PUBLIC PURCHASING IN FLORIDA

1. PUBLIC PURCHASING IN FLORIDA ROLES IN THE PURCHASING PROCESS (rev. 05/27/2008)

2. ROLES IN THE PURCHASING PROCESS • PROCUREMENT CYCLE • CUSTOMERS / END USERS • PURCHASING PROFESSIONALS • VENDORS • OTHER ROLES IN THE PROCESS

3. ROLES IN THE PURCHASING PROCESS PROCUREMENT CYCLE

4. PROCUREMENT CYCLE Customer / End User with Purchasing support: • Identify Need • Check Budget • Determine Requirements / Specifications • Prepare & Route Requisition

5. PROCUREMENT CYCLE Purchasing with Customer / End User support: • Review Requisition for Clarity & Authority • Check Surplus (?) • Review & Amend Specifications / Statement of Work • Advise on Current Market Conditions • Review & Determine Purchase Method • Review / Revise / Provide Vendor List

6. PROCUREMENT CYCLE Purchasing with Customer / End User support (Continued): • Prepare & Issue Solicitation • Receive Bids & Proposals (Conduct Negotiations, as appropriate) • Tabulate & Evaluate Responses (with Team Support, as appropriate) • Prepare Contract / Purchase Order • Issue Contract / Purchase Order

7. PROCUREMENT CYCLE Customer / End User with Purchasing support (Continued): • Manage Contract / Purchase Order • Receive Commodities / Services • Approve Payment • Request Amendment to Contract / Purchase Order (Exception: Purchasing has final responsibility) • Dispute Resolution (Exception: Purchasing has final responsibility) • Close Out / Disposal • Plan Next Steps

8. PROCUREMENT CYCLE - PERFORMANCE MEASURES How can you measure the performance of the Procurement Cycle Process in your agency?

9. PROCUREMENT CYCLE - PERFORMANCE MEASURES • Performance Measures of the procurement process should focus on results which are: • Legal & Ethical • Effective • Efficient • Economical

10. ROLES IN THE PURCHASING PROCESS CUSTOMERS / END USERS

11. CUSTOMERS / END USERS Customers / End Users have some key responsibilities: • Understand the statutory and executive missions assigned to their entity (agency, division, program area, etc.). • Determine commodities, services, and schedule required to deliver their missions. May consult experts at this step.

12. CUSTOMERS / END USERS (2) • Have the capability to describe (specify) requirements in terms of performance (outcome), deliverables (outputs), and design. Few governmental requirements are unspeakable! Consider budget & other resources. • Arrive at the make / buy decision. • Plan ahead. • Work with technical advisers as required. • Understand how to task the purchasing office.

13. CUSTOMERS / END USERS (3) • Serve on the procurement team as required. • Manage Contract / Purchase Order including first level dispute resolution. • Receive commodities / services. • Approve payment. • Request any needed amendment to or cancellation of Contract / Purchase Order • Close Out / Disposal • Plan next steps. Purchasing can assist and guide. What’s reasonable?

14. ROLES IN THE PURCHASING PROCESS PURCHASING PROFESSIONALS

15. PURCHASING PROFESSIONALS • Assist Customers / End Users in their roles. • Understand and advise on issues involved in the make / buy decision. • Understand, advise, and participate in the preparation of good specifications and statements of work (SOWs). • Understand and advise on types of specifications and SOWs (performance, design, combination, QPL), outputs & outcomes, and performance-based contracting.

16. PURCHASING PROFESSIONALS (2) • Understand the purchasing statutes & rules of the jurisdiction. • Understand the purpose and missions of public purchasing. • Understand how to use the former to do the latter!

17. PURCHASING PROFESSIONALS (3) PROCESS RESPONSIBILITIES • Consider this instance, the market, and any requirements history and trends in order to proceed to the sourcing strategy. • Review Requisitions for clarity, completeness, authority, justification (purpose), and schedule requirements.

18. PURCHASING PROFESSIONALS (4) • Determine items of solicitation, award formula, and contract term. • Determine sourcing method / strategy. • Organize & lead cross-functional procurement team, as appropriate.

19. DETERMINE SOURCING METHOD • Existing agreements / master contracts (including any pursuant RFQs): • State Term Contracts • RESPECT (Rehabilitative Enterprises Services & Products) • PRIDE (Prison Rehabilitative Industries & Diversified Enterprises) • State Purchasing Agreements • Agency contracts

20. DETERMINE SOURCING METHOD (2) • Discretionary / Small Non-Competitive • Informal Bid • Formal Competitive Solicitation • ITB – Invitation to Bid • RFP – Request for Proposal • ITN – Invitation to Negotiate • Single Source • Emergency • Etc.

21. PURCHASING PROFESSIONALS (5) • Advise Customer / End User if an extended schedule is required. • Review and amend Specifications / SOW. • Provide Vendor List. • Prepare any solicitation, formal or informal, with appropriate general and special conditions, including schedule and outcomes. • Issue solicitation. • Receive bids & proposals.

22. PURCHASING PROFESSIONALS (6) • 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.

23. PURCHASING PROFESSIONALS (7) • Prepare Contract / Purchase Order. • Issue Contract / Purchase Order. • Amendments, cancellations, dispute resolution. • Maintain purchasing records.

24. ROLES IN THE PURCHASING PROCESS VENDORS

25. VENDORS • Register with purchasing authority & Department of State. • Review purchasing history in their market. Who is selling what to whom at what price? • Target their segment of the government market. • Review solicitation advertisements (formal & informal). • Act promptly to completely review and respond to solicitations. • Ask clear questions, promptly. Explain reasons for any request, e.g. a specification change.

26. VENDORS (2) • Participate in Vendor meetings. • Use web based or other training tools. • Respond fully to all solicitation requirements. • Do not make unilateral substitutions, omissions, or schedule changes. Ask in advance about any unfamiliar, unclear, or contradictory requirements, etc. • Request pre-contract meeting as appropriate (if none is scheduled). • Know how their performance will be measured and reported!

27. VENDORS (3) • Fulfill all Contract / Purchase Order requirements. • Invoice accurately as commodities are shipped or services performed. • Advise Customer / End User & Purchasing Agent early of any delays or other problems. • 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.

28. OTHER ROLES IN THE PROCESS • Within your agency: • Accounting • Attorneys • Inspector General • Oversight agencies: • State Purchasing • Office of Supplier Diversity • Bureau of Auditing, DFS • State Auditor General

29. OTHER ROLES IN THE PROCESS (2) • Special needs: • Office of Supplier Diversity • Fleet Management • CITS – Communications and Information Technology Services