101 - Foundations of Public Procurement Flashcards
American Bar Association (ABA) Model Procurement Code
Developed and adopted in 1979. State and larger local governments have individually codified the ABA MPC into procurement law and policy to effectively guide their procurement organizations.
Essentially, it is “a collection of statutory principles and policies that provudes guidance to public policy managers who wish to responsibly manage procurements.
Acceptance
- Indication that all parties to the contract agree to be bound by the terms of the contract
- An indication by one party of a willingness to act in accordance with the contract or offer.
- The assumption of a legal obligation by a party to a contract and its terms and conditions.
Acquisition
The process of obtaining supplies, services, or construction through purchase, lease, or grants.
Best Alternative to Negotiated Agreement (BATNA)
Plan B should negotiations begin to break down and sets criteria by which the state will walk away. BATNA contains all of the state’s options, including negotiating with other bidders, extending the existing contract, or rebidding.
(Bid) Preference Programs
Are usually procurements laws that mandate bid prices for preferred class of bidders be given special consideration when comparing bid prices.
i.e. SB/DVBE, TACPA
Bid Tabulation Sheet
A summary document of
Brand-Name-or-Equal-Specification
One or more manufacturers’ brand names, with identifying model numbers, used in a specification to evoke a certain quality, performance, and other salient characteristics needed to meet the requirements of the solicitation.
Breach of Contract
Failure by either contracting party to fulfill a contract wholly or in part, without legal excuse.
Bribery
The crime of offering, giving, receiving, or soliciting anything of value to influence action of an official or in the charge of a public duty.
Cannibalization
Used to describe the disassembly, dismantlement, stripping or tearing down of buildings or equipment for the salvage of parts or components. A process used to extend the life cycle of equipment.
Chief Procurement Officier (CPO)
The official that leads the central state procurement office and is responsible for all procurement efforts across the state as defined by statue or law
Code of Ethics
A guide of acceptable and ethical behavior as defined by an organization or public body.
Competent Parties
Persons legally capable of entering into a contract, being of legal age and sound mind.
Conflicts of Interest
- A situation that can undermine a person due to self or public interest
- A situation when parties discharge responsibility to a third party
Consideration
- Something of value which is exchanged by two parties and serves to bind or form a contract.
- A type of mutual commitment that must exist to form an express contract.
- That which is given or promised to bring a binding contract into existence.
Contract
- An obligation between competent parties upon legal consideration to do or abstain from doing an act.
- A legally binding promise, enforceable by law.
- An agreement between parties with binding legal and moral force
Contract Administration
A term used to describe the functions that are performed after parties have signed a contract.
Delegated Authority
Authorized or appointed individuals (outside the purchasing department) are given this authority under the entity’s rules/procedures that allow them to make small dollar purchases on behalf of the agency.
CA Department of General Services (DGS) Delegates Spend Authority to each California Department, Agency, Board, Office, etc.
Definition of Need
Identification of what is needed, how many, functionalities, features, etc.
-usually a rough idea which forms prior to researching the market and writing specifications
Design Specification
Describe dimensional and other physical requirements of the item to be purchased.
-concentrates on how a product is to be fabricated or constructed
-most traditional kind of specification
Emergency Procurement/Contract
Purchase made in response to unexpected and urgent request where health and safety or the conservation of public resources is at risk
CA - formal competitive bidding procedures are waived