Specification’s SOW’s, and RFP Criteria! Columbia Chapter Medium Chapter for 2017

1. Specification’s SOW’s, and RFP Criteria! Columbia Chapter Medium Chapter for 2017 Rob Rickard, CPPO Oregon Secretary of State (Retired)

2. Effective Communication Effective communication is difficult… • Often the message sent is not the message received. • Words can be misinterpreted and misunderstood, especially when filtered through the sieve of prejudices and preconceptions.

3. Specifications are Communications! Good specifications communicate: • The exact requirements we need • The specific outcome we expect the supplier to provide

4. The Importance of Good Specification Development! Specification development is the “legalized” part of the solicitation process!

5. To adequately articulate to the supplier the performance expected, and to measure that supplier performance (or worse – supplier non-performance), the buyer must have a measurable metric. That metric is a clearly understandable and measurable specification. • -Quote from a wise, seasoned (and good-looking) purchasing manager.

6. Tips for Good Specifications… • Number 1… Be Sure to Clearly Articulate What You Want!

7. Will the King be Satisfied with the Castle Moat? • Dig a standard moat 50 feet from the castle wall.

9. Guidelines for Clear Writing • Replace Unnecessary Words and Phrases with Efficient Equivalents Render assistance to = _____________ Due to the fact that = _____________ Prior to the start of = _____________

10. Guidelines for Clear Writing • Avoid Redundant Expressions Assemble Together = Assemble Rectangular in Shape = Rectangular Mutually Agreeable = Agreeable

11. What’s that Again?? Desist from enumerating your fowl prior to their emergence from the shell.

12. Don’t count your chickens before they are hatched.

13. Tips for Good Specifications… • Number 2… Only specify what you need!

14. Tips for Good Specifications… • Number 3… Define what it is that you need!

16. Purchasing’s Role • The end-user often knows what product or service they want and who can provide it. • Purchasing’s role is to help them clearly articulate that need while still providing an opportunity for competition. • Specifications should foster competition.

17. Vague Detail • The scanning system must be able to capture and edit high resolution for output to a laser image setter for all documents.

18. Better Detail • The scanning system must capture and edit high resolution (up to 1,200 dots per inch) for output to a laser image and must accommodate image areas up to 11 inches by 17 inches. Proposer shall include any published literature verifying the proposed system meets this requirement.

19. Tips for Good Specifications… • Number 4… Conduct market research!

20. Market Research • We have a responsibility to do research periodically • The more valuable the item to the agency success, the greater the frequency and the more in depth the research must be • Are there acceptable substitutes or improved products or services available? • Are there changes in the market or in raw materials that will impact product availability?

21. Moving Toward Best Value • The purpose of bid specifications is not solely to obtain the least expensive items, but to purchase the desired quality at the most competitive price. • Price, delivery, ability to measure performance, and quality of the product or service will all depend on how well the specification is written.

22. Tips for Good Specifications… • Number 5… Be clear in your design and performance specs!

23. Design Specification • Concentrates on how a product is to be fabricated or constructed • Often used when purchasing vehicles, equipment, buildings, and basic services • Can be referred to as technical specifications

24. Wood Stove Specifications • Guaranteed to burn up to four hours; • Fire box dimensions • 24” x 24” x 36”; • To be furnished complete with “through the wall” type stovepipe.

26. Performance Specifications • Deals with how the product performs, but not how it that performance is accomplished. • The end result is the primary consideration and the supplier is given great freedom in how they accomplish it.

27. Street Sweeper • Minimum sweeping width, 6’; • Lead brush for initial movement of debris; • Circular brush device to dislodge material from curb area, with additional following brush for final cleaning; • To be mounted on standard commercial chassis; and • Furnished with standard chassis, drive train and motor warranties.

29. Tips for Good Specifications… • Number 6… Include the main four elements of a good specification…

30. Four main elements of a good specification… • Minimum requirements • Ensures competition • Measurable • Equitable award at lowest cost

31. Tips for Good Specifications… • Number 7… Create a specification team!

32. Who Writes the Specification? • Management • Purchasing Professional • Supplier? • End User • User Committee

33. Have the Team Standardize Specifications • Establish a single specification for an item or service, or a range of items or services. • Establishment of a particular configuration of a product that normally may have multiple configurations available. • Result: Fewer choices, but greater economy due to increased ordering volume.

34. ODOT Standardizes Trucks • ODOT purchases 100 heavy trucks annually • Many different manufacturers and components • Significant inventory and training requirements • Change required • ODOT decided to standardize

35. Action Taken by ODOT • Inventoried parts warehouses • Talked with the mechanics • Established standard for seven components • Requested Name Brand Exemption for those components • All bids required truck manufacturers to bid utilizing those components

36. Results • Reduced inventory by over $250,000.00 in first six months • Reduced training for mechanics • Vendors occasionally protested • Did not restrict competition • Vendors realized benefit by “standardizing” to meet ODOT requirements.

37. Tips for Good Specifications… • Number 8… Watch your language!

38. Language • If there is any way at all to read your words differently from what you intended, then there is a chance that a contractor will choose it and later on require those changes.

39. Language That Obligates “Shall” pertains to a person as in “Contractor shall”. “Must” is used for inanimate objects as in “the report must…”. Must is also the proper term when something needs to happen before another action can happen as in “to be eligible for future grants, the party must…”.

40. Language • Use short concise sentences. • Each sentence should only describe one feature. • Eliminate unnecessary modifiers. • Be sure to use industry standards such as steel grade in bolts, or schedule grade in pipe products

41. Final Tips For Specifications • Don’t “over-spec” • Don’t get too general or vague • Make sure they can be measured • Utilize peer review • Use a pre-bid conference for complex bids • Analyze the specification protest • Be sure the specs are in the contract • Don’t allow the contractor to change specs after the contract is executed

42. Food For Thought Remember that no matter how many members participated in the development of the specifications, purchasing will probably be held accountable for perceived failure of the specifications.

43. When is a Scope of Work a Statement of Work?

44. What is the Scope of Work? • “The purpose of the scope of work is to describe the overall project purpose and specific objectives of the requirement to help the contractor understand the magnitude of the anticipated effort.” • - Peter S. Cole • How to Write a Statement of Work

45. What is a Statement of Work? A written statement that specifically describes… • Phases of work or services, major tasks, or areas of responsibility. • Specific objectives that the Contractor must attain. • The deliverables that the Contractor must provide. • A stated schedule of deliverables aligned with payments. • The statement of work is typically a result of the entity’s scope or work combined with the supplier’s response in the solicitation.

46. Planning and Preparation • Some questions to ask before writing the scope of work are: • What is the agency trying to achieve? • What is the use, needed functionality, or outcome expected? • What is the existing environment or framework that must be considered?

47. Planning and Preparation Steps to determine procurement objective: • Analyze the market • the competitive climate, • resources or research availability on the product or service. • Gather and analyze data • the agency’s intended use for the product or services, • is the product/service mission critical? • how often it will be used, and • the quantity of the item needed.

48. Planning and Preparation • Analyze any statutes, rules, policies, procedures, or legislative action that might affect the procurement. • Analyze the tasks necessary to complete the scope of work drafting process. • Analyze the current infrastructure to understand the need. • Analyze what controls need to be in place to ensure successful performance.

49. 1. Model format Writing the Scope of Work • Part I. General Information A. Introduction (includes objectives) B. Background C. Applicable Documents (e.g.; Independent Contractor, Insurance, RFP) D. Amendments (Must be carried over from the RFP.) E. Travel

50. 1. Model Format continued Writing the Scope of Work • Part II. Work Elements A. Detailed Work to be Done B. Schedule of Work 1. Deliverables/Tasks (including schedule) 2. Performance Monitoring 3. Deliverables (Actual accomplishments tied to payment. C. Performance Monitoring Requirements 1. Acceptance by Agency 2. Documents/Reports Required