these not included in bid total for low

bid determinationbid determination

• Cost of these can be negotiatedCost of these can be negotiated

2424

Sustainability - Buying Green Sustainability - Buying Green

City of PortlandCity of Portland www.portlandonline.com/buygreenwww.portlandonline.com/buygreen

Energy Efficient Energy Efficient • Energy Star logo / website at Energy Star logo / website at

www.energystar.govwww.energystar.gov

Recycled ContentRecycled Content• Post-consumer content is bestPost-consumer content is best• EPA website: EPA website: www.epa.gov/cpg/www.epa.gov/cpg/

Non-ToxicNon-Toxic• Be wary of products labeled non-toxic without Be wary of products labeled non-toxic without

reference to certification or other details.reference to certification or other details.

Minimal & Recyclable PackagingMinimal & Recyclable Packaging

Buy Local, Buy MWESBBuy Local, Buy MWESB

2525

Requirements for ServicesRequirements for Services

• Options for defining requirements for Options for defining requirements for ServicesServices

• Describe the situation and ODOT’s Describe the situation and ODOT’s requirements for the final outcome - requirements for the final outcome - contractor determines how to get it donecontractor determines how to get it done

• Use a Statement of Work that includes:Use a Statement of Work that includes:• Tasks - description of work to be doneTasks - description of work to be done• Deliverables - tangible, measurable Deliverables - tangible, measurable

outcomes of the workoutcomes of the work• Schedule – date each Deliverable must be Schedule – date each Deliverable must be

completedcompleted

2626

Requirements for ServicesRequirements for Services

• Examples of other requirementsExamples of other requirements• Safety standardsSafety standards

• Certifications or licensesCertifications or licenses

• Specifications for materials to be usedSpecifications for materials to be used

• Insurance coverage (more on next slide)Insurance coverage (more on next slide)

2727

Insurance for ServicesInsurance for Services

Always require:Always require:• Commercial General LiabilityCommercial General Liability covers bodily covers bodily

injury and property damage caused by vendor or injury and property damage caused by vendor or product purchased from vendorproduct purchased from vendor

• Workers’ CompensationWorkers’ Compensation for vendors with for vendors with more than 1 employeemore than 1 employee

If services require operation of vehicle, If services require operation of vehicle, require:require:• Automobile LiabilityAutomobile Liability covers bodily injury or covers bodily injury or

property damage associated with vendor’s property damage associated with vendor’s automobileautomobile

2828

Insurance for ServicesInsurance for Services

If service for ODOT vehicle, consider:If service for ODOT vehicle, consider:• Garagekeepers’ Legal Liability Garagekeepers’ Legal Liability covers damage to covers damage to

vehicle occurring at vendor’s facility when left for vehicle occurring at vendor’s facility when left for service, repair, storage or safekeeping service, repair, storage or safekeeping

If there’s risk of pollution, consider:If there’s risk of pollution, consider:• Pollution LiabilityPollution Liability covers bodily injury, property covers bodily injury, property

damage and environmental damage caused by damage and environmental damage caused by vendor in a sudden accidental occurrence (can vendor in a sudden accidental occurrence (can include gradual accidental occurrence)include gradual accidental occurrence)

2929

The “Buy Decision”The “Buy Decision”

Consider Buy Decision sources in priority order: Consider Buy Decision sources in priority order: 1.1. Surplus PropertySurplus Property2.2. Qualified Rehabilitation FacilitiesQualified Rehabilitation Facilities3.3. Inmate LaborInmate Labor4.4. DAS Statewide Price AgreementDAS Statewide Price Agreement

NOTE:NOTE: ORS 190 Agreements such as Intergovernmental & ORS 190 Agreements such as Intergovernmental & Tribal Agreements may be used at any time in the processTribal Agreements may be used at any time in the process

Open MarketOpen Market

If Buy Decision sources do not meet your needs, If Buy Decision sources do not meet your needs, the purchase may be made in the open marketthe purchase may be made in the open market

3030

The “Buy Decision”The “Buy Decision”

• Required to purchase from a “Buy Required to purchase from a “Buy Decision” source, if it meets ODOT’s Decision” source, if it meets ODOT’s needs.needs.• Often quicker process than Open Market Often quicker process than Open Market

solicitationssolicitations

• No limit to quantities or cost of purchaseNo limit to quantities or cost of purchase

3131

How to Find Buy Decision How to Find Buy Decision SourcesSources

SurplusSurplus• ODOT Surplus or websiteODOT Surplus or website• DAS websiteDAS website

Qualified Rehabilitation Facility (QRF)Qualified Rehabilitation Facility (QRF)• DAS website includes lists of QRF providers DAS website includes lists of QRF providers

for Goods or Servicesfor Goods or Services

Inmate LaborInmate Labor• Websites for Oregon Corrections Enterprises Websites for Oregon Corrections Enterprises

or Oregon Dept of Corrections Inmate Work or Oregon Dept of Corrections Inmate Work ActivitiesActivities

Handout

3232

How to Find Buy Decision How to Find Buy Decision SourcesSources

DAS Price AgreementsDAS Price Agreements• OPO website for list of Price AgreementsOPO website for list of Price Agreements• Call Debbie Janke at (503) 986-2799Call Debbie Janke at (503) 986-2799• Oregon Procurement Information Network Oregon Procurement Information Network

(ORPIN)(ORPIN)• Call DAS Hotline at (503) 378-4642, Option 2Call DAS Hotline at (503) 378-4642, Option 2

HandoutHandout

3333

Getting Access to ORPINGetting Access to ORPIN

To obtain “state employee” access to ORPINTo obtain “state employee” access to ORPIN• Email Email Debbie JankeDebbie Janke,, subject line "ORPIN subject line "ORPIN

Access" Access" • Include your preferred “user name” Include your preferred “user name”

• 6 characters or more6 characters or more• alpha or numeric characters onlyalpha or numeric characters only• case-sensitivecase-sensitive

For assistance with ORPINFor assistance with ORPIN• Contact Contact Debbie JankeDebbie Janke at (503) 986-2799 or by at (503) 986-2799 or by

emailemail

3434

ORPIN TrainingORPIN Training

DAS provides hands-on classes:DAS provides hands-on classes:• ORPIN Full System TrainingORPIN Full System Training

• ORPIN: Just the BasicsORPIN: Just the Basics

• iLearnOregon at iLearnOregon at https://iLearn.oregon.govhttps://iLearn.oregon.gov

• Check class dates and timesCheck class dates and times

• Register for trainingRegister for training

3535

DAS Price AgreementsDAS Price Agreements

• Intended to provide cost effective pricing Intended to provide cost effective pricing for common goods and servicesfor common goods and services• Prices in the Price Agreement are the Prices in the Price Agreement are the

maximum limitsmaximum limits• ODOT can request lower pricesODOT can request lower prices

• Designated as either Mandatory or Designated as either Mandatory or ConvenienceConvenience• Mandatory – Must use, with some exceptionsMandatory – Must use, with some exceptions• Convenience – May useConvenience – May use

3636

ODOT Price AgreementsODOT Price Agreements

• ODOT also has Price AgreementsODOT also has Price Agreements• AsphaltAsphalt• Emulsions and Recycling AgentsEmulsions and Recycling Agents• Deicer, Magnesium ChlorideDeicer, Magnesium Chloride

3737

Fleet Equipment PurchasesFleet Equipment Purchases

• Before contacting vendors, contact Fleet Before contacting vendors, contact Fleet Operations to verify if there is a price Operations to verify if there is a price agreement agreement

• Refer to “Fleet Equipment Purchase Refer to “Fleet Equipment Purchase Process” handout for more informationProcess” handout for more information

• If you have questions or need assistance, If you have questions or need assistance, contact Stacie Olano at (503) 986-2755contact Stacie Olano at (503) 986-2755

HandoutHandout

3838

Process Map - Bid, Award, Process Map - Bid, Award, PayPay

Soliciting inSoliciting inthe Open the Open MarketMarket

Section 2Section 2


4040


4141

State of Oregon Procurement State of Oregon Procurement PolicyPolicy

ORS 279A.015ORS 279A.015

A sound and responsive public contracting A sound and responsive public contracting system should:system should:

• Instill public confidenceInstill public confidence through ethical and through ethical and fair dealing, honesty and good faith on the fair dealing, honesty and good faith on the part of government officialspart of government officials

• Allow impartial and open competitionAllow impartial and open competition, , protecting both the integrity of the public protecting both the integrity of the public contracting process and the competitive contracting process and the competitive nature of public procurementnature of public procurement

4242

State of Oregon Procurement State of Oregon Procurement PolicyPolicy

ORS 279A.015 ORS 279A.015 (continued)(continued)

A sound and responsive public contracting A sound and responsive public contracting system should:system should:

• Promote efficient use of government resourcesPromote efficient use of government resources, , maximizing the economic investment in public maximizing the economic investment in public contracting within this state. contracting within this state.

• Clearly identify rules and policies that Clearly identify rules and policies that implement each of the implement each of the legislatively mandated legislatively mandated socioeconomic programssocioeconomic programs that overlay public that overlay public contracting and accompany the expenditure of contracting and accompany the expenditure of public funds. public funds.

4343

Ethical ConsiderationsEthical Considerations

Public employees are held to high Public employees are held to high standards of conductstandards of conduct

Government Ethics (ORS 244)Government Ethics (ORS 244)

• Staff declare potential or actual Staff declare potential or actual conflicts of interest; Agency reassigns conflicts of interest; Agency reassigns to staff with no conflict of interestto staff with no conflict of interest

• No unfair gain from public No unfair gain from public employmentemployment

4444

Ethical ConsiderationsEthical Considerations

Maintain public trustMaintain public trust• Promote impartial and open Promote impartial and open

competitioncompetition

• Maintain a fair and level playing fieldMaintain a fair and level playing field

• Be good stewards of taxpayers moneyBe good stewards of taxpayers money

• Protect best interests of the StateProtect best interests of the State

4545

ExceptionsExceptions

TGM ProjectsTGM Projects

Personal ServicesPublic Improvements

Personal ServicesPublic Improvements

IT PurchasesIT Purchases

Up to $5,000

Above $150,000Above $150,000Above $150,000Above $150,000

$5,000.01 to $100,000$5,000.01 to $100,000

Up to $5,000Up to $5,000

$100,000.01 to $150,000

FormalFormalProcuremenProcuremen

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IntermediateIntermediateProcuremenProcuremen

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IntermediateIntermediateProcuremenProcuremen

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SmallSmallProcuremenProcuremen

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Procurement Authority & Procurement Authority & ThresholdsThresholds

Above $5 millionAbove $5 millionDAS AuthorityDAS AuthorityAbove $5 millionAbove $5 millionDAS Authority DAS Authority

4646

High Complexity–High Risk High Complexity–High Risk PurchasesPurchases

• Personal ServicesPersonal Services • Completed by OPOCompleted by OPO• A&E and Related Services under ORS 279C; A&E and Related Services under ORS 279C;

non-A&E under ORS 279Bnon-A&E under ORS 279B

• Public Improvements Public Improvements (Public Works)(Public Works) • Completed by OPOCompleted by OPO• Some under ORS 279C; others under ORS 279BSome under ORS 279C; others under ORS 279B• BOLI or Davis-Bacon prevailing wage BOLI or Davis-Bacon prevailing wage

requirementsrequirements• Bond requirementsBond requirements• ODOT required to pay fee to BOLI for Public ODOT required to pay fee to BOLI for Public

Works over $50,000Works over $50,000

4747

High Complexity–High Risk High Complexity–High Risk PurchasesPurchases

• IT Related PurchasesIT Related Purchases• Completed by ITPAMCompleted by ITPAM• Purchases must meet ODOT’s standard Purchases must meet ODOT’s standard

specificationsspecifications• Purchases require ODOT’s Chief Information Purchases require ODOT’s Chief Information

Officer approvalOfficer approval

• Goods & Trades over $100,000Goods & Trades over $100,000 • Completed by OPOCompleted by OPO• Solicitation requirements become more complexSolicitation requirements become more complex• Large contract amounts generally have more riskLarge contract amounts generally have more risk• Aggressive competition for contracts; more Aggressive competition for contracts; more

protestsprotests

4848

Complexity & Risk MatrixComplexity & Risk MatrixC

ompl

exit

Com

plex

ityy

RiskRisk

Complexity and Risk Complexity and Risk impact communication, impact communication, process, and contract process, and contract typetype

• verbal vs. written verbal vs. written solicitationsolicitation

• simple informal simple informal solicitation vs. more solicitation vs. more formal solicitationformal solicitation

• direct selection vs. direct selection vs. competitive processcompetitive process

• purchase order vs. purchase order vs. contractcontract

Low ComplexityLow Complexity& Risk& Risk

High ComplexityHigh Complexity& Risk& Risk

IncreasingIncreasingRiskRisk

IncreasingIncreasingComplexityComplexity

4949


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RiskRisk

Determine Determine ComplexityComplexity based on based on factors such as:factors such as:

• Product Product sophisticationsophistication

• Federal and state Federal and state requirementsrequirements

• Services generally Services generally considered complexconsidered complex





5050


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RiskRisk

Determine Determine RiskRisk based on assessment based on assessment of:of:

• What could go What could go wrong?wrong?

• Likelihood of Likelihood of occurrence?occurrence?

• What kind of harm What kind of harm or loss?or loss?

• How can the risk be How can the risk be managed?managed?





5151

Evaluating Complexity and Evaluating Complexity and RiskRisk

Washing outside of T-Bldg windowsWashing outside of T-Bldg windowsComplexityComplexity• Product sophisticationProduct sophistication• Types of servicesTypes of services• Federal and state requirementsFederal and state requirements

RiskRisk• What could go wrong?What could go wrong?• Likelihood of occurrence?Likelihood of occurrence?• What kind of harm or loss?What kind of harm or loss?• How can the risk be managed?How can the risk be managed?

5252


Buying or leasing a specialized Buying or leasing a specialized copier copier (not on DAS Statewide Price Agreement)(not on DAS Statewide Price Agreement)

ComplexityComplexity• Product sophisticationProduct sophistication• Types of servicesTypes of services• Federal and state requirementsFederal and state requirements


5353


Seats for One Ford F550 Truck Seats for One Ford F550 Truck (Part number L45879A2)(Part number L45879A2)

ComplexityComplexity• Product sophisticationProduct sophistication• Types of servicesTypes of services• Federal & state requirementsFederal & state requirements


Small Small ProcurementProcurement

Section 3Section 3


5555

Small ProcurementSmall Procurement

ORS 279B.065ORS 279B.065

• Any procurement of goods or services not Any procurement of goods or services not exceeding $5,000exceeding $5,000

• A Small Procurement may be awarded in A Small Procurement may be awarded in any manner deemed practical or any manner deemed practical or convenient, including by direct selection convenient, including by direct selection or awardor award

5656


ORS 279B.065ORS 279B.065

• A contract awarded under this section A contract awarded under this section may be amended to exceed $5,000 only in may be amended to exceed $5,000 only in accordance with rules adopted under ORS accordance with rules adopted under ORS 279A.065 (Amendment must not 279A.065 (Amendment must not increase contract total to exceed $6,000)increase contract total to exceed $6,000)

• A procurement may not be artificially A procurement may not be artificially divided or fragmented so as to constitute divided or fragmented so as to constitute a Small Procurement.a Small Procurement.

5757


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RiskRisk

Direct Direct PurchasePurchase

3 Quote 3 Quote ProcessProcess

PO with PO with attachmentsattachments

Market Market ResearchResearch

Direct Direct SelectionSelection

Low Complexity–Low RiskLow Complexity–Low Risk• Contact one vendorContact one vendor• Make purchaseMake purchase

High Complexity–Low RiskHigh Complexity–Low RiskLow Complexity–High RiskLow Complexity–High Risk

• Market research to find Market research to find appropriate goods or appropriate goods or servicesservices

• Select in practical or Select in practical or convenient mannerconvenient manner

High Complexity–High High Complexity–High RiskRisk• 3 Quote process 3 Quote process • PO with attachmentsPO with attachments

Market Market ResearchResearch

Direct Direct SelectionSelection

5858


5959


• Award in any manner deemed practical or Award in any manner deemed practical or convenientconvenient• Direct selectionDirect selection• Competitive 3 Quote process (optional)Competitive 3 Quote process (optional)

• Contracting/Purchasing methodContracting/Purchasing method• Pay direct from invoicePay direct from invoice• SPOTS Visa cardSPOTS Visa card• Purchase Order or Standard Contract Purchase Order or Standard Contract

(optional)(optional)

6060


• Procurement ResponsibilityProcurement Responsibility

• Local PurchaserLocal Purchaser: Initiates and completes : Initiates and completes purchasepurchase

• OPO: Information and support for local OPO: Information and support for local purchaserpurchaser

• DAS: Not involved at this threshold levelDAS: Not involved at this threshold level

The Magic Number

The Magic Number

6262

The Magic Number - $5,000The Magic Number - $5,000

$5,000 or less:$5,000 or less:• Can use SPOTS card to make purchaseCan use SPOTS card to make purchase

$$5,000 or more requires:5,000 or more requires:• Notification to Advocate for Minority, Notification to Advocate for Minority,

Women, Emerging Small Business (MWESB) Women, Emerging Small Business (MWESB) • Purchase order or contractPurchase order or contract

Over $5,000 requires:Over $5,000 requires:• Competitive solicitationCompetitive solicitation• Posting on ORPINPosting on ORPIN

6363


MWESB Notification MWESB Notification (ORS 200.035)(ORS 200.035)

• ODOT must provide timely notice to the ODOT must provide timely notice to the Advocate for Minority, Women and Advocate for Minority, Women and Emerging Small Business (MWESB) Emerging Small Business (MWESB)

• Required for each solicitation of $5,000 or Required for each solicitation of $5,000 or more and each contract award of $5,000 or more and each contract award of $5,000 or moremore

• Three options to meet the requirement:Three options to meet the requirement:• Self search database and fax results after awardSelf search database and fax results after award• Fax for solicitation and separate fax after awardFax for solicitation and separate fax after award• Post solicitation and award on ORPINPost solicitation and award on ORPIN

HandoutHandout

6464


Oregon Procurement Information Oregon Procurement Information Network (ORPIN) Network (ORPIN) (OAR 125-247-0270)(OAR 125-247-0270)

• DAS requirement applies to purchases not DAS requirement applies to purchases not directly related to transportationdirectly related to transportation

• DAS requires posting a notice on ORPIN DAS requires posting a notice on ORPIN for: for: • Each solicitation that exceeds $5,000Each solicitation that exceeds $5,000• Each contract award that exceeds Each contract award that exceeds

$5,000$5,000

6565


The Notice in ORPIN must provide: The Notice in ORPIN must provide:

• A general description of Goods and Services to A general description of Goods and Services to be acquired; be acquired;

• A reasonable and sufficient interval between A reasonable and sufficient interval between the first date of the notice and bid closing. For the first date of the notice and bid closing. For purchases exceeding $100,000, interval must purchases exceeding $100,000, interval must be at least seven calendar days; be at least seven calendar days;

• The name, title and address of the ODOT staff The name, title and address of the ODOT staff authorized to receive bids; and authorized to receive bids; and

• Any other information ODOT deems to be Any other information ODOT deems to be appropriate. appropriate.

Intermediate Intermediate Procurements Procurements up to $100,000up to $100,000

Section 4Section 4


6767

Intermediate ProcurementIntermediate Procurement

ORS 279B.070ORS 279B.070

• Any procurement of goods or services Any procurement of goods or services exceeding $5,000 but not exceeding exceeding $5,000 but not exceeding $150,000$150,000

• Must seek at least three informally solicited Must seek at least three informally solicited competitive price quotes or proposals from competitive price quotes or proposals from prospective contractors and keep a written prospective contractors and keep a written record of the sources of the quotes or record of the sources of the quotes or proposals receivedproposals received

• If three quotes or proposals not reasonably If three quotes or proposals not reasonably available, document effortsavailable, document efforts

6868


ORS 279B.070ORS 279B.070

• Award to bidder whose quote or proposal Award to bidder whose quote or proposal best serves the interests of agency taking best serves the interests of agency taking into account price as well as considerations into account price as well as considerations such as experience, expertise, product such as experience, expertise, product functionality, suitability for a particular functionality, suitability for a particular purpose and contractor responsibility purpose and contractor responsibility

• A procurement may not be artificially A procurement may not be artificially divided or fragmented so as to constitute an divided or fragmented so as to constitute an Intermediate Procurement.Intermediate Procurement.

6969

Amendment LimitationsAmendment Limitations

ORS 279B.070ORS 279B.070• A contract awarded under this section A contract awarded under this section

may be amended to exceed $150,000 only may be amended to exceed $150,000 only in accordance with rules adopted under in accordance with rules adopted under ORS 279A.065ORS 279A.065

7070


• Intermediate Procurements – Intermediate Procurements – ODOT AuthorityODOT Authority

• Cumulative amount of amendments Cumulative amount of amendments cannot exceed 25% of original contract cannot exceed 25% of original contract amountamount

7171


• Intermediate Procurements – Intermediate Procurements – DAS AuthorityDAS Authority

• If contract total will exceed $150,000, must obtain If contract total will exceed $150,000, must obtain prior approval from DAS for Special Procurement prior approval from DAS for Special Procurement

• Anticipated AmendmentsAnticipated Amendments – No limit to – No limit to amendments until contract total reaches $150,000amendments until contract total reaches $150,000

• Unanticipated AmendmentsUnanticipated Amendments – Prior OPO or DAS – Prior OPO or DAS approval is required to exceed 20% of original approval is required to exceed 20% of original contract amountcontract amount

7272


• Procurements over $5,000 up to Procurements over $5,000 up to $150,000$150,000• Competitive process required – Competitive process required –

• Seek to obtain 3 quotes or proposalsSeek to obtain 3 quotes or proposals• Keep written record of quotes or proposals Keep written record of quotes or proposals

receivedreceived• Document efforts if 3 are not availableDocument efforts if 3 are not available

• Award to quote that best serves interests of AgencyAward to quote that best serves interests of Agency• Lowest bid or other considerationsLowest bid or other considerations

• Contracting methodContracting method• Purchase OrderPurchase Order• ContractContract

7373


• Procurement ResponsibilityProcurement Responsibility• Local PurchaserLocal Purchaser::

• Initiate and complete purchase of $100,000 Initiate and complete purchase of $100,000 or lessor less

• Submit Purchase Requisition to OPO if over Submit Purchase Requisition to OPO if over $100,000$100,000

• OPOOPO: Complete procurement if over $100,000 : Complete procurement if over $100,000

• DASDAS: Not involved at this threshold level: Not involved at this threshold level

7474


ompl

exit

Com

plex

ityy

RiskRisk

Phone QuotesPhone Quotes

POPO

ITBITB

ContractContract

Request Request for Bidfor Bid

PO with PO with attachments attachments

Low Complexity – Low Low Complexity – Low RiskRisk

• Solicit quotes by phoneSolicit quotes by phone• Purchase Order (PO)Purchase Order (PO)

High Complexity – Low High Complexity – Low RiskRisk

Low Complexity – High Low Complexity – High RiskRisk

• Written solicitationWritten solicitation• Email/Fax to vendors Email/Fax to vendors

or post on ORPINor post on ORPIN• PO with attachmentsPO with attachments

High Complexity – High High Complexity – High RiskRisk

• More formal written More formal written solicitationsolicitation

• Email/Fax to vendors Email/Fax to vendors or post on ORPINor post on ORPIN

• ContractContract

Request Request for Bidfor Bid

PO with PO with attachmentsattachments

7575


7676

Market ResearchMarket Research

• Identify potential vendors Identify potential vendors • Vendors previously used by ODOTVendors previously used by ODOT

• Database of certified MWESBDatabase of certified MWESB

• ODOT’s Small Contracting Program databasesODOT’s Small Contracting Program databases

• ODOT’s Contractor Emergency Registry System ODOT’s Contractor Emergency Registry System (CERS)(CERS)

• Oregon Procurement Information Network Oregon Procurement Information Network (ORPIN)(ORPIN)

• Telephone bookTelephone book

• InternetInternet

HandoutHandout

7777

Identifying Potential VendorsIdentifying Potential Vendors

• Qualified Products List (QPL) Qualified Products List (QPL)

• List of products that meet ODOT specificationsList of products that meet ODOT specifications

• Includes contact info for manufacturers and Includes contact info for manufacturers and vendors for information about product vendors for information about product specificationsspecifications

• Does not limit who you purchase from; do Does not limit who you purchase from; do market research to identify potential vendorsmarket research to identify potential vendors

7878

Identifying Potential VendorsIdentifying Potential Vendors

• If unable to locate three or more local If unable to locate three or more local vendorsvendors

• Conduct market research for vendors outside Conduct market research for vendors outside localelocale

• Check our specifications and requirements; Check our specifications and requirements; are they unnecessarily restrictive?are they unnecessarily restrictive?

7979

Prepare SolicitationPrepare Solicitation

• Prepare solicitation documentation so Prepare solicitation documentation so each vendor is given the same information each vendor is given the same information • Script for phone quotesScript for phone quotes

• Request for Bids formRequest for Bids form

• Intermediate Invitation to Bid form Intermediate Invitation to Bid form

• Additional attachments, such as:Additional attachments, such as:• Product SpecificationsProduct Specifications• Statement of WorkStatement of Work• Special Terms and ConditionsSpecial Terms and Conditions• Insurance RequirementsInsurance Requirements

8080

Notice of SolicitationNotice of Solicitation

• Timely notification to Timely notification to MWESB Advocate of solicitationMWESB Advocate of solicitation

• Complete self-search of MWESB database and Complete self-search of MWESB database and include certified businesses in pool of vendors include certified businesses in pool of vendors to be contactedto be contacted

• Fax notification form of solicitationFax notification form of solicitation

• Post solicitation on ORPIN (Required when Post solicitation on ORPIN (Required when under DAS Authority)under DAS Authority)

Keep Keep documentationdocumentation

8181

Contact VendorsContact Vendors

• Contact vendors to obtain minimum of 3 Contact vendors to obtain minimum of 3 quotesquotes• Communicate to vendors by phone or written Communicate to vendors by phone or written

solicitation solicitation • If unable to obtain 3 quotes, document efforts If unable to obtain 3 quotes, document efforts

made to complymade to comply

• Document bid information receivedDocument bid information received• Phone - Document on “Purchase Phone Quote” Phone - Document on “Purchase Phone Quote”

formform• Email or Faxed - Keep bid forms received from Email or Faxed - Keep bid forms received from

vendorsvendors


8282

Evaluation and SelectionEvaluation and Selection

• Evaluate and select vendor on basis Evaluate and select vendor on basis specified in solicitation:specified in solicitation:

• Lowest bidLowest bid• Must meet all mandatory specificationsMust meet all mandatory specifications

• Use total price of required products or Use total price of required products or services as “bid” to determine low bid; do not services as “bid” to determine low bid; do not include price of desirable featuresinclude price of desirable features

8383


• Evaluate and select vendor on basis Evaluate and select vendor on basis specified in solicitation:specified in solicitation:

• Best serves ODOT interestsBest serves ODOT interests• Must meet all mandatory specificationsMust meet all mandatory specifications

• Desirable features considered in selectionDesirable features considered in selection

• Price or cost is one of the evaluation criteriaPrice or cost is one of the evaluation criteria

• Document the basis for selection and how it Document the basis for selection and how it best serves ODOT’s interestbest serves ODOT’s interest

8484


• Bidder must be responsive and responsibleBidder must be responsive and responsible

• ResponsiveResponsive – Complied with all requirements – Complied with all requirements of solicitationof solicitation

• ResponsibleResponsible –As defined in ORS 279B.110 or –As defined in ORS 279B.110 or ORS 279C.375ORS 279C.375

• If ODOT determines the apparent If ODOT determines the apparent “winning” bidder is not responsive or not “winning” bidder is not responsive or not responsible, document the basis for that responsible, document the basis for that determinationdetermination

HandoutHandout

8585

Award ContractAward Contract

• Notify selected bidder and Notify selected bidder and send contractsend contract• PO with standard terms and conditions and PO with standard terms and conditions and

other attachmentsother attachments

• Contract, exhibits and attachmentsContract, exhibits and attachments

• Notification to other biddersNotification to other bidders• Can do as a courtesy; it’s not requiredCan do as a courtesy; it’s not required

• Email results with “bid tab” of bidders and bid Email results with “bid tab” of bidders and bid pricesprices


8686

Notice of AwardNotice of Award

• Timely notification to Timely notification to MWESB Advocate of contract awardMWESB Advocate of contract award

• Fax notification of self search and award; orFax notification of self search and award; or

• Fax notification form for award; orFax notification form for award; or

• Post award on ORPIN (required when under Post award on ORPIN (required when under DAS authority)DAS authority)


8787

Phone Solicitation Phone Solicitation

• Best limited to simple, one-time purchase Best limited to simple, one-time purchase of goodsof goods

• Market ResearchMarket Research• Search MWESB database Search MWESB database

• Identify vendors to obtain minimum of 3 quotesIdentify vendors to obtain minimum of 3 quotes

• Prepare SolicitationPrepare Solicitation• Fill out top section of “Purchase Phone Quote” Fill out top section of “Purchase Phone Quote”

form form

• Prepare a script of what to tell vendorsPrepare a script of what to tell vendors

HandoutHandout

8888

Phone SolicitationPhone Solicitation

• Contact VendorsContact Vendors• Call vendors; describe product or services Call vendors; describe product or services

neededneeded

• Confirm vendors can meet required Confirm vendors can meet required specifications specifications

• Obtain price quotes Obtain price quotes

• Document vendor contacts and quotes on Document vendor contacts and quotes on “Purchase Phone Quote” form“Purchase Phone Quote” form

8989


• Evaluate Bids and Select VendorEvaluate Bids and Select Vendor• Compare quotes obtained from vendorsCompare quotes obtained from vendors

• Reject quotes that are not “responsive”Reject quotes that are not “responsive”

• Award is typically based on lowest bidAward is typically based on lowest bid

• If selecting other than lowest bid, document If selecting other than lowest bid, document how award best meets ODOT’s interest how award best meets ODOT’s interest

9090


• Award ContractAward Contract• Send PO with terms and conditions to selected Send PO with terms and conditions to selected

vendor vendor

• Send MWESB notification of self-search and Send MWESB notification of self-search and awardaward

• If under DAS Authority, post “Purchase Phone If under DAS Authority, post “Purchase Phone Quote” on ORPINQuote” on ORPIN

• Make PurchaseMake Purchase

9191

Solicitation ExerciseSolicitation Exercise

Let’s buy attenuators!Let’s buy attenuators!

Exercise

Exercise

9292


Activity DisclaimerActivity Disclaimer• This activity is very loosely based on This activity is very loosely based on

actual ODOT purchases. actual ODOT purchases.

• The scenario, technical specifications, and bid The scenario, technical specifications, and bid information do not reflect actual work zone safety information do not reflect actual work zone safety requirements, approved product or delivery requirements, approved product or delivery specifications, or actual product costs.specifications, or actual product costs.

• The information compiled for this activity was The information compiled for this activity was imaginatively compiled and embellished on by imaginatively compiled and embellished on by OPO trainers solely for procurement training OPO trainers solely for procurement training purposes.purposes.

9393


3-Quote Checklist3-Quote Checklist • Define NeedDefine Need• Expenditure & Procurement Authority in place?Expenditure & Procurement Authority in place?• Available through Buy Decision sources?Available through Buy Decision sources?• Is purchase IT, PSK, PW/PI, or GTS over Is purchase IT, PSK, PW/PI, or GTS over

$100,000?$100,000?• Assess complexity and riskAssess complexity and risk• Complete self-search for MWESB Complete self-search for MWESB • Identify vendors to contact for minimum of 3 bids Identify vendors to contact for minimum of 3 bids • Complete solicitation documentComplete solicitation document• Evaluate bids and make selection Evaluate bids and make selection • Complete MWESB notification form Complete MWESB notification form

9494

Written SolicitationWritten Solicitation

• Not required; recommended for most Not required; recommended for most purchasespurchases

• Market ResearchMarket Research

• Prepare SolicitationPrepare Solicitation• ““Request for Bid” or “Intermediate ITB” formRequest for Bid” or “Intermediate ITB” form

• Specify how bids must be submitted and deadlineSpecify how bids must be submitted and deadline

• Describe selection criteria to be used for awardDescribe selection criteria to be used for award

• Include written specifications or statement of workInclude written specifications or statement of work

• Include sample of contract terms and conditions, Include sample of contract terms and conditions, and other attachments when applicableand other attachments when applicable

9595

Request for BidRequest for Bid

• New for written 3-Quote solicitationNew for written 3-Quote solicitation

• Limited to simple, one-time purchase of Limited to simple, one-time purchase of goodsgoods• Generally used with a Purchase OrderGenerally used with a Purchase Order

• Low to medium complexity or riskLow to medium complexity or risk

• Not recommended for servicesNot recommended for services• Purchase Order lacks important provisionsPurchase Order lacks important provisions

HandoutHandout

9696

Intermediate Invitation to Intermediate Invitation to BidBid

Two versions available online:Two versions available online:

• Intermediate ITB for GoodsIntermediate ITB for Goods• Includes a comprehensive contractIncludes a comprehensive contract

• For high complexity or high risk purchases of For high complexity or high risk purchases of goodsgoods

• Intermediate ITB for ServicesIntermediate ITB for Services• Includes a comprehensive contract Includes a comprehensive contract

• Recommended for procuring all trade servicesRecommended for procuring all trade services

HandoutHandout

9797


• Contact VendorsContact Vendors• Send solicitation documents by email or fax Send solicitation documents by email or fax

• When DAS authority, post solicitation on ORPINWhen DAS authority, post solicitation on ORPIN

• Receive completed bid formsReceive completed bid forms

• Evaluate Bids and Select VendorEvaluate Bids and Select Vendor• Evaluate bids based on requirements specified Evaluate bids based on requirements specified

in the solicitationin the solicitation

• Select based on criteria specified in the Select based on criteria specified in the solicitationsolicitation

9898


• Award ContractAward Contract • Notify selected bidder; send PO or contractNotify selected bidder; send PO or contract

• Courtesy notice with bid tab to other bidders Courtesy notice with bid tab to other bidders (optional)(optional)

• Send MWESB notification of award or post Send MWESB notification of award or post notice on ORPIN, if under DAS Authority notice on ORPIN, if under DAS Authority

• Make PurchaseMake Purchase

Purchase Purchase OrdersOrders

Section 5Section 5


100100

Purchase Order Purchase Order ResponsibilitiesResponsibilities

Financial Administration and Standards Financial Administration and Standards Manual Manual Chapter 15.1 Issuing Purchase OrdersChapter 15.1 Issuing Purchase Orders

• POs are sensitive inventoryPOs are sensitive inventory

• Keep in a secure locationKeep in a secure location

• Record issuance of each PO in log provided Record issuance of each PO in log provided with pad of POswith pad of POs

• Upon issuance of all POs in pad, forward log to Upon issuance of all POs in pad, forward log to Financial Services for reconciliationFinancial Services for reconciliation

HandoutHandout

101101

Purchase Order FormsPurchase Order Forms

• Order Purchase Orders from ODOT Order Purchase Orders from ODOT Storeroom (Form 734-1036)Storeroom (Form 734-1036)

• Electronic Purchase Order available on Electronic Purchase Order available on IntranetIntranet• Financial Services payment forms Financial Services payment forms

http://intranet.odot.state.or.us/fsb/forms/paymhttp://intranet.odot.state.or.us/fsb/forms/payment_forms.htment_forms.htm

102102

Purchase Order FormsPurchase Order Forms

When using electronic Purchase Order:When using electronic Purchase Order:

• Employ unused PO number from PO pad and Employ unused PO number from PO pad and ensure number is not used for another ensure number is not used for another purchasepurchase

• Fill out electronic PO onlineFill out electronic PO online

• Print PO and obtain approval signature on Print PO and obtain approval signature on printoutprintout

• Make copies and distribute appropriatelyMake copies and distribute appropriately

103103

Purchase Order Purchase Order RequirementsRequirements

• Purchase Order (PO) required for:Purchase Order (PO) required for:• Purchases of $5,000 or more Purchases of $5,000 or more

• Purchases under $5,000, when required by Purchases under $5,000, when required by vendor vendor

• To order off existing contract or price To order off existing contract or price agreement, agreement, when requiredwhen required

• Purchase Order NOT required:Purchase Order NOT required:• For invoice payment on existing contract or For invoice payment on existing contract or

price agreement, when the contract or price price agreement, when the contract or price agreement doesn’t require a PO when agreement doesn’t require a PO when submitting orderssubmitting orders

104104

Using Purchase OrdersUsing Purchase Orders

How is Purchase Order being used?How is Purchase Order being used?

• (Option A) as legally binding contract(Option A) as legally binding contract• Send PO, standard terms & conditions, and Send PO, standard terms & conditions, and

other attachments to vendor; keep copiesother attachments to vendor; keep copies

• (Option B) as ordering form(Option B) as ordering form • Reference contract or price agreement Reference contract or price agreement

number on POnumber on PO• Do not include PO standard terms and Do not include PO standard terms and

conditions; they do not applyconditions; they do not apply

HandoutHandout

105105

Using Purchase OrdersUsing Purchase Orders

• Send PO and other attachments to vendorSend PO and other attachments to vendor

• Keep copies for your filesKeep copies for your files

• ““Approved by” signature on PO approves Approved by” signature on PO approves payment of invoice; separate signature on payment of invoice; separate signature on invoice not requiredinvoice not required

HandoutHandout

106106

Purchase Order as a Purchase Order as a ContractContract• Requirements not written in the contract Requirements not written in the contract

are not legally enforceableare not legally enforceable

• Use attachments for additional Use attachments for additional requirementsrequirementsExamples:Examples:

• Technical specifications Technical specifications • Statement of WorkStatement of Work• Insurance requirementsInsurance requirements• Map of project siteMap of project site

• In “Special Terms & Conditions” include In “Special Terms & Conditions” include language to incorporate the attachments language to incorporate the attachments into the contract by referenceinto the contract by reference

107107

Purchase Order as a Purchase Order as a ContractContract

• Anticipated AmendmentsAnticipated Amendments• Applies to purchases under DAS authorityApplies to purchases under DAS authority

• Identify anticipated circumstances which would Identify anticipated circumstances which would require amending the PO (contract)require amending the PO (contract)

• List “anticipated amendments” on PO or attachmentList “anticipated amendments” on PO or attachment

• Anticipated amendments can exceed 20% of original Anticipated amendments can exceed 20% of original contract amount without OPO or DAS approvalcontract amount without OPO or DAS approval

• Amending a Purchase OrderAmending a Purchase Order• Contact the ODOT Procurement Office for guidanceContact the ODOT Procurement Office for guidance

108108


Envelope Opening MachineEnvelope Opening Machine

Exercise

Exercise

109109


Scenario Scenario

DMV has an aging and technologically deficient DMV has an aging and technologically deficient envelope opening system. A dramatic increase in envelope opening system. A dramatic increase in mail volume over the past two years has caused a mail volume over the past two years has caused a back log of DMV’s income business-mail back log of DMV’s income business-mail processing time. processing time.

DMV wants to obtain a higher capacity envelope DMV wants to obtain a higher capacity envelope opening machine with more robust features and opening machine with more robust features and increased safety to meet the increasing demands increased safety to meet the increasing demands of mail handling. The DMV manager has of mail handling. The DMV manager has approved up to $13,000 for purchase of a new approved up to $13,000 for purchase of a new system.system.

110110


3-Quote Checklist3-Quote Checklist• Assess complexity and riskAssess complexity and risk

• Fax MWESB solicitation Fax MWESB solicitation notificationnotification

• Prepare “Request for Bid” solicitation Prepare “Request for Bid” solicitation documentdocument

• Complete Purchase Order form for Complete Purchase Order form for purchase purchase

• Fax MWESB award notificationFax MWESB award notification

111111


Gettings Creek State Rest Gettings Creek State Rest AreaArea

Exercise

Exercise

112112

Gettings Creek Septic Gettings Creek Septic TanksTanks

Scenario Scenario The Gettings Creek State Rest Area (SRA) septic The Gettings Creek State Rest Area (SRA) septic tanks are out of compliance with DEQ regulations.tanks are out of compliance with DEQ regulations.

All of the tanks need to be pumped out and the All of the tanks need to be pumped out and the walls sprayed down and cleaned with clean or walls sprayed down and cleaned with clean or gray water.gray water.

Based on traffic and SRA usage, the work must be Based on traffic and SRA usage, the work must be done between the hours of 8 pm and 5 am. All done between the hours of 8 pm and 5 am. All work must be completed in no more than 2 days.work must be completed in no more than 2 days.

The District Manager has approved up to $18,000 The District Manager has approved up to $18,000 to have this work completed.to have this work completed.

113113

3-Quote Checklist3-Quote Checklist• Assess complexity and riskAssess complexity and risk

• Review “Intermediate Invitation to Bid for Review “Intermediate Invitation to Bid for Services” solicitation documentServices” solicitation document

• Meet MWESB Meet MWESB notification by posting notification by posting Intermediate ITB on Intermediate ITB on ORPINORPIN

Gettings Creek Septic Gettings Creek Septic TanksTanks

114114

What if…What if…

The estimated cost was under $100,000, The estimated cost was under $100,000, yet yet all bidsall bids came in over $100,000?! came in over $100,000?!

• Contact ODOT Procurement Office (OPO)Contact ODOT Procurement Office (OPO)

• Send all solicitation documentation to OPOSend all solicitation documentation to OPO

• OPO will review the documentationOPO will review the documentation• If it complies with requirements, OPO will If it complies with requirements, OPO will

award the contractaward the contract• If it doesn’t comply with requirements, OPO will If it doesn’t comply with requirements, OPO will

cancel and redo the solicitationcancel and redo the solicitation

Procurements Procurements over $100,000over $100,000

Section 6Section 6


116116

Procurement Authority Procurement Authority

Local purchaser not authorized to solicit for:Local purchaser not authorized to solicit for:

• Goods and Trade Services over $100,000 – Goods and Trade Services over $100,000 – Send Purchase Requisition to OPOSend Purchase Requisition to OPO

• Public ImprovementsPublic Improvements (or Public Works) – (or Public Works) – Send Purchase Requisition to OPOSend Purchase Requisition to OPO

• Personal ServicesPersonal Services – – Send Personal Services Request form to Send Personal Services Request form to OPOOPO

• IT Related PurchasesIT Related Purchases – – Contact IT Procurement and Asset Contact IT Procurement and Asset Management (ITPAM)Management (ITPAM)

117117


ompl

exit

Com

plex

ityy

RiskRisk

Low Low Complexity Complexity

Low RiskLow Risk

High High ComplexityComplexity

High Risk High Risk

High High ComplexityComplexity

Low RiskLow Risk

Higher complexity:Higher complexity:• More variations More variations

available in products available in products and servicesand services

• Federal funding Federal funding includedincluded

• Public Improvement or Public Improvement or Public WorksPublic Works

Higher risk:Higher risk:• Larger projects have Larger projects have

more opportunities for more opportunities for things to go wrongthings to go wrong

• When things go wrong, When things go wrong, often larger impact on often larger impact on ODOT or publicODOT or public

Low Low ComplexityComplexity

High RiskHigh Risk

118118

Local Purchaser Local Purchaser ResponsibilitiesResponsibilities

• Define need Define need

• Obtain approval to purchaseObtain approval to purchase

• Develop specifications or statement of workDevelop specifications or statement of work

• Define criteria to be used to select vendorDefine criteria to be used to select vendor

• Send Purchase Requisition to OPOSend Purchase Requisition to OPO

• Work collaboratively with OPO staff Work collaboratively with OPO staff throughout solicitationthroughout solicitation

• Refer vendors to ODOT point of contact during Refer vendors to ODOT point of contact during open solicitation (from advertising to award)open solicitation (from advertising to award)

119119

OPO ResponsibilitiesOPO Responsibilities

• Receives Purchase Requisition and Receives Purchase Requisition and determines procurement authoritydetermines procurement authorityRelated to Transportation – ODOT AuthorityRelated to Transportation – ODOT Authority• OPO conducts all solicitations over $100,000OPO conducts all solicitations over $100,000

Not Related to Transportation – DAS AuthorityNot Related to Transportation – DAS Authority• OPO conducts solicitations $100,000.OPO conducts solicitations $100,000.0101 to $5 to $5

million million • DAS conducts solicitations over $5 millionDAS conducts solicitations over $5 million

• When DAS conducts solicitation, OPO:When DAS conducts solicitation, OPO:• Sends Purchase Request to DASSends Purchase Request to DAS• Collaborates with DAS on local purchaser’s behalfCollaborates with DAS on local purchaser’s behalf

120120


• Consults with customer and provides Consults with customer and provides periodic updates of procurement statusperiodic updates of procurement status

• Prepares solicitation documentsPrepares solicitation documents

• Prepares Request for Bid, ITB or RFP Prepares Request for Bid, ITB or RFP documentdocument

• Reviews and edits specifications, statement of Reviews and edits specifications, statement of work and attachmentswork and attachments

• Obtains DOJ legal sufficiency review, when Obtains DOJ legal sufficiency review, when requiredrequired

121121

Solicitation Methods and Solicitation Methods and FormsForms

• Intermediate Procurement optionsIntermediate Procurement options (over $100,000 up to $150,000)(over $100,000 up to $150,000)• Request for BidRequest for Bid• Intermediate Invitation to BidIntermediate Invitation to Bid• Invitation to Bid (ITB)Invitation to Bid (ITB)• Request for Proposal (RFP)Request for Proposal (RFP)

• Formal Procurements options (over Formal Procurements options (over $150,000)$150,000)• Invitation to Bid (ITB)Invitation to Bid (ITB)• Request for Proposal (RFP)Request for Proposal (RFP)

122122

Invitation to Bid (ITB)Invitation to Bid (ITB)

ITB used to conduct Competitive Sealed ITB used to conduct Competitive Sealed BiddingBidding

Advantages: Advantages:

• Typically faster than RFP process Typically faster than RFP process

• Solicitation posted on ORPIN minimum of 14 Solicitation posted on ORPIN minimum of 14 daysdays

• Promotes price competition between vendorsPromotes price competition between vendors

• The solicitation document becomes the The solicitation document becomes the contractcontract

123123

Invitation to Bid (ITB)Invitation to Bid (ITB)

ITB used to conduct Competitive Sealed ITB used to conduct Competitive Sealed BiddingBidding

Disadvantages: Disadvantages:

• Must describe exactly what you require in the Must describe exactly what you require in the specificationsspecifications

• Sometimes difficult to evaluate bid info to Sometimes difficult to evaluate bid info to determine if it meets all the mandatory determine if it meets all the mandatory specificationsspecifications

• Must select lowest bid even if another bid meets Must select lowest bid even if another bid meets ODOT’s need betterODOT’s need better

• Limited negotiations of contract allowedLimited negotiations of contract allowed

124124

Request for Proposal (RFP)Request for Proposal (RFP)

RFP used to conduct Competitive Sealed RFP used to conduct Competitive Sealed ProposalProposal

Advantages: Advantages:

• Can select based on criteria in addition to Can select based on criteria in addition to priceprice

• Can solicit proposals for solutions to a Can solicit proposals for solutions to a problemproblem

• Can negotiate contract after selection Can negotiate contract after selection (including cost)(including cost)

125125

Request for Proposal (RFP)Request for Proposal (RFP)

RFP used to conduct Competitive Sealed RFP used to conduct Competitive Sealed ProposalProposal

Disadvantages:Disadvantages:

• Takes more time than ITB processTakes more time than ITB process

• Solicitation posted on ORPIN a minimum of 30 Solicitation posted on ORPIN a minimum of 30 days days

• Requires extensive evaluation, scoring and Requires extensive evaluation, scoring and ranking of proposalsranking of proposals

• Contract is separate from the solicitation Contract is separate from the solicitation documentdocument

126126


• Contact with vendorsContact with vendors• Posts solicitation documents on ORPINPosts solicitation documents on ORPIN• ODOT’s single point of contact for solicitationODOT’s single point of contact for solicitation• Responds to requests for clarification and Responds to requests for clarification and

protestsprotests

• Prepare and issue addendaPrepare and issue addenda, when needed, when needed

• Evaluation and SelectionEvaluation and Selection• Receives bids or proposalsReceives bids or proposals• Completes pass/fail administrative evaluation Completes pass/fail administrative evaluation

of bids or proposalsof bids or proposals• Facilitates evaluation of bids or proposals by Facilitates evaluation of bids or proposals by

customer’s evaluation teamcustomer’s evaluation team

127127


• Award and ContractAward and Contract• Issues Notice of Intent to Award to selected vendorIssues Notice of Intent to Award to selected vendor• Notifies competing vendors of intent to awardNotifies competing vendors of intent to award• Responds to protestsResponds to protests• Obtains required documents from selected vendorObtains required documents from selected vendor• Assists with negotiations of contract, when Assists with negotiations of contract, when

requestedrequested• Prepares contract documentPrepares contract document• Obtains DOJ legal sufficiency review of contract, Obtains DOJ legal sufficiency review of contract,

when requiredwhen required• Obtains required signatures on contractObtains required signatures on contract• Distributes copies of executed contractDistributes copies of executed contract• Maintains procurement file for solicitation and Maintains procurement file for solicitation and

awardaward

Contract Contract AdministrationAdministration

Section 7Section 7


129129

ITB

Xxx xxx x x

xxxx xxx

xxxx xx x

VENDOR

Award &Execute Contract

Contract ManagementContract ManagementContract ManagementContract Management

Contract AdministrationContract AdministrationContract AdministrationContract Administration

Procurement OverviewProcurement Overview

130130


131131

Scoping Contract Scoping Contract AdministrationAdministration

Com

plex

itC

ompl

exit

yy

RiskRisk

Minimal Minimal ContractContract

AdministrationAdministration

Active Active ContractContract

AdministrationAdministration



Impact of Complexity Impact of Complexity and Risk on Contract and Risk on Contract AdministrationAdministration

• Level of effortLevel of effort

• Degree of detailDegree of detail

• TimelinesTimelines

Co

mp

lexi

Co

mp

lexi

tyty

RiskRisk

LowLowComplexityComplexity

& Risk& Risk



HighHighComplexityComplexity

& Risk& Risk

132132

Contract AdministratorContract Administrator

• The officer, employee, or other individual The officer, employee, or other individual designated in writing as Contract designated in writing as Contract Administrator in the contractAdministrator in the contract

• Responsible for administering the Responsible for administering the contract; can delegate duties, but not the contract; can delegate duties, but not the responsibilityresponsibility

• Good contract administration starts with Good contract administration starts with knowing what’s in the contractknowing what’s in the contract

133133

Effective Contract Effective Contract AdministrationAdministration

For GoodsFor Goods• OrderOrder• Receive and inspectReceive and inspect• Accept or rejectAccept or reject• Pay invoice(s)Pay invoice(s)• Monitor contract expirationMonitor contract expiration

For ServicesFor Services• Assure contractor does all work required in the contractAssure contractor does all work required in the contract• Assure performance effort is appropriate and proficientAssure performance effort is appropriate and proficient• Assure satisfactory qualityAssure satisfactory quality• Assure timeliness of performanceAssure timeliness of performance• Assure compensation is within available contract limitsAssure compensation is within available contract limits• Evaluate and document performanceEvaluate and document performance• Monitor contract expirationMonitor contract expiration

Document - Document - DocumentDocument - Document - Document

134134

Contract Administration of Contract Administration of GoodsGoods

• OrderOrder• Follow ordering requirements Follow ordering requirements

in the contract in the contract

• Receive and InspectReceive and Inspect• If damage is visible, refuse shipment and If damage is visible, refuse shipment and

contact vendorcontact vendor

• Verify correct goods included in shipmentVerify correct goods included in shipment

• Inspect goods for damage and functionalityInspect goods for damage and functionality

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• Accept or rejectAccept or reject• Document acceptance on packing slip and sign Document acceptance on packing slip and sign

PO “received by”PO “received by”

• Or if rejected, contact vendor and arrange for Or if rejected, contact vendor and arrange for return of itemreturn of item

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• Pay invoicePay invoice• Ensure invoice reflects only Ensure invoice reflects only

goods received and acceptedgoods received and accepted

• Ensure that amounts charged Ensure that amounts charged comply with contract requirementscomply with contract requirements

• Short pay invoicesShort pay invoices to correct amounts to correct amounts when needed – document reasons for when needed – document reasons for adjustments on invoice and notify vendoradjustments on invoice and notify vendor

ODOT

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• Pay invoice (continued)Pay invoice (continued)• Send Financial Services the invoice, the Send Financial Services the invoice, the

approved PO and written verification that approved PO and written verification that goods were receivedgoods were received

• Invoices must be paid within the number of Invoices must be paid within the number of days specified in the contract, typically “Net days specified in the contract, typically “Net 30”30”

• If payment is after 45 days from receipt of If payment is after 45 days from receipt of invoice, ODOT may be charged a penalty for invoice, ODOT may be charged a penalty for late paymentlate payment

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• Monitor contract expiration dateMonitor contract expiration date• Do not order goods after contract expirationDo not order goods after contract expiration

• If extending contract, execute amendment If extending contract, execute amendment beforebefore contract expires contract expires

• Goods ordered and received prior to contract Goods ordered and received prior to contract expiration can be paid for after contract expiration can be paid for after contract expirationexpiration

• To pay out of current budget, To pay out of current budget, goods must be received before goods must be received before end of biennium and paid for end of biennium and paid for prior to biennium payment deadlineprior to biennium payment deadline

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Contract Administration of Contract Administration of ServicesServices

• Assure contractor does all work Assure contractor does all work required in the contractrequired in the contract• Periodically check that Periodically check that

services performed are in services performed are in the contractthe contract

• Don’t pay for services Don’t pay for services that are:that are:

• Not in the contractNot in the contract

• In the contract, but In the contract, but not being performednot being performed

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• Assure performance effort is Assure performance effort is appropriate and proficientappropriate and proficient• For time and materials contract, contractor’s For time and materials contract, contractor’s

employees should be well managed by their employees should be well managed by their supervisor and kept productive as much as supervisor and kept productive as much as possiblepossible

• Apprentices should not be doing journeyman Apprentices should not be doing journeyman workwork

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• Assure satisfactory qualityAssure satisfactory quality

• Inspect the work deliverables Inspect the work deliverables to confirm they meet the to confirm they meet the requirements in the contractrequirements in the contract

• Document issues and contact Document issues and contact contractorcontractor

• If requirements in the contract If requirements in the contract are clear, ODOT doesn’t pay for are clear, ODOT doesn’t pay for additional work to correct issuesadditional work to correct issues

• If requirements not in the contract or not If requirements not in the contract or not clear, ODOT may have to pay extra clear, ODOT may have to pay extra

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• Assure timeliness of performanceAssure timeliness of performance• Track date work deliverable is completed against Track date work deliverable is completed against

schedule in contractschedule in contract

• If late, be proactive on next deliverableIf late, be proactive on next deliverable

• Check status with contractor before next due Check status with contractor before next due datedate

• If delays are anticipated, ask what steps If delays are anticipated, ask what steps they’re taking to complete deliverable on time they’re taking to complete deliverable on time

• Report late deliverables on performance Report late deliverables on performance evaluationevaluation

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• Assure compensation is within Assure compensation is within available contract limitsavailable contract limits• Prices or rates used on invoice must be within Prices or rates used on invoice must be within

contract limitscontract limits

• Total amount of all invoices paid must not Total amount of all invoices paid must not exceed total contract amountexceed total contract amount

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• Evaluate and document performanceEvaluate and document performance• Complete a written performance evaluation to Complete a written performance evaluation to

document quality of contractor’s performancedocument quality of contractor’s performance

• Provide contractor a copy and an opportunity Provide contractor a copy and an opportunity to respondto respond

• Can consider documented performance for Can consider documented performance for award of future contractsaward of future contracts

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• Monitor contract expiration dateMonitor contract expiration date• Do not authorize services after contract has Do not authorize services after contract has

expired; all work must stop!expired; all work must stop!

• If extending contract, execute amendment If extending contract, execute amendment beforebefore contract expires contract expires

• Services performed prior to contract Services performed prior to contract expiration expiration can be paid for after contract expirationcan be paid for after contract expiration

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Change ManagementChange Management

• Amend contract in writing to:Amend contract in writing to:• Change requirementsChange requirements• Add or remove servicesAdd or remove services• Add, remove, or modify list of goodsAdd, remove, or modify list of goods• Change billing rates or price listChange billing rates or price list• Increase or decrease total contract amountIncrease or decrease total contract amount• Change schedule of work deliverable due datesChange schedule of work deliverable due dates• Change contract expiration dateChange contract expiration date

• Cannot add money to contract unless Cannot add money to contract unless providing additional products or providing additional products or servicesservices

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• Amendments may require DOJ legal Amendments may require DOJ legal sufficiency approvalsufficiency approval

• All required signatures must be obtained All required signatures must be obtained before terms of amendment are effectivebefore terms of amendment are effective

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• Small ProcurementsSmall Procurements• Amended contract Amended contract cannot exceedcannot exceed $6,000 $6,000

• Intermediate Procurements – Intermediate Procurements – ODOT AuthorityODOT Authority• Cumulative amount of amendments cannot Cumulative amount of amendments cannot

exceed 25% of original contract amountexceed 25% of original contract amount

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• Intermediate Procurements – Intermediate Procurements – DAS AuthorityDAS Authority

• If contract total will exceed $150,000, must If contract total will exceed $150,000, must obtain prior approval from DAS for Special obtain prior approval from DAS for Special Procurement Procurement

• Anticipated AmendmentsAnticipated Amendments – No limit to – No limit to amendments until contract total reaches amendments until contract total reaches $150,000$150,000

• Unanticipated AmendmentsUnanticipated Amendments – Prior OPO or DAS – Prior OPO or DAS approval is required to exceed 20% of original approval is required to exceed 20% of original contract amountcontract amount

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Records RetentionRecords Retention

• Keep Documentation of Solicitation, Keep Documentation of Solicitation, Selection and AwardSelection and Award• Documentation sent to potential biddersDocumentation sent to potential bidders

• Bids receivedBids received

• Evaluation of bidsEvaluation of bids

• Special OPO or DAS approvalsSpecial OPO or DAS approvals

• Written explanation of bid rejectionsWritten explanation of bid rejections

• Basis of selection if not lowest bidBasis of selection if not lowest bid

• Notice of award to vendorsNotice of award to vendors

• Purchase Order or ContractPurchase Order or Contract

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Records RetentionRecords Retention

• Not subject to public records Not subject to public records requestsrequests

• Proprietary information such as vendor trade Proprietary information such as vendor trade secretssecrets

• Confidential information such as comments or Confidential information such as comments or advice ODOT receives from DOJadvice ODOT receives from DOJ

• Keep this documentation separate in the file or Keep this documentation separate in the file or keep in a separate filekeep in a separate file

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Records RetentionRecords Retention• Contract administration documentationContract administration documentation

• InvoicesInvoices• Contract amendmentsContract amendments• Correspondence with vendor, including emailsCorrespondence with vendor, including emails• Performance evaluationsPerformance evaluations

• Keep records for 6 years after Keep records for 6 years after purchase or contract expiration; purchase or contract expiration; then destroythen destroy• Keep 10 years after substantial completion if Keep 10 years after substantial completion if

contract includes federal funds and for contract includes federal funds and for construction, alteration or repair of public construction, alteration or repair of public improvementsimprovements

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Purchasing JeopardyPurchasing Jeopardy

Jeopardy

Resources and Resources and Wrap UpWrap Up

Section 8Section 8


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Points of ContactPoints of Contact

ODOT Procurement ODOT Procurement Office assists with:Office assists with:• Defining NeedDefining Need

• Solicitation and SelectionSolicitation and Selection

• Award and NegotiationAward and Negotiation

• Performance IssuesPerformance Issues

• Changes & AmendmentsChanges & Amendments

• Billing Rate Review and Billing Rate Review and AcceptanceAcceptance

• Invoice Review and Invoice Review and ProcessingProcessing

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Online Resources - IntranetOnline Resources - Intranet

OPO’s Home Page: OPO’s Home Page: http://http://intranet.odot.state.or.us/opointranet.odot.state.or.us/opo//

Finding it: ODOT Home → Topics A-F, Finding it: ODOT Home → Topics A-F, ContractsContracts

What’s available:What’s available:• Contact UsContact Us• Request OPO ServicesRequest OPO Services• Forms and TemplatesForms and Templates• Procurement-related TrainingProcurement-related Training

Use A-Z Index to find what you’re looking forUse A-Z Index to find what you’re looking for

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Training AvailableTraining Available

ClassesClasses• Procurement 101: Contracting BasicsProcurement 101: Contracting Basics

• Procurement 201: Purchasing Goods and Procurement 201: Purchasing Goods and Trade ServicesTrade Services

• Fiscal and Procurement ResponsibilitiesFiscal and Procurement Responsibilities

Coming in Spring 2012Coming in Spring 2012• Contract Administration for ESB ContractsContract Administration for ESB Contracts

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Training AvailableTraining Available

Online Training and ResourcesOnline Training and Resources• Speaking ProcurementSpeaking Procurement

• First Steps to Procuring Goods and ServicesFirst Steps to Procuring Goods and Services

• Authority to ProcureAuthority to Procure

• MWESB NotificationMWESB Notification

• Small Procurement of Goods and Trade ServicesSmall Procurement of Goods and Trade Services

• Intermediate Procurement – Legal RequirementsIntermediate Procurement – Legal Requirements

• Intermediate Procurement – ‘3-Quote’ ChecklistIntermediate Procurement – ‘3-Quote’ Checklist

• and more to come!and more to come!

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Training ObjectivesTraining Objectives

After completion of this training, participants After completion of this training, participants will be able to:will be able to:• Identify the roles and responsibilities for local Identify the roles and responsibilities for local

procurement of Goods and Trade Services up to procurement of Goods and Trade Services up to $100,000$100,000

• Describe the Small Procurement processDescribe the Small Procurement process

• Practice procuring Goods and Trade Services Practice procuring Goods and Trade Services using the ‘3 Quote’ processusing the ‘3 Quote’ process

• Apply Contract Administration practices to both simple Apply Contract Administration practices to both simple and complex purchases of Goods and Trade Servicesand complex purchases of Goods and Trade Services

• Use the Oregon Procurement Information Network Use the Oregon Procurement Information Network (ORPIN) to find existing Price Agreements(ORPIN) to find existing Price Agreements

Thank you Thank you for your participation!for your participation!

A training evaluation surveyA training evaluation surveywill be emailed to you soonwill be emailed to you soon

We appreciate your feedbackWe appreciate your feedback

Developed by ODOT Procurement Developed by ODOT Procurement OfficeOffice

procurement 201 purchasing goods and trade services developed by odot procurement office

Documents

procurement slide

buy decision slide

purchasing goods

total cost slide

trade services slide

potential purchase

local procurement of

odot procurement office