Tom Blaine, CPPO, FCPM, FCPA Senior Research Associate

Tom Blaine, CPPO, FCPM, FCPASenior Research Associate

-Dennis Wholey

FINISHED FILES ARE THE RE-SULT OF YEARS OF SCIENTIF-IC STUDY COMBINED WITH THE EXPERIENCE OF MANY

YEARS

How many ‘F’s are in the sentence?

FINISHED FILES ARE THE RE-

SULT OF YEARS OF SCIENTIF-

IC STUDY COMBINED WITH

THE EXPERIENCE OF MANYYEARS

Your Experiences As a small business what has been you experience in dealing with the government procurement process?

It’s not your fault!Not all the rules of the game are written down.

Private Sector PurchasingCost EvaluationStrategic Partnerships, long term

relationshipsSmall group of VendorsSelect Business Partners via closed processCan do anything that is not illegalAccountable to Management

Private vs. Public Sector Purchasing-Similarities and Differences

Private vs. Public Sector Purchasing-Similarities and Differences

Public Sector PurchasingPrice EvaluationVendors are adversaries-Arms length

relationshipLarge group of Potential BiddersMost of the process is in the publicCompetition is the preferred method of

purchaseCan only do what the rules/laws allowed

Current Trends in Public ProcurementGreen Purchasing

Green Building Standards and Remodeling

Energy Saving ProductsRecycled/Recyclable ProductsFind a product or service the government wants that the large companies are not selling

Spend AnalysisStrategic Partnerships

Perspective of the PlayersRequisitioner /SpecifierWants something that worksDoesn’t want a hasslePrefers long working relationships with

suppliersIf a product or service works well, wants to

keep it

Perspective of the PlayersDepartmental ManagersDon’t want the rules brokenDon’t want productivity of department

affected

Perspective of the PlayersProcurement Staff

Multiple stakeholders- administration, elected officials, citizens, news media, vendor communityDisinterested third party –Don’t care who gets the award

Perspective depends on the type of the organizationClerical, Bureaucratic, Professional

Perspective of the PlayersClericalTypically are clerks, push the paperMay issue the bid, send results to department for decision

Processes the PO after the decisions are made by the department

May be organized to look like one of the other types, but no decision authority

Perspective of the PlayersBureaucratic

Bureaucratic and Professional Purchasing organizations-may be hard to distinguish

Impediment to introducing and maintaining efficient government

Tends to focus on control processesKnow all the rules, regulations and laws

pertaining to procurementProcess over resultsConcerned with transparency

Perspective of the PlayersBureaucraticTypically makes award decision A majority of the organizations have

certified staff and managersMajority of purchasing organizations

Perspective of the PlayersProfessionalHighly educated multi-disciplinary staffConcerned with adding and documenting value

to the governmentSignificant scrutiny over specificationsFocus on knowledge and informationConducts market researchDocuments vendor performanceEliminates poor performing vendorsConcerned with transparency and valueMay over-exhibit professionalism

Perspective of the PlayersElected and Appointed OfficialsDon’t want scandalsMay become overactive in the

procurement process to assist a constituent

Prefer to keep the purchases localDo not have significant knowledge of

process and my be influenced by lobbying form those they trust

Who is the decision maker?Centralized vs. decentralizedCentralized-Procurement makes

/recommends the important decisionsDecentralized- Departments make the

important decisions Need to determine who makes what

decisionsNeed to do some research