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![](3D"master11_image001.gif")
ADVANCED PURCHASING
REQUIREMENTS<= /b>
REQUIREMENTS<= /b>
Vikki Ross
Director of Purchasing
562-6201
![](3D"master10_image002.gif")
PURCHASING OBJECTIVES
&Oslas=
h;PARTICIPANTS WILL BE ABLE TO =
UNDERSTAND THE FOLLOWING AS IT RELATES TO PURCHASES OVER $25,000.00:
<=
/span>
&Oslas=
h;Ethical Standards and Policies
=
&Oslas=
h;Conflict of Interest
ØDetermining the Procurement Method:
qRequest for Bid; &=
#13;
qRequest for Propos=
al;
qRequest for Inform=
ation;
qRequest for
Qualifications
ØPreparing the Statement of Work / Specifications
Ø
q
q
PURCHASING
OBJECTIVES (Continued)=
&Oslas=
h;PARTICIPANTS WILL BE ABLE TO UNDERSTAND:
ØPayment Types
ØAdvertising the Solicitation
PURCHASING/EXPEDITING WORKSHOP
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PURCHASING/EXPEDITING WORKSHOP
ØPre-Bid / Proposal Conferences
<=
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ØSolicitation Submission and Opening
ØEvaluation Teams Guidelines, Evaluation, and Award
ØResponsive Bids / Proposals
ØNegotiations – Request for Proposal
ØLegal Elements of a Contract – Basic
ØAuthority to Contract
Ø
q
q
ETHICAL
STANDARDS
AND POLICIES
AND POLICIES
&Oslas=
h;State of Texas Ethics Policy
lIt is the policy of the State of Texas that a state
officer or state employee may=
not
have a direct or indirect interest, including
financial and other interests, or engage in a business transaction or professional activity, or =
incur
any obligation of any
nature that is in substantial conflict with the proper discharge of the officer’s or
employee’s duties in the public
interest.
Ø=
;Code of Ethics used by the UTHSCSA Purchasing <=
/b>Department
– Ethics and Standards of
Conduct, HOP Section 10.1.2=
-
10.1.4, and the Guidelines for Interactions Between Clinicians and Industry, HOP Section 10.1.11
<=
/span>
CONFLICT OF INTEREST
&Oslas=
h;Potential Contractors are required to disclose<=
/b>, in <=
/span>their responses, any actual or potential confli=
cts of
interest in their proposed provision of services or other =
performance under any contracts resulting from the=
solicitations.
Ø
Ø=
;Agencies may not enter into employment contracts, =
professional services contracts under the Texas Government Code, Chapter 2254, or consulting servi=
ces contracts under Chapter 2254 with former or retired employees before the first anniversary of the l=
ast date on which the individual was employed with =
the Agency=
if
appropriated funds are used to make payments
under the contract.
CONFLICT
OF INTEREST
(Continued)
(Continued)
&Oslas=
h;Agencies should also require respondents to:=
3;
lRepresent and warrant that their provision of
services or other pe=
rformance
under the agreement will not constitute an actual or potential conflict of interest and represent=
and
warrant that it=
will
not reasonably create even the appearance of impropriety;
lDisclose any current or former employees who are
current or fo=
rmer
employees of the state;
lDisclose any proposed personnel who are related=
to
any current or for=
mer
employee of the state;
lRepresent and warrant that they have not given,=
nor
intend to gi=
ve, at
any time hereafter, any economic opportunity, future employment, gift, loan, gratuity, special disco=
unt,
trip, favor or se=
rvice
to a public servant or employee or representative of the State of Texas in connection with the
solicitation.
l
DETERMINING THE =
PROCUREMENT
METHOD
ØREQUEST FOR BID (RFB) =
lRequirements
are clearly defined
lNegotiations
not allowed nor necessary
lPrice
is the determining factor for selection
ØREQUEST FOR PROPOSAL (RFP)
lFactors
other than price are to be considered
lObjective
criteria cannot be defined
lNegotiations
are allowed
lDiscus=
sions
with Contractor are allowed after the opening to obtain the Best and Final Offer
DETERMINING THE PROCUREMENT
METHOD
(Continued)
(Continued)
ØREQU=
EST
FOR INFORMATION
lUsed
as a planning tool
lUsed to
gather information to prepare a complete and accurate solicitation document
lUsed to
identify industry standards, best practices, potential performance measures, and cost or price structures=
ØREQU=
EST
FOR QUALIFICATIONS
lGenera=
lly
used for Professional Services wherein the respondents are evaluated based solely on their qualifications=
lPrice is not considered until after the selection =
is
made by the agency=
based
on qualifications
COMPARISON
OF RFB AND RFP
<=
span
style=3D'visibility:hidden'>Ø
<=
span
style=3D'visibility:hidden'>Ø
<=
span
style=3D'visibility:hidden'>Ø
<=
span
style=3D'visibility:hidden'>Ø
<=
span
style=3D'visibility:hidden'>Ø
Procurement
is public record
Procurement
is public record
Evaluate
against
evaluation criteria and against competing proposals
Evaluate
against
technical
specifications
Discussion and Negotiations with proposer is permitted
No
discussion with bidders allowed
RFP responses are opened on =
the specified date and time.
Only the names of the proposers are made public, no pricing or other data is made available
RFB responses are opened on the specified date and time.
Names
of bidders and bid amount
are
made public
Request
For Proposals
RFPs
Request
For Bids
RFBs
RFB/RFP
Development Question=
naires
<=
span
style=3D'font-size:88%;color:red;visibility:hidden'>Ø
PREPARING THE =
STATEMENT
OF WORK
&Oslas=
h;Statement of Work – a detailed description of what is required of the contractor to satisfactorily perform the work =
and
describes the role th=
at the
agency will have in the procurement.
&Oslas=
h;The Statement of Work should:
lSecure the best economic advantage utilizing best
value;
lBe clearly defined;
lBe contractually sound;
lBe unbiased and non-prejudiced toward respondents;=
lEncourage innovative solutions to the requirements
described; and
<=
/span>
lAllow for free and open competition to the maximum
extent reasonably
possible.
l
PREPARING
THE STATEMENT OF WORK=
&Oslas=
h;Project objectives can be divided into the =
following phases:
–Planning
–Development
–Implementation
–Equipment
–Installation
–Testing
–Operation and Maintenance
&Oslas=
h;Phases can be further divided into small components of work and deliverables can be =
defined within each segment.
l
PREPARING THE =
STATEMENT
OF WORK
&Oslas=
h;Each deliverable should include the following <=
/b>elements:
lA description of the work
lA standard for performance
lTest conditions, method or procedure to verify tha=
t the deliverable meets with the standard
lA method or process to monitor and/or ensure quali=
ty in
the deliverable
lAn acceptance process for each deliverable
lA compensation structure that is consistent with t=
he
type and value of work
performed
lA contractual remedy, if appropriate
l
PREPARING
THE SPECIFICATIONS
ØTwo types of Specifications:
lPerformance Based Specification (Example –
Dining Services; Tem=
porary
Staffing Services)
•<=
b>Focuses
on outcomes or results rather than process
•<=
b>What
goods and services are required, not how to produce them
•Allows
respondents to bring their own expertise, creativity and resources
lDesign
Specifications (Example – Construction)
•Outlines exactly how the contractor must perfor=
m the
service or how=
the
product will be made
•Allows
respondents to provide the product or service at less cost and shifts some of the risk to the contractors&=
#13;
GENERAL CONTRACT TERMS
Ø
lAll term contracts must have a specific ending dat=
e
l
lIndefinite contracts are generally prohibited
=
l
lIt is recommended that the maximum time for contra=
cts
without reissuing a compet=
itive
solicitation be no more than 5 years (This includes any renewal or extension periods)
l
lContracts which extend into the next biennium must
include a “funding
out” clause
l
lState agencies are prohibited from incurring oblig=
ations
in excess of amounts lawfully
appropriated by the Texas Legislature over the course of a biennium
Ø
l
PAYMENT TYPES
&Oslas=
h;Net 30=
–
payment is made in full within 30 days of receipt of an uncontested invoice after =
=
completion of work.
Ø
Ø=
;Progressive Payment – payment is made in installments
based on approvals
lExample (Audio Speakers and Software)
<=
/span>
lCompletion of Notice to Proceed =
; &n=
bsp;
10%
lDelivery of Equipment to Site =
; &n=
bsp;
30%
lFinal Tests and Demonstration of all Systems
50%
lTraining and Final Documentation 10%
l TOTAL =
;
100%
ADVERTISING THE SOLICITATION
– Purchasing
ØFormal Bids or Request for Proposals for Common Goods and Services, should be posted for a minimum of 21 calendar days
ØUTHSCSA pos=
ts the
current competitive bids on the
Purchasing Web site: http://ww=
w.uthscsa.edu/business/purchasing/pur =
chasing_b=
ids.html
PRE-BID/PROPOSAL CONFERENCES
– Purch/Dept
Ø=
;Question and Answer session concerning the =
solicitation
lAn Addendum will be issued for any questions and <=
/span>concerns at the conference that were not specifica=
lly identified in the solicitation.
=
l
&Oslas=
h;Important when it is beneficial for vendor to v=
iew
the site.
=
Ø
&Oslas=
h;Subcontracting relationships may develop throug=
h the contacts
Ø
&Oslas=
h;Held approximately ten (10) days after posting =
and issuance
l
Ø
PRE-BID/PROPOSAL
CONFERENCES – Purch/D=
ept
(Continued)<= /span>
(Continued)<= /span>
&Oslas=
h;The Conference is conducted by the Purchasing <=
/b>Staff and the Requesting Department
Ø
lPurchasing Department:
PURCHASING/EXPEDITING WORKSHOP
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•<=
b>Briefs
the department prior to the conference on how to conduct a professional pre-bid/proposal confere=
nce<=
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•<=
b>Facilitates
the meeting and answers procurement related questions
•<=
b>Records
minutes of the conference
•<=
b>Issues
Addendum if changes are made to the solicitation as a result of the conference
•
lRequesting Department:
•<=
b>Responds
to the technical questions at the pre-bid
&Osla=
sh;
l
Ø
COMMUNICATION
WITH RESPONDENTS=
Ø<=
/span>
Ø<=
/span>
l
Ø
&Oslas=
h;Communication with Respondents of a RFB/RFP can=
be made through the Purchasing Department
<=
/b>
Ø
&Oslas=
h;All questions, outside of the solicitation
conference, sho=
uld be
made in writing only
Ø
&Oslas=
h;If the requesting department is contacted by ph=
one by one the Respondents, the department staff should politely decline to discuss the procurem=
ent and forward the inquiry to the appropriate
purchaser
l
Ø
SOLICITATION SUBMISSION AND
OPENING - Purchasing
&Oslas=
h;Receipt of Bids/Proposals:
lUpon receipt, the sealed bids should be date and
time-stamped, remain =
sealed
and kept in a secure place to prevent them from =
being misplaced, lost or tampered with, until time=
of
bid opening
l
lSince formal bids by law must remain sealed until =
bid
opening, proper identificat=
ion of
the outside of the bid envelope is important
l
lThe RFB/RFP should require the bid envelope to sho=
w the solicitation number, opening date and bidder's nam=
e or
vendor identification
number.
&Osla=
sh;
SOLICITATION
SUBMISSION
AND OPENING - <= /b>Purchasing
(Continued<= /span>)
AND OPENING - <= /b>Purchasing
(Continued<= /span>)
&Oslas=
h;Opening of Bids/Proposals
lAll bid openings are open to the public and are=
held
at the Purchasing
Department.
lThe bids and all documents and information abou=
t the
evaluation of =
bids,
and bidders, will be withheld until after contract award
<=
/span>
lBids/Proposals without a signature will be
disqualified and not considered
valid
lThe following information is announced at the
opening:
•<=
b>Request
for Bids
lBid/Proposal number
lName of vendor
lThe price or amount bid for each item or total&=
#13;
•<=
b>Request
for Proposal
lBid/Proposal number
lName of vendor
l
l
•
EVALUATION OF BIDS/PROPOSALS
– Purch/Dept
Ø The first step in evaluating =
the
bids/proposals is to determine
if the responses are Responsive and Responsible.
Ø
Ø Responsive – which bids conform in all material respects to the requirements stated in the
solicitation
Ø
Ø Responsible – which bidders have the capability to full=
y perform the contract requirement – the neces=
sary expertise, technical knowledge, facilities, licens=
es, equipment and credit required to perform the work.=
=
Ø
Ø
EVALUATION OF BIDS =
/PROPOSALS
- Purchasing (Continued)
&Osla=
sh;
&Oslas=
h;The Purchasing Department determines if the res=
ponses
submitted are =
Responsive and Responsible. At a minimum, this includes:
Ø
lSigned Execution of
Offer
lSigned Request for =
Bid
Form
lHUB Subcontracting =
Plan
(HUB Program Director to review and approve)
lBid Bonds (if
applicable)
lLetter from Insuran=
ce
carrier (if applicable)
lBidder has capabili=
ty
to perform the work
l
&Oslas=
h;The Evaluation Team will only be provided with =
those =
responses deemed Responsive & Responsible
EVALUATION TEAM
GUIDELINES – Purch/Dept
GUIDELINES – Purch/Dept
Ø The Purchasing Department wi=
ll
provide to the Team Chair
of the department evaluation team the following guidelines to evaluate the responses =
Ø(See Evaluation Guidelines depending on Complexity): <=
span
style=3D'font-size:75%;color:red;display:none'>
&Oslas=
h;Recommended size is three (3) to five (5) members&=
#13;
&Oslas=
h;Instruct team members on their responsibilities
including the critical nature
of confidentiality to the integrity of the evaluation process
<=
/span>
&Oslas=
h;Review evaluation criteria and explain how the
evaluation process will be
conducted
&Oslas=
h;Provide team with scoring matrix template
Ø=
;The Purchasing buyer will be a non-voting represen=
tative
of the department evaluat=
ion
team to ensure the integrity of the evaluation =
process.
&Osla=
sh;
Ø
Ø
EVALUATION
AND AWARD - Departmen=
t
&Oslas=
h;Request For Bid
lEvaluate the responses for the lowest Responsive, Responsible vendor meeting the required technical
specifications
l
&Oslas=
h;Request For Proposal
lEvaluate the responses for not only Responsiveness
and Responsibility<=
/u>, but which also represent the best buy. This is <=
/span>accomplished by evaluating against the established
evaluation criteria with point
allotment. Criteria may consist of the following:
lFinancial Capability
lTotal Cost of servi=
ces
and commodities
lCustomer
References
lProposed Business
Plan
lContractor Experien=
ce
EVALUATION
AND AWARD – RFB (Continu=
ed) De=
partment
&Oslas=
h;Once the department has completed their evaluat=
ion of
all responsive,
responsible responses and has determined who the successful vendor is, the Evaluation Team Chair=
will
forward the foll=
owing
documents to the Purchasing Department:
Ø
•E=
mail
or other written documentation stating which vendor is the <=
span
style=3D'position:absolute;top:47.25%;left:17.6%;width:76.4%;height:4.25%'=
>lowest responsive, responsible bid
•
•R=
ecap
of all responses received with bid amounts
•
•If
successful vendor is other than the lowest bid, a detailed <=
span
style=3D'position:absolute;top:69.5%;left:17.6%;width:80.33%;height:4.25%'=
>explanation of this is needed in writing by the
department technical contact
person. If the lowest bidder does not meet the technical specifications, the department must
specifically state which
section number of the specifications was not met by the vendor
l
•
•
EVALUATION
AND AWARD – RFP =
(Continued) - Department
&Oslas=
h;Once the department has completed their evaluat=
ion of
all responsive,
responsible responses and has determined who the successful vendor is, the Evaluation Te=
am
Chair will forward the
following documents to the Purchasing Department:
Ø
l
•
•
NEGOTIATIONS - Purchasing
&Oslas=
h;If the solicitation is an RFP, the department m=
ay
want to discuss ter=
ms or
conditions with the vendors who are in the competitive range – the leading vendors as a result of the
evaluation.
Ø
&Oslas=
h;Three questions to ask yourselves before enteri=
ng
into Negotiations
are:
lWhat do we want,
specifically?
lWhat will having wh=
at
we want do for the Department/University?
lHow will we know,
specifically, when we have received what we want?
<=
/div>
l&=
#13;
&Oslas=
h;Consider allowing each vendor to propose a
“best and final offer” before a final selection is made.
l<=
span
style=3D'mso-special-format:lastCR;display:none'>
NEGOTIATIONS - Purchasing
(Continued)
(Continued)
&Oslas=
h;The Negotiation Team consists of:
lThe Purchasing Dire=
ctor
or Designee
lDepartment Evaluati=
on
Team Chair
lVendor Representati=
ve
with authority
lLegal Representative
– if applicable
l&=
#13;
&Oslas=
h;The Team Chair must ensure that the negotiation=
is documented in order to record the negotiation t=
argets
and demonstrate tha=
t a
fair and reasonable price was obtained. This includes preparation, up to the minutes of=
the
negotiation ses=
sion,
and the agreement made between both parties.
Ø
Ø=
;The negotiation is not complete until the contr=
act is
signed and executed=
3;
Ø
LEGAL ELEMENTS
OF A CONTRACT - BASIC
OF A CONTRACT - BASIC
&Oslas=
h;The essential elements necessary to form a =
=
binding contract are usually described as:
=
lAn Offer
lAn Acceptance in strict compliance with the terms =
of the offer
lLegal Purpose/Objective – objective must be =
for
a legal purpose
lMutuality of Obligation – also known as the
“meeting of the
minds”
lCertainty of subject matter
lConsideration
lCompetent Parties
AUTHORITY TO CONTRACT
&Oslas=
h;The Purchasing Authority and Policy of the Health
Science Center is governe=
d by
the authority and by the directives of State
statutes, the Fede=
ral
Office of Management and Budget, and The University of Texas Board of Regents.
&Osla=
sh;
&Oslas=
h;Authority to obligate institutional funds (includi=
ng
gifts, grants, and contract=
s) for
purchases of supplies, materials, equipment, and services =
(including repairs and maintenance agreements) is granted solely to the
•<=
b>Director
of Purchasing,
•<=
b>the Assistant
Vice President of Business Affairs,
•<=
b>the
Executive Vice President of Business Affairs and Chief Financial Officer,
•<=
b>and
the President of the UTHSCSA,=
lunless otherwise specifically approved by the Heal=
th
Science Center’s President,
the Executive Vice Chancellor for Health Affairs, and Chancellor, or by the Board of Regents.
&Osla=
sh;
Ø=
;The Health Science Center can assume no liability for payment of obligations except those incurred in accorda=
nce
with authority thus granted.
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