PUBLIC PURCHASING IN FLORIDA ROLES IN THE PURCHASING

PUBLIC PURCHASING IN FLORIDA ROLES IN THE PURCHASING PROCESS (rev. 09/06/05)

ROLES IN THE PURCHASING PROCESS o o o o o RECALL THE PROCUREMENT CYCLE CUSTOMERS PURCHASING PROFESSIONALS OFFICE OF SUPPLIER DIVERSITY ATTORNEYS VENDORS ACCOUNTANTS AUDITORS INSPECTORS GENERAL

ROLES IN THE PURCHASING PROCESS RECALL THE PROCUREMENT CYCLE

PROCUREMENT CYCLE End user/customer with purchasing support • Identify need • Check Budget • Determine specifications/requirements • Prepare & route requisition

PROCUREMENT CYCLE • • • Purchasing, with end user/customer support Review requisition for clarity & authority Check Surplus (? ) Review & amend specifications/statement of work Advise on market conditions Review & determine purchase method Review/revise/provide vendor list

PROCUREMENT CYCLE Purchasing, with end user/customer support (continued) • Prepare & issue solicitation • Receive bids & proposals • Tabulate & evaluate (with team support as appropriate) • Prepare contract/PO • Issue contract/PO

PROCUREMENT CYCLE End user/customer with purchasing support • Manage contract/PO • Receive commodities/services • Approve payment • Request amendment to contract/PO • • • (Exception: Purchasing has final responsibility) Dispute resolution (Exception: Purchasing has final responsibility) Close out/disposal Plan next steps

PERFORMANCE MEASURES How can you measure the performance of the purchasing cycle process in your agency?

PERFORMANCE MEASURES o Performance Measures of the purchasing process should focus on results which are n Legal & Ethical n Effective n Efficient n Economical

ROLES IN THE PURCHASING PROCESS CUSTOMERS

CUSTOMERS Customers have some key responsibilities 1. Understand the statutory and executive missions assigned to their entity. 2. Determine goods & services, and schedule, required to deliver the missions. May consult experts at this step.

CUSTOMERS (2) 3. 4. Have the capability to describe (specify) requirements in terms of performance (outcome) and deliverables (outputs) and design. Few governmental requirements are unspeakable! Consider budget & other resources. Arrive at the make/buy decision.

Customers (3) 5. 6. 7. 8. 9. Plan ahead. Work with technical advisers as required. Understand how to task the purchasing office. Serve on the procurement team as required. Manage contract/PO including first level dispute resolution

CUSTOMERS (4) Receive commodities/services 11. Approve payment 12. Request any needed amendment to or cancellation of contract/PO 13. Close out/disposal 14. Plan next steps Purchasing can assist and guide. What’s reasonable? 10.

ROLES IN THE PURCHASING PROCESS PURCHASING PROFESSIONALS

PURCHASING PROFESSIONALS 1. 2. 3. 4. Assist customers in their roles Understand advise on issues involved in the make/buy decision Understand, advise and participate in the preparation of good specifications and statements of work. Understand advise on types of specifications and SOWs (performance, design, combination, QPL), outputs & outcomes, performance-based contracting

PURCHASING PROFESSIONALS (2) 5. 6. 7. Understand the purchasing statutes & rules of the jurisdiction Understand the purpose and missions of public purchasing Understand how to use the former to do the latter!

PURCHASING PROFESSIONALS (3) PROCESS RESPONSIBILITIES 8. Consider this instance, the market, and requirements history and trends in order to proceed to sourcing strategy. 9. Review Requisitions for clarity, completeness, authority, justification (purpose) and schedule requirements.

PURCHASING PROFESSIONALS (4) 10. 11. 12. Determine items of bid, award formula, contract term. Determine sourcing method/strategy. Organize & lead crossfunctional procurement team if appropriate.

Determine Purchasing Method o Existing agreements/master contracts & pursuant RFQs: n State Term Contracts n RESPECT (Rehabilitative Enterprises Services & Products) n n n PRIDE (Prison Rehabilitative Industries & Diversified Enterprises) State Purchasing Agreements Agency contracts

Determine Purchasing Method (3) o o o Discretionary/small non-competitive Informal Bid Formal competitive n ITB – Invitation to Bid n RFP – Request for Proposal (what does the vendor submit? ) ITN – Invitation to Negotiate Single source Emergency. Etc. n o o o

PURCHASING PROFESSIONALS (5) 13. 14. 15. 16. 17. 18. Advise customer if an extended schedule is required. Review and amend specs/SOW. Provide vendor list. Prepare any solicitation, formal or informal, with appropriate general and special conditions, including schedule and outcomes. Issue solicitation. Receive bids & proposals.

PURCHASING PROFESSIONALS (6) 19. Tabulate & evaluate bids & proposals. n n n Responsiveness & Responsibility. Price and other criteria. If negotiations are involved, organize and lead team. o o o Rank & “short list” respondents. Develop objectives. Revise the solicitation and/or lead respondents to revise proposals as needed to meet objectives at best-and-final offer (BAFO) stage.

PURCHASING PROFESSIONALS (7) 20. Prepare contract/PO. 21. Issue contract/PO. 22. Amendments, cancellations, dispute resolution. 23. Maintain purchasing records.

ROLES IN THE PURCHASING PROCESS VENDORS

VENDORS 1. 2. 3. 4. 5. 6. Register with purchasing authority & Dept of State Review purchasing history in their market. Who is selling what to whom at what price? Target their segment of the govt market Review solicitation advertisements (formal & informal) Act promptly to review and respond Ask clear questions promptly. Explain reasons for any request, e. g. a specification change.

VENDORS (2) 7. 8. 9. 10. 11. 12. Participate in vendor meetings Use web based or other training tools Respond fully to all requirements. Do not make unilateral substitutions, omissions or schedule changes. Ask in advance about any unfamiliar, unclear or contradictory requirements, etc. Request pre-contract meeting as appropriate if none is scheduled. Know how their performance will be measured and reported!

VENDORS (3) 13. 14. 15. 16. Fulfill all requirements. Invoice accurately as products are shipped or services performed. Advise end user & purchasing agent early of any delays or other problems. Be aware of formal dispute procedures but have as your goal meeting customer’s expectations, and resolving problems with the least formality & at lowest. organizational level consistent with good business practice.

Other roles in the process o Within your agency n n n o Accounting Attorneys Inspector General Oversight agencies n n State Purchasing Office of Supplier Diversity

Other roles in the process (2) o Oversight agencies (continued) n n o Bureau of Auditing, DFS State Auditor General Special needs n n Fleet EITS – Enterprise Information Technology Services