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

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

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

4 © WA Department of Enterprise Services 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!

5 © WA Department of Enterprise Services 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

6 © WA Department of Enterprise Services Module Overview

7 © WA Department of Enterprise Services 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

8 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

9 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

10 © WA Department of Enterprise Services Collaboration and Planning Collaboration is important – Work with Business Owners, Subject Matter Experts and Stakeholders

11 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Why does your agency purchase goods and services?

12 © WA Department of Enterprise Services Identify the Need and Outcomes Step 1 Critical Thinking & Outcomes of a Purchase or Procurement

13 © WA Department of Enterprise Services Communicate Agency Need Step 2

14 © WA Department of Enterprise Services 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.

15 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 Identify and define the scope and overall contract timeline

16 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3 What is NOT in Scope?

17 © WA Department of Enterprise Services Identify Scope, Requirements and Timeline Step 3

18 © WA Department of Enterprise Services Identify Vendors Step 4

19 © WA Department of Enterprise Services Define Scope and/or Statement of Work Step 5 Scope or Work vs. Statement of Work

20 © WA Department of Enterprise Services Define Statement of Work Step 5

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

22 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

23 © WA Department of Enterprise Services Communicate Formal Need to Vendors Step 6 Communicate

24 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6 Solicitation NeedRFQRFQQRFP/RFB Standard, Ongoing Purchase XX Many Vendors Offer This XX Cost is the Most Important Factor X Vendor Qualifications and Performance Important in Addition to Cost XX Vendor Specialization / Few Offer This X Complex Project Needs X Solution Required to Meet Need X

25 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6

26 © WA Department of Enterprise Services Communicate Formal Need with Vendors Step 6

27 © WA Department of Enterprise Services Communicate Formal Need with Vendors - Step 6 Evaluation Process (Step 7)

28 © WA Department of Enterprise Services Communicate Formal Need w/ Vendors - Cost Sheets Step 6 Vendor NameCost Time Materials Total: Vendor NameDeliverable Cost Deliverable A Deliverable B Deliverable C Total: Vendor Name Hourly Rate HoursTotal Staff level Total:

29 © WA Department of Enterprise Services 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

30 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Step Considerations  Confidentiality and Security  Conflict of Interest  Evaluation Milestones  Evaluator Availability?

31 © WA Department of Enterprise Services Evaluate Vendors Step 7 Evaluation Roles include ….

32 © WA Department of Enterprise Services Evaluate Vendors Step 7

33 © WA Department of Enterprise Services 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) Qualifications of Firm (300 points max) Approach to Scope of Work (300 points max) Qualifications of Proposed Key Personnel (200 points max) Corporate References (100 points max) Total Weighted Score 1000

34 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluations Vendor NameCost Vendor A$150,000 Vendor B$175,000 Vendor C$180,000

35 © WA Department of Enterprise Services Evaluate Vendors Step 7 Cost Evaluation Cost Componen t Vendor AVendor BVendor C Supplies$50,000$60,000$70,000 Staff$50,000$90,000 Administrative Expenses $20,000$5,000 Profit/Overhead$30,000$20,000$15,000 Total$150,000$175,000$180,000

36 © WA Department of Enterprise Services Select Vendor Step 8 Once the evaluation is complete Award to Highest Scoring Bidder OR Reject all Bids or Re-Issue the Solicitation

37 © WA Department of Enterprise Services 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.

38 POST-PROCUREMENT Negotiate Contract Contract Execution and Management

39 © WA Department of Enterprise Services Procurement Steps Planning Phase Solicitation & Selection Post Procurement

40 © WA Department of Enterprise Services Negotiate Contract Step 9

41 © WA Department of Enterprise Services Contract Execution and Management Transition Step 10

42 © WA Department of Enterprise Services Ongoing Contract Management Schedule Monitoring Risk Mitigation Compliance with T&C Approve Contractor Invoices Contract Execution and Management Transition Step 10

43 © WA Department of Enterprise Services 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

44 © WA Department of Enterprise Services Next Steps  Complete test and achieve 80% or higher  Complete evaluation form

45 QUESTIONS Questions after the training? Call Cheryl Shaw at (360)