M4 pp 101_ppt (1)
- 1. 1 Purchasing and Procurement Processes Module Four Revision Date: 2/06/2015
- 2. 2 COURSE INTRODUCTION Course Overview & Learning Objectives Course Expectations Training Approach & Participation Protocol
- 3. 3 © WA Department of Enterprise Services Mutual Respect General guidelines for online meetings: Interact Engage Participate
- 4. 4 © WA Department of Enterprise Services Training Credit To complete the module and receive credit, you will be expected to achieve a 80% on the module assessment . Employees should log into LMS to complete each module assessment. Use of the participant workbook is encouraged in the assessment!
- 5. 5 © WA Department of Enterprise Services Course Overview Course will be delivered in four modules: Module 1: Purchasing & Procurement Overview Module 2: Choosing a Route for Purchases of Goods and Procurement of Services Module 3: Competitive Procurements, Amendments, and Exemptions Module 4: Purchasing & Procurement Processes
- 6. 6 © WA Department of Enterprise Services Module Overview Section One The Planning Process Section Two Solicitation and Selection Section Three Post-Procurement
- 7. 7 © WA Department of Enterprise Services Learning Objectives As a result of this training participants will be able to: Identify purchasing and procurement needs and outcomes Describe the importance of communicating need within the agency Identify scope, timeline, requirements and vendors as part of the planning process Discuss how to evaluate and select a vendor Apply the purchasing and procurement planning phases
- 8. 8 THE PLANNING PROCESS Identify the Need and Outcomes Communicate Need Within Agency Identify Scope, Timeline and Requirements Identify Vendors Define Scope and/or Statement of Work
- 9. 9 © WA Department of Enterprise Services Procurement Steps 1. Identify the Need and Outcomes 2. Communicate Need Within Agency 3. Identify Scope, Timeline and Requirements 4. Identify Vendors 5. Define Scope and/or Statement of Work 6. Communicate Formal Need With Vendors 7. Evaluate Vendors 8. Select Vendor 9. Negotiate Contract 10. Contract Execution and Management PlanningPhaseSolicitation &Selection Post Procurement
- 10. 10 © WA Department of Enterprise Services Collaboration and Planning Collaboration is important – Work with Business Owners, Subject Matter Experts and Stakeholders
- 11. 11 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Why does your agency purchase goods and services?
- 12. 12 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Critical Thinking & Outcomes of a Purchase or Procurement Identify Need Identify Alternatives Available Evaluate & Analyze Identify Outcomes
- 13. 13 © WA Department of Enterprise Services Communicate Agency Need Step 2 1. Initiate planning process 2. Engage SMEs, business owner and other stakeholders 3. Conduct independent research 4. Determine checkpoints and delegated authority
- 14. 14 © WA Department of Enterprise Services Purchasing vs. Procurement Purchasing - the process of obtaining goods and services for the State of Washington. Procurement - the combined functions of identifying needs, initiating a procurement project, selecting a vendor, contracting with a vendor, purchasing of the goods or services, managing the resulting contract.
- 15. 15 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 Identify and define the scope and overall contract timeline
- 16. 16 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 Contract Purpose High-level Functional Areas Contractor Responsibilities Contract Phases & Timeline What is NOT in Scope?
- 17. 17 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 Common Pitfalls in Scope of Work/Requirements Writing • Too strict and rigid • Not enough details • Written to a certain vendor or solution • Outdated or obsolete requirements
- 18. 18 © WA Department of Enterprise Services Identify Vendors Step 4 1. DES Vendor Lists 2. Knowledge of Vendor Marketplace 3. Vendor Pre- Bid Communication 4. Other Sources
- 19. 19 © WA Department of Enterprise Services Define Scope and/or Statement of Work Step 5 Scope or Work vs. Statement of Work
- 20. 20 © WA Department of Enterprise Services Define Statement of Work Step 5 Statement of Work Requirements & Specifications Project History & Objectives Deliverables MilestonesSchedule Reporting Requirement s Performance Standards
- 21. 21 SOLICITATION AND SELECTION Communicate Formal Need With Vendors Evaluate Vendors Select Vendor
- 22. 22 © WA Department of Enterprise Services Procurement Steps 1. Identify the Need and Outcomes 2. Communicate Need Within Agency 3. Identify Scope, Timeline and Requirements 4. Identify Vendors 5. Define Scope and/or Statement of Work 6. Communicate Formal Need With Vendors 7. Evaluate Vendors 8. Select Vendor 9. Negotiate Contract 10. Contract Execution and Management PlanningPhaseSolicitation &Selection Post Procurement
- 23. 23 © WA Department of Enterprise Services Communicate Formal Need to Vendors Step 6 Request For Quote /Quotation OR Qualifications (RFQ) Request For Proposal (RFP)/Request for Bids (RFB) Request For Qualifications and Quotation (RFQQ) Communicate
- 24. 24 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6 Solicitation Need RFQ RFQQ RFP/RFB Standard, Ongoing Purchase X X Many Vendors Offer This X X Cost is the Most Important Factor X Vendor Qualifications and Performance Important in Addition to Cost X X Vendor Specialization / Few Offer This X Complex Project Needs X Solution Required to Meet Need X
- 25. 25 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6 Assign Procurement Coordinator •Define list of potential vendors •Encourage WEBS registration Draft Solicitation Content •Requirements tailored to level of complexity Issue Solicitation •Use WEBS •Post Amendments on WEBS Receive Bids •Document date/time •Maintain confidentiality
- 26. 26 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6 Evaluate Costs /Rates • Rank based on lowest cost or rate Award • Lowest cost, responsive bidder Post Results • WEBS • Notify successful & unsuccessful Bidders Negotiate & Award Contract • Conduct Debriefings • Negotiate & award the contract
- 27. 27 © WA Department of Enterprise Services Communicate Formal Need with Vendors - Step 6 Select Team •Establish Team Roles •Write Specifications •Identify RFP/RFB Coordinator for the project •Score and rank Bids Draft RFP/RFB Content •Project approach and methodology •Finalize Scope of Work •Outcomes and Performance Measures •Deliverables and milestones •Management and staffing plan •Bidder responses format •Cost response format Finalize and Release RFP/RFB •Stakeholders review draft RFP •Finalize RFP for release •Post and publish RFP Post Release Activities •Respond to Bidder questions •Draft amendments or addendums Evaluation Process (Step 7)
- 28. 28 © WA Department of Enterprise Services Communicate Formal Need w/ Vendors - Cost Sheets Step 6 Vendor Name Cost Time Materials Total: Vendor Name Deliverable Cost Deliverable A Deliverable B Deliverable C Total: Vendor Name Hourly Rate Hours Total Staff level Total:
- 29. 29 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Objectives Provide clear direction and guidance Ensure integrity of fair evaluation process Create a documented process Recommend for contract award
- 30. 30 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Step Considerations Confidentiality and Security Conflict of Interest Evaluation Milestones Evaluator Availability?
- 31. 31 © WA Department of Enterprise Services Evaluate Vendors Step 7 Procurement Coordinator • Ensure Adherence • Prepare & Distribute Evaluation Committee • Evaluate • Score Executive Sponsorship • Supports & Authorizes • Controls Expenditures Evaluation Roles include ….
- 32. 32 © WA Department of Enterprise Services Evaluate Vendors Step 7 Phase 1 • Initial Screening Phase 2 • Evaluation of Technical and Management Response Phase 3 • Oral Presentations (if applicable) Phase 4 • Evaluation of Cost Proposals Phase 5 • Best and Final Offers (BAFO) Phase 6 • Ranking of Proposals
- 33. 33 © WA Department of Enterprise Services Evaluate Vendors Step 7 Technical Evaluation Technical Evaluation Criteria Points (Weighted Score) 1 Executive Summary (75 points max) and Vendor Identifying Information (25 points max) 100 2 Qualifications of Firm (300 points max) 300 3 Approach to Scope of Work (300 points max) 300 4 Qualifications of Proposed Key Personnel (200 points max) 200 5 Corporate References (100 points max) 100 6 Total Weighted Score 1000
- 34. 34 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluations Vendor Name Cost Vendor A $150,000 Vendor B $175,000 Vendor C $180,000
- 35. 35 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluation Cost Componen t Vendor A Vendor B Vendor C Supplies $50,000 $60,000 $70,000 Staff $50,000 $90,000 $90,000 Administrative Expenses $20,000 $5,000 $5,000 Profit/Overhead $30,000 $20,000 $15,000 Total $150,000 $175,000 $180,000
- 36. 36 © WA Department of Enterprise Services Select Vendor Step 8 Once the evaluation is complete Award to Highest Scoring Bidder OR Reject all Bids or Re-Issue the Solicitation
- 37. 37 © WA Department of Enterprise Services Select Vendor Step 8 Once all bidders have been notified, conduct debriefings if requested. Following the award, as you get ready to negotiate and establish a contract make sure the solicitation files are complete.
- 38. 38 POST-PROCUREMENT Negotiate Contract Contract Execution and Management
- 39. 39 © WA Department of Enterprise Services Procurement Steps 1. Identify the Need and Outcomes 2. Communicate Need Within Agency 3. Identify Scope, Timeline and Requirements 4. Identify Vendors 5. Define Scope and/or Statement of Work 6. Communicate Formal Need With Vendors 7. Evaluate Vendors 8. Select Vendor 9. Negotiate Contract 10. Contract Execution and Management PlanningPhaseSolicitation &Selection Post Procurement
- 40. 40 © WA Department of Enterprise Services Negotiate Contract Step 9 Conduct Baseline Contract Review Edit contract based on proposal Finalize and Route for Signatures Contract Starts
- 41. 41 © WA Department of Enterprise Services Contract Execution and Management Transition Step 10 Contract Execution Initial Kick- off Meeting Contract Management Framework Project Management
- 42. 42 © WA Department of Enterprise Services Ongoing Contract Management Schedule Monitoring Risk Mitigation Compliance with T&C Approve Contractor Invoices Contract Execution and Management Transition Step 10
- 43. 43 © WA Department of Enterprise Services Summary & Key Points Identified purchasing and procurement needs and outcomes Described the importance of communicating need within the agency Identified scope, requirements and timeline, and vendors as part of the planning process Discussed how to evaluate and select a vendor Applied the purchasing and procurement planning phases
- 44. 44 © WA Department of Enterprise Services Next Steps Complete test and achieve 80% or higher Complete evaluation form
- 45. 45 QUESTIONS Questions after the training? Call Cheryl Shaw at (360) 407-9376.