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Procurement Managers Wanted are you ready and willing? ? ? Don Buffum, CPPO, Director, Procurement Managers Wanted are you ready and willing? ? ? Don Buffum, CPPO, Director, Procurement and Contracts Mississippi State University 662 -325 -2861 dbuffum@procurement. msstate. edu

NOTICE College degree will be required for certification starting in 2014! NOTICE College degree will be required for certification starting in 2014!

Purpose of the session To make you think! Purpose of the session To make you think!

What do you need to think about? Public Purchasing is at an important crossroads What do you need to think about? Public Purchasing is at an important crossroads – which way do we go?

Purchasing – Professional or Paper Pusher? Management Function Strategic Function Or……… Purchase Order Producer Purchasing – Professional or Paper Pusher? Management Function Strategic Function Or……… Purchase Order Producer

What do you buy? What do you buy?

What do you buy? Office Supplies Vehicles Services Furniture Driving Simulators Bullet Proof Vests What do you buy? Office Supplies Vehicles Services Furniture Driving Simulators Bullet Proof Vests Weapons Drugs Medical Supplies Janitorial Supplies Scalpels Food Diapers Underwear Gas Chomatographs Cameras Traffic Cones and Barrels Rock Salt

What do you buy? Airplanes Helicopter Marijuana Tree Seedlings Radios Phones Computers Printers EVERYTHING!! What do you buy? Airplanes Helicopter Marijuana Tree Seedlings Radios Phones Computers Printers EVERYTHING!!

Who does it impact? What difference does it make? Who cares? Who does it impact? What difference does it make? Who cares?

Who cares? ? Office Supplies –gov’t Vehicles –roads, police Services Furniture Driving Simulators Bullet Who cares? ? Office Supplies –gov’t Vehicles –roads, police Services Furniture Driving Simulators Bullet Proof Vests – save a life Weapons Drugs Medical Supplies Janitorial Supplies Scalpels – save a life Food Diapers Underwear Gas Chomatographs Cameras Traffic Cones and Barrels Rock Salt

What difference does it make? ? Airplanes Helicopter Marijuana Tree Seedlings Radios Phones Computers What difference does it make? ? Airplanes Helicopter Marijuana Tree Seedlings Radios Phones Computers Printers EVERYTHING!!

What do you do? Small Purchases Administer Procurement Card Term Contracts Service Contracts Strategic What do you do? Small Purchases Administer Procurement Card Term Contracts Service Contracts Strategic Planning Spec development team Contract Negotiations Construction Budget recommendations Legislation/policy development Evaluation of terms and conditions Cost analysis Monitoring of Contract Administration

Which pot holes can you avoid? Splitting P. O. s; Poor Evaluations Not making Which pot holes can you avoid? Splitting P. O. s; Poor Evaluations Not making award to the actual low bid MEETING SPECS; Having a preselected favorite in the RFP process

Which pot holes can you avoid? No Contract Administration - no one in charge Which pot holes can you avoid? No Contract Administration - no one in charge after issuing P. O. Invoice paid but nobody checks to make sure product/service received and acceptable No documentation of inferior performance (hurts agency, hurts other bidders, paying for services not received)

Which pot holes can you avoid? Purchasing as a political appointment Small purchases from Which pot holes can you avoid? Purchasing as a political appointment Small purchases from other than the contract vendor People ordering things and then getting PO after the fact (use the p-card, it’s easy and legal)

Which pot holes can you avoid? Contracts issued without an established need (consulting, services, Which pot holes can you avoid? Contracts issued without an established need (consulting, services, chemicals) Lack of contract review (‘standard’ vendor contracts are signed without adequate review by purchasing/legal of terms and conditions – taxes, liabilities, automatic renewals, escalations)

Which pot holes can you avoid? Allowing poor planning or mismanaged planning to be Which pot holes can you avoid? Allowing poor planning or mismanaged planning to be called an emergency Sole source

Which pot holes can you avoid? Personal service contracts – awarding without need, awarding Which pot holes can you avoid? Personal service contracts – awarding without need, awarding without competition, no review of deliverables, splitting,

Which pot holes can you avoid? Auctioning quotes to get preferred vendor (obtain quotes Which pot holes can you avoid? Auctioning quotes to get preferred vendor (obtain quotes then go to favored vendor and ask him to beat the low price)

Why don’t we have more say? Lack of training? Lack of initiative? People ‘upstairs’ Why don’t we have more say? Lack of training? Lack of initiative? People ‘upstairs’ don’t realize our value? Other?

What do we need to do about it? Look at ourselves in the mirror What do we need to do about it? Look at ourselves in the mirror “We have met the enemy and he is us” Pogo

What do we need to do about it? -Training Take Classes Introduction to Public What do we need to do about it? -Training Take Classes Introduction to Public Procurement Sourcing in the Public Sector Planning, Scheduling and Requirement Analysis Legal Aspects RFP’s Contract Administration Get Certified CPPB CPPO

What do we need to do about it? Training Take classes on advanced principles What do we need to do about it? Training Take classes on advanced principles Contracting for Services Performance based contracting Negotiation strategies Project Management Alternative Dispute Resolution Change Management Contract Writing Federal Programs and Grants Construction Fixed Assets Others….

What do we need to do about it? Training Read books and articles that What do we need to do about it? Training Read books and articles that will help us On the economy On negotiation skills On government issues and activities On products On anything and everything Other ideas?

What do we need to do about it? Initiative Find cost savings, research and What do we need to do about it? Initiative Find cost savings, research and report Document Mgmt fleet savings Vehicle fleet savings Mailroom savings Improved Contract Administration savings Contract out or in house Provide information New products Best practices Economic trends

What do we need to do about it? – Initiative (continued) Suggest revised procedures What do we need to do about it? – Initiative (continued) Suggest revised procedures Implement Procurement Card Improve the flow for approvals (‘E-approve’) Establish term contracts Purchasing as part of budget process Reviewing equipment needs Suggestions on anticipated expenditures Other…. . Be a service organization

What do we need to do about it? – Initiative (continued) Take the lead What do we need to do about it? – Initiative (continued) Take the lead on major projects/acquisitions Relevant Performance Measures and Benchmarking Not how much paper (# of PO’s) Look at cost avoided/saved Look at the big picture (organization) Hire, train and reward ‘thinking’ not processing compliance Decentralize order taking to allow time for value added activities.

What do we need to do about it? – Convince the people ‘upstairs’ Make What do we need to do about it? – Convince the people ‘upstairs’ Make it short and sweet -Concise information – don’t waste their time. Make it sexy – it must be interesting Meet a need – it must be important

What is our Message? We want to promote professionalism in public purchasing NO What is our Message? We want to promote professionalism in public purchasing NO

What is our message? We want to increase the status of the public purchasing What is our message? We want to increase the status of the public purchasing professional NO

What is our message? We want to increase the value of government to the What is our message? We want to increase the value of government to the people thru better decision making YES!

What is our message? Purchasing should be involved early to allow us to add What is our message? Purchasing should be involved early to allow us to add value (improved efficiency & reduced costs) Purchasing should have responsibility and authority to avoid purchasing potholes (front page material)

What is our message? Purchasing should be involved in all aspects of expenditures. Our What is our message? Purchasing should be involved in all aspects of expenditures. Our ethics will keep them out of jail Our services will make them look good

How do we sell our message? Show them articles about purchasing ‘errors’ and the How do we sell our message? Show them articles about purchasing ‘errors’ and the costs Survey our customers and report the results (short and sweet, but find the answers) Show them articles about purchasing ‘success’ and the value Evaluate % of dollars spent under purchasing to % spent without oversight –report it

How do we sell our message? Sell corporate America on the concept that we How do we sell our message? Sell corporate America on the concept that we are spending their tax dollars – don’t they want us to do it right? Take initiative! Others?

How many have children or grandchildren? How many have children or grandchildren?

Who do you want driving the school bus? Bubba who has been driving since Who do you want driving the school bus? Bubba who has been driving since he was knee high to a grass hopper or…. A certified licensed bus driver?

Who do you want doing your taxes? Jethro, who is good at cipherin numbers Who do you want doing your taxes? Jethro, who is good at cipherin numbers or …. A CPA?

Who do you want as a doctor? Granny and her boiled possum belly or…. Who do you want as a doctor? Granny and her boiled possum belly or…. A real doctor? ? ?

If credentials are important…. Should we ask tax payers to let an uncertified person If credentials are important…. Should we ask tax payers to let an uncertified person spend millions of dollars of their money? ? ?

The Challenge Are you ready to treat purchasing as a profession or are you The Challenge Are you ready to treat purchasing as a profession or are you comfortable with the way it is?

Any Questions or Comments? Any Questions or Comments?

Dummy slide- description of program Procurement Managers wanted, are you ready and willing? . Dummy slide- description of program Procurement Managers wanted, are you ready and willing? . Public purchasing is at an important crossroads and we must determine which direction we are going to go. Will we be professional paper pushers or will procurement take on a strategic management role? Where will you fit into this decision? Why don't we have more say? What do we need to do? What are we going to do? If thinking while you are eating causes indigestion, you may want to avoid this session.