PUBLIC PURCHASING IN FLORIDA

1. PUBLIC PURCHASINGIN FLORIDA ELEMENTS IN THE PURCHASING PROCESSES (REV. 05/27/08)

2. ELEMENTS IN THE PURCHASING PROCESSES • TEAM/INDIVIDUAL ROLES & RESPONSIBILITIES • VENDOR QUESTIONS AND PURCHASING ANSWERS • CONDUCTING PRE-BID/PROPOSAL CONFERENCES • AMENDING A SOLICITATION

3. ELEMENTS IN THE PURCHASING PROCESSES • REVISING A DUE DATE • RECEIVING BIDS AND PROPOSALS • HANDLING LATE BIDS • OPENING BIDS AND PROPOSALS • DEBRIEFING VENDORS • CONDUCTING DISCUSSIONS/NEGOTIATIONS

4. ELEMENTS IN THE PURCHASING PROCESSES • RESOLVING TIE BIDS • BEST AND FINAL OFFERS • DETERMINING RESPONSIVENESS & RESPONSIBILITY • MISTAKES IN BIDS AND PROPOSALS • POSTING INTENDED DECISIONS • HANDLING PROTESTS, INCLUDING FLORIDA CASES

5. ELEMENTS IN THE PURCHASING PROCESSES • MAINTAINING A PROCUREMENT FILE • PUBLIC RECORDS REQUESTS • DEFERRED PAYMENT CONTRACTS • BLANKET PURCHASE ORDERS • EMERGENCY MANAGEMENT

6. ELEMENTS IN THE PURCHASING PROCESSES TEAM/INDIVIDUAL ROLES & RESPONSIBILITIES

7. TEAM/INDIVIDUAL ROLES & RESPONSIBILITIES • Every purchase order or contract is the result of teamwork to some extent, if only in the sense that several folks play roles • Some teams are based on more or less permanent roles, and meet haphazardly if at all • Some teams are formally organized, for a special purpose, and are temporary in nature

8. TEAM/INDIVIDUAL ROLES & RESPONSIBILITIES Typical participants in purchasing processes are • The end user, or customer, • Customer management, • Budget, • Purchasing, • Oftentimes technical support • And legal counsel.

9. END USER REPRESENTATIVE • Primary responsibility for understanding program operations & requirements • Primary responsibility for determining what is needed, when & where • Primary responsibility for planning ahead • Responsible for some knowledge of budget & purchasing process impacts • Responsible for initiating the requisition & program management approval

10. CUSTOMER MANAGEMENT • Responsible for managing program personnel, requirements and competing priorities • Responsible for some knowledge of budget & purchasing process impacts • Responsible for the go/no go decision

11. BUDGET Responsible for assuring availability of funds, and setting those funds aside for the intended purchase

12. PURCHASING • Primarily responsible for understanding purchasing statutes, rules, policies and procedures. • Primarily responsible for understanding good purchasing theory & practice, and the mission of the purchasing office. • Primarily responsible for using the formerto accomplish the latter!

13. PURCHASING • Capable of working with all levels of the organization to advise and assist in planning, execution, presentation and defense. • Able to determine, advise and implement the best resolution for procurement problems, before, during and after the purchasing process.

14. PURCHASING Rule 60A-1.016(3), Fla. Admin. Code Responsibility of the Chief Procurement Officer of each agency: • Secure all unused purchase orders • Maintain & account for file of all POs issued or voided • Maintain a record of those authorized to sign POs • Monitor and review use of Purchase Orders & Field POs

15. PURCHASING • Rule 60A-1.016(3) (continued) • Ensure that all POs contain the solicitation number, quantity, description and price, and applicable terms as to payment, discounts, date of performance, transportation, and liquidated damages.

16. TECHNICAL SUPPORT • Many purchases today are technically complex, and require differing levels of participation by technology experts before, during and after the purchase. • This can range from simple advice on which off-the-shelf product to purchase, to playing the primary role in developing specifications for technology to meet business needs of the organization, and participating on or leading a negotiating team.

17. TECHNICAL SUPPORT: AEITS Ch. 282.0055, FS,  Assignment of information technology.--In order to ensure the most effective and efficient use of the state's information technology and information technology resources and notwithstanding other provisions of law to the contrary, policies for the design, planning, project management, and implementation of the enterprise information technology services defined in s. 282.0041(8) shall be the responsibility of the Agency for Enterprise InformationTechnology for executive branch agencies created or authorized in statute to perform legislatively delegated functions. The supervision, design, delivery, and management of agency information technology defined in s. 282.0041(5) shall remain within the responsibility and control of the individual state agency.

18. CHAPTER 282 FLORIDA STATUTES (SB 1892, pending) • SB 1892 is pending signature from the Governor to be placed into law. In essence, guidance on information technology procurement previously administered by the STO is the responsibility of the new AEITS. Communications (SUNCOM) is administered by the Department of Management Services, Communications & Information Technology Services (CITS) Division, such as the CSA process.

19. LEGAL COUNSEL • A review & approval process for all contractual services contracts over category three ($50,000) shall include, but is not limited to, program, financial and legal review and approval [287.057(19)FS]. • In addition, counsel is routinely consulted for advice on solicitation and contract terms, and the handling of disputes, including representation before the Division of Administrative Hearings.

20. ELEMENTS IN THE PURCHASING PROCESSES VENDOR QUESTIONS AND PURCHASING ANSWERS

21. VENDOR QUESTIONS AND PURCHASING ANSWERS • PROACTIVE: • PUT PUBLIC INFORMATION ON YOUR WEB SITE • PUBLISH A VENDOR GUIDE. DHSMV HAS A GOOD EXAMPLE AT http://www.hsmv.state.fl.us/purchasing/html/vg.html • COMPOSE A STANDARD LETTER/EMAIL RESPONSE TO VENDOR INQUIRIES ON HOW TO DO BUSINESS WITH YOUR AGENCY

22. VENDOR QUESTIONS AND PURCHASING ANSWERS • PROACTIVE (cont.): • Provide a formal procedure for questions during competitive solicitations, with the purchasing officer as the sole point of contact. • Require that questions be written, and provide due dates and suggested content.

23. VENDOR QUESTIONS AND PURCHASING ANSWERS • PROACTIVE (cont.): 287.057(4) FS: • Prior to the time for receipt of bids, proposals, or replies, an agency may conduct a conference or written question and answer period for purposes of assuring the vendors’ full understanding of the requirements. • The vendors shall be accorded fair and equal treatment.

24. VENDOR QUESTIONS AND PURCHASING ANSWERS Recommendation: • Distribute questions at the pre-bid/proposal conference, but not answers. Discuss prepared tentative answers, and take notes for review before final answers. Indicate that answers discussed are not final, official nor binding.

25. VENDOR QUESTIONS AND PURCHASING ANSWERS • Collect all questions, then answer all by written addendum made available to all vendors simultaneously. Include the questions and the answers in the addendum, and provide a point of entry. If appropriate, include revised solicitation pages.

26. VENDOR QUESTIONS AND PURCHASING ANSWERS • REACTIVE: • Respond promptly, fully and courteously to general inquiries. • In competitive situations, assure fair and equal treatment, i.e. no early revelations of a competitor’s position, and no information not provided to all participants. • Provide information electronically where possible: email, web posting.

27. ELEMENTS IN THE PURCHASING PROCESSES CONDUCTING PRE-BID/PROPOSAL CONFERENCES

28. CONDUCTING PRE-BID/PROPOSAL CONFERENCES Again, reference 287.057(4), FS. The goal of the meeting is to learn from the potential bidders, and improve the solicitation by resolving ambiguities and contradictions, and improving terms & conditions, specifications, statements of work and performance requirements. Sounds obvious, but…

29. CONDUCTING PRE-BID/PROPOSAL CONFERENCES Recommendations: • Provide a calendar of events in the solicitation, with a deadline for questions, 10-15 calendar days after issuance. • Provide for a pre-bid/proposal conference 5-7 calendar days after deadline for receipt of questions.

30. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Provide for issuance of a written addendum 2-7 calendar days after the pre-proposal conference. • Pre-arrange a solicitation team to review questions and prepare answers. Include end user (customer) representative(s), and, as needed, technical and legal members. Usually same team as prepared the solicitation, and to be involved in evaluation.

31. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Schedule a team meeting for the day after the question deadline. • Distribute questions to the team as they come in. • At the team meeting, confirm who will develop answers to which questions, or answer on the fly. Provide deadline for answers no later than day prior to the meeting with vendors.

32. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Assign roles for the pre-proposal conference: Lead for the process (purchasing), business process lead, technical lead, etc., and support roles • Prepare copies of all questions for distribution to the attendees. • At the pre-bid/proposal conference, introduce team members and their roles.

33. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Circulate a sign-up sheet collecting names of attendees, firms represented, telephones and emails. • Indicate the goal of the meeting.

34. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Indicate that the discussion will cover the questions submitted and distributed, without final or binding answers, and advise the anticipated date those will be issued. • Indicate that other questions that arise will be addressed to the extent that time and lack of fore-knowledge allow, and request that they be written down and turned in by or at the end of the meeting.

35. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Have team members orally present answers to the questions. Remember to pause and invite discussion, and be open. If a participant gives an opinion, remember to ask others for their opinions. Everybody’s got one…

36. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • On closing, be sure to collect any new questions in writing from the questioner. • Remind the participants that the written solicitation has NOT been amended by the discussion, and that any amendment (addendum) will be issued in writing, and electronically posted, and give the estimated date.

37. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Prepare draft-final answers, and circulate draft addendum to team for comment prior to issuance. Addendum to include cover letter with point-of-entry language [Chapter 120, FS], copy of meeting sign-in sheet, all questions received, official answers, any schedule changes, and any revised solicitation pages, including attachments.

38. CONDUCTING PRE-BID/PROPOSAL CONFERENCES • Issue (post) addendum, and copy all procurement team members. • AFTER posting, send courtesy email link to the posting web site to participants who provided email addresses at pre-proposal conference or who provided email address before or after and requested notification.

39. ELEMENTS IN THE PURCHASING PROCESSES AMENDING A SOLICITATION

40. AMENDING A SOLICITATION • ALWAYS make available simultaneously to all vendors, as required by 287.057 for the solicitation itself. • ALWAYS provide point-of-entry language per 120.57(3), just as for the original issuance of the solicitation.

41. AMENDING A SOLICITATION "Failure to file a protest within the time prescribed in section 120.57(3), Florida Statutes, shall constitute a waiver of proceedings under chapter 120, Florida Statutes."

42. AMENDING A SOLICITATION RECOMMENDATIONS: • Provide in draft for approval of the customer and team members before issuance. • Copy customer upon issuance: see below. • Post the addendum electronically.

43. AMENDING A SOLICITATION RECOMMENDATIONS (cont.) • After posting, provide courtesy email with link to web site to vendors known to be interested. • Provide an addendum cover letter, sequentially numbered (e.g. Addendum 1) with the solicitation number, (e.g. Bid # N) subject matter and (new?) due date clearly identified.

44. AMENDING A SOLICITATION RECOMMENDATIONS (cont.) • Provide an addendum acknowledgement signature block, or electronic acknowledgement, or explicitly indicate that written acknowledgement of the addendum is not required. (When?) • State in full the changes, or summarize and reference attached revised or new pages to the solicitation and its attachments. • State that “All other terms and conditions remain unchanged.”

45. AMENDING A SOLICITATION RECOMMENDATIONS (con.t) • Attaching revised pages, and advising discard of the previous pages, is preferable to requiring the vendor to keep track of all revisions, e.g. penning them in. • Make sure you have the revision date on each revised page.

46. ELEMENTS IN THE PURCHASING PROCESSES REVISING A DUE DATE

47. REVISING A DUE DATE • PURCHASE ORDER • CHECK FEASIBILITY WITH VENDOR AND/OR CUSTOMER. • ALWAYS REVISE IN WRITING. • INDICATE “DUE DATE REVISION ONLY, DO NOT DUPLICATE ORDER.”

48. REVISING A DUE DATE • ITN/RFP/ITN • CHECK FEASIBILITY WITH CUSTOMER, PERHAPS BIDDERS, E.G. AT PRE-BID CONFERENCE. • ALWAYS REVISE IN WRITING. • FOLLOW PROCEDURES DISCUSSED IN “AMENDING A SOLICITATION.”

49. ELEMENTS IN THE PURCHASING PROCESSES RECEIVING BIDS AND PROPOSALS

50. RECEIVING BIDS AND PROPOSALS • CLEARLY SPECIFY IN WRITING, IN THE SOLICITATION, WHEN (date & time) and WHERE BIDS & PROPOSALS ARE TO BE DELIVERED. • INCLUDE ANY SPECIAL INSTRUCTIONS, e.g., ON ELECTRONIC SUBMITTAL, ADDITIONAL COPIES, PRODUCT SAMPLES.