gathering, researching, and drafting specifications dee dorsey ron pigott

Gathering, Researching, and Drafting Specifications

Dee Dorsey

Ron Pigott

Specs = Dangerous Stage of Solicitation Process

Let’s Talk About Peanut Butter

DANGER OF IGNORANCE

You will get the wrong item/service

It won’t be compatible with what you already have

It will cost far more than the actual good/service you NEED

The market won’t have a solution

You have to start all over again

Specs can be geared towards a particular good or vendor

Specs can be geared away from a particular good or vendor

Can “overbuy” (needs vs. wants)

DANGER OF MISUSE

Dangers of SpecsIgnorance and Misuse Can Sink Your Procurement

In a perfect world, you would know exactly what you need, be able to explicitly describe it, and have several vendors that understand it.

We don’t live in a perfect world.

So…How Do You Develop Specs??

You need to talk to your internal users of the good/service. Find out: What they need What it will work with (integration) What legal requirements surround it

You need to talk to the vendor community to find out: What they have that could work What it could cost If there are better solutions we haven’t thought

of

Talk, Talk, Talk

Before you start a solicitation process

During the solicitation process through:Bid conferences Q&ANegotiationsBAFO

THROUGH an RFI Process

When Can You Speak with Vendors?

Beware of §2155.004, Gov’t Code This statute says: A state agency may not accept a bid or award a contract that

includes proposed financial participation by a person who received compensation from the agency to participate in preparing the specifications or request for proposals on which the bid or contract is based.

(b)  A bid or award subject to the requirements of this section must include the following statement:

"Under Section 2155.004, Government Code, the vendor certifies that the individual or business entity named in this bid or contract is not ineligible to receive the specified contract and acknowledges that this contract may be terminated and payment withheld if this certification is inaccurate."

Beware of §2155.004, Gov’t Code

If a state agency determines that an individual or business entity holding a state contract was ineligible to have the contract accepted or awarded under §2155.004, the state agency may immediately terminate the contract without further obligation to the vendor.

This section does not create a cause of action to contest a bid or award of a state contract.

This section does not prohibit a bidder or contract participant from providing free technical assistance to a state agency.

When May You Speak with Internal Customers?

Get Close, Get PersonalYour end users are usually your subject matter

experts (SMEs)

Get to know their needs!

Understand their work processes

If you don’t understand what is needed and how it will be used…the vendors probably won’t either!

So, What Should Specs Look Like?They should be clear and conciseThey should enhance, not limit, competition

This means avoiding language that focuses on a particular make or model, whenever possible

Reference brands are acceptable, but should state “or equivalent”

Be comprehensive If you have a project that requires the solution to

do 12 things, spell out all 12 things it must doExplain your need fully

So, What Should Specs Look Like?Use “shall” and “must” when describing mandatory requirements. For example, “program must work on Windows XP or

newer”…”vehicle must operate on propane”…. If there are delivery requirements or installation

needs, include them in detail If the vendor must have a license to perform the

work, require the licenseList your insurance requirements

So, What Should Specs Look Like?If you use a reference brand, provide a link to the Web site that has the specs for that brand item.

If you are using measurements, spell them out: Write “pounds,” not “lbs” to avoid confusion

So, What Should Specs Look Like?List out requirementsDo NOT embed them in long, narrative paragraphs. Something will be missed, if you do.

It is best to use an Outline format for spec requirements, with a new number or letter for each individual requirement

Get Your Specs Reviewed

Two sets of eyes are better than oneHave reviews of the RFx and Specs by:

End Users Other Purchasers Contract Managers Legal Counsel

Every Vendor’s Crazy About Sharp Dressed SpecsGood specs not only make it easier for vendors to bid, they make you and your agency look good, too!

Vendors want to work with organized, knowledgeable customers

Good specs also prevent Addenda during the RFx process

Keeping the Price DownProviding an accurate physical and functional description of the product/services needed prevents the potential for inflated pricing.

If the spec is vague, the vendor will have to add in costs to cover the risks of the unknown

Market ResearchOften known as “Google”Network with other agencies who have similar needs

Research the prices usually paid for the goods/services. Use this knowledge in negotiations

Good Specs Usually Mean Good Contract

Questions?

Dee.dorsey@cpa.state.tx.us

Ron.Pigott@cpa.state.tx.us