1. Pursuit of Painless Procurement
Richard Mordaunt
Director of IT & Office Procurement, OSD
Commonwealth of MA
December 12, 2007

2. An Irreverent View of Procurement
The RFP process is highly flawed. Buyers issue documents that often provide a distorted, incomplete, or inaccurate description of the problem. This is not their intention but simply the result of many different people trying to describe a complex requirement or a difficult problem. Suppliers then take this information and interpret it in the light of their own knowledge and product offerings and develop their proposals.

3. Risk in the Procurement Process
“Risk is directly related to the successful achievement of targeted goals and objectives …Risk management is an interactive process… complicated by the dynamics of the internal and external operating environments.” - from Risk in Public Contracting, Elisabeth Wright, Ph.D. published by NIGP
Planning, monitoring, anticipating change, and proactive oversight immediately impact the success of contract’s stated outcomes.

5. Actions to Minimize Risk
Take actions to deflect potential issues long before they arise.
Make every effort to ensure the reality and perception of a fair, open and competitive procurement.
Openly communicate with all potential bidders through Comm-PASS.
Communicate early and often.
Use every opportunity to make sure all bidders understand the RFR objectives, requirements and desirable components.
In the RFR include background and current status information so no company has an “inside track” in a solicitation.
In the RFR include a list of components that will be evaluated.

6. More… Document your research (See handout)
Decide on content areas for the procurement document (See handout)
Avoid specifications that are atypical for the industry of the procurement
Use the Comm-PASS Forum to host Questions & Answers and announce a Bidders Conference
Use the Comm-PASS Solicitation for a RFI, early announcement, procurement documents and procurement schedule
After the Bids are in - Use Best and Final Offer (BAFO)
See:
The Procurement Information Center -
RFP Advisor -
Other publications

7. Successful Procurements Can be Win for Both Buyer and Seller
Joan Shea, MA Deputy Comptroller
Adjunct Prof, Suffolk University

8. Buying Technology
Challenges in buying technology are not unique to current period
Principles in successful technology procurements are similar to other types of purchasing
KSG case based on Civil War arms procurement – rate of change equal to that seen today in IT

9. Civil War Arms Case Different objectives based on gov’t branch
Competing technologies with significant changes in evolution of options
Organizational resistance
Reluctance to take risk on latest, unproven solution
Stakeholders targeted by sales staff – managing access to assure accurate information provided to key decision-makers

10. Civil War Arms Case (cont.)
Union “HOPED” for quick victory
Unrealistic expectations
Press reinforced perception of superiority of the Union
Competing forces/agendas within the administration
Competition for scarce resources
Focus on control vs. management

11. Civil War Arms Case (cont.)
Technology strategy must follow business strategy
Business strategy not clear in Civil War case
Not always clear in procurements
Different perspectives within organization
Executive sponsorship key (actions, not words)
Early buy-in increases likelihood of success
Bleeding technology – great potential but greater chance for disaster: requires risk-taking

12. Critical Success Factors
Importance of understanding requirements before looking at any products
Functionality to be supported
Priority of features and functions
Legacy considerations
Desirable and optional vs. required features
Loose requirements increases the difficulty of comparing vendors

13. Critical Success Factors (cont.)
Know your options
Assess the market
Estimate potential costs/prices
Merit in NOT pushing advanced technology unless the business need requires it
Focus of TCO not lowest cost
Terms and conditions are key and should be included in the RFR

14. Critical Success Factors (cont.)
Detailed, specific requirements and RFR process benefit both bidders/purchasers
Process needs to be structured to be a win-win
Good vendors prefer smart clients
Bankrupt vendors cannot deliver good service
Relationship during the bidding and negotiation process sets the stage for long-term interactions