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Successful Specification Development

Successful Specification Development. Presented by David R. Gill, C.P.M. Utah Division of Purchasing dgill@utah.gov. Definition: . A specification is an explicit set of requirements to be satisfied by a material, product, or service. (ASTM and Wikipedia definition)

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Successful Specification Development

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  1. Successful Specification Development

  2. Presented by David R. Gill, C.P.M. Utah Division of Purchasing dgill@utah.gov

  3. Definition: • A specification is an explicit set of requirements to be satisfied by a material, product, or service. (ASTM and Wikipedia definition) • Explicit means “fully and clearly expressed” (The American Heritage college Dictionary)

  4. Specification Example Pencil - Office Supply Catalog has 343 types: • Mechanical Pencil • Sketching Pencil • Drawing Pencil • Golf Pencil • Colored Pencil • Erasable Pencil

  5. Specification Example • GOOD: Pencil, #2 Lead, Wood, with Eraser • BEST: Wooden Pencil, #2, Soft Lead, 100% Cedar, Eraser, Hexagonal Barrel, Yellow, PMA Certified Non-Toxic, 12/Box

  6. Problem Specification • Are you aware of a purchase where a problem with the specification failed to provide what was intended?

  7. The Hubble Space Telescope- a $500 million dollar error

  8. The Power of… • To obtain the best price, the greatest power we have is the power of… competition

  9. The Power of… • To obtain the best quality, value, and/or service, the greatest power we have is the power of a… well written specification

  10. Successful Specification Develpoment • How do you create a well written specification that gets the agency what it needs? • Start with good paradigms • A paradigm is • a mental map • the way you see the world

  11. 1. Be Proactive • Take responsibility • Take control of the process • Add value by making a difference • Maintain integrity (with yourself, agency, tax payers, etc.) • Seek for continuous specification improvement

  12. Be ProactiveUtah Procurement Rule R33-2-103 “Procurement officers may take any action of a procurement nature to advance the economic well being and efficient operation of the state or agency so long as that action is not in conflict with the Utah Procurement Code or the Utah Procurement Rules.”

  13. 2. Begin with the End in Mind • No Protests • If a protest is made, will the specification withstand close scrutiny? • Frequently ask yourself, “What could go wrong?” “How can I write the specification to avoid it?”

  14. Begin with the End in Mind • Make a level playing field • Create a comprehensive picture of what needs to be taken into account. • Ask yourself, “What are the most crucial factors?” • Realize that you are creating a circle of cooperation

  15. A Circle of Cooperation Four contracts make the circle for medical supplies… • U of U Hospital and Novation (GPO) • State Purchasing > U of U Hospital > Novation • Novation and Cardinal Health • State Purchasing and Cardinal Health

  16. 3. Seek first to understand, then seek to be understood • Do effective research • What do they want? What do they really want? • Be curious and ask good questions – where, what, when, why, how, and who? • Go and see… • Invite the vendor community…

  17. Seek first to understand, then seek to be understood • Avoid over specifiying • Know what the State standard terms and conditions say • Know what is in the State “Instructions to Bidders” • Avoid duplicating statements in the Ts & Cs or the Instructions to Bidders in your specification

  18. Seek first to understand, then seek to be understood • Know the: • Dollar volume • Type of specification * • Type of contract * • Type of bid * • What does the law require?*

  19. UC63G-6-303 Purpose of Specifications All specifications shall… • seek to promote the overall economy and best use for the purposes intended, • encourage competition, • and shall not be undulyrestrictive.

  20. R33-4-104 Procedures for the Development of Specifications (2)(b) Brand Name or Equal Specification. (ii) …Brand name or equal specification shall seek to designate as many different bands as are practicable as “or equal” references and shall state thatproducts substantially equivalent to those designated will be considered for award. …provide at least two, preferably three brands… (State purchasing staff meeting minutes 1/3/07)

  21. Substantially Equivalent • The combination of the characteristics of the brand-name products cited shall be the minimum standard of quality for this bid. Products which meet the minimum standard and which are in other ways substantially equivalent to those designated will be considered for award.

  22. 4. Put First Things First • Organize your research • Tell a good story • Use a logical sequence

  23. 5. Think Win-Win • Guide the supplier to what you want • Allow the supplier to get what they want • Show respect by the way you write: • Point of view • Correct grammar and punctuation • Explicit

  24. Think Win-Win • (Show respect) • Short sentences and simple language • Use the same terminology throughout • Avoid redundancies; contradictions • The way you present the specification will have a definite influence on those who will bid, the savings you will obtain, and service you will receive.

  25. Think Win-Win • The agency is responsible for the initial draft. • State purchasing will usually have questions and will usually make suggestions for fine tuning specifications. • The agency and state purchasing will collaborate as a team to create the final draft. • In BidSync the specification is associated with the name of the state purchasing agent.

  26. Specification Development Summary • Be proactive • Begin with the end in mind • Seek first to understand, then seek to be understood • Put first things first • Think win-win First 5 of the: “7 Habits of Highly Effective People”

  27. What is Habit 6? • Synergize The whole is greater than the sum of its parts. You create something new that exceeds what was intended. Every aspect of purchasing under the contract works in complete harmony. Previous problems are not an issue.

  28. An Example of Synergy Medical supplies • Previous contract had one supplier, 950 listed items, fixed prices, and a dollar value of $400,000 per year • Now there are two suppliers, 4,000+ items, ever-changing audited prices, and $900,000 per year

  29. What is Habit 7? • Sharpen the saw • Physical • Social/emotional • Spiritual • Mental • Take advantage of training

  30. The Last Word • If the devil is in the details… • …deity is in the difference.

  31. Successful Specification Development

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