Processes and Procedures for Contracting at UO Procurement 101 Processes and Procedures for Contracting at UO Presented by: Greg Shabram, Associate Director Laura Harris, Contracts Officer Purchasing and Contracting Services

Agenda Procurement Process Overview Procurement Planning Developing a Statement of Work Solicitation Special Topics in Procurement

Procurement Process Framework Make / Buy Decision Procurement Planning Develop Statement Of Work Solicit Proposals Select Source / Vendor Negotiate Execute Contract Administration

Procurement Planning Develop Minimum Specifications and Estimate Total Dollar Value Determine Applicable Policies and Procedures Create and Procurement Team and Plan Draft a Statement of Work (SOW)

Estimating Total Dollar Value Total cost for each year of the project All reasonably foreseeable costs associated with that project payable to one vendor Take into account recurring spend, if foreseeable If close to a competitive threshold err towards the higher amount

Determine Applicable Policies and Procedures Can you buy the goods/services from a QRF, an existing price agreement, or from the eProcurement system? Check the approvals list to determine any additional stakeholders Use the following flow chart to determine the correct procurement process

Procurement Planning Flowchart Can you buy from a QRF? Can you buy from an established Price Agreement? Is the purchase exempt or valued at under $25K? No No No Buy Decision Yes Yes Yes Buy from QRF Buy off Price Agreement Direct Procurement Is this only available from a Sole Source? No Is there a limited vendor pool? No No Is the total value less than $150K? No Conduct RFP/ITB* Yes Yes Yes Post and buy Direct Conduct AP Conduct RFQ/ITB* *An ITB is only appropriate when price is the only selection factor

Create a Procurement Team and Plan your Procurement This step scales to the scope of your procurement Could be just you issuing a PO, may be a team of multiple UO departments and stakeholders Host a kickoff meeting Invite team members (Dept. Staff, Campus Stakeholders, PCS Staff) Agree on a procurement schedule based on applicable procurement process Identify who will draft SOW and when it will be completed Clearly identify roles and responsibilities

Create a Procurement Team and Plan your Procurement – Cont. Develop a BATNA What happens if the procurement fails? At what point are you willing to walk away from a vendor? Divide needs from wants Identify UO strategic interests addressed by the procurement. Notify applicable departments on the approvals list (invite stakeholders to the kickoff meeting if appropriate)

Discussion 1 Think of the largest purchase that you plan to make this year Estimate the value, identify the appropriate procurement process, and identify stakeholders When do you plan to hold your kickoff meeting? Send us an outlook invite! Be prepared to share with the group

Drafting Specification/SOWs An effective SOW should clearly define what work will be done, what interim steps must be completed, who will do it, and when they will complete the work and each step. The SOW does not need to be an exhaustive list of every action necessary to complete a project, but the SOW should be detailed enough so that anyone with the appropriate background should be able to understand, without any ambiguity, what will result from the project.

Drafting Specification/SOWs Every SOW should, at minimum, include the following elements: A description of the deliverables, including any specifications or standards that those deliverables must meet. The tasks that support the deliverables, as well as which Party (the University for the Contractor) responsible for completing those tasks. A timeline that details when each task will be completed and when each deliverable will be delivered. The resources (people, equipment, facilities, etc.) required for the project and the party responsible for providing those resources. Acceptance criteria and an acceptance procedure. A clear price for the project, that is limited to a fixed amount.

Discussion 2 We need a volunteer! Let’s work as a group to draft a SOW

Conducting the Procurement Goals: Ensure Fairness Foster Competition Satisfy Stakeholder Interests Get the Best Value! *Shameless Plug* Pay With a PCard!

Conduct a Procurement Direct Procurement: Draft your SOW Understand the Marketplace Ask vendors for quotes Negotiate Purchase (with a PCard!)

Formal/Informal Procurement Draft/Post AP, ITB, RFQ, or RFP Review responses in accordance with terms of solicitation and UO policies Select the best value source

Sole Source Criteria: Due to specific needs or qualifications, the goods or services required are only reasonably available from a single vendor. Must clearly demonstrate that the SOW is the only reasonable manner UO could meet its need, and that the vendor is the only vendor in the marketplace that can fulfill that SOW. Process: Posted for at least 7 calendar days. If no protests are made, the transaction may proceed.

Alternative Procurement Criteria: A limited vendor pool of at least two entities or a purchase of IT services (i.e. SaaS) Responds to innovative business and market methods. Contributes to UO’s productivity improvement and process redesign. Results in comprehensive cost-effectiveness and productivity for UO. Process: Posted for at least 5 business days. Informal posting and selection criteria. Greater opportunity to negotiate price and terms prior to award.

Request for Quote Criteria: All goods and services between $25k and $150k Selection based on best value or lowest price. Process: Posted for at least 5 business days. Informal posting and selection criteria. Must solicit bids from three vendors, one being an MWESB

Request for Proposal Criteria: All goods and services over $150k Selection based on best value Process: Posted for at least 21 calendar days Formal posting and selection criteria Must solicit bids from three vendors, one being an MWESB May include controlled meetings with vendors and down selection processes Must develop a detailed scoring and source selection process

Invitation to Bid Criteria: All goods and services over $150k Selection based on lowest price Process: Posted for at least 21 calendar days Formal posting and selection criteria Must solicit bids from three vendors, one being an MWESB May include controlled meetings with vendors and down selection processes Must develop a detailed scoring and source selection process

RFP Scenario We’ve drafted a SOW. Lets draft an RFP and determine possible vendors.

Special Topics Strategic Purchasing Duck Depot Payment Delegated Contracting Authority Next Classes: Procurement 102: 3/15 Rules and Ethics: 4/17 Procurement 101: 5/22

Tools & Support Policy Training Templates Written Procedures and Instructions Website Direct assistance from PCS Staff via phone, email and in-person meetings Each department is assigned a Contracts Officer and Contracts Tech. If you do not know yours let us know and we’ll put you in touch with them!

Questions?