Spec Types & Development

Question 1

Questions

Answer 1

Answers

Question 2

4.1.1 What is the critical first step in the selection process? (p.45)

Answer 2

Identify the requirement for the vehicle - Know your fleet

Question 3

4.1.2 What two objectives must be balanced during the selection process? (p.45)

Answer 3

Acquire vehicles and equipment that meet operational needs at the lowest life cycle cost

Question 4

4.2.1 What questions should the Fleet Manager ask in order to help determine vehicle requirements? (p.45)

Answer 4

What sorts of tasks will they need to perform?
Will the vehicle often be carrying backseat passengers?
What sorts of cargo will be carried?
What distances will this vehicle drive?

Question 5

4.2.10 What are some of the criteria used to evaluate a response to an RFP? (p.48)

Answer 5

The components of an RFP typically include:
a. statement and scope of work
b. specifications
c. schedules or timelines
d. contract type
e. data requirements
f. terms and conditions
g. description of goods and/or services to be procured
h. general criteria used in evaluation procedure
i. special contractual requirements
j. technical goals
k. instructions for preparation of technical, management, and/or cost proposals

Question 6

4.2.11 What is an RFI and when should it be used? (p.49)

Answer 6

1. Request for Information
2. May be sent to all vendors in order to develop the pre-qualified vendor list thereby limiting the number of full proposals which must
   be fully evaluated by the review team
3. This is particularly true for complex or high-value purchases involving multiple rounds of proposing, presentation, evaluation, and negotiation culminating in submission of their best technical and financial proposal, commonly referred to as a Best and Final Offer (BAFO).

Question 7

4.2.12 What is an RFT and when should it be used? (p.49)

Answer 7

When the government, infrastructure and utility sectors may be required by law to use a similarly structured process called a Request
for Tenders (RFT
An RFT is usually expected to conform to some legally standardized structure designed to ensure impartiality.

Question 8

4.2.13 What are cooperative purchasing contracts? (p.49)

Answer 8

Established by one of the processes above and allows other organizations to buy from it without a re-bid (e.g., County buying off a State contract).

Question 9

4.2.2 What tools can the Fleet Manager use in order to save time in identifying vehicle requirements? (p.45)

Answer 9

1. Send out a survey to users to identify what they will be doing with the new vehicles you order.
2. You could also sit down and personally interview the primary user of the vehicle

Question 10

4.2.3 What is the role of the Fleet Manager in the decision on vehicle specifications? (p.46)

Answer 10

As the fleet manager it is your ultimate decision when deciding what specifications each vehicle entering the fleet must have
- Crucial to receive suggestions and hear out the needs from those who will be working with the new vehicles

Question 11

4.2.4 What are some common errors that are made while purchasing specialty vehicles? (p.46)

Answer 11

• Working out of order
When starting to write a specification for a work truck it is often better to start with the body rather than the chassis, or framework.

• Duplicating old units
The current work trucks might not have the power or efficiency to do certain tasks.

• Guessing

Question 12

4.2.5 What are the common terms for solicitation styles used by organizations in order to procure goods and services from vendors? (p.47)

Answer 12

These solicitations for bids can be grouped into two basic types:
1. A request for quotations (RFQ) - most appropriate when the goods or services being procured are clearly defined and information desired from potential vendors is primarily the cost.
2. A request for proposals (RFP} - most appropriate when the need fulfilled by the goods or services being procured can be defined but the organization would like to collect creative solutions and price quotes from potential vendors.

Question 13

4.2.6 What is an RFQ and when should it be used? (p.47)

Answer 13

A request for quotations (RFQ) - most appropriate when the goods or services being procured are clearly defined and information desired from potential vendors is primarily the cost.

Question 14

4.2.7 What information is required in an RFQ? (p.47)

Answer 14

Required delivery schedule, payment terms, quality level, and contract length.

Question 15

4.2.8 What is an RFP and when should it be used? (p.48)

Answer 15

A request for proposals (RFP} - most appropriate when the need fulfilled by the goods or services being procured can be defined but the organization would like to collect creative solutions and price quotes from potential vendors.

Question 16

4.2.9 List the typical components of an RFP. (p.48)

Answer 16

a. statement and scope of work
b. specifications
c. schedules or timelines
d. contract type
e. data requirements
f. terms and conditions
g. description of goods and/or services to be procured
h. general criteria used in evaluation procedure
i. special contractual requirements
j. technical goals
k. instructions for preparation of technical, management, and/or cost proposals

Question 17

4.3.1 What are the three types of specifications and what do they have in common? (p.49)

Answer 17

Performance, design, and proprietary (or name brand)

Question 18

4.3.10 What role does lifecycle cost play in the decision making process? (p.52)

Answer 18

“Lowest cost” responsive bidder may include objective measures of life cycle cost elements not just purchase price

Question 19

4.3.11 What is the ABA model procurement code? (p.52)

Answer 19

Contains recommended wording which is widely adopted particularly by states and local government jurisdictions
The Code and Companion Model Procurement Regulations promote transparency, fairness and competitiveness through adoption of best practices

Question 20

4.3.12 What are Fleet Standardization provisions? (p.53)

Answer 20

Standardization on makes/models may reduce costs for maintenance (e.g., diagnostic software, specialty tools, technician training) and driver training

Question 21

4.3.13 What benefits can be achieved by standardizing your fleet procurement specifications? (p.53)

Answer 21

Cost Saving

Question 22

4.3.14 What are some of the advantages of standardization? (p.53)

Answer 22

1. Improved Maintenance Efficiency
2. Fewer Diagnostic and Specialty Tools
3. Smaller Parts and Bulk Fluid Inventory
4. Increased Operational Efficiency and Safety
5. Closer Vendor Relations
6. Proven Reliability
7. Potentially Less Time Spent on Specifications and Bid Evaluations
8. Fewer Contracts and Invoices to Process

Question 23

4.3.15 What are the disadvantages of standardizing procurement? (p.55)

Answer 23

1. Potential Loss of Competition
2. Potential Missed Innovation
3. Risk of “Lemons”
4. Appearance of Collusion

Question 24

4.3.16 What are some considerations for standardizing the “right way”? (p.55)

Answer 24

1. EVERYTHING about standardizing the fleet must be done openly,above-board and in full view of the applicable stakeholders
2. Potential vendors need to be included in the process when the evaluation rules are established and their concerns addressed—but not necessarily acquiesced to. A formal pre-bid conference is a good venue to meet this requirement.
3. Consider standardization for one segment of the fleet at a time
4. Standardization should be based on a demonstrable savings in the life cycle cost
   5.

Question 25

4.3.17 What is a multi-year procurement agreement and why should your organization establish one? (p.56)

Answer 25

Establishing a multi-year procurement agreement based on this competitive bid outcome, when permitted, simplifies the standardization process.
A multi-year agreement would include a cost escalation clause, take advantage of all new incentives, and have an easy-out provision for both parties

Question 26

4.3.2 What do good specifications need? (p.50)

Answer 26

1. Specifications need to have enough detail to avoid confusion

Question 27

4.3.3 What are performance specifications? List some examples. (p.50)

Answer 27

A description of a vehicle’s minimum operating requirements can include gross weight, speed, acceleration, minimum grade it must negotiate, passenger/weight/volume carrying capacity, fuel economy, emissions levels, axle loads and distribution, and compliance with industrial or governmental standards and/or statutes such as SAE, OSHA, or DOT

Question 28

4.3.4 What is the advantage to using performance specifications? (p.50)

Answer 28

Performance specifications will likely result in the most competition of the three basic types as vendors are free to select and configure the product able to meet the minimum operating requirements at the lowest cost of those criteria to be used for the evaluation

Question 29

4.3.5 What are Design specifications? Give some examples. (p.51)

Answer 29

Design specifications may include a description of a vehicle’s physical dimensions, structural properties (e.g., moments of inertia, resistance to bending, tensile or yield strengths) or other engineering parameters and performance (e.g., power or torque)

Question 30

4.3.6 When are design specifications used? (p.51)

Answer 30

1. Design specifications are normally used for specialty/custom vehicles
2. vehicles built in multiple stages where a body and ancillary equipment are mounted on a cab and chassis (e.g., mass transit bus, dump truck).

Question 31

4.3.7 What are proprietary specifications? List some examples. (p.51)

Answer 31

Make and Model / A description of a vehicle’s required equipment that is specific to a particular manufacturer.

Question 32

4.3.8 What are some advantages and disadvantages of proprietary specifications? (p.51)

Answer 32

Advantage:
they may also be used to establish a known commodity that works for the fleet
Disadvantage:
Proprietary specifications are the easiest to write but can be the most difficult to evaluate for bid award if the “or equal” provision is included to allow competition against the known commodity

Question 33

4.3.9 What is the Hybrid approach to specification writing? (p.52)

Answer 33

Hybrid specifications that combine features of the three distinct types above (performance, design, and proprietary) are common
Specifications may include a single type but are more commonly a combination of two or even all three types

Question 34

4.4.1 What are pre-bid meetings and what steps should be taken to ensure that they are successful? (p.56)

Answer 34

Pre-bid meetings may be either mandatory or non-mandatory when procuring vehicles
• Find a member of your team to take written notes during the meeting to ensure proper documentation and recording of all necessary
information.
• Set up a time and place for the bid opening.
• Create an attendance record for attendees of the meeting.

Question 35

4.4.2 Why is it beneficial to visit a vendor before purchasing the vehicle? (p.57)

Answer 35

This gives you an opportunity to really understand the source of your purchase as well as getting a real feel for the vehicle

Question 36

4.4.3 Describe the post-bid evaluation process. (p.57)

Answer 36

After making a decision, prepare a Bid Evaluation Report and spell out reasons for rejecting each bid you did not take.
Additionally, include qualifications, alternatives, technical comparisons, and responsive bid comparison.

Question 37

4.4.4 What is a performance bond? (p.57)

Answer 37

Financial guarantee up-front protecting the buyer from vendor non-compliance.
A performance bond typically raises cost by 1-2% of the contract price

Question 38

4.4.5 What items are included in most specifications? (p.57)

Answer 38

Cab, Engine & Transmission,
Electrical, Fuel, Brake System, Axles, Tires and Wheels, General (safety
standards, cylinder removal process, vehicle camera), Body Dimensions,
Body Construction, Hopper, Packing/Ejecting Mechanism, Lifting Arms,
Controls, Hydraulics, Paint, Mounting, Warranty, and Optional Equipmen