PED Talks: April 2019

Lydia Dexter Author

07/24/2019 Added

12 Plays

Description

This is the PED Talk for April of 2019. The topic is large purchases and bids, as well as non-competitive sourcing.

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[00:00:01.730]Are y'all there?
[00:00:02.563]Hello everyone, this is Maggie, and Martha, and Sydney,
[00:00:06.590]more formerly known as Maggie Witt, Director of Procurement.
[00:00:12.110]Sydney, would you like to introduce yourself?
[00:00:14.350]I am Sydney Zach.
[00:00:16.070]I am the Scientist Sourcing Specialist here on campus.
[00:00:20.040]Martha.
[00:00:20.873]And my name is Martha Young,
[00:00:22.080]and I am a Procurement Associate.
[00:00:25.140]And we are here as subject matter experts
[00:00:28.510]to hopefully bring you some information and delight
[00:00:32.080]into your afternoon as we render
[00:00:34.990]our latest version of PED Talks.
[00:00:37.980]As I mentioned previously,
[00:00:39.629]and we'll be watching the chatroom, I've got it.
[00:00:43.600]I think Sydney has it up, and she's keepin' her eye on it.
[00:00:47.040]Martha is here.
[00:00:48.130]Actually, I, this is Maggie, and I failed to put
[00:00:53.400]fiscal year end on our list here,
[00:00:56.060]but we're gonna be fiscallin' in
[00:00:58.810]til you can't hear about it anymore.
[00:01:01.640]So we wanna make sure that we've got
[00:01:03.500]all the right people here
[00:01:04.333]to answer any questions you might have,
[00:01:05.900]but also just reiterate some important processes.
[00:01:09.200]And I think were at 131.
[00:01:11.230]I know some people are just jumping on the call,
[00:01:14.550]but we're gonna go ahead and get rolling.
[00:01:16.020]How's that sound?
[00:01:17.200]Sounds good. Okay.
[00:01:18.080]All right, so hopefully
[00:01:20.780]everyone can see our overview.
[00:01:23.470]We're gonna be talking about end of fiscal year reminders.
[00:01:26.834]Syd, please check with me, and make sure if anybody says
[00:01:29.120]they can't see the slides advance.
[00:01:30.530]Mm-hmm. Just wanna make sure
[00:01:31.610]we don't have any technical problems.
[00:01:33.760]And then we're gonna talk about the bid process workflow.
[00:01:36.800]End of fiscal year, Martha and I will take that,
[00:01:39.560]and Martha, I don't mind if you interject
[00:01:41.280]anything I'm overlooking, or some details
[00:01:44.050]that help people along the way.
[00:01:47.610]That's definitely your area of expertise.
[00:01:49.890]And then I'll be kinda bringin' up the back end,
[00:01:53.420]like the caboose, talkin' a little bit about sole sources.
[00:01:57.230]And it's gonna be a different story
[00:02:00.160]on sole sources this time.
[00:02:01.460]We're gonna talk more about the theory
[00:02:04.440]and concept of a sole source,
[00:02:06.760]rather than just talking about the numbers themselves.
[00:02:10.870]So, without further ado, Ms. Zach,
[00:02:14.170]I will turn it over to you.
[00:02:15.660]Would you like the mouse?
[00:02:16.680]Did you like to drive, or you'll--
[00:02:18.070]We're gonna do end of fiscal year?
[00:02:19.360]Oh, oh, that's right.
[00:02:21.320]Good reminder.
[00:02:22.480]Maggie's ready to jump in.
[00:02:23.820]I am ready to go.
[00:02:25.400]So these slides may look familiar to everyone.
[00:02:27.543]We just delivered these at (speaking faintly)
[00:02:30.060]a couple of weeks ago
[00:02:31.490]thanks to the wonderful Sydney meet box.
[00:02:34.720]She's just fantastic, thank you Sydney.
[00:02:37.530]Shout out to ya there.
[00:02:39.370]So just a real quick reminder,
[00:02:41.420]that we wanna make sure that you remember the cutoff
[00:02:44.210]for processing on fiscal year 18-19.
[00:02:49.000]Current fiscal year is the end of, the cutoff here
[00:02:52.210]is 1:00 p.m. in the afternoon on Friday, June 28th,
[00:02:56.037]and that's in both systems, well,
[00:02:58.180]and go ahead Martha, please.
[00:03:00.380]I'm not sure Creation of SAP, Approval of eSHOP,
[00:03:03.860]how does that break down?
[00:03:07.660]Anything special? No, I just
[00:03:10.100]know that the, you know, cutoff time they set for 1:00 p.m.,
[00:03:14.460]so that we can make sure that those are reviewed,
[00:03:17.110]and released, Perfect.
[00:03:18.680]That's great. and done, so.
[00:03:20.590]And so, the Creation of a SAP PO
[00:03:22.680]means it puts it in que, correct?
[00:03:25.280]Right. And the Aprroval
[00:03:26.113]of eSHOP PO gets over the wall into procurement,
[00:03:29.470]right? Right.
[00:03:30.500]So that's why we've
[00:03:31.840]called that out very specifically.
[00:03:34.230]Once again, to remind everyone a 4th time.
[00:03:38.490]We'll be back for a 5th next month.
[00:03:42.280]Open commitment, so these are actually, I think,
[00:03:46.430]I guess they're a purchase order, right?
[00:03:48.050]They're a commitment that you have
[00:03:50.070]that's been out there possibly for a while,
[00:03:53.730]and they might have a little bit more to do,
[00:03:57.200]or they've been there, kind of hangin' out there.
[00:04:00.000]I mean, what is it it could be just--
[00:04:00.990]usually like?
[00:04:01.823]Maybe they didn't receive the product,
[00:04:04.120]and the commitment still is remaining,
[00:04:07.000]possibly to get a direct pay instead of processing it
[00:04:10.630]against the PO. Okay, got it.
[00:04:13.150]So those would be maybe some reasons
[00:04:15.570]they might have some outstanding commitments
[00:04:17.730]that would just need to be cleaned up.
[00:04:19.530]Okay, good example.
[00:04:20.880]That helps me too.
[00:04:22.200]And we wanna make sure that we have enough time
[00:04:24.820]to support your request.
[00:04:26.520]So depending on how many you have,
[00:04:29.130]if you wanna group 'em in a spreadsheet,
[00:04:31.320]if that's easier for you, and the information that we need
[00:04:34.860]in order to complete that,
[00:04:36.710]we need to receive those by May 1st, 2019.
[00:04:40.020]If you have any questions though,
[00:04:42.490]we've got a phone number that is manned consistently.
[00:04:46.620]I think Martha's probably the one that answers it
[00:04:49.330]a good 50% of the time anyway, right?
[00:04:52.120]I, oh yeah, a whole lot of the time.
[00:04:55.450]I do wanna reiterate though,
[00:04:57.200]that we do want those change orders to go through eSHOP
[00:05:01.090]using the change order request, and you can attach
[00:05:04.420]a spreadsheet within that, but that's how,
[00:05:08.780]the method we would like to use to track all those changes.
[00:05:13.070]So regardless of the commitment,
[00:05:15.190]enter a change order in eSHOP?
[00:05:16.940]Yeah.
[00:05:17.773]Attach your required documentation,
[00:05:19.330]and submit it by May 1st, 2019?
[00:05:22.210]Yes, to ensure that we're meetin' our deadlines
[00:05:25.690]to get 'em removed.
[00:05:27.030]Excellent, thanks Martha.
[00:05:29.640]And then finally, this is just my friendly reminder
[00:05:32.610]to review these periodically.
[00:05:35.810]Your commitments don't have to wait
[00:05:37.930]till fiscal year end to be cleaned up,
[00:05:40.700]and it's probably just not a bad practice
[00:05:43.110]to run that portal commitment report
[00:05:45.510]to find out what new items you might have quickly,
[00:05:50.120]other than having someone then call you,
[00:05:51.640]and ask you why it hasn't been done.
[00:05:53.320]It's okay to do that as frequently as you prefer,
[00:05:57.360]and some companies, and organizations, and universities
[00:06:01.360]practice this on a monthly basis
[00:06:03.440]just sort of as a standard practice.
[00:06:05.220]And just a minder too, if you have any items
[00:06:08.770]in your commitment report that were created in a prior year,
[00:06:11.960]it is probably, most likely that they should be reviewed,
[00:06:15.200]and very commonly deleted.
[00:06:17.660]That doesn't mean always, but take a close look,
[00:06:21.450]and you might be surprised what you find.
[00:06:24.500]Anything else on that Martha?
[00:06:26.010]I don't think so.
[00:06:26.943]I think you've covered it.
[00:06:28.200]Yeah, okay, so we will take questions,
[00:06:31.740]if you wanna open up comments.
[00:06:34.460]And just a quick reminder,
[00:06:35.720]we're gonna take questions after each section.
[00:06:38.390]It doesn't mean if you come up with one later
[00:06:40.380]about somethin' you forgot,
[00:06:42.050]we won't take the question later.
[00:06:44.260]And we do have one already, so.
[00:06:46.900]Ms. Endres would like to discuss the reason
[00:06:49.320]for needing the request two months ahead of year end.
[00:06:54.330]This isn't a hard, fast rule,
[00:06:56.250]but sometimes people have multiple commitments,
[00:06:59.690]long lists that they're trying to get cleaned up,
[00:07:02.810]and in order to give us the time to move through those,
[00:07:06.180]as well as our daily workflow
[00:07:10.230]of other things that we're handling,
[00:07:12.360]things that come across my desk,
[00:07:14.590]we've just asked that you make an effort
[00:07:17.920]to get those entered by that time.
[00:07:20.310]I'm not gonna tell you that we won't get 'em done for you.
[00:07:24.040]We'll do our best to do that,
[00:07:25.852]but that just helps us with our workflow processes.
[00:07:30.380]The sooner the better, yeah.
[00:07:32.730]Helps us give better service.
[00:07:34.240]Right.
[00:07:35.120]And if you're having challenges
[00:07:36.930]running the report, or anything of that nature,
[00:07:39.900]let us know, and we'll do what we can
[00:07:41.590]to help you out with that too.
[00:07:42.868]Mm-hmm.
[00:07:44.710]Perfect, well that's all I have for that section.
[00:07:47.240]So if that's all,
[00:07:49.110]we will move into the bid process workflow.
[00:07:53.730]All right, and again, this is Sydney Zach,
[00:07:56.350]Scientific Sourcing Specialist.
[00:07:58.070]Thank you all for joining us this afternoon,
[00:08:00.170]and I gotta give a little bit of a special shout out
[00:08:02.940]to all of my end users that I see on the line.
[00:08:05.090]Thank you for joining us, so.
[00:08:08.420]Roll with us as we go through the workflow here.
[00:08:12.760]So just a quick review of the dollar thresholds
[00:08:15.880]that we have in place
[00:08:17.170]for the purchases of goods and services here on our campus,
[00:08:20.480]and this actually goes across the system as well.
[00:08:23.210]So anything 10,000 up to our bid limit of 150,000
[00:08:29.180]is under Uniform Guidance rules, so what that means is,
[00:08:33.600]we need to have some comparative quotes
[00:08:35.750]for the purchase of any of the goods or services
[00:08:38.560]that you're looking to get.
[00:08:40.640]Comparative quotes can mean,
[00:08:43.240]typically we like to see three, if possible.
[00:08:45.950]If there's only one other supplier that is available,
[00:08:48.940]we'd like to see that quote.
[00:08:50.360]But something that's comparing the item
[00:08:53.760]or service that you're wanting to see,
[00:08:56.750]comparing it with another supplier,
[00:08:58.230]so we have that competitive aspect.
[00:09:01.210]In some instances, one quote can be sufficient.
[00:09:05.210]So a prime supplier agreement that we have in place,
[00:09:08.300]that's been, a bid that's been competitively
[00:09:10.920]run through the university,
[00:09:12.780]like our research and lab suppliers, Fisher Scientific,
[00:09:17.190]or any of the facility's suppliers that we have,
[00:09:21.340]those are acceptable to have one quote.
[00:09:24.270]Other instances are any cooperative agreements
[00:09:28.330]for GPOs that we're a part of.
[00:09:30.120]Those bids are typically competitively run,
[00:09:32.530]and we can obtain pricing for
[00:09:36.170]items listed under those agreements.
[00:09:37.830]Those will also qualify as acceptable one quote purchases.
[00:09:42.600]I will, however, highly recommend for
[00:09:46.760]any equipment or goods that you can get multiple quotes,
[00:09:50.530]even if they do, you can obtain them from a prime supplier,
[00:09:53.840]it's just good to make sure that you're comparing pricing,
[00:09:56.270]making sure that it's reasonable
[00:09:58.100]from what you're seeing from that prime supplier.
[00:10:01.180]So what we wanna do for those requisitions,
[00:10:03.970]we wanna make sure that we're attaching
[00:10:05.740]those comparative quotes internally,
[00:10:07.660]that way we have that documentation for audit purposes.
[00:10:10.390]We wanna show that we've done our due diligence.
[00:10:13.060]And then you can reach out to us and procurement
[00:10:16.310]for any assistance if you have questions
[00:10:18.972]on suppliers that you could get quotes from.
[00:10:21.430]If you need assistance getting those quotes,
[00:10:24.020]we're happy to assist you in any way that you need.
[00:10:27.310]Now moving over to the $150,000 and over threshold,
[00:10:31.290]that's where we see our bid limit come into play.
[00:10:34.140]So as soon as you have an IM or a goods or services
[00:10:38.480]that we know, or think are gonna be over 150,000,
[00:10:42.140]as soon as that idea forms, give us a call,
[00:10:45.160]shoot us an email.
[00:10:46.210]We wanna be involved as early and as often as we can.
[00:10:49.950]So at that point, once you bring us on board,
[00:10:51.830]we can discuss the variable options that we can use
[00:10:55.840]to move forward in procuring that good or services.
[00:11:01.150]The RFP or ITB process, those are gonna be
[00:11:04.150]competitively bid processes.
[00:11:08.220]Some general aspects that I'll hit on later,
[00:11:10.790]for the RFP, you'll have an Evaluation Committee,
[00:11:13.140]a committee that's gonna help you select the best proposal
[00:11:15.920]that's gonna fit your needs.
[00:11:19.260]And based on the requirements and specifications
[00:11:22.650]that you develop early on to get that bid into play,
[00:11:25.940]that's what we're gonna be evaluating on.
[00:11:28.060]So this process allows multiple suppliers
[00:11:31.650]to bid on the goods or services that you're requesting.
[00:11:35.760]And there is on average, a typical timeframe
[00:11:39.260]of six to eight weeks or longer,
[00:11:41.360]depending on the goods or services
[00:11:43.600]that you are trying to procure.
[00:11:47.330]So just a quick refresh of the Board of Regents Policy.
[00:11:51.540]So our competitive bidding is any purchase
[00:11:53.550]committing the university to an expenditure of $150,000.
[00:11:58.340]This is across the system.
[00:12:00.250]It's where we really come into place,
[00:12:01.587]and make sure that we're doing our due diligence
[00:12:03.930]to get competitive pricing for the services and goods
[00:12:08.720]that we need on our campus.
[00:12:12.610]So some definitions that may pop up from time to time,
[00:12:17.150]and what are frequently used here in our department.
[00:12:20.740]So there are different, differing, different levels
[00:12:25.460]of getting information, getting pricing, getting quotations
[00:12:28.920]for the services or goods that you're looking for.
[00:12:30.830]So and RFI is a request for information.
[00:12:35.340]This is basically a seeking information from your suppliers,
[00:12:40.670]determining their capabilities, their catalog products,
[00:12:44.630]just searching for the options, and how to move forward,
[00:12:48.107]and procuring the goods and services
[00:12:49.860]that you're looking for.
[00:12:52.135]An RFQ is a request for quotation.
[00:12:55.480]This is a more detailed request for the goods or services.
[00:12:59.050]So you're gonna have more outline specifications
[00:13:02.440]that the suppliers are gonna need to meet,
[00:13:05.920]and it can be based on both pricing
[00:13:08.420]and some technical aspects, such as delivery of goods,
[00:13:12.430]timelines of processing for
[00:13:16.530]the goods or services,
[00:13:18.360]and these can be below the $150,000 threshold.
[00:13:21.400]So we can do an RFQ for anything between
[00:13:23.530]that 10 and $150,000 threshold.
[00:13:27.800]So I think what I wanna pull the curtain back on today
[00:13:31.430]is the RFP aspect, so the request for proposal.
[00:13:35.110]So a request for proposal is gonna be a concept
[00:13:38.100]with a set specifications or needs for consideration.
[00:13:42.740]So we're looking at the whole package
[00:13:45.810]of what suppliers are gonna submit
[00:13:48.650]based on the specifications and scope of work
[00:13:51.280]that you, as a department, develop.
[00:13:53.690]So we're looking at pricing.
[00:13:55.310]We're looking at service, excuse me, service level
[00:13:59.130]types of needs that could be met by a supplier.
[00:14:02.390]Invoicing, delivery time.
[00:14:04.100]So the total package is being considered at the RFP level.
[00:14:09.820]And then finally, and ITB, an invitation to bid is,
[00:14:13.890]it's a bid process where we have
[00:14:15.490]a specific manufacturer and model that we can be,
[00:14:18.810]that can be found for goods
[00:14:22.390]for a number of different suppliers,
[00:14:24.410]and once those needs and requirement are met for the goods,
[00:14:29.400]that is an award, the bid is then award to the lowest price,
[00:14:32.330]so there's no Evaluation Committee.
[00:14:34.720]The responses have to check all the boxes
[00:14:36.670]on the spec aspects of it,
[00:14:40.210]and then we'll go to the lowest priced supplier.
[00:14:43.240]That's a really good summary, Sydney.
[00:14:44.710]I'd like to just add a point,
[00:14:46.410]and maybe even elaborate if I'm misspeaking,
[00:14:49.730]but it would be assumed that an RFI is kind of,
[00:14:53.470]I don't know yet exactly what I need,
[00:14:55.810]type of situation, Mm-hmm.
[00:14:56.854]so you're checkin' the market?
[00:14:58.300]Yep, and that's exactly what it is.
[00:14:59.960]We're checking the market for suppliers
[00:15:03.290]that can meet those needs.
[00:15:04.540]We're getting more in-depth information
[00:15:06.480]about what suppliers can provide,
[00:15:08.440]their capabilities on how they can service the university,
[00:15:11.520]and specifically the department.
[00:15:13.140]And typically, RFI's lead to down the road
[00:15:17.320]an RFQ or and RFP.
[00:15:18.960]It helps you, push you in the right direction
[00:15:21.930]on how you need to procure those goods or services.
[00:15:24.350]Sure, and I'd like to add,
[00:15:25.700]for those of you who don't know
[00:15:27.450]how much it's gonna cost you yet,
[00:15:29.850]the RFI process can also help you determine a budget,
[00:15:33.400]which, so it does work similarly,
[00:15:36.800]but it's not a competitive bid situation,
[00:15:40.640]So you can leverage our technology,
[00:15:42.680]you can leverage our resources, but it can help you
[00:15:45.360]as you're in the beginning stages of a project.
[00:15:48.960]Shall we say, proper prior planning
[00:15:51.730]prevents the end results not coming out the way you want,
[00:15:54.850]or making it a big, bad rush at the bid scenario.
[00:15:59.050]You can probably get a lot of your pre-work done
[00:16:01.970]on something really complex through an RFI.
[00:16:05.140]Absolutely. Would that be correct?
[00:16:06.300]Yep, it really helps shape
[00:16:10.270]what you're looking for in that next step of procurement.
[00:16:14.210]Great.
[00:16:16.090]All right. Thanks Sydney.
[00:16:17.290]Absolutely.
[00:16:19.780]So let's talk about
[00:16:20.870]some characteristics of bids.
[00:16:24.610]No two bids are ever typically the same.
[00:16:27.770]So just like snowflakes are very unique,
[00:16:30.310]and just like all of our edges on campus are,
[00:16:34.360]nobody's the same.
[00:16:35.530]Everybody has different personality,
[00:16:37.780]different style, different means.
[00:16:39.590]That's exactly what our bids are.
[00:16:41.900]So our scientific equipment bids are gonna be different
[00:16:45.340]than furniture bids, different from capital project bids.
[00:16:48.910]Everything is gonna be different between those bids.
[00:16:52.680]However, some similarities may occur.
[00:16:55.580]So you're gonna have similarities,
[00:16:57.130]but not exact matches between bids.
[00:17:00.820]And to help this process, our department has developed
[00:17:03.840]standard templates for use.
[00:17:05.240]So we have a very good outline, a very good shell, per se,
[00:17:09.270]that we've developed, that we can drop our specs in,
[00:17:12.680]our scope of work in, that will really
[00:17:15.000]help get the ball rolling once you're ready to roll
[00:17:18.130]in the RFP process.
[00:17:23.320]So to kind of pull back the curtain a little further,
[00:17:27.030]what exactly happens in the RFP workflow?
[00:17:30.960]Well, this is kind of a multi-step process.
[00:17:33.910]So you'll see the five steps that I've outlined,
[00:17:37.800]and step one and two are kinda,
[00:17:39.620]can be run concurrently, or one then two.
[00:17:43.210]But where we wanna start is,
[00:17:46.160]that departmental scope of work.
[00:17:48.480]So as I said before, once that idea pops into your mind,
[00:17:52.530]of possibly over $150,000 purchase,
[00:17:56.640]get the ball rolling on developing your specs,
[00:17:59.090]and developing a scope of work.
[00:18:00.828]A scope of work is gonna entail
[00:18:03.950]all the needs that need to be met by the suppliers
[00:18:07.480]for your purchase, your goods, or your services
[00:18:10.300]that you're looking to procure.
[00:18:12.610]Along this time, we can develop specifications
[00:18:15.670]that are gonna be required.
[00:18:16.940]So an example, I'm gonna speak through my scientific lens,
[00:18:21.010]you wanna buy a multiphoton microscope,
[00:18:23.400]and you're gonna have to have, you know,
[00:18:25.670]that laser needs to hit a certain wavelength.
[00:18:28.290]Well, we need to make sure that that is
[00:18:30.750]specific and defined in that specifications.
[00:18:33.710]And the other term, and the other times
[00:18:35.610]you're gonna be able to pull back your specs, saying,
[00:18:37.840]okay, I need a 10x, a 40x, an 80x,
[00:18:41.660]and an objective for the microscope,
[00:18:44.200]and you can have an equivalent.
[00:18:45.730]So there are gonna be, we can help you develop those
[00:18:49.940]in procurement as well.
[00:18:50.930]Making sure that's what specific, and has to be met,
[00:18:54.380]versus things that can be more generalized,
[00:18:56.140]or finding alternatives, are equivalent.
[00:18:59.060]Also, during this time, you'll work with
[00:19:02.770]selecting an Evaluation Committee.
[00:19:04.430]So you and a group of people that have that expertise,
[00:19:07.680]have that knowledge that are gonna help you determine
[00:19:09.600]the best proposal that's gonna for your needs
[00:19:12.920]for your purchase.
[00:19:15.880]And then, while you're, either while or the next step
[00:19:20.760]of developing the scope of work and specs,
[00:19:23.080]you can bring procurement on board.
[00:19:24.790]So what we're gonna do, is we're gonna help you finalize
[00:19:27.120]that scope of work, and finalize those specs,
[00:19:29.390]so we can narrow down what exactly it is you're looking for
[00:19:32.970]for your goods or services.
[00:19:35.100]And at that point in time, we'll start utilizing
[00:19:38.040]our e-procurement or e-bidding system, eBID.
[00:19:41.620]So our suppliers go online to our website and register.
[00:19:46.490]They will select the commodities that they
[00:19:49.450]could potentially bid on, and that's how
[00:19:52.420]we connect our suppliers to meet our needs of our end users.
[00:19:56.600]And while we're creating the bid, and while we're getting
[00:19:58.620]our lines and attributes up into eBID,
[00:20:01.610]we're gonna work on getting an evaluation score card
[00:20:05.100]with weights and criteria selected,
[00:20:07.070]so we really know, how are we evaluating the proposals,
[00:20:10.410]how much does pricing come into play,
[00:20:12.380]how much does a tech aspect come into play?
[00:20:16.050]Really narrowing down what we wanna see from our suppliers.
[00:20:20.840]And then, during the bid creation,
[00:20:22.600]and prior to the bid closing, the committee,
[00:20:26.177]your Evaluation Committee is gonna have to complete
[00:20:28.810]a university NDA form.
[00:20:31.150]So those sitting on the committee
[00:20:33.160]are those the only ones discussing it,
[00:20:35.540]and we know nothing's going outside
[00:20:39.300]of that Evaluation Committee.
[00:20:42.380]So once we have our specs and our scope of work done,
[00:20:45.680]and we are ready to rock, we have the bids go live.
[00:20:49.090]So what does a live bid mean?
[00:20:52.020]This means that once the, once we hit go,
[00:20:55.030]an invitation is sent to our suppliers,
[00:20:57.100]so an email will go out to all of our suppliers,
[00:20:59.840]at that point in time, they can monitor the system,
[00:21:02.090]and start takin' a look at line items and attributes,
[00:21:05.440]and really start formulating how they wanna attack the RFP,
[00:21:08.687]and how they wanna prep their proposals.
[00:21:12.350]At this point, a pre-bid meeting is recommended.
[00:21:17.040]It's optional for some, required for other bids.
[00:21:20.570]It's just to help our suppliers get clarification,
[00:21:24.890]and our understanding of what we require
[00:21:27.910]in our RFP process, and within the RFP itself,
[00:21:31.930]what we're asking for in terms of return.
[00:21:35.890]So once the bid goes live,
[00:21:37.940]and typically seven to 10 days after that,
[00:21:40.630]suppliers can prepare questions along that way.
[00:21:43.530]They compile a list of questions,
[00:21:45.860]and they send it to our general eBID email address,
[00:21:49.460]and they have to submit by that certain deadline,
[00:21:51.560]which it's seven to 10 days or longer,
[00:21:55.400]depending on what type of bid is being run.
[00:21:58.720]So depending on your procurement specialist
[00:22:01.740]who's helping you run this bid,
[00:22:03.320]a typical turnaround time is gonna be
[00:22:05.770]two to four days after we get those questions.
[00:22:07.900]So your procurement specialist may
[00:22:11.260]send you the questions one at a time,
[00:22:13.350]or they may compile at that deadline for questions,
[00:22:16.912]and then send you all in one shot,
[00:22:19.140]so you can answer them all in the one, in one complete step.
[00:22:24.830]So once we have those answers posted to our suppliers,
[00:22:28.830]they then have another seven to 10 days,
[00:22:31.720]or X amount of time, depending on the debts being run,
[00:22:36.080]to finalize and get their RFP proposals submitted.
[00:22:42.340]So I wanna make sure that our listeners on the line
[00:22:46.740]understand that the suppliers have to fully,
[00:22:49.840]submit a fully completed bid by the deadline.
[00:22:53.240]So the nice thing about eBID is,
[00:22:55.470]everything is very time stamped,
[00:22:57.130]and you can see the percentage
[00:22:58.480]that's complete by a supplier.
[00:23:00.980]You know, if they don't get it in by that deadline,
[00:23:04.640]we will work with the suppliers that do have it in.
[00:23:08.870]Yeah, we try to, I will add to that.
[00:23:11.640]Sydney, I'm glad you brought that up.
[00:23:13.660]Just for those of you on a protocol,
[00:23:16.090]because we use an electronic bidding system,
[00:23:19.860]the system controls the clock.
[00:23:22.320]We set the timeframe,
[00:23:24.290]and then the system does everything else,
[00:23:26.350]and that's part of the reason why
[00:23:28.840]sometimes a pre-bid meeting is almost, it's critical,
[00:23:32.940]or at least a training session for suppliers mono e mono
[00:23:36.830]before the event if they're new to the system.
[00:23:39.730]And the reason for that is,
[00:23:41.940]it ensures there's no accidents, basically.
[00:23:46.230]So along the way, the technology also allows
[00:23:51.610]monitoring of utilization of the tools,
[00:23:54.140]so we can tell when people were in there,
[00:23:56.620]and we can try to help 'em through problems
[00:23:58.260]if at all possible.
[00:23:59.500]So our goal is to make it
[00:24:01.060]a positive experience for everyone.
[00:24:02.560]I think it's a heck of a lot better
[00:24:03.790]than 20 cars piling up in the parking lot out front
[00:24:07.010]tryin' to bring paper bids in the door, right?
[00:24:09.110]And I know you remember
[00:24:10.380]those days, Martha. I do.
[00:24:11.310]So-- I was just dancin'.
[00:24:12.292](laughing)
[00:24:14.060]So electronic is definitely better,
[00:24:16.910]and it's more effective and efficient.
[00:24:19.010]And it brings a great visibility for us,
[00:24:22.720]and seeing how well the suppliers are interacting
[00:24:26.060]with the platform, and kinda seeing
[00:24:28.230]their workflow upon that-- Well, and then it helped you
[00:24:31.103]with the rest of the savings too.
[00:24:32.870]Absolutely, which is great lead in for
[00:24:35.790]what happens when the bids closes?
[00:24:37.510]So the bid evaluation starts
[00:24:40.590]as soon as that clock hits zero.
[00:24:43.060]So the eBID system is fantastic,
[00:24:46.210]and it summarizes all those documents and responses.
[00:24:50.180]So your procurement specialist will help compile
[00:24:53.670]all that information that they can pull out of eBID.
[00:24:57.410]They're some great spreadsheets and PDFs
[00:24:59.570]that generate by utilizing that tool.
[00:25:01.860]So it's a really great way to streamline the bid process.
[00:25:06.080]Saves a lot of time.
[00:25:06.913]It really does.
[00:25:08.370]So once we have all those documents compiled,
[00:25:13.110]the pre-approved scorecard will be used
[00:25:15.380]to run your evaluation for the proposals
[00:25:18.130]that have been submitted by the deadline.
[00:25:21.130]So the pricing will be tabulated by procurement,
[00:25:23.800]and then submitted to the Evaluation Committee,
[00:25:27.110]and then all pre-determined scorecard criteria
[00:25:29.265]are evaluated and scored by committee.
[00:25:32.080]So once those evaluations have happened,
[00:25:34.430]and the scoring happens, and you have a clear winner,
[00:25:38.150]let's move on to the award implementation.
[00:25:40.510]So you've done your scoring.
[00:25:42.830]You said, yes, we wanna go with the supplier
[00:25:45.030]who best fits our means.
[00:25:47.850]That supplier is notified of award,
[00:25:50.420]and those other suppliers that have submitted
[00:25:52.410]receive notice that they were not the selected supplier.
[00:25:56.326]And once that award letter goes out,
[00:25:58.310]there's a protest period of seven calendar days,
[00:26:02.280]and fingers crossed, we won't ever have
[00:26:04.900]anymore protests moving forward.
[00:26:06.959](laughing) No.
[00:26:08.917]Be realistic. We hope,
[00:26:09.759]I know.
[00:26:10.750]We hope for no protests, but if everything runs smoothly
[00:26:14.330]after that seven days, depending on the type of bid,
[00:26:17.040]so for bids for goods or items,
[00:26:22.170]a purchase order can be issued at that point in time,
[00:26:24.820]or if it's a bid for, that has services,
[00:26:27.880]or a contract portion that needs to be negotiated,
[00:26:30.820]those final negotiations can take place,
[00:26:33.110]and the contract can be signed.
[00:26:36.200]And I think that wraps up
[00:26:38.040]the bid and workflow process section.
[00:26:41.940]I do have a couple questions.
[00:26:43.080]Who? But any,
[00:26:44.900]do you ladies wanna add anything
[00:26:46.420]before we move on to questions?
[00:26:48.100]I'll just add,
[00:26:49.083]that I think the integrity of the process,
[00:26:51.280]there's a lot of things that happen in between
[00:26:53.360]even these slices in line.
[00:26:55.880]It sounds really detailed, and frankly it is,
[00:26:59.730]but to be honest with everyone,
[00:27:01.270]it moves quite smoothly and quite effectively,
[00:27:04.360]and Sydney, thanks for the nice overview.
[00:27:06.830]Absolutely. And it was really good.
[00:27:09.940]All right, so our first question is,
[00:27:13.336]for those under 10,000 and above 5,000,
[00:27:17.670]do we still need to do a need sole source
[00:27:19.410]if only we only get one quote?
[00:27:23.330]I'm about to talk about sole sources next.
[00:27:26.980]And my-- So--
[00:27:27.813]I'm sorry, go ahead.
[00:27:28.800]My answer would be no.
[00:27:30.130]So you're under 10,000, anything up to 10,000,
[00:27:36.300]you can get one quote for.
[00:27:38.740]We typically, if it's a capital piece of equipment,
[00:27:41.300]like I said before, I would love to see comparative quotes,
[00:27:44.640]just so, you know, you're doing your due diligence
[00:27:47.780]to make sure you're searching under all the rocks,
[00:27:50.120]and getting the best deal, and your needs met
[00:27:52.830]for the item that you're trying to procure.
[00:27:57.610]And then the next question is,
[00:28:00.979]RFP or ITB for 150,000 and up?
[00:28:07.940]So I would say-- What was that question?
[00:28:09.680]RFP or ITB for purchases of 150,000 and up?
[00:28:15.070]So it depends.
[00:28:16.800]Because, Syd, if you wanna go back
[00:28:20.057]Yep. just to
[00:28:21.050]the previous slide. Yeah.
[00:28:23.390]Just to refresh, and ITB is probably,
[00:28:26.947]you're just gonna have to maybe.
[00:28:29.217]Whaaa
[00:28:30.520]Yeah, maybe we shouldn't.
[00:28:32.110]Maybe we'll just stay there.
[00:28:34.250]I know this bein' recorded,
[00:28:35.790]so whoever's asking the question,
[00:28:37.920]an ITB differs from an RFP in its nature of
[00:28:43.210]how specific are your specifications?
[00:28:46.140]Sorry, for the redundancy there,
[00:28:48.140]but if you know the make, model, year.
[00:28:52.280]You know, if you're buyin' a car,
[00:28:53.480]you wanna X, Y, Z with a Y, M, V,
[00:28:57.320]and a P, O, F,
[00:28:59.090]and a overhead cam with underneath this.
[00:29:02.160]I mean, if you've got a detailed spec,
[00:29:05.400]it could be easily an ITB, and the reason it can,
[00:29:09.610]is because if you're, if you wanna take a low bidder,
[00:29:12.440]and just like, I don't care where it comes from,
[00:29:14.760]I don't care, I just care about the best overall cost,
[00:29:17.660]an ITB is your answer.
[00:29:18.920]And we actually do those frequently for a technology group
[00:29:22.660]for things like computer nodes,
[00:29:24.780]and some really high intense technology that they need.
[00:29:28.890]In our super computer area,
[00:29:31.060]David Swanson out there in listening land, you know,
[00:29:33.640]buys some pretty amazing stuff, and he doesn't need an RFP,
[00:29:37.070]'cause he knows so much precisely what he wants.
[00:29:40.900]He's gonna go with a low bid, and just take it, and run,
[00:29:44.370]because I mean, the price on that stuff
[00:29:46.210]changes like commodities.
[00:29:48.410]And so, whereas an RFP, as Sydney described,
[00:29:51.551]it's definitely more all encompassing,
[00:29:53.780]so you're talking about, how does it fit?
[00:29:56.640]Oh, this has a little different feature here.
[00:29:58.600]This has a little different feature.
[00:29:59.960]So while you're comparing the same products,
[00:30:02.780]there might be some distinctions, that
[00:30:04.790]in how that product is delivered, that matter to you.
[00:30:07.617]Right. So that's really
[00:30:08.970]why an RFP becomes more of,
[00:30:10.850]and that's why it's called a proposal,
[00:30:12.690]'cause there's several things that you're considering,
[00:30:15.090]and that's what that scope of work helps you define,
[00:30:18.070]is what's important to me.
[00:30:19.490]Yep.
[00:30:20.323]So one other piece on the scorecard,
[00:30:22.310]and we'll probably, actually I think we have
[00:30:24.250]this session later in the year,
[00:30:25.950]we do have templates for scorecards,
[00:30:27.880]and we will help guide you
[00:30:29.890]in how to weight the criteria in an RFP.
[00:30:34.550]With an ITB, chances are the only thing you care about
[00:30:37.420]is meeting my spec and price.
[00:30:40.240]And that's why they're easier.
[00:30:42.080]They're sorta like flushin' the toilet.
[00:30:43.590]Sorry, but I couldn't think of a better metaphor.
[00:30:46.220]I'm sorry, I'm makin' everybody laugh.
[00:30:48.200]But I'm tryin' to think of a better one,
[00:30:49.560]but they're much quicker.
[00:30:50.940]Mm-hmm, yep.
[00:30:52.190]And a further clarification, he just wanted to know,
[00:30:55.880]with the RFP and ITB at 150,000,
[00:30:59.911]one or the other is required?
[00:31:01.950]Yeah. And I would say, yes,
[00:31:03.290]Yeah. absolutely.
[00:31:04.450]Yep.
[00:31:05.890]And one last question, does this workflow include the time
[00:31:11.320]bids and contracts spend at legal?
[00:31:13.760]And so this is really a general overview,
[00:31:16.870]so that legal contracts portion would be under the
[00:31:22.140]final negotiation on the contracts.
[00:31:25.850]So let me add to that, Sydney.
[00:31:29.470]So when we release an RFP or an ITB,
[00:31:33.980]if there's going to be a contract,
[00:31:35.390]'cause often an ITB ends up just in a purchase order,
[00:31:37.910]but there might be a contract associated with it,
[00:31:40.270]all of our RFPs, RFQ, they go out to the marketplace
[00:31:44.550]with a contract template attached.
[00:31:47.380]The statement of work, the SOW that's in the RFP,
[00:31:50.570]will become the statement of work in the contract.
[00:31:54.060]What we ask our suppliers to do,
[00:31:55.900]is red line that, or make comments in the contract
[00:31:59.970]as part of their response to the RFP.
[00:32:03.530]That expedites the startup process,
[00:32:06.470]so that we can also see how badly, or how swiftly
[00:32:11.040]this process might proceed.
[00:32:13.200]And we're also able, during that evaluation process,
[00:32:16.340]to provide that to legal preemptively if there's a need to.
[00:32:20.990]Normally, we have to wait to a point
[00:32:22.480]where the committee's like, I'm down to these two,
[00:32:24.530]or you know, you've short listed the sources.
[00:32:26.880]So does that answer that question?
[00:32:31.870]I'll wait for a comment.
[00:32:33.080]I do wanna add in too, so this workflow
[00:32:35.630]is pretty typical for, yes, that answers that question.
[00:32:39.380]Good. I do wanna add in
[00:32:41.190]before we switch gears here,
[00:32:43.600]that this is a very general overview just to kinda help you
[00:32:47.430]understand what happens
[00:32:49.500]throughout the workflow process of an RFP.
[00:32:52.180]And I said earlier, a typical time is six to eight weeks,
[00:32:55.480]and it really can go fast or slow
[00:32:57.750]depending on the work done up front,
[00:32:59.900]and dropping the specs, and then scope of work in,
[00:33:02.860]depending on time for evaluation.
[00:33:06.060]But going back to the snowflake slide,
[00:33:10.140]every bid is different.
[00:33:11.410]There's not gonna be two that, two that are exactly alike,
[00:33:14.900]so your time will vary, but we hope an average time
[00:33:19.160]of six to eight weeks is pretty typical for our bids.
[00:33:22.750]A lot of that has to do with the preparation,
[00:33:26.420]how prepared is the documentation?
[00:33:28.685]Is it through requirements?
[00:33:30.430]That's why we have templates to expedite the process.
[00:33:32.840]And then there are requirements
[00:33:35.530]for how long a bid is out on the street.
[00:33:37.440]The minimum is 15 days.
[00:33:40.420]Calendar days. Calendar days.
[00:33:43.420]But in some cases, I'll be frank with everyone on the call,
[00:33:47.010]I'm never not, you need,
[00:33:51.600]sometimes you need more time,
[00:33:52.980]depending on the complexity of what you're procuring,
[00:33:56.150]and in order to get a good return,
[00:33:58.870]you want your time to be spent on this to be well spent.
[00:34:03.870]Now, it might sound like a long time, but frankly,
[00:34:08.240]it's not as long as you think.
[00:34:09.510]It moves very quickly through the process.
[00:34:13.290]So a lot of bids can go six weeks and be done.
[00:34:16.370]Yep.
[00:34:18.350]All right, I think we are ready to turn gears,
[00:34:21.923]Okay. and I will
[00:34:22.756]turn it over to Maggie.
[00:34:23.840]Thank you, Sydney.
[00:34:26.090]So the same holds true for mt presentation.
[00:34:28.130]Syd, Martha, if you wanna add anything,
[00:34:30.010]please contribute along the way,
[00:34:32.230]and if you see questions that pop up, let me know, Sydney.
[00:34:36.070]So yeah, we are shifting gears,
[00:34:38.290]because I think the concept of a sole source
[00:34:40.900]was introduced a few minutes ago,
[00:34:43.080]and so I'm about to kind of talk more about the,
[00:34:47.880]let's talk about the philosophy of non-competitive sourcing
[00:34:51.860]and non-competitive procurement, if you will.
[00:34:54.490]Also known as sole sources.
[00:34:57.060]So for what I'd like to do now,
[00:35:00.820]I'm not really gonna get into the numbers,
[00:35:02.287]and the benchmarks, and the thresholds.
[00:35:04.000]They're on our website.
[00:35:06.020]They have not been modified to date.
[00:35:08.870]Those of you on the PED Talk today, and again,
[00:35:12.140]thank you everyone for joining,
[00:35:14.060]and we really appreciate your questions,
[00:35:16.270]and anything you wanna know about this,
[00:35:18.130]that's what this is all about.
[00:35:20.650]We have updated signature authority,
[00:35:22.980]but sole sources have not changed.
[00:35:26.090]But when I say sole source,
[00:35:27.660]I would like you to start thinking of a different phrase.
[00:35:31.510]You know, maybe sole source will always
[00:35:33.110]roll off everyone's tongue here,
[00:35:34.810]and it's a very common phrase
[00:35:36.540]used across higher education and public procurement,
[00:35:39.020]but I'd rather you thought about non-competitive sourcing,
[00:35:42.500]and the fact that this really is intended
[00:35:44.820]to be rare and not common place.
[00:35:48.130]Now, if I was to add up all the contract, and orders,
[00:35:51.040]and RFPs, and things,
[00:35:52.370]obviously, if there's an RFP out there,
[00:35:54.040]it hasn't in sole source.
[00:35:55.650]But, you know, all the purchases we make,
[00:35:58.390]and things of that nature, I'm going to do this
[00:36:02.250]to try to determine how many are.
[00:36:03.870]I've never actually counted this
[00:36:05.930]in my three year tenure here at the university,
[00:36:09.070]but I can assure you that the philosophy going forward,
[00:36:13.070]especially with new Uniform Guidance
[00:36:15.720]effective in July of last year, this is the philosophy,
[00:36:20.980]and I know this is the philosophy of our leadership
[00:36:23.530]at the university today.
[00:36:25.550]I've heard it multiple times,
[00:36:27.320]that justification for a sole source
[00:36:30.240]needs to be very, very detailed.
[00:36:32.750]So let's talk what non-competitive sourcing,
[00:36:35.620]also known as a sole source, really is.
[00:36:39.220]So for those of you takin' notes,
[00:36:40.830]again, this is recorded.
[00:36:43.050]But there are, there isn't one thing that it is.
[00:36:46.570]Though, I'm just giving you some examples
[00:36:48.500]to help you understand the characteristics and nature.
[00:36:51.460]One, only one known source exists.
[00:36:55.100]That's a pretty tough thing to marker.
[00:36:57.740]I will tell you, that in my 30 plus years of procurement,
[00:37:01.500]that is so rare.
[00:37:03.440]It's very difficult to find.
[00:37:05.330]And the key here, by the way,
[00:37:08.040]on the left hand side of the screen,
[00:37:09.670]I want you to pay attention to the underlined word.
[00:37:13.520]Because it's like if only one source exists,
[00:37:16.670]specifications and other things needs to be stated
[00:37:19.100]that they cannot be written so narrowly
[00:37:21.560]that prohibit competitive sourcing.
[00:37:23.680]This is a federal guideline,
[00:37:25.380]and it pushes right down through Uniform Guidance to us.
[00:37:28.840]So, you know, you have to remember that,
[00:37:32.203]Syd, I think we had an example when we were talkin' about
[00:37:34.480]this material when we were creating the presentation.
[00:37:36.910]You gave me an example of a microscope, or something.
[00:37:40.610]What was that Yeah,
[00:37:41.443]Situation? So a great example
[00:37:42.930]for this would be, if you are looking for
[00:37:46.100]a floor model centrifuge,
[00:37:49.520]and I-- Every day.
[00:37:51.140]Oh, totally, every day.
[00:37:52.520]And I can think of at least three brands
[00:37:54.880]off the top of my head right now,
[00:37:56.900]so I know for a fact that that's not gonna be a sole source.
[00:38:00.560]So a way that specifications could be written
[00:38:05.280]to make it so narrow that only one, quote/unquote,
[00:38:10.110]sole source could be available is brand A model centrifuge
[00:38:14.880]has a range of RPM from 6,000 to 13,000,
[00:38:20.980]and brand B had an R range of RPMs from
[00:38:25.680]6,000 to 10,000.
[00:38:28.120]Well, brand A is selected because it meets the
[00:38:32.150]wide range of RPMs necessary, and therefore,
[00:38:35.880]it's a sole source.
[00:38:36.750]And because the research requires that.
[00:38:38.700]Yes. Okay.
[00:38:39.607]And that in my mind, is not a sole source,
[00:38:41.951]because there are multiple brands,
[00:38:44.680]there are multiple centrifuges that do fulfill
[00:38:48.100]the need of a centrifuge.
[00:38:50.603]So-- So,
[00:38:51.650]you should be going to brand A, brand B, and brand C,
[00:38:55.710]and you base the decision of your purchase
[00:38:58.590]to go with brand A due to that wide range of RPMs.
[00:39:02.770]That's the one you select because brand A and brand C,
[00:39:07.790]Don't. Or brand B
[00:39:08.630]and brand C cannot fulfill that need.
[00:39:11.310]And that's a perfect example,
[00:39:12.970]and we see this a lot.
[00:39:14.070]I know that this is a hot topic
[00:39:15.600]amongst procurement professionals everywhere.
[00:39:18.650]So I just wanna encourage everyone to understand that we're,
[00:39:22.630]it really does lie in the details.
[00:39:24.850]The devil's in the details with this process.
[00:39:27.600]You need to provide documented research.
[00:39:29.490]You can't just say, I know it.
[00:39:32.820]And this is auditable.
[00:39:34.730]I, there is that word, you know,
[00:39:37.140]but these records, especially related to research purchases,
[00:39:40.960]are frequently audited.
[00:39:42.760]No other reasonable alternative source exists
[00:39:45.770]for the requirements, and the specified needs
[00:39:49.820]for that project has only one source.
[00:39:52.510]And a real common example, I'm gonna throw this out,
[00:39:55.640]but actually, it's not the only one,
[00:39:57.180]but it does exist more frequently than others,
[00:39:59.590]is public utilities, where you live in a zone
[00:40:02.940]where you can only get X, Y, Z service from this
[00:40:05.760]company or that company.
[00:40:08.060]But for the most part, competitive sourcing
[00:40:11.520]is there to ensure that we're evaluating the market
[00:40:15.910]to always get the best overall price.
[00:40:18.360]So on the opposite side of the wall here,
[00:40:21.230]let's say what non-competitive sourcing is not, okay.
[00:40:25.880]And that sounded like a double negative,
[00:40:27.890]and I think it was.
[00:40:29.690]So a preference for a brand name product
[00:40:32.470]is not going to get you there.
[00:40:34.640]You can't just say, it's gotta be Xerox,
[00:40:36.561]because it runs better than all the others I've ever used.
[00:40:41.330]That's too generic, it's too general,
[00:40:44.020]it won't accomplish the goals of what you're trying to do.
[00:40:49.070]as if that product is what you need,
[00:40:51.210]and if there is a competitive market,
[00:40:52.663]a bid is going to, or a quote will have to take place.
[00:40:55.780]And if there is more than one potential bidder or offer
[00:40:58.900]for a product or service, you've gotta remember too
[00:41:02.140]that just because it's proprietary,
[00:41:05.110]does not automatically justify a sole source.
[00:41:08.970]I will give the example of software,
[00:41:11.740]or other types of things.
[00:41:13.500]Technology, quite frequently,
[00:41:15.490]while it's manufactured by XYZ organization,
[00:41:19.030]it's distributed by a group of distributors,
[00:41:21.900]and many of them have the eligibility
[00:41:24.120]to compete for the business.
[00:41:25.910]There's also a market out there
[00:41:27.210]where some of 'em might have a better advantage than others.
[00:41:29.610]That's the market, and that says,
[00:41:31.770]we need to take advantage of that.
[00:41:33.660]And uniqueness alone,
[00:41:35.130]similar to something being proprietary,
[00:41:37.320]also does not by itself qualify a producer or a supplier
[00:41:41.210]as a sole provider of that good or service.
[00:41:44.050]So it's X on the right, go on the left,
[00:41:48.420]and I'm gonna keep on with this topic
[00:41:51.070]to help you better understand the philosophy
[00:41:53.300]of sole source procurement.
[00:41:56.640]Let's talk about a few myths that are out there,
[00:41:59.760]and I am taking some real scenarios,
[00:42:02.620]and situations from questions that have
[00:42:04.690]come through my office in my time here.
[00:42:09.170]I have been told and RFP takes longer to run
[00:42:10.897]than a sole source takes.
[00:42:13.250]So someone might be telling me that they're in a rush.
[00:42:17.000]They don't, they haven't got time to do
[00:42:19.710]this, that, or the other.
[00:42:21.540]They might, you know, they might think that,
[00:42:24.450]they might have the perception that an RFP takes longer,
[00:42:26.770]because they participated on one
[00:42:28.760]that was probably different than the one
[00:42:30.560]they're trying to source.
[00:42:32.620]Another question I've gotten, or a comment I've gotten,
[00:42:35.180]is a sole source is a way to get around
[00:42:36.840]completing an RFP.
[00:42:39.030]That is not true.
[00:42:40.690]I think we've talked about that enough already
[00:42:43.050]to help people understand,
[00:42:44.110]but we'll keep driving these points home.
[00:42:46.360]Savings differences between a sole source
[00:42:48.830]and an RFP are minimal.
[00:42:51.050]I've actually had that said to me.
[00:42:53.320]I don't think we'll find much money in this,
[00:42:55.770]so there's really very little competition.
[00:42:58.200]And that sole sources are just plain easier.
[00:43:01.090]Can I pause you for just a second?
[00:43:02.500]Oh yeah, sure.
[00:43:03.650]I had some feedback,
[00:43:04.483]that maybe there's some issues with the slide popping up.
[00:43:08.580]Can-- Oh.
[00:43:10.870]Can somebody give me,
[00:43:11.830]or more people give me feedback
[00:43:13.160]if you're able to see the slides?
[00:43:15.060]Can you see the Myth Busters slide right now?
[00:43:19.570]Okay, okay.
[00:43:23.440]It seems to be working okay for most people.
[00:43:28.270]Thank you for everybody that responded.
[00:43:30.810]Is there anyone specifically
[00:43:32.780]that would like me to slide back,
[00:43:34.293]go back a couple of slides, or?
[00:43:37.200]Do we need to go back at all?
[00:43:41.390]This chat feature's great.
[00:43:42.760]I love it.
[00:43:43.638](laughing)
[00:43:45.560]I think we're good.
[00:43:46.700]Thank you all
[00:43:47.533]for your feedback. Good.
[00:43:48.700]I'll try to go a little slower if that helps.
[00:43:50.600]Yes, and if you're having issues,
[00:43:51.870]try to rejoin and see if that will fix it.
[00:43:55.160]So for each of these comments
[00:43:57.770]that we've received, and again,
[00:43:59.960]we kinda polled the department,
[00:44:02.160]and we wanna help give you some rationale here
[00:44:04.860]to understand that it isn't necessarily true
[00:44:07.030]that an RFP takes longer than a sole source.
[00:44:10.230]I do have it on record, in my experience here,
[00:44:12.690]it took nine months once to write a sole source
[00:44:15.550]that met the requirements of the condition.
[00:44:18.860]Now, that was painful, and it probably didn't start out
[00:44:21.680]the way it should have, however, it's still out there.
[00:44:25.970]I know there are a few RFPs,
[00:44:28.210]when it's something major that can take a while,
[00:44:30.280]but frankly, our process for RFPs
[00:44:32.727]is much swifter and pre-established.
[00:44:35.970]A sole source requires that you document, you know,
[00:44:40.880]and get the information, and sometimes, the research
[00:44:43.980]you make and take to deliver a sole source
[00:44:47.350]helps you understand that it isn't one at all.
[00:44:51.480]A sole source is not a way to get around completing an RFP.
[00:44:57.840]I think we've reiterated,
[00:44:59.060]the Board Policy is for competitive bidding,
[00:45:01.860]and it's virtually always an option, and frankly,
[00:45:05.430]if you don't know what it's going to cost,
[00:45:07.260]or if you have a general sense,
[00:45:08.720]and if you think it might be a competitive quote,
[00:45:11.590]but again, it could be an ITB.
[00:45:14.340]To Brian's question earlier, you know,
[00:45:16.590]it may not have to be a request for proposal.
[00:45:19.120]If you've got all the specs out there,
[00:45:21.010]I can assure you, I should've asked Claudette
[00:45:23.360]for the typical timeframe on an ITB,
[00:45:25.377]but I think it's, you know,
[00:45:27.150]I think we've run some for David in three weeks.
[00:45:30.550]So they're fast.
[00:45:32.290]So, you know, again, reach back out,
[00:45:34.730]and let us know if that's an issue for you.
[00:45:37.770]Savings, frankly, I can tell you that,
[00:45:41.920]typically, savings begin around 10%, if not, it's unlimited.
[00:45:47.830]I can't even put a ceiling on that
[00:45:49.450]to tell you where the opportunity lies
[00:45:51.240]when comparative sourcing, competitive pricing is solicited.
[00:45:55.110]So suppliers need to know they're being checked.
[00:45:59.270]Last time you went to buy something online,
[00:46:01.350]I know many people shop Amazon,
[00:46:03.870]but you probably didn't stop there.
[00:46:07.370]Well, that's an example of just doing a quick comparison,
[00:46:11.080]but suppliers, when they know they're being checked,
[00:46:14.410]know they need to have their best prices on.
[00:46:17.510]And I wanna add in really quickly,
[00:46:19.570]every, and I mean every,
[00:46:22.926]RFP that I have run
[00:46:25.320]when I have gotten quotes up front for multiple suppliers,
[00:46:28.240]and then we've gone down the RFP road,
[00:46:31.620]every time I have gotten a lower price.
[00:46:35.400]There has not been one instance
[00:46:37.490]where the supplier bid the same price
[00:46:39.380]that they thought that were just gonna quote.
[00:46:41.550]So it is absolutely worth your while
[00:46:44.810]to do the RFP work.
[00:46:47.070]So let's just say you run a bid for,
[00:46:50.020]looks like it's gonna be a $300,000 piece of equipment,
[00:46:53.100]and you notch that puppy down another 3%,
[00:46:57.500]you know, who wouldn't wanna have that back in their budget,
[00:46:59.730]right? Absolutely.
[00:47:00.563]That's a nice thing.
[00:47:01.396]That's a nice thing to see.
[00:47:04.040]So once again, what constitutes a sole source purchase?
[00:47:10.250]I like the three Ds.
[00:47:12.630]If you can't remember anything else,
[00:47:14.240]just remember you're going to need the details.
[00:47:16.220]You're gonna have to have some data to support it,
[00:47:18.590]and you're gonna have to document it.
[00:47:20.650]And like I said, oftentimes, that is usually accomplished
[00:47:25.420]through a competitive sourcing event.
[00:47:27.534]In some cases, we've run competitive sourcing events,
[00:47:30.420]and only had one bidder.
[00:47:31.450]Well frankly, you might come back and say,
[00:47:33.560]well, that's a sole source.
[00:47:34.650]Not necessarily, it just means only one company
[00:47:37.370]was willing to bite, just bite at it.
[00:47:39.140]But you just knocked off completing a sole source
[00:47:41.500]off your list of things to do,
[00:47:43.750]and you also have got all the due diligence done
[00:47:46.760]in that process, ITB or RFB.
[00:47:50.757]Some examples, generically written.
[00:47:53.450]The good and services,
[00:47:54.681]or services provided by the supplier are patented
[00:47:58.460]with documentation attached,
[00:48:00.380]and not available from any of their competitors,
[00:48:03.180]which it would be good to list that, and it is starting,
[00:48:08.050]in some of the stuff that I've seen with Uniform Guidance,
[00:48:11.319]they're looking for that information too
[00:48:13.470]to see that we have done market research.
[00:48:16.800]This company is the only approved supplier by the OEM
[00:48:20.170]to service and maintain this equipment.
[00:48:22.070]That's a heavy thing to say,
[00:48:24.980]because sometimes when you look under the hood,
[00:48:27.170]you find out that there are other distributors
[00:48:29.730]that that OEM equipment, or service maintenance,
[00:48:35.140]they may be territorially restricted,
[00:48:37.900]and as long as that's documented, back to my Ds,
[00:48:43.940]you've got it, okay.
[00:48:45.770]So there are some, you know, ways to make this happen,
[00:48:50.340]but again, what the key here is, rare, and not common.
[00:48:57.490]So more of the examples, of what examples, real examples,
[00:49:01.830]that do not constitute a sole source.
[00:49:03.810]I like the brand, and it has the best features
[00:49:06.850]for my department.
[00:49:08.440]So it's lacking context.
[00:49:10.010]It's not telling me what the requirements are.
[00:49:11.970]I don't know any details beyond you like, you know,
[00:49:15.842]XYZ brand, and it's the best.
[00:49:18.790]Best is very, you know, just it's cloud-like,
[00:49:23.117]and it doesn't really define what your needs are,
[00:49:25.640]and so that's lacking all of that clarity.
[00:49:29.670]Wanting to buy locally so we don't pay freight,
[00:49:32.260]is called out very specifically by Uniform Guidance
[00:49:35.560]as not an acceptable requirement.
[00:49:39.180]Further to that, while locally may be important to you,
[00:49:43.710]so you don't pay freight,
[00:49:45.900]I'm not saying this is a solution
[00:49:48.060]for this type of a statement, but more often,
[00:49:50.810]what you need to do, is describe why you need it to,
[00:49:54.520]why you need to buy it from a particular,
[00:49:58.440]if there's a timeframe requirement,
[00:50:00.680]and the product takes 10 weeks to get across the country,
[00:50:03.870]or something like that, that would make a difference,
[00:50:06.210]because you need it by, in a month, or in three weeks.
[00:50:09.760]So you, remember, they have to be fact based.
[00:50:13.550]This is a supplier we've always used,
[00:50:15.270]and they are the best for this project.
[00:50:16.730]Again, this is kinda like number one,
[00:50:19.200]just very generic and nondescript.
[00:50:22.120]And we have a close relationship with this vendor.
[00:50:25.750]So I'll give one point to this statement,
[00:50:28.480]close relationship with our suppliers are great,
[00:50:33.010]and the bottom line is, however,
[00:50:34.840]a close relationship does not necessarily forgo,
[00:50:38.410]it doesn't forgo competitive bidding,
[00:50:40.770]and it doesn't mean that that's the only supplier
[00:50:42.403]that can do that for you.
[00:50:43.860]And frankly, you know, they're kinda hoping
[00:50:46.570]that that might be the case,
[00:50:48.450]because if you look under the hood, or compare prices,
[00:50:50.650]you might find out that it won't be the only supplier.
[00:50:54.240]So remember, there are suppliers,
[00:50:56.600]if the partner relationship is, we need something from them,
[00:51:00.700]they have something to sell to us,
[00:51:02.550]and we wanna main objectivity and integrity
[00:51:05.650]in our sourcing processes.
[00:51:08.230]As if I didn't talk about this enough,
[00:51:11.440]Sydney, I have a few more examples,
[00:51:13.000]and some of these, I think, are from our scientific
[00:51:16.330]or technology world.
[00:51:18.540]So again, generically speaking,
[00:51:22.440]we've got a piece of equipment,
[00:51:24.760]on the side of what doesn't justify it.
[00:51:26.850]We've got a piece of equipment
[00:51:27.890]that only supplier A can provide, and/or get us parts for.
[00:51:31.510]We like them too.
[00:51:34.230]So this is a good comparison.
[00:51:36.380]Hopefully, this pops up, there we go.
[00:51:40.480]And I think I just took some word out,
[00:51:42.550]and changed the company names to protect the innocent here.
[00:51:46.630]But those dual-beam system microscopes
[00:51:49.500]at the Electron Microscope Facility
[00:51:52.950]are apparently pretty unique.
[00:51:55.260]But what this has over the left hand side,
[00:51:57.714]everyone can see, first off, it's got more words,
[00:52:00.250]but the words have content.
[00:52:01.520]They have details.
[00:52:02.690]They tell me your specifications,
[00:52:04.830]and they tell me why you need what that B1234
[00:52:10.720]dual-beam systems can do to get it accomplished.
[00:52:16.290]Again, on the side of not quite there,
[00:52:19.870]we require a new widget.
[00:52:21.530]We've looked at several widgets,
[00:52:23.130]and this is the best one out there.
[00:52:24.490]A lot of other schools use this widget.
[00:52:27.150]It's the best widget ever.
[00:52:29.320]I am sorry, but I had to put it in there,
[00:52:31.190]because we have had that happen.
[00:52:33.300]And it's kind of, I usually call to find out
[00:52:36.780]why it's the best widget ever,
[00:52:38.320]and usually get more information,
[00:52:40.830]like you'd see on the right.
[00:52:42.640]And what we do try to do, is help in these areas.
[00:52:45.780]UNL is conducting a research on high-power fiber lasers.
[00:52:49.770]So again, the details.
[00:52:52.130]I think it kind of illustrates itself.
[00:52:54.470]Sydney, do you wanna add anything in here?
[00:52:56.350]Am I missing anything?
[00:52:57.590]I just wanna tag on to
[00:53:00.250]things that I'm looking for in a sole source.
[00:53:02.510]So one, I'm hopin' that you're getting me comparable quotes,
[00:53:05.940]'cause that's ultimately what I wanna see.
[00:53:08.480]It's gonna streamline the process.
[00:53:10.350]You did your due diligence to do some competitive sourcing,
[00:53:13.520]and I can put that order straight through.
[00:53:15.327]And so, then we don't need a sole source?
[00:53:16.930]Absolutely.
[00:53:18.340]But in the instance they do come across my desk,
[00:53:21.020]what I'm looking for is a who, what, where, when, why.
[00:53:24.930]So if you're submitting a sole source justification
[00:53:27.850]that is on the left, very general,
[00:53:30.810]you're not telling me what it does
[00:53:32.960]that only supplier A can provide,
[00:53:36.040]what you're gonna do with it,
[00:53:37.230]why only that supplier can fit your needs,
[00:53:40.920]it's gonna come back to you,
[00:53:43.060]and I'm gonna ask all the questions
[00:53:44.890]that should be answered on the right side of the re-write.
[00:53:48.880]So I wanna know, why do you need this equipment?
[00:53:53.110]What are you gonna do with it?
[00:53:54.840]Why does supplier A meet your needs, and nobody else?
[00:53:58.220]What does the equipment do, or has that, you know,
[00:54:01.860]no one else, or no other supplier can provide?
[00:54:04.810]And in those instances, we can kind of tease out,
[00:54:07.730]okay, is this actually really a sole source?
[00:54:10.190]And kind of help mold the justification as it should be.
[00:54:15.100]Or at that point in time, we can kind of tease out and say,
[00:54:17.470]hey, you know what?
[00:54:18.303]I have a few other suppliers in mind.
[00:54:20.130]Let me help you reach out
[00:54:21.230]and get some comparable quotes for you.
[00:54:23.090]So ultimately, what I wanna see in a sole source
[00:54:25.760]is comparable quotes, but if I don't get that,
[00:54:29.290]I wanna see something
[00:54:30.123]that's on the right side of the screen.
[00:54:31.840]I wanna know the who, what, where, when, why,
[00:54:34.170]and the really good justifications,
[00:54:36.810]so we have that document,
[00:54:38.540]that thorough documentation in our hand.
[00:54:41.200]Thanks Sydney, that's very heartfelt.
[00:54:43.795](laughing)
[00:54:45.790]I will add that, I have, not to be outdone
[00:54:49.410]by not putting policy out there, as I mentioned earlier,
[00:54:52.800]I didn't wanna lecture on the numbers.
[00:54:55.210]The usual, appear right here on our campus today.
[00:55:00.020]I will add, that current policy is under review.
[00:55:03.530]I just want everybody to know that.
[00:55:06.280]And I will, we will report back later for,
[00:55:10.670]you know, for your entertainment pleasure,
[00:55:14.350]and I'm not joking.
[00:55:15.930]I like to have a little fun
[00:55:17.380]when we talk about all this business.
[00:55:19.620]A few things of point I wanna talk about though.
[00:55:22.150]Once you get around to knowing
[00:55:23.700]that you've got the right thing, and by the way,
[00:55:25.160]if you haven't figured out that it's probably a good idea
[00:55:27.220]to call your sourcing specialist when you're getting ready
[00:55:30.450]to begin this process, then to wait till your back
[00:55:34.320]is against a wall, and you needed it yesterday, think again.
[00:55:38.490]That is what I want you to do.
[00:55:39.890]That's what we want you to do,
[00:55:41.320]'cause we wanna be there to help you meet your target date.
[00:55:44.970]But the procedures are pretty straightforward,
[00:55:47.790]aside from just getting the copyright.
[00:55:50.953]So we're going to need detailed, signed justification,
[00:55:54.380]as we've discussed.
[00:55:55.213]And signed means by everybody.
[00:55:58.670]There are, and the signatures are to the right
[00:56:00.910]that's required on the various levels.
[00:56:03.550]A non-conflict of interest statement
[00:56:06.670]quite simply is within the body of the sole source form.
[00:56:11.310]You will be obligated to say that you do not
[00:56:15.510]benefit in any way, shape, or form, personally,
[00:56:18.400]financially, et cetera, by this purchase,
[00:56:23.110]and be able to substantiate that if requested,
[00:56:26.100]because again, sole source documentation is audited.
[00:56:29.710]Funding approval of your business officer.
[00:56:33.200]So it kinda goes back to,
[00:56:34.870]if you don't know what it's going to cost,
[00:56:36.660]and you've only asked one supplier, and you're not sure,
[00:56:39.960]again, back to step one, two slides back,
[00:56:43.100]where you get our assistance in helping you
[00:56:46.720]determine if that's really true.
[00:56:48.610]If you don't know what it's gonna cost,
[00:56:50.290]it would help to go through an RFI, or a quick comparison.
[00:56:53.910]And then just the remaining threshold, as I stated,
[00:56:58.230]that currently stand.
[00:57:01.990]We'll open it up for questions.
[00:57:04.570]And I'm getting a little flashcard from Sydney,
[00:57:07.980]our gate keeper, telling that it's three minutes to go,
[00:57:10.860]so happy to answer anything you might have.
[00:57:16.510]We don't have anything on the ticker right now.
[00:57:20.100]But while people are thinking of any questions,
[00:57:22.280]if you wanna go to the next slide just to kinda make sure
[00:57:24.520]we hit on what we're gonna talk about,
[00:57:26.060]and I'll see if anything pops up.
[00:57:27.540]Sure.
[00:57:28.373]So next month, we're gonna talk about
[00:57:30.850]university wide collaboration and strategic sourcing.
[00:57:36.350]And I think, Sydney, I don't know if you wanna
[00:57:38.750]give a little preview of what that's gonna be all about?
[00:57:42.010]Very brief preview.
[00:57:43.440]So you all get to hear my lovely voice again in May.
[00:57:47.500]Basically, we're just gonna be talking about the,
[00:57:51.900]a lot of our main categories,
[00:57:53.990]facilities, IT, and scientific,
[00:57:56.450]and how, what we're doing behind the scenes
[00:57:58.760]to really collaborate between campuses and,
[00:58:04.500]you know, see where we can work together,
[00:58:06.930]and row the boat in the same direction.
[00:58:09.910]Maybe things that aren't as visible in other campuses
[00:58:12.700]that we can help promote,
[00:58:14.370]or bring up to speed on our campuses.
[00:58:16.400]Just making sure that everybody's a party to
[00:58:20.020]in the university system.
[00:58:21.550]That's great, thank you.
[00:58:23.350]And then we'll also, in June, we're scheduled to talk about
[00:58:26.440]signature authority, updates, changes,
[00:58:29.180]and frequently asked questions.
[00:58:31.520]Some of those came from procurement,
[00:58:34.290]because we've had 'em too, but.
[00:58:37.160]And by the way, if you have any questions
[00:58:39.234]even before then that you'd like us to address,
[00:58:42.270]please do not hesitate to send 'em our way.
[00:58:44.470]Whether you email your favorite sourcing specialist,
[00:58:47.880]or Martha, or anyone in the department that you know,
[00:58:51.749]so we can compile that information,
[00:58:54.320]and try to help deliver, you know, better answers to those.
[00:58:57.850]We have them working with the
[00:58:59.280]Vice Chancellor of Business and Finance Office
[00:59:01.610]on the final updates, that I do believe are effective now.
[00:59:06.810]They've actually made another update
[00:59:08.780]to signature authority this last week.
[00:59:11.974]So if you go out there, and check and see,
[00:59:14.450]and you have some questions, we're preparing the FAQs,
[00:59:18.240]and we are going to be working on, I'm talking to Jordan,
[00:59:23.750]Bill Nunez, admin, about creating a special webpage
[00:59:27.080]just for more information on sole sources
[00:59:30.210]and signature authority, so.
[00:59:33.597]Sounds great.
[00:59:34.430]Looks like we don't have any questions.
[00:59:37.080]So thank you all for joining us this afternoon.
[00:59:40.440]We hope that we provided some clarity,
[00:59:42.950]and more visibility to the bid process,
[00:59:45.692]and non-competitive sourcing aspect of procurement,
[00:59:50.730]and just a few of those end of the year fiscal reminders,
[00:59:53.810]and I'll let Maggie close us out.
[00:59:56.820]Well, well said, Sydney.
[00:59:59.545]Ditto. Ditto.
[01:00:00.745]Than you everyone. All right, we'll see you--
[01:00:01.807]Martha, do you have (cross-talking)
[01:00:02.640]any parting shots? No.
[01:00:03.842]Okay, thanks everyone. Thank you.
[01:00:05.091]Happy sourcing.

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PED Talks: April 2019

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