Don Buffum, CPPO, Director, Procurement and ContractsMississippi State [email protected]
What do you need to think about?
Public Purchasing is at an important crossroads – which way do we go?
Purchasing – Professional or Paper Pusher?
Management Function
Strategic FunctionOr………
Purchase Order Producer
What do you buy?Office SuppliesVehiclesServicesFurnitureDriving SimulatorsBullet Proof VestsWeaponsDrugsMedical Supplies
Janitorial SuppliesScalpelsFoodDiapersUnderwearGas ChomatographsCamerasTraffic Cones and
BarrelsRock Salt
What do you buy?AirplanesHelicopterMarijuanaTree SeedlingsRadiosPhonesComputersPrinters
EVERYTHING!!
Who cares??Office Supplies –gov’t Vehicles –roads, policeServicesFurnitureDriving SimulatorsBullet Proof Vests –
save a lifeWeaponsDrugsMedical Supplies
Janitorial SuppliesScalpels – save a lifeFoodDiapersUnderwearGas ChomatographsCamerasTraffic Cones and
BarrelsRock Salt
What difference does it make??AirplanesHelicopterMarijuanaTree SeedlingsRadiosPhonesComputersPrinters
EVERYTHING!!
What do you do?Small PurchasesAdminister
Procurement CardTerm ContractsService ContractsStrategic PlanningSpec development
teamContract Negotiations
ConstructionBudget
recommendationsLegislation/policy
developmentEvaluation of terms
and conditionsCost analysisMonitoring of
Contract Administration
Which pot holes can you avoid?Splitting P.O.s;Poor Evaluations
Not making award to the actual low bid MEETING SPECS;
Having a preselected favorite in the RFP process
Which pot holes can you avoid?No Contract Administration - no one in
charge after issuing P.O. Invoice paid but nobody checks to make sure
product/service received and acceptableNo documentation of inferior performance
(hurts agency, hurts other bidders, paying for services not received)
Which pot holes can you avoid?Purchasing as a political appointmentSmall purchases from other than the contract
vendorPeople ordering things and then getting PO
after the fact (use the p-card, it’s easy and legal)
Which pot holes can you avoid?Contracts issued without an established need
(consulting, services, chemicals) Lack of contract review (‘standard’ vendor
contracts are signed without adequate review by purchasing/legal of terms and conditions – taxes, liabilities, automatic renewals, escalations)
Which pot holes can you avoid?Allowing poor planning or mismanaged
planning to be called an emergencySole source
Which pot holes can you avoid?Personal service contracts – awarding
without need, awarding without competition, no review of deliverables, splitting,
Which pot holes can you avoid?Auctioning quotes to get preferred vendor
(obtain quotes then go to favored vendor and ask him to beat the low price)
Why don’t we have more say?Lack of training?Lack of initiative?People ‘upstairs’ don’t realize our value?Other?
What do we need to do about it?
Look at ourselves in the mirror
“We have met the enemy and he is us” - Pogo
What do we need to do about it? -Training
Take ClassesIntroduction to Public
ProcurementSourcing in the Public SectorPlanning, Scheduling and
Requirement AnalysisLegal AspectsRFP’sContract Administration
Get CertifiedCPPBCPPO
What do we need to do about it? -Training
Take classes on advanced principlesContracting for
ServicesPerformance based
contractingNegotiation strategiesProject ManagementAlternative Dispute
Resolution
Change Management
Contract WritingFederal Programs
and GrantsConstructionFixed AssetsOthers….
What do we need to do about it? -TrainingRead books and articles that will help us
On the economyOn negotiation skillsOn government issues and activitiesOn productsOn anything and everything
Other ideas?
What do we need to do about it? -InitiativeFind cost savings, research and report
Document Mgmt fleet savingsVehicle fleet savingsMailroom savingsImproved Contract Administration savingsContract out or in house
Provide informationNew productsBest practicesEconomic trends
What do we need to do about it? –Initiative (continued)
Suggest revised proceduresImplement Procurement CardImprove the flow for approvals (‘E-approve’)Establish term contractsPurchasing as part of budget process
Reviewing equipment needs Suggestions on anticipated expenditures Other…..
Be a service organization
What do we need to do about it? –Initiative (continued)Take the lead on major projects/acquisitionsRelevant Performance Measures and
BenchmarkingNot how much paper (# of PO’s)Look at cost avoided/saved
Look at the big picture (organization)Hire, train and reward ‘thinking’ not
processing complianceDecentralize order taking to allow time for
value added activities.
What do we need to do about it? –Convince the people ‘upstairs’
Make it short and sweet -Concise information – don’t waste their time.
Make it sexy – it must be interesting
Meet a need – it must be important
What is our message?We want to increase the value of government
to the people thru better decision making
YES!
What is our message?Purchasing should be involved early to allow
us to add value (improved efficiency & reduced costs)
Purchasing should have responsibility and authority to avoid purchasing potholes (front page material)
What is our message?Purchasing should be involved in all aspects
of expenditures.Our ethics will keep them out of jailOur services will make them look good
How do we sell our message?Show them articles about purchasing
‘errors’ and the costsSurvey our customers and report the
results (short and sweet, but find the answers)
Show them articles about purchasing ‘success’ and the value
Evaluate % of dollars spent under purchasing to % spent without oversight –report it
How do we sell our message?Sell corporate America on the concept that
we are spending their tax dollars – don’t they want us to do it right?
Take initiative!Others?
Who do you want driving the school bus?
Bubba who has been driving since he was knee high to a grass hopper or….
A certified licensed bus driver?
If credentials are important….
Should we ask tax payers to let an uncertified person spend millions of dollars of their money???
The ChallengeAre you ready to treat purchasing as a
profession or are you comfortable with the way it is?
Dummy slide- description of programProcurement Managers wanted, are you
ready and willing?. Public purchasing is at an important crossroads and we must determine which direction we are going to go. Will we be professional paper pushers or will procurement take on a strategic management role? Where will you fit into this decision? Why don't we have more say? What do we need to do? What are we going to do? If thinking while you are eating causes indigestion, you may want to avoid this session.