procurement for the new buyer to higher education

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91 st Annual Meeting & Exposition April 1 – 4, 2012 Anaheim, California Procurement for the New Buyer to Higher Education Valerie Rhodes- Sorrelle, MPA, C.P.M., A.P.P., Grand Valley State University, Allendale, MI John P. Willi, MBA, CPCM, C.P.M., A.P.P., CMRP Dana-Farber Cancer Institute, Boston, MA

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Procurement for the New Buyer to Higher Education. Valerie Rhodes- Sorrelle, MPA, C.P.M., A.P.P., Grand Valley State University, Allendale, MI John P. Willi, MBA, CPCM, C.P.M., A.P.P., CMRP Dana-Farber Cancer Institute , Boston, MA. Procurement for the New Buyer to Higher Education. - PowerPoint PPT Presentation

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Page 1: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

Valerie Rhodes- Sorrelle, MPA, C.P.M., A.P.P., Grand Valley State University, Allendale, MI

John P. Willi, MBA, CPCM, C.P.M., A.P.P., CMRPDana-Farber Cancer Institute, Boston, MA

Page 2: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

Organizational Structure

1. The Buyer’s Role;2. Managing the Supplier Base and Relationships;3. Managing Effective Procurement Decisions: 4. Applying Price/Cost Value, Tools for Enhancing

Material and Product Flow; 5. Understanding Specialized Purchasing Instruments

and Contracting Methods; 6. Negotiating Skills

Page 3: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

1. The Buyer's Role

Customer Service – knowing your customers• Campus Community• Become a Champion for your Procurement

Services Department• Creating Value• Networking• Understanding and knowing what you are

purchasing Technology/Systems

• Analytics

Page 4: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

1. The Buyer's Role (cont’d)

Contracts

Negotiations

Supplier Relationships

Understanding your Institution• The procurement process• Departmental and University Policies and Procedures

Page 5: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

2. Managing the Supplier Base and Relationships Understanding the Contract1. Boiler Plate – Terms & Conditions

2. Understanding what’s on the back of your purchase order

3. When to prepare a sealed/competitive bid• Bid thresholds• Negotiations • Bid results

Page 6: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

2. Managing the Supplier Base and Relationships (cont’d)

Bidding Types• Request for Quotation (RFQ)• Request for Proposal (RFP)• Request for Information (RFI)• Sole Source (see example)• Standing Order vs. Blanket Order

Communication

Supplier Sales Representative Interaction

Page 7: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

Sole Source Justification Example Form

Page 8: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

3. Managing Effective Procurement Decisions

Open Competition

Capital Purchase Considerations

Guiding Requirements

Grant/Federal Contract Requirements

Page 9: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

4. Applying Price/Cost Value Tools for Enhancing Material and Product Workflow

How do you know a price is fair and reasonable/best value?• Historical pricing• Open competition• Internal Estimate

Conduct Market Research

Product Assurance

Logistics Considerations

Page 10: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

5. Understanding Specialized Purchasing Instruments and Contracting Methods

Government Property• What do you need to know?

Reporting• Requirements

Audit Functions• Documentation

Page 11: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

6. Negotiating Skills

Negotiation Tactics• Come prepared, don’t “wing-it”• Create list of tactics• Prepare your fallback position

“Win-Win” situation

Page 12: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

6. Negotiating Skills (cont’d)

Negotiation Tactics (Example)Discounts on new product offerings

Free or discounted training on or off site

Free software upgrades

Discounted software maintenance

Free or discounted product accessories

Free or discounted Professional Services

Discounted extended warranty’s

Offer the approved use of organization’s name in exchange for discount

Ask for a quote with GSA pricing (you will need the grant or contract #) if that supplier sells to the Government.

Energy analysis to compare TCO from one product to the next. What are the year over year costs to operate?

Page 13: Procurement for the New Buyer to Higher Education

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

91st Annual Meeting & ExpositionApril 1 – 4, 2012

Anaheim, California

Procurement for the New Buyer to Higher Education

Contact Information

Valerie [email protected]

616-331-2283

John [email protected]

617-632-2637