A G E N C Y P U R C H A S I N G C O N F E R E N C E P R E S E N T E D B Y : A P R I L B A T T L E, S E N I O R B U Y E R

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1 H O W T O A V O I D C O M M O N P I T F A L L S O F P U B L I C P R O C U R E M E N T A G E N C Y P U R C H A S I N G C O N F E R E N C E P R E S E N T E D B Y : A P R I L B A T T L E, S E N I O R B U Y E R

2 OBJECTIVES Discuss the top ten common pitfalls in the public procurement process and the consequences of each Explain the steps which can be taken to avoid the common mistakes

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4 1. FAILURE TO CONDUCT MARKET RESEARCH Contributes to weak specifications and/or agency s lack of understanding of the products and services available on the market Limits vendor pool Solution: Allow adequate time to research the market and alternate commodities/services that can meet your needs Speak to multiple vendors prior to develop specifications Conduct various types of market research, including internet research, networking with other agencies, looking at past purchases, talking to vendors, etc.

5 2. INCORPORATING TOO MANY SPECIFICATIONS, OR ALTERNATIVELY, NOT ENOUGH Specifications become too restrictive, limiting competition, or too vague, resulting in the vendor(s) offering a less than acceptable quality-level commodity or service Solution: Limit specifications by determining what the agency needs versus what it wants Have other agency purchasers review the specifications before submitting the requisition

6 3. FAILURE TO PROPERLY USE BRAND NAME OR EQUAL SPECIFICATIONS Unclear specifications Vendor(s) may bid a higher price due to uncertainties Agency may not get exactly what it needs Solicitation will be returned to the agency, resulting in delay in process Solution: Agency should have the knowledge of how to use Brand Name or Equal specification Agency should list in the specifications the mandatory components of the commodity or service that the Brand Name or Equal specification is intended to capture

7 EXCEPTION!!! Standardization Process Legislative Session Effective Date: June 8, 2018 Appendix J of Purchasing Division Procedures Handbook (handout) Learn more:

8 4. CONFLICTING OR WRONG INFORMATION THAT LEADS TO DELAYS IN PROCESS Solicitation must be rejected back to the first person in the administrative workflow process in wvoasis, increasing the amount of time it takes to award the contract or purchase order Solutions: Carefully review the information in the requisition prior to submission Have other agency purchasers review the information for accuracy and completeness

9 5. INADEQUATE PRICING PAGE(S) Confusion when vendors attempt to submit their bid No apples-to-apples comparisons Solution: Examine what pricing is needed to properly evaluate the bids Create a template that could be modified for each solicitation Request others to review pricing page to ensure clarity

10 6. FAILURE TO SUBMIT PROPER PRE- APPROVAL PURCHASING FORMS Rejection of documents, requiring the process to start again from the beginning Adds time to the process Solutions: Conduct adequate market research beforehand Be thorough and complete on your explanation contained within various documents, including the Direct Award Request for Consideration, the Multiple Award Determination (WV-70), and Cooperative Purchasing Request, Justification, and Approval (WV-40)

11 7. POOR PLANNING Higher cost from vendor(s) Inadequate commodities or services obtained Delay in acquiring needed items Solution: Strategically plan all purchases for the upcoming year Track similar procurements and allow adequate time to advertise, solicit and award the contract/purchase order

12 8. TIMELINESS OF EVALUATION AND AWARD PROCESS Excessive time in answering vendor questions posed during the Question and Answer period, reviewing bids, and making a recommendation for award delays the agency getting what it needs in a timely manner In extreme cases, variables can change, including availability, pricing, models, etc. Solution: Set internal deadlines for the evaluation process

13 9. NOT PROPERLY SUBMITTING A REQUISITION FOR A CONSTRUCTION PURCHASE May require a requisition to be returned Delay in processing Solutions: Contact the Division of Labor for guidance on projects that may be considered construction Include proper requirements for construction, including but not limited terms and conditions for construction, request for contractor s license, insurance, bonds, etc.

14 10. STRINGING May result in higher cost Circumvents the competitive bid process Against the law Instances reported to the legislature twice annually Solutions: Better tracking of similar or same commodities and service Following bidding requirements for the various spending thresholds Utilize Business Intelligence reporting

15 OTHER CONSIDERATIONS Agencies are encouraged to not accept free stuff from vendors for testing Although approval is not required by the Purchasing Division for an agency to accept free stuff from vendors for testing purposes, the practice of accepting free stuff can bring with it issues, including: Purchasing Division and Attorney General s Office cannot provide support if issue(s) with vendor(s) arises Vendors may expect business from the State

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17 Don t forget to sign the attendance sheet. CONTACT US April Battle April.E.Battle@wv.gov