Presented by Greg Shabram Associate Director Laura Harris Contracts Officer Purchasing and Contracting Services Agenda Procurement Process Overview Procurement Planning Developing a Statement of Work ID: 1018207
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1. Procurement 101Processes and Procedures for Contracting at UO Presented by:Greg Shabram, Associate DirectorLaura Harris, Contracts OfficerPurchasing and Contracting Services
2. AgendaProcurement Process OverviewProcurement PlanningDeveloping a Statement of WorkSolicitationSpecial Topics in Procurement2
3. Procurement Process Framework
4. Procurement PlanningDevelop Minimum Specifications and Estimate Total Dollar ValueDetermine Applicable Policies and ProceduresCreate and Procurement Team and PlanDraft a Statement of Work (SOW)4
5. Estimating Total Dollar ValueTotal cost for each year of the projectAll reasonably foreseeable costs associated with that project payable to one vendorTake into account recurring spend, if foreseeable If close to a competitive threshold err towards the higher amount
6. Determine Applicable Policies and ProceduresCan you buy the goods/services from a QRF, an existing price agreement, or from the eProcurement system?Check the approvals list to determine any additional stakeholdersUse the following flow chart to determine the correct procurement process
7. Buy DecisionCan you buy from a QRF? YesNoBuy from QRFCan you buy from an established Price Agreement?YesBuy off Price AgreementIs the purchase exempt or valued at under $25K?NoYesDirect ProcurementNoIs this only available from a Sole Source?YesPost and buy DirectIs there a limited vendor pool?YesConduct APIs the total value less than $150K?NoYesConduct RFQ/ITB*NoConduct RFP/ITB*Procurement Planning Flowchart*An ITB is only appropriate when price is the only selection factorNoNo
8. Create a Procurement Team and Plan your ProcurementThis step scales to the scope of your procurementCould be just you issuing a PO, may be a team of multiple UO departments and stakeholdersHost a kickoff meetingInvite team members (Dept. Staff, Campus Stakeholders, PCS Staff)Agree on a procurement schedule based on applicable procurement processIdentify who will draft SOW and when it will be completedClearly identify roles and responsibilities
9. Create a Procurement Team and Plan your Procurement – Cont.Develop a BATNAWhat happens if the procurement fails?At what point are you willing to walk away from a vendor?Divide needs from wantsIdentify UO strategic interests addressed by the procurement. Notify applicable departments on the approvals list (invite stakeholders to the kickoff meeting if appropriate)
10. Discussion 1Think of the largest purchase that you plan to make this yearEstimate the value, identify the appropriate procurement process, and identify stakeholdersWhen do you plan to hold your kickoff meeting? Send us an outlook invite!Be prepared to share with the group
11. Drafting Specification/SOWs11An effective SOW should clearly define what work will be done, what interim steps must be completed, who will do it, and when they will complete the work and each step. The SOW does not need to be an exhaustive list of every action necessary to complete a project, but the SOW should be detailed enough so that anyone with the appropriate background should be able to understand, without any ambiguity, what will result from the project.
12. Drafting Specification/SOWs12Every SOW should, at minimum, include the following elements: A description of the deliverables, including any specifications or standards that those deliverables must meet.The tasks that support the deliverables, as well as which Party (the University for the Contractor) responsible for completing those tasks. A timeline that details when each task will be completed and when each deliverable will be delivered. The resources (people, equipment, facilities, etc.) required for the project and the party responsible for providing those resources.Acceptance criteria and an acceptance procedure. A clear price for the project, that is limited to a fixed amount.
13. Discussion 213We need a volunteer!Let’s work as a group to draft a SOW
14. Conducting the ProcurementGoals: Ensure FairnessFoster CompetitionSatisfy Stakeholder InterestsGet the Best Value!*Shameless Plug* Pay With a PCard!
15. Conduct a ProcurementDirect Procurement: Draft your SOWUnderstand the MarketplaceAsk vendors for quotesNegotiatePurchase (with a PCard!)
16. Formal/Informal ProcurementDraft/Post AP, ITB, RFQ, or RFPReview responses in accordance with terms of solicitation and UO policiesSelect the best value source
17. Sole SourceCriteria: Due to specific needs or qualifications, the goods or services required are only reasonably available from a single vendor.Must clearly demonstrate that the SOW is the only reasonable manner UO could meet its need, and that the vendor is the only vendor in the marketplace that can fulfill that SOW. Process:Posted for at least 7 calendar days.If no protests are made, the transaction may proceed.
18. Alternative ProcurementCriteria: A limited vendor pool of at least two entities or a purchase of IT services (i.e. SaaS)Responds to innovative business and market methods.Contributes to UO’s productivity improvement and process redesign.Results in comprehensive cost-effectiveness and productivity for UO.Process:Posted for at least 5 business days. Informal posting and selection criteria.Greater opportunity to negotiate price and terms prior to award.
19. Request for QuoteCriteria: All goods and services between $25k and $150kSelection based on best value or lowest price.Process:Posted for at least 5 business days. Informal posting and selection criteria. Must solicit bids from three vendors, one being an MWESB
20. Request for ProposalCriteria: All goods and services over $150kSelection based on best valueProcess:Posted for at least 21 calendar days Formal posting and selection criteria Must solicit bids from three vendors, one being an MWESBMay include controlled meetings with vendors and down selection processesMust develop a detailed scoring and source selection process
21. Invitation to BidCriteria: All goods and services over $150kSelection based on lowest priceProcess:Posted for at least 21 calendar days Formal posting and selection criteria Must solicit bids from three vendors, one being an MWESBMay include controlled meetings with vendors and down selection processesMust develop a detailed scoring and source selection process
22. RFP ScenarioWe’ve drafted a SOW. Lets draft an RFP and determine possible vendors.
23. Special TopicsStrategic PurchasingDuck DepotPaymentDelegated Contracting AuthorityNext Classes:Procurement 102: 3/15Rules and Ethics: 4/17Procurement 101: 5/22
24. PolicyTrainingTemplatesWritten Procedures and InstructionsWebsiteDirect assistance from PCS Staff via phone, email and in-person meetingsEach department is assigned a Contracts Officer and Contracts Tech. If you do not know yours let us know and we’ll put you in touch with them!Tools & Support24
25. Questions?25