1. DEFINING REQUIREMENTS (REV. 05/22/2008)
PUBLIC PURCHASING IN FLOIRDA
DEFINING REQUIREMENTS
(REV. 05/22/2008)

2. Contact
Ommet Mbiza, MBA, CPPO, PMP Purchasing Analyst, Division of State Purchasing Florida Department of Management Services Tel: Fax:
Public Purchasing in Florida – Defining Requirements

3. Requirements Determination Value Analysis
Table of Contents
Requirements Determination
Value Analysis
Determining Methods of Solicitation
Specifications
Standardization
Public Purchasing in Florida – Defining Requirements

4. Requirements Determination
Defining Customer Needs
Need Recognition
Coordinating with user agencies
Description of the need
Budget analysis
Internal and External Profiles
Public Purchasing in Florida – Defining Requirements

5. Requirements Determination
Defining customer needs
Who is responsible for deciding, and how will they decide:
Do we need anything? Why?
What, how much, what quality & when?
Should we make it or buy it?
THE ANSWERS LIE IN THE MISSIONS (STATUTORY & EXECUTIVE) OF THE AGENCY, AND ITS RESOURCES.
Public Purchasing in Florida – Defining Requirements

6. Requirements Determination
Make or Buy Decision
Florida Statutes [ (3)] require consideration to include (not limited to)
Identifying & assessing in writing project needs & requirements
Availability of agency employees
Budgetary Constraints or availability
Facility and equipment availability
Current and projected agency workload capabilities
The ability of any other state agency to perform the services.
Public Purchasing in Florida – Defining Requirements

7. Requirements Determination
Make or Buy Decision
Consider in house and out
Resource Availability, Cost
Quality
Core responsibility
Risk and recovery
Public Purchasing in Florida – Defining Requirements

8. Requirements Determination
Make or Buy Decision
Generally decided by the operating entity not the purchasing agent. BUT the purchasing agent can offer guidance and has a market-testing tool, the RFI.
See also s , Florida Statutes and and (then see OPB Guidelines 22 Jan. ’04)
Public Purchasing in Florida – Defining Requirements

9. Requirements Determination
Buying Plan and Analysis Methods
Demand Analysis
Market Analysis
Supplier Analysis
Public Purchasing in Florida – Defining Requirements

10. Requirements Determination Value Analysis
Table of Contents
Requirements Determination
Value Analysis
Determining Methods of Solicitation
Specifications
Standardization
Public Purchasing in Florida – Defining Requirements

11. Value Analysis Value Analysis steps: Accumulate facts
Identify areas of knowledge required
Provide and efficient knowledge search
Apply creative skills
Apply precise evaluation techniques
Public Purchasing in Florida – Defining Requirements

12. Value Analysis Forecasting Fixed Period Method Moving Average Method
Weighted Moving Average Method
Economic Ordering Quantity (EOQ)
Public Purchasing in Florida – Defining Requirements

13. Requirements Determination Value Analysis
Table of Contents
Requirements Determination
Value Analysis
Determining Methods of Solicitation
Specifications
Standardization
Public Purchasing in Florida – Defining Requirements

14. Determining Methods of Solicitation
Competitive Quotations
Competitive Sealed Bids
Sole Source
Discretionary Purchases
Contract selection
Public Purchasing in Florida – Defining Requirements

15. Determining Methods of Solicitation
Steps in planning/scheduling process
Public Purchasing in Florida – Defining Requirements

16. Requirements Determination Value Analysis
Table of Contents
Requirements Determination
Value Analysis
Determining Methods of Solicitation
Specifications
Standardization
Public Purchasing in Florida – Defining Requirements

17. Specifications Definitions:
“SPECIFICATIONS” generally applies to a description of commodities sought in a solicitation.
“STATEMENT OF WORK” generally applies to a description of services sought in a solicitation
Some solicitations include both commodity specifications and a statement of work.
Public Purchasing in Florida – Defining Requirements

18. Specifications Qualities of Good Specifications
Identify minimum requirements
Allow competition
Describe testing methods, if applicable
Result in equitable award to the lowest responsive bidder
Be simple, concise, and avoid loopholes that allow the bidder to offer product below the stated quality
Be common to at least two manufacturers
Identify measurable physical, functional and quality characteristics that meet the requirements, including basic design, physical dimensions, weights, percentage and types/grades of materials
Public Purchasing in Florida – Defining Requirements

19. Specifications Types of Specifications Design specifications
Performance specifications
Qualified Products List (QPL)
Brand name or equal
Samples
Engineering drawings
Material-and-Method Manufacture Specifications
Market Grade
Combination of two or more of the above
Public Purchasing in Florida – Defining Requirements

20. Specifications Design Specifications
A design specification alone may be appropriate to some degree for general requirements contracts, but may limit the buyer’s rights under the Uniform Commercial Code (cf. s FS at) if the product proves unsuitable for the purpose it was purchased.
Public Purchasing in Florida – Defining Requirements

21. Specifications Performance Specifications Intended use or application
Features & functions
Capabilities
Compatibility with other equipment or functions
Outputs
Outcomes
Public Purchasing in Florida – Defining Requirements

22. Specifications Qualified Products List
The QPL is generally used in Florida when product acceptance procedures are established by rule and products are qualified (or disqualified) using published testing procedures applied by the buying agency, other agencies or laboratories
Examples include some highway materials, police radars & body armor
Public Purchasing in Florida – Defining Requirements

23. Specifications Brand Name or Equal
Brand Name or Equal is a less precise method of indicating a general level of design, performance and quality. “Equal” may be difficult to define.
Brand Name or Equal specifications allow other comparable brands to be offered for consideration, with some exceptions (e.g. some police equipment where uniformity is required for various reasons)
Public Purchasing in Florida – Defining Requirements

24. Specifications Combination Specifications
As the name implies, a combination specification may include two or more of
Performance
Design
Qualified Products List (QPL) or Brand Name or Equal
COMBINATION SPECS may be the most common in Florida agency bids
Public Purchasing in Florida – Defining Requirements

25. Requirements Determination Value Analysis
Table of Contents
Requirements Determination
Value Analysis
Determining Methods of Solicitation
Specifications
Standardization
Public Purchasing in Florida – Defining Requirements

26. Standardization Standardization:
Process of establishing agreement on the characteristics and quality, design, and performance of the products and services to be purchased.
Technical and engineering concept, meaning agreement on designs, sizes, shapes, colors, quality, materials composition, chemical properties, performance characteristics, etc.
Simplification – a reduction in the number of designs, shapes sizes, and colors.
A tool intended to achieve savings
Public Purchasing in Florida – Defining Requirements

27. Standardization Standards Committee
Issues and maintains all standard specifications for supplies, services, and construction needed by the organization
Revises all standard specifications
Establishes guidelines for drafting specifications
Establishes standards for materials and products
Evaluates the products for the QPL
Public Purchasing in Florida – Defining Requirements

28. Questions
Public Purchasing in Florida – Defining Requirements