Getting it Right April 24-26, 2018 - PowerPoint Presentation

Getting it Right April 24-26, 2018 State Purchasing

Mary Chapman Director, Policy & Training 2 State Purchasing Division - Presenters Josh Borden Operations Manager

Getting It Right Understand the importance of Market Research throughout the contracting process Develop the skills for creating results based Statements of WorkUnderstand the importance of Assessing Risk and Protest ManagementLearn the procedures for writing effective requirements Our presentation will help you:

Market Research 4

Market Research The Award of a successful solicitation or contract is largely dependent on the quality of market research conducted prior to and throughout the contracting process. Stage 1 Identification of the target Market, Scope of Work, and Requirements Stage 2 Assign Subject Matter Experts and Cross Functional Team members to develop measurable deliverables for the Statement of Work and contract. 5

Market Research Effective Market Research relies on a world of available data: Existing Agency Contracts Internal Customer Contacts Other States Contracts 6

Market Research – Questions to Ask Current Contract: Why am I needing a new contract(s)? (renewal, new need) Were all objectives met?Where did the Supplier struggle in meeting customer needs?What would make it better?How does the pricing compare to other contracts?What is the value received?7

Market Research – Questions to Ask Other State’s Contract: Why did they develop the contract(s)? (renewal, new need) Were all objectives met?Where did the Supplier struggle in meeting customer needs?What would make it better?How does the pricing compare to other contracts?What is the value received?NOTE: Assess if the other State’s programmatic/ legislated needs are similar to yours.8

Market Research – Questions to Ask Internal Contacts: Why do they need the contract(s) (innovation, new need)What objectives must be met?What Suppliers are they familiar with in this market?What would constitute failure?How much money is available?What is the expected value?NOTE: Assess if they have already been in discussion with a Supplier9

Market Research Favorite Searches: Market wages http://www.salary.com/category/salary/State Federal and Local Bids and Contractshttp://www.bidcontract.com Federal Government Grants Administrationhttp://www.ecfr.govPercentage Variancehttp://www.percentagecalculator.net/ 10

Good or Bad? Understanding the dynamics of the marketplace is key to establishing a solid, results-oriented contract. The homework you do at the beginning will help you monitor market costs, productivity, and to form realistic service levels and expectations. You must also filter and discern Good from Bad Information and make decisions based on the accuracy of the information. 11

Good or Bad? GOOD :Contract Owner/ AdministratorCredentialing AuthorityEstablished Data / MetricsPolicy/Compliance BAD : HearsayAdvertising Spots posted by Supplier No Data Available“We’ve always done it this way”12

Good or Bad? Research Confirm information from likely reputable sources Federal Program websiteSecretary of State websiteEntity Procurement PersonnelState PurchasingDon’t spread more gossip I’ve heard it through the grapevine…. Based on the feedback, determine if you have an item that needs to be addressed, and then address it. 13

Risk Management Pay me now or Pay me Later…. Decisions related to Purchasing of Goods and Services involve Risk. To effectively establish a Statement of Work that meets your customer needs, protects the Department, and provides for management of the Supplier involves an assessment of Risk. These risks are then mitigated or anticipated so that the contracting process and administration can be better managed. 14

Communicating Expectations 15

Communicating Expectations In a cerulean transparent atmosphere, infinity will become visible. This will last 525,600 minutes with the exception of one period which will be 527,040 minutes. Pursuant to the expanded clay aggregate conveyance tinted with the Chinese expression of harmony. Atmospheric Water Vapor subject to Gravitational Pull is strictly forbidden from any procession. 16

Communicating Expectations Key Writing Requirements: The more precise the description in the scope of work, the better the outcome for the end user. The requirements must define need, outcome, measurement, and payment provisions.Where practical, communicate firm policies, procedures, or contractual obligations that must be met.Use consistent, industry wide terms and define them when necessary. Do not use ambiguous words or phrases that can cause confusion. 17

Communicating Expectations Key Writing Requirements: Use an active voice in creating responsibilities. Provide Key Milestones and Due DatesProvide Measurements, Incentives, and any provisions for Nonconformity.Specify Communication and Approval Standards that will be used throughout the contract.Never use proprietary requirements that would indicate pre-selection. NOTE: If there are anticipated changes to be made to an open contract, then language related to amendment by mutual agreement needs to be included . 18

Communicating Expectations Program Requirements Documents: Follows the Outline of the RFP: Mandatory, Major Bid Factor Categories, Programmatic/Contract Considerations Stresses Key Milestones and Due Dates and Intersects with other Projects/GoalsProvides Measurements, Incentives, and any provisions for Nonconformity.Specify Communication and Approval Standards that will be used throughout the contract. NOTE: This is an ideal tool that allows you to write questions that refer to a wide variety of programmatic and policies. 19

Protests 20

Protests Why they Occur Many protests occur because one of the following is a concern with a supplier. Suppliers may protest for the following reasons: Ambiguous or proprietary specificationsNot understanding the rules – mistakes in submitting their bid/proposal Wanting special consideration Feeling of unfairness or wrongdoingMoney – losing the bid Challenge of sole source notification Protests delay the purchasing process or cause costly court costs 21

Protests Impacts and Remedies If the protest is upheld, then the state entity must follow the prescribed remedies as shown below. 22

Your Toolbox 23

Let’s Get to Work! Start by developing internal forms and processes that you can use with your customers and suppliers to be more effective in outlining the contracts that must be developed and maintained. Your toolbox should include: Purchasing Roles and Responsibilities Statement of Objectives Performance Based Contracting Outcomes Performance Measures and Management Performance Statement of Work Your Toolbox24

Statement of Objectives The Statement of Objectives defines: Scope GovernancePlace of PerformancePeriod of PerformanceProgrammatic ObjectivesConstraintsInternal PoliciesFunding25

Performance Based Outcome and Metric Matrix What is to be accomplished? What are the required tasks? How will performance be measured?How will we check deliverables and work products?What if they do a great job?What if they don’t do their job?Who is responsible? 26

Performance Measures and Management Performance Measures also provide for incentives when available: Early Delivery % Bonus PaymentInternal or Public RecognitionPayment Adjustments based on poor performance27

Putting It All Together 28

Summary Effective Statements of Work are based on clear definitions, descriptions and expectations. Performance Based Outcomes and Measurement Tools are necessary for compliance with Government Purchasing Practices. Engagement with the End User, Key Staff and the Supplier are critical in Finalizing, Implementing, and Managing the resulting contract.Use of Ambiguous Descriptions or Requirements ends today!29

Questions? 30

www.doas.ga.gov Josh Borden & Mary Chapman