Procurement Planning Flashcards
What are the requirements of Procurement Planning?
Needs Assessment
Cost Estimate
Acquisition Plan
What is involved in Needs Assessment?
1) Market research- to obtain information relating to the size of the potential vendor pool, pricing, applicable industry standards, market trends, and availability. (can include trade shows and contacting industry reps)
2) Historical Spend Analysis- study purchasing data to identify cost savings (e.g. consolidate multiple single purchases into one bulk purchase)
3) Benchmarking- compare with other entities and industry standard to obtain a “measure” to identify opportunities to improve (e.g. what is currently available and the avg price/standard unit- so you don’t buy an outmoded product)
4) Request for Information- formal research method- can be posted on ESBD or submitted to professional or trade organization (but a contract canNOT be awarded from an RFI)
Is a Request for Information a procurement opportunity?
No, a contract cannot be developed from an RFI.
Should an RFI be used to gauge industry interest in procurement?
No, because many vendors don’t respond to RFIs because no contract will be awarded or they may have a company policy to not respond to RFIs.
If a vendor received compensation to participate in the prep of specifications for a solicitation, can they respond to this solicitation?
NO
How does an agency develop a Cost Estimate?
From vendor’s advertised price lists, online research, or historical spend
Use Informal Budget Quotes (clearly explain to all contacted vendors that the price estimate is sought for info only and it is not a formal solicitation)
Determine Funding Source- General Revenue, General Revenue-Dedicated accounts, Federal Funds, and Other Funds.
What goods and services cannot be paid with appropriated funds?
Unless the procurement falls within a statutory exemption:
1) Alcoholic beverages (DPS has an exemption for officer training for drunk driving)
2) Audit of financial records or accounts
3) Membership/dues for professional organizations
4) Live or artificial indoor plants
5) Private facilities for meetings, conferences, or exams (unless state facilities are not available or adequate to accommodate, or economically favorable)
6) Postage or post office box other than US postal service
7) General informational, promotional, or educational publications issued by the agency intended for use by the general public and not essential for agency function
Note: public junior colleges had many exceptions to the above
What is the Acquisition Plan?
Determines procurement strategy-
1) Documents the solicitation process (documents all activities in procurement cycle necessary to ensure contract requirements are met),
2) assigns roles and responsibilities,
3) creates a calendar of events,
4) identifies high-risk items
What could be the Acquisition Plan for simple and routine procurements using Set Aside Programs, Texas SmartBuy, or Informal Bidding?
Documentation of agency procedure
What factors determine drafting a unique Acquisition Plan?
good or service being procured, contract complexity, dollar value, and whether the procurement is part of a larger organizational project
Acquisition Plan is required for all MIRP contracts subject to QAT review.
Who is responsible for the Acquisition Plan?
Contract developer
What is the goal of an Acquisition Plan?
Ensure the procurement is solicited, negotiated, executed, and managed in a way that delivers best value to the State
What is the Procurement File Checklist?
Tool used to document compliance with applicable laws, rules and agency practices. Must have all applicable documents saved on agency’s server prior to contract award.
Describe what should happen with the Acquisition Plan prior to contract award and after contract award.
Prior- Should be updated to address changes, especially any assumptions that may impact the scope
After- should be used to transition from Contract Developer to Contract Manager
