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State Procurement 101

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State Procurement 101 A VIEW FROM THE INSIDE Tom Blaine, CPPO, FCPM, FCPA President, Public Sourcing Research & Consulting, LLC-Dennis Wholey FINISHED FILES ARE ... – PowerPoint PPT presentation

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Title: State Procurement 101


1
State Procurement 101 A VIEW FROM THE INSIDE
  • Tom Blaine, CPPO, FCPM, FCPA
  • President, Public Sourcing Research Consulting,
    LLC

2
Expecting life to treat you well because you are
a good person is a bit like expecting an angry
bull not to charge because you are a vegetarian.
-Dennis Wholey
3
FINISHED FILES ARE THE RE- SULT OF YEARS OF
SCIENTIF- IC STUDY COMBINED WITH THE EXPERIENCE
OF MANY YEARS
4
How many Fs are in the sentence?
5
FINISHED FILES ARE THE RE- SULT OF YEARS OF
SCIENTIF- IC STUDY COMBINED WITH THE EXPERIENCE
OF MANY YEARS
6
Your Experiences
As a business what has been your experience in
dealing with the government procurement
process?
7
Its not your fault!
Not all the rules of the game are written down.
8

Private vs. Public Sector Purchasing-Similarities
and Differences
  • Private Sector Purchasing
  • Cost Evaluation
  • Strategic Partnerships, long term relationships
  • Small group of Vendors
  • Select Business Partners via closed process
  • Can do anything that is not illegal
  • Accountable to Management

9
Private vs. Public Sector Purchasing-Similarities
and Differences
  • Public Sector Purchasing
  • Price Evaluation
  • Vendors are adversaries-Arms length relationship
  • Large group of Potential Bidders
  • Most of the process is in the public
  • Competition is the preferred method of purchase
  • Can only do what the rules/laws allowed

10
Current Trends in Public Procurement
  • Green Purchasing
  • Green Building Standards and Remodeling
  • Energy Saving Products
  • Recycled/Recyclable Products
  • Find a product or service the government wants
    that the large companies are not selling
  • Spend Analysis
  • Strategic Partnerships

11
Perspective of the Players
  • Requisitioner / Specifier
  • Wants something that works
  • Doesnt want a hassle
  • Prefers long working relationships with suppliers
  • If a product or service works well, wants to keep
    it

12
Perspective of the Players
  • Departmental Managers
  • Dont want the rules broken
  • Dont want productivity of department affected

13
Perspective of the Players
  • Procurement Staff
  • Multiple stakeholders- administration, elected
    officials, citizens, news media, vendor community
  • Disinterested third party Dont care who gets
    the award
  • Perspective depends on the type of the
    organization
  • Clerical, Bureaucratic, Professional

14
Perspective of the Players
  • Clerical
  • Typically are clerks, push the paper
  • May issue the bid, send results to department for
    decision
  • Processes the PO after the decisions are made by
    the department
  • May be organized to look like one of the other
    types, but no decision authority

15
Perspective of the Players
  • Bureaucratic
  • Bureaucratic and Professional Purchasing
    organizations-may be hard to distinguish
  • Impediment to introducing and maintaining
    efficient government
  • Tends to focus on control processes
  • Know all the rules, regulations and laws
    pertaining to procurement
  • Process over results
  • Concerned with transparency

16
Perspective of the Players
  • Bureaucratic
  • Typically makes award decision
  • A majority of the organizations have certified
    staff and managers
  • Majority of purchasing organizations

17
Perspective of the Players
  • Professional
  • Highly educated multi-disciplinary staff
  • Concerned with adding and documenting value to
    the government
  • Significant scrutiny over specifications
  • Focus on knowledge and information
  • Conducts market research
  • Documents vendor performance
  • Eliminates poor performing vendors
  • Concerned with transparency and value
  • May over-exhibit professionalism

18
Perspective of the Players
  • Elected and Appointed Officials
  • Dont want scandals
  • May become overactive in the procurement process
    to assist a constituent
  • Prefer to keep the purchases local
  • Do not have significant knowledge of process and
    my be influenced by lobbying form those they
    trust

19
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20
Who is the decision maker?
 
  • Centralized vs. decentralized
  • Centralized-Procurement makes /recommends the
    important decisions
  • Decentralized- Departments make the important
    decisions
  • Need to determine who makes what decisions
  • Need to do some research

21
Finding Business OpportunitiesOn- Line
Registration
22
Federal Vendor Registration
23
Bid Aggregation Sites
  • Web site that searches government bid posting
    sites and aggregates all those to one location.
  • Reduces the time needed to search for bidding
    opportunities
  • Most are a paid subscription
  • Some are free for basic services

24
Bid Aggregation Sites
25
Free Bid Aggregation Site
26
www.InstantMarkets.com
27
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