DEFINING REQUIREMENTS (REV. 05/22/2008)

1. DEFINING REQUIREMENTS (REV. 05/22/2008) PUBLIC PURCHASING IN FLOIRDA

2. Contact Ommet Mbiza, MBA, CPPO, PMPPurchasing Analyst, Division of State PurchasingFlorida Department of Management ServicesTel: 850.488.7804Fax: 850.414-6122 Email: Ommet.Mbiza@dms.myflorida.com Public Purchasing in Florida – Defining Requirements

3. Table of Contents • Requirements Determination • Value Analysis • Determining Methods of Solicitation • Specifications • Standardization Public Purchasing in Florida – Defining Requirements

4. Requirements Determination Defining Customer Needs • Need Recognition • Coordinating with user agencies • Description of the need • Budget analysis • Internal and External Profiles Public Purchasing in Florida – Defining Requirements

5. Requirements Determination Defining customer needs Who is responsible for deciding, and how will they decide: • Do we need anything? Why? • What, how much, what quality & when? • Should we make it or buy it? Public Purchasing in Florida – Defining Requirements

6. Requirements Determination Make or Buy Decision • Florida Statutes [287.042(3)] require consideration to include (not limited to) • Identifying & assessing in writing project needs & requirements • Availability of agency employees • Budgetary Constraints or availability • Facility and equipment availability • Current and projected agency workload capabilities • The ability of any other state agency to perform the services. Public Purchasing in Florida – Defining Requirements

7. Requirements Determination Make or Buy Decision • Consider in house and out • Resource Availability, Cost • Quality • Core responsibility • Risk and recovery Public Purchasing in Florida – Defining Requirements

8. Requirements Determination Make or Buy Decision • Generally decided by the operating entity not the purchasing agent. BUT the purchasing agent can offer guidance and has a market-testing tool, the RFI. • See also s. 14.203, Florida Statutes and http://www.oppaga.state.fl.us/reports/pdf/0402rpt.pdf and http://marketplace.myflorida.com/buyer/ (then see OPB Guidelines 22 Jan. ’04) Public Purchasing in Florida – Defining Requirements

9. Requirements Determination Buying Plan and Analysis Methods • Demand Analysis • Market Analysis • Supplier Analysis Public Purchasing in Florida – Defining Requirements

10. Table of Contents • Requirements Determination • Value Analysis • Determining Methods of Solicitation • Specifications • Standardization Public Purchasing in Florida – Defining Requirements

11. Value Analysis Value Analysis steps: • Accumulate facts • Identify areas of knowledge required • Provide and efficient knowledge search • Apply creative skills • Apply precise evaluation techniques Public Purchasing in Florida – Defining Requirements

12. Value Analysis Forecasting • Fixed Period Method • Moving Average Method • Weighted Moving Average Method • Economic Ordering Quantity (EOQ) Public Purchasing in Florida – Defining Requirements

13. Table of Contents • Requirements Determination • Value Analysis • Determining Methods of Solicitation • Specifications • Standardization Public Purchasing in Florida – Defining Requirements

14. Determining Methods of Solicitation Methods of solicitation • Competitive Quotations • Competitive Sealed Bids • Sole Source • Discretionary Purchases • Contract selection Public Purchasing in Florida – Defining Requirements

15. Determining Methods of Solicitation Steps in planning/scheduling process Public Purchasing in Florida – Defining Requirements

16. Table of Contents • Requirements Determination • Value Analysis • Determining Methods of Solicitation • Specifications • Standardization Public Purchasing in Florida – Defining Requirements

17. Specifications Definitions: • “SPECIFICATIONS” generally applies to a description of commodities sought in a solicitation. • “STATEMENT OF WORK” generally applies to a description of services sought in a solicitation • Some solicitations include both commodity specifications and a statement of work. Public Purchasing in Florida – Defining Requirements

18. Specifications Qualities of Good Specifications • Identify minimum requirements • Allow competition • Describe testing methods, if applicable • Result in equitable award to the lowest responsive bidder • Be simple, concise, and avoid loopholes that allow the bidder to offer product below the stated quality • Be common to at least two manufacturers • Identify measurable physical, functional and quality characteristics that meet the requirements, including basic design, physical dimensions, weights, percentage and types/grades of materials Public Purchasing in Florida – Defining Requirements

19. Specifications Types of Specifications • Design specifications • Performance specifications • Qualified Products List (QPL) • Brand name or equal • Samples • Engineering drawings • Material-and-Method Manufacture Specifications • Market Grade • Combination of two or more of the above Public Purchasing in Florida – Defining Requirements

20. Specifications Design Specifications A design specification alone may be appropriate to some degree for general requirements contracts, but may limit the buyer’s rights under the Uniform Commercial Code (cf. s.672.315 FS at) if the product proves unsuitable for the purpose it was purchased. Public Purchasing in Florida – Defining Requirements

21. Specifications Performance Specifications • Intended use or application • Features & functions • Capabilities • Compatibility with other equipment or functions • Outputs • Outcomes Public Purchasing in Florida – Defining Requirements

22. Specifications Qualified Products List • The QPL is generally used in Florida when product acceptance procedures are established by rule and products are qualified (or disqualified) using published testing procedures applied by the buying agency, other agencies or laboratories • Examples include some highway materials, police radars & body armor Public Purchasing in Florida – Defining Requirements

23. Specifications Brand Name or Equal • Brand Name or Equal is a less precise method of indicating a general level of design, performance and quality. “Equal” may be difficult to define. • Brand Name or Equal specifications allow other comparable brands to be offered for consideration, with some exceptions (e.g. some police equipment where uniformity is required for various reasons) Public Purchasing in Florida – Defining Requirements

24. Specifications Combination Specifications • As the name implies, a combination specification may include two or more of • Performance • Design • Qualified Products List (QPL) or Brand Name or Equal • COMBINATION SPECS may be the most common in Florida agency bids Public Purchasing in Florida – Defining Requirements

25. Table of Contents • Requirements Determination • Value Analysis • Determining Methods of Solicitation • Specifications • Standardization Public Purchasing in Florida – Defining Requirements

26. Standardization Standardization: • Process of establishing agreement on the characteristics and quality, design, and performance of the products and services to be purchased. • Technical and engineering concept, meaning agreement on designs, sizes, shapes, colors, quality, materials composition, chemical properties, performance characteristics, etc. • Simplification – a reduction in the number of designs, shapes sizes, and colors. • A tool intended to achieve savings Public Purchasing in Florida – Defining Requirements

27. Standardization Standards Committee • Issues and maintains all standard specifications for supplies, services, and construction needed by the organization • Revises all standard specifications • Establishes guidelines for drafting specifications • Establishes standards for materials and products • Evaluates the products for the QPL Public Purchasing in Florida – Defining Requirements

28. Questions Public Purchasing in Florida – Defining Requirements