PUBLIC PURCHASING IN FLORIDA

ROLES IN THE PURCHASING PROCESS

(rev. 09/06/05)

ROLES IN THE PURCHASING PROCESS 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 CYCLEEnd user/customer with purchasing

support• Identify need• Check Budget• Determine

specifications/requirements• Prepare & route requisition

PROCUREMENT CYCLEPurchasing, 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 CYCLEPurchasing, 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 CYCLEEnd 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 Performance Measures of the

purchasing process should focus on results which are Legal & Ethical Effective Efficient Economical

ROLES IN THE PURCHASING PROCESS

CUSTOMERS

CUSTOMERSCustomers 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. 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.

4. Arrive at the make/buy decision.

Customers (3)5. Plan ahead.6. Work with technical advisers as

required.7. Understand how to task the

purchasing office.8. Serve on the procurement team

as required .9. Manage contract/PO including

first level dispute resolution

CUSTOMERS (4)10. Receive commodities/services11. Approve payment12. Request any needed amendment to

or cancellation of contract/PO 13. Close out/disposal14. Plan next stepsPurchasing can assist and guide.

What’s reasonable?

ROLES IN THE PURCHASING PROCESS

PURCHASING PROFESSIONALS

PURCHASING PROFESSIONALS

1. Assist customers in their roles2. Understand and advise on issues involved

in the make/buy decision3. Understand, advise and participate in the

preparation of good specifications and statements of work.

4. Understand and advise on types of specifications and SOWs (performance, design, combination, QPL), outputs & outcomes, performance-based contracting

PURCHASING PROFESSIONALS (2)

5. Understand the purchasing statutes & rules of the jurisdiction

6. Understand the purpose and missions of public purchasing

7. Understand how to use the former to do the latter!

PURCHASING PROFESSIONALS (3)

PROCESS RESPONSIBILITIES8. 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. Determine items of bid, award formula, contract term.

11. Determine sourcing method/strategy.

12. Organize & lead cross-functional procurement team if appropriate.

Determine Purchasing Method Existing agreements/master contracts &

pursuant RFQs: State Term Contracts RESPECT (Rehabilitative Enterprises Services &

Products) PRIDE (Prison Rehabilitative Industries & Diversified

Enterprises) State Purchasing Agreements Agency contracts

Determine Purchasing Method (3)

Discretionary/small non-competitive Informal Bid Formal competitive

ITB – Invitation to Bid RFP – Request for Proposal (what does the vendor

submit?) ITN – Invitation to Negotiate

Single source Emergency. Etc.

PURCHASING PROFESSIONALS (5)13. Advise customer if an extended schedule is

required.14. Review and amend specs/SOW.15. Provide vendor list.16. Prepare any solicitation, formal or informal,

with appropriate general and special conditions, including schedule and outcomes.

17. Issue solicitation.18. Receive bids & proposals.

PURCHASING PROFESSIONALS (6)19. Tabulate & evaluate bids & proposals.

Responsiveness & Responsibility. Price and other criteria. If negotiations are involved, organize and lead

team.

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

VENDORS1. Register with purchasing authority & Dept of

State2. Review purchasing history in their market.

Who is selling what to whom at what price?3. Target their segment of the govt market4. Review solicitation advertisements (formal &

informal)5. Act promptly to review and respond6. Ask clear questions promptly. Explain

reasons for any request, e.g. a specification change.

VENDORS (2)7. Participate in vendor meetings8. Use web based or other training tools9. Respond fully to all requirements. 10. Do not make unilateral substitutions,

omissions or schedule changes. Ask in advance about any unfamiliar, unclear or contradictory requirements, etc.

11. Request pre-contract meeting as appropriate if none is scheduled.

12. Know how their performance will be measured and reported!

VENDORS (3)13. Fulfill all requirements.14. Invoice accurately as products are shipped

or services performed.15. Advise end user & purchasing agent early

of any delays or other problems.16. 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 Within your agency

Accounting Attorneys Inspector General

Oversight agencies State Purchasing Office of Supplier Diversity

Other roles in the process (2) Oversight agencies (continued)

Bureau of Auditing, DFS State Auditor General

Special needs Fleet EITS – Enterprise Information Technology

Services