Procurement 101 - PowerPoint Presentation

Slide1

Procurement 101

Processes and Procedures for Contracting at UO

Presented by

:

Greg Shabram, Associate

Director

Laura Harris, Contracts Officer

Purchasing and Contracting ServicesSlide2

Agenda

Procurement Process OverviewProcurement Planning

Developing a Statement of Work

Solicitation

Special Topics in Procurement

2Slide3

Procurement Process FrameworkSlide4

Procurement Planning

Develop Minimum Specifications and Estimate Total Dollar Value

Determine Applicable Policies and Procedures

Create and Procurement Team and Plan

Draft a Statement of Work (SOW)

4Slide5

Estimating Total Dollar Value

Total cost for each year of the project

All reasonably foreseeable costs associated with that project payable to one vendor

Take into account recurring spend, if foreseeable

If close to a competitive threshold err towards the higher amountSlide6

Determine Applicable Policies and Procedures

Can 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 stakeholders

Use the following flow chart to determine the correct procurement process Slide7

Buy Decision

Can you buy from a QRF?

Yes

No

Buy from QRF

Can you buy

from

an

established

Price Agreement?

Yes

Buy off Price Agreement

Is the purchase exempt or valued at under $25K?

No

Yes

Direct Procurement

No

Is this

only available from a

Sole Source?

Yes

Post and buy Direct

Is there a limited vendor pool?

Yes

Conduct AP

Is the total value less than $150K?

No

Yes

Conduct RFQ/ITB*

No

Conduct RFP/ITB*

Procurement Planning Flowchart

*An ITB is only appropriate when price is the only selection factor

No

NoSlide8

Create a Procurement Team and Plan your Procurement

This step scales to the scope of your procurement

Could be just you issuing a PO, may be a team of multiple UO departments and stakeholders

Host a kickoff meeting

Invite team members (Dept. Staff, Campus Stakeholders, PCS Staff)

Agree on a procurement schedule based on applicable procurement process

Identify who will draft SOW and when it will be completed

Clearly identify roles and responsibilitiesSlide9

Create a Procurement Team and Plan your Procurement – Cont.

Develop a BATNA

What happens if the procurement fails?

At what point are you willing to walk away from a vendor?

Divide needs from wants

Identify UO strategic interests addressed by the procurement.

Notify applicable departments on the approvals list (invite stakeholders to the kickoff meeting if appropriate)Slide10

Discussion 1

Think of the largest purchase that you plan to make this yearEstimate the value, identify the appropriate procurement process, and identify stakeholders

When do you plan to hold your kickoff meeting? Send us an outlook invite!

Be prepared to share with the groupSlide11

Drafting Specification/SOWs

11

An 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. Slide12

Drafting Specification/SOWs

12

Every 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. Slide13

Discussion 2

13

We need a volunteer!

Let’s work as a group to draft a SOWSlide14

Conducting the Procurement

Goals: Ensure Fairness

Foster Competition

Satisfy Stakeholder Interests

Get the Best Value!*Shameless Plug* Pay With a PCard!Slide15

Conduct a Procurement

Direct Procurement: Draft your SOW

Understand the Marketplace

Ask vendors for quotes

NegotiatePurchase (with a PCard!)Slide16

Formal/Informal Procurement

Draft/Post AP, ITB, RFQ, or RFPReview responses in accordance with terms of solicitation and UO policies

Select the best value sourceSlide17

Sole Source

Criteria: 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.Slide18

Alternative Procurement

Criteria: 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. Slide19

Request for Quote

Criteria: All goods and services between $25k and $150k

Selection 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 MWESBSlide20

Request for Proposal

Criteria: All goods and services over $150k

Selection based on best value

Process:

Posted for at least 21 calendar days Formal

posting and

selection criteria

Must solicit bids from three vendors, one being an

MWESB

May include controlled meetings with vendors and down selection processes

Must develop a detailed scoring and source selection process Slide21

Invitation to Bid

Criteria: All goods and services over $150k

Selection based on

lowest price

Process:Posted for at least 21 calendar days Formal posting and selection criteria

Must solicit bids from three vendors, one being an MWESB

May include controlled meetings with vendors and down selection processes

Must develop a detailed scoring and source selection process Slide22

RFP Scenario

We’ve drafted a SOW. Lets draft an RFP and determine possible vendors. Slide23

Special Topics

Strategic Purchasing

Duck Depot

Payment

Delegated Contracting AuthorityNext Class

es:

Procurement 102: 3/15

Rules and Ethics: 4/17

Procurement 101: 5/22Slide24

Policy

Training

Templates

Written Procedures and Instructions

WebsiteDirect assistance from PCS Staff via phone, email and in-person meetings

Each department is assigned a Contracts Officer and Contracts Tech.

I

f you do not know yours let us know and we’ll put you in touch with them!

Tools & Support

24Slide25

Questions?

25