M4 pp 101_ppt (2)

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Purchasing and
Procurement Processes
Module Four
Revision Date: 2/06/2015

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COURSE INTRODUCTION
Course Overview & Learning Objectives
Course Expectations
Training Approach & Participation Protocol

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© WA Department of Enterprise Services
Mutual Respect
General guidelines for online meetings:
Interact
Engage
Participate

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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!

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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

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Module Overview
Section
One
The Planning
Process
Section
Two
Solicitation and
Selection
Section
Three
Post-Procurement

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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

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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

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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

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Collaboration and Planning
Collaboration is important – Work with
Business Owners, Subject Matter Experts
and Stakeholders

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Step 1
Why does your agency purchase goods
and services?

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Step 1
Critical Thinking & Outcomes of a Purchase
or Procurement
Identify
Need
Identify
Alternatives
Available
Evaluate &
Analyze
Identify
Outcomes

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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

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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.

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Identify Scope, Requirements
and Timeline
Step 3
Identify and define the scope and
overall contract timeline

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and Timeline
Step 3
Contract
Purpose
High-level
Functional
Areas
Contractor
Responsibilities
Contract
Phases &
Timeline
What is
NOT in
Scope?

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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

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Identify Vendors
Step 4
1. DES Vendor
Lists
2. Knowledge of
Vendor
Marketplace
3. Vendor Pre-
Bid
Communication
4. Other
Sources

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Define Scope and/or Statement
of Work
Step 5
Scope or Work vs. Statement of Work

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Define Statement of Work
Step 5
Statement
of Work
Requirements
&
Specifications
Project
History &
Objectives
Deliverables
MilestonesSchedule
Reporting
Requirement
s
Performance
Standards

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SOLICITATION AND SELECTION
Communicate Formal Need With Vendors
Evaluate Vendors
Select Vendor

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Procurement Steps
4. Identify Vendors
7. Evaluate Vendors
8. Select Vendor
&Selection
Post
Procurement

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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

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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

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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

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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

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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)

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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:

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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

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Evaluate Vendors
Step 7
Evaluation Step Considerations
 Confidentiality and Security
 Conflict of Interest
 Evaluation Milestones
 Evaluator Availability?

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Evaluate Vendors
Step 7
Procurement
Coordinator
• Ensure
Adherence
• Prepare &
Distribute
Evaluation
Committee
• Evaluate
• Score
Executive
Sponsorship
• Supports &
Authorizes
• Controls
Expenditures
Evaluation Roles include ….

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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

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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

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Evaluate Vendors
Step 7
Cost Evaluations
Vendor Name Cost
Vendor A $150,000
Vendor B $175,000
Vendor C $180,000

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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

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Select Vendor
Step 8
Once the evaluation is complete
Award to Highest Scoring Bidder
OR
Reject all Bids or Re-Issue the Solicitation

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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.

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POST-PROCUREMENT
Negotiate Contract
Contract Execution and Management

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Procurement Steps
4. Identify Vendors
7. Evaluate Vendors
8. Select Vendor
&Selection
Post
Procurement

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Negotiate Contract
Step 9
Conduct
Baseline
Contract
Review
Edit
contract
based on
proposal
Finalize
and Route
for
Signatures
Contract
Starts

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Contract Execution and
Management Transition
Step 10
Contract
Execution
Initial Kick-
off Meeting
Contract
Management
Framework
Project
Management

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Ongoing Contract
Management
Schedule
Monitoring
Risk
Mitigation
Compliance
with T&C Approve
Contractor
Invoices
Contract Execution and
Management Transition
Step 10

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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

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Next Steps
 Complete test and achieve 80% or higher
 Complete evaluation form

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QUESTIONS
Questions after the training? Call Cheryl Shaw at (360) 407-9376.

M4 pp 101_ppt (2)

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