tom blaine, cppo, fcpm, fcpa senior research associate
TRANSCRIPT
Tom Blaine, CPPO, FCPM, FCPASenior Research Associate
-Dennis Wholey
FINISHED FILES ARE THE RE-SULT OF YEARS OF SCIENTIF-IC STUDY COMBINED WITH THE EXPERIENCE OF MANY
YEARS
How many ‘F’s are in the sentence?
FINISHED FILES ARE THE RE-
SULT OF YEARS OF SCIENTIF-
IC STUDY COMBINED WITH
THE EXPERIENCE OF MANYYEARS
Your Experiences As a small business what has been you experience in dealing with the government procurement process?
It’s not your fault!Not all the rules of the game are written down.
Private Sector PurchasingCost EvaluationStrategic Partnerships, long term
relationshipsSmall group of VendorsSelect Business Partners via closed processCan do anything that is not illegalAccountable to Management
Private vs. Public Sector Purchasing-Similarities and Differences
Private vs. Public Sector Purchasing-Similarities and Differences
Public Sector PurchasingPrice EvaluationVendors are adversaries-Arms length
relationshipLarge group of Potential BiddersMost of the process is in the publicCompetition is the preferred method of
purchaseCan only do what the rules/laws allowed
Current Trends in Public ProcurementGreen Purchasing
Green Building Standards and Remodeling
Energy Saving ProductsRecycled/Recyclable ProductsFind a product or service the government wants that the large companies are not selling
Spend AnalysisStrategic Partnerships
Perspective of the PlayersRequisitioner /SpecifierWants something that worksDoesn’t want a hasslePrefers long working relationships with
suppliersIf a product or service works well, wants to
keep it
Perspective of the PlayersDepartmental ManagersDon’t want the rules brokenDon’t want productivity of department
affected
Perspective of the PlayersProcurement Staff
Multiple stakeholders- administration, elected officials, citizens, news media, vendor communityDisinterested third party –Don’t care who gets the award
Perspective depends on the type of the organizationClerical, Bureaucratic, Professional
Perspective of the PlayersClericalTypically are clerks, push the paperMay issue the bid, send results to department for decision
Processes the PO after the decisions are made by the department
May be organized to look like one of the other types, but no decision authority
Perspective of the PlayersBureaucratic
Bureaucratic and Professional Purchasing organizations-may be hard to distinguish
Impediment to introducing and maintaining efficient government
Tends to focus on control processesKnow all the rules, regulations and laws
pertaining to procurementProcess over resultsConcerned with transparency
Perspective of the PlayersBureaucraticTypically makes award decision A majority of the organizations have
certified staff and managersMajority of purchasing organizations
Perspective of the PlayersProfessionalHighly educated multi-disciplinary staffConcerned with adding and documenting value
to the governmentSignificant scrutiny over specificationsFocus on knowledge and informationConducts market researchDocuments vendor performanceEliminates poor performing vendorsConcerned with transparency and valueMay over-exhibit professionalism
Perspective of the PlayersElected and Appointed OfficialsDon’t want scandalsMay become overactive in the
procurement process to assist a constituent
Prefer to keep the purchases localDo not have significant knowledge of
process and my be influenced by lobbying form those they trust
Who is the decision maker?Centralized vs. decentralizedCentralized-Procurement makes
/recommends the important decisionsDecentralized- Departments make the
important decisions Need to determine who makes what
decisionsNeed to do some research