PED Talks February 2020

Lydia Dexter Author

02/24/2020 Added

36 Plays

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This PED Talk covers non-competitive sourcing and procurement

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[00:00:00.220]Come in, everyone, it's 1:25.
[00:00:02.040]This is Maggie Witt,
[00:00:03.650]University of Nebraska-Lincoln procurement services
[00:00:06.640]and I am happy to be here.
[00:00:09.780]I'm also joined by Emily Beatty
[00:00:12.330]and we're just counting down the minutes
[00:00:14.530]before we start our February 2020,
[00:00:18.260]on my gosh it's here, PED Talks.
[00:00:20.054](laughs)
[00:00:21.920]And Happy New Year to everyone.
[00:00:23.920]I hope everyone had a wonderful break
[00:00:26.090]and it doesn't even seem like it was just a month ago
[00:00:30.530]that we got back from the holidays.
[00:00:33.280]Just doing a soundcheck to make sure we're all good.
[00:00:36.290]I got Emily manning the chat room.
[00:00:39.080]I, myself, here kind of run in the presentation.
[00:00:42.900]If you have any questions whatsoever
[00:00:45.030]and you've attended our PED Talks before,
[00:00:46.900]you know that the chat feature that is located in your,
[00:00:51.810]I believe it's up here, in the more button.
[00:00:55.810]If you hit chat, you'll be able to bring up the chat feature
[00:00:59.320]and type a message.
[00:01:01.080]Whether you want to type to Emily directly
[00:01:03.970]or to your neighbor
[00:01:06.520]or somebody down the road from your office
[00:01:09.240]or to us as a group and everyone.
[00:01:11.820]We'll be looking for acknowledgements on some things.
[00:01:15.480]Hopefully anyone who's out there listening my end,
[00:01:18.770]if you would let us know that you can hear us,
[00:01:21.360]we would greatly appreciate
[00:01:22.730]if somebody would raise their hand
[00:01:24.500]and then we'll go on mute for a couple more minutes
[00:01:27.470]and let you know that we're...
[00:01:29.250]Thank you so much.
[00:01:31.070]And we'll let you know,
[00:01:33.290]in a couple of minutes, we'll get started.
[00:01:35.210]Thank you everyone, again, we appreciate being you here.
[00:01:38.490]We'll chat with you soon.
[00:04:24.292]Okay, it's 1:30 and we are here in Lincoln, Nebraska,
[00:04:32.200]procurement services is on the deck.
[00:04:35.070]As I mentioned previously, just a quick soundcheck.
[00:04:38.200]So, if anybody...
[00:04:39.910]I have Emily Beatty with me here, manning the chat room.
[00:04:43.420]If anybody's having sound difficulties or cannot hear us,
[00:04:47.640]please communicate with her.
[00:04:50.270]We actually don't have a long topic today,
[00:04:53.430]as much as one that we think
[00:04:55.470]we've got some new information for you.
[00:04:57.920]We wanna talk about what's commonly known as a sole source,
[00:05:02.950]but you'll notice the title is referred to now
[00:05:06.580]as non-competitive sourcing and procurement.
[00:05:10.750]If I didn't say so before,
[00:05:12.030]this is Maggie Witt joining you here.
[00:05:14.310]And also joining us in the Listening Room here
[00:05:18.330]is Mary Meddler, on our team.
[00:05:21.400]And we're just here to talk about some,
[00:05:24.390]we have made some changes.
[00:05:26.840]They're not major, they're university-wide
[00:05:30.750]but there is an updated sole source.
[00:05:34.500]I am putting my fingers in quotes
[00:05:36.250]in the air when I say that.
[00:05:38.490]Form, because it is now named
[00:05:40.480]a non competitive procurement form
[00:05:44.050]where we have it available,
[00:05:46.300]we will point you to it, where you can find it,
[00:05:48.800]that sort of thing.
[00:05:50.220]To make sure that you're using the new document.
[00:05:53.630]It has basically been updated
[00:05:55.410]to align with Board of Regents policy references.
[00:06:00.330]But before we get into the form,
[00:06:03.180]I really wanna talk about what is sole sourcing,
[00:06:06.610]what is non-competitive sourcing and procurement?
[00:06:09.860]And give you a little bit more background
[00:06:13.240]on the reason this document exists
[00:06:16.710]and why we wanna make sure we're educating
[00:06:19.350]not only you all but, you know,
[00:06:21.300]the rest of the people on the campuses who bring you,
[00:06:24.650]perhaps, say, bring you requests.
[00:06:26.070]Or perhaps you're an initiator
[00:06:28.020]and help you understand the rationale behind the form
[00:06:33.360]and what it's meant to do.
[00:06:35.700]So, hopefully that's what you tuned in for today.
[00:06:39.010]If not, maybe you'll stick around anyway,
[00:06:41.300]and you'll learn a little bit more about it
[00:06:43.420]and we will field questions throughout,
[00:06:47.230]if they can be answered during the presentation.
[00:06:50.680]I will do the best that I can to address them
[00:06:53.950]and then we'll take time for questions at the end as well.
[00:06:57.180]So, without further ado, moving ahead.
[00:07:00.930]So, I always like a little quick video
[00:07:04.420]to help everybody understand what's what.
[00:07:06.730]I am going to...
[00:07:08.930]This is a very brief one,
[00:07:11.600]so hopefully I'm able to share this
[00:07:14.210]and I want everybody to be able to see.
[00:07:18.440]Let's see, here we go.
[00:07:21.200]So, if you cannot see the screen,
[00:07:24.150]I have just switched to a YouTube video
[00:07:28.160]and hopefully the sounds gonna work.
[00:07:29.760]So, let's see.
[00:07:30.700]I'm gonna start, play.
[00:07:32.140]If you have trouble again, let us know,
[00:07:34.510]and I'm gonna go to maximize screen.
[00:07:37.230]When we talk about non-competitive sourcing,
[00:07:39.480]I think it's really important to just remind everyone
[00:07:43.100]about the importance of competition.
[00:07:46.030]And that's really the point that I wanna make today
[00:07:49.520]for our discussion.
[00:07:58.966]For decades, riding in a taxi
[00:08:00.653]stood the same miserable experience.
[00:08:02.744]They were hard to find, expensive and unpleasant at best,
[00:08:06.253]all because competitors were prevented
[00:08:07.840]from entering the market.
[00:08:09.491]But then Uber and Lyft came along and figured out a way
[00:08:11.790]to challenge the local taxi cab monopolies.
[00:08:14.460]And what happened?
[00:08:15.490]Prices dropped, rides became easier to find
[00:08:17.870]and quality went up, way up.
[00:08:20.520]This is why competition is fundamentally important.
[00:08:23.660]Competition is the only force
[00:08:25.390]that consistently leads to lower prices
[00:08:27.190]and better quality goods and services,
[00:08:29.370]improving our daily lives.
[00:08:31.469]If an industry is shielded from competition,
[00:08:33.373]then the companies within those industries
[00:08:34.927]can keep prices high with little incentive to innovate.
[00:08:38.515]But as soon as a new competitor joins the market
[00:08:40.530]and does something better, faster or cheaper,
[00:08:43.550]then the other companies can either adapt
[00:08:44.968]and compete to stay relevant, or not.
[00:08:47.420]Either way is a win for consumers.
[00:08:49.410]Some businesses will succeed, some will fail,
[00:08:52.580]but as long as the market remains open to new competition,
[00:08:55.163]then prices will stay low and innovation will continue.
[00:09:04.290]There we go.
[00:09:06.750]So, hopefully everyone can see the slide again,
[00:09:09.520]I'm on the slide that says Why is Competition Important?
[00:09:13.620]We get question a lot in procurement services,
[00:09:16.810]about the purpose of a non-competitive sourcing document
[00:09:21.820]or filling out a sole source,
[00:09:23.247]and we actually get asked more about sole sources probably
[00:09:26.890]than many things that I can think of
[00:09:30.220]where our policies are located and so forth.
[00:09:33.080]But, again, the foundation of a sole source
[00:09:36.900]basically comes down to the fact that someone has determined
[00:09:40.660]that they can't find this product anywhere else
[00:09:43.230]or they won't be able to get what they need
[00:09:48.860]from any other source than the one
[00:09:50.340]that they're wanting to purchase from.
[00:09:53.690]I like to remind people that,
[00:09:55.880]and I know no one's memorized word policy,
[00:09:58.550]except maybe people in procurement,
[00:10:00.710]we're here to be experts on the topic,
[00:10:03.770]let everyone know that the word competitive,
[00:10:05.760]by and of itself, is used in chapter six alone,
[00:10:10.098]section 6.2.1 31 times
[00:10:13.820]and throughout the entire Board of Regents policies,
[00:10:17.190]only another eight.
[00:10:19.540]So, the emphasis on competitive sourcing,
[00:10:23.750]competitive bidding is high and it's intentional.
[00:10:27.870]Because of the video that you just saw
[00:10:32.350]and just the very foundation of ensuring that we get
[00:10:36.840]what is considered the most opportunistic and competitive
[00:10:40.410]purchase price on products and services we procure.
[00:10:44.620]It doesn't necessarily mean
[00:10:46.040]it's gonna be the cheapest either.
[00:10:47.817]I'm just trying to drive home the attention of competitive,
[00:10:52.430]meaning that we're looking and comparing
[00:10:55.680]products and services when there is opportunity to do so.
[00:11:00.020]So, quite simply,
[00:11:01.790]with competition on the left hand side of the screen,
[00:11:05.240]generally speaking, marketplaces will deliver
[00:11:08.450]higher quality with same or even more often lower prices.
[00:11:13.280]Anybody who's, you know, when you spend your own money,
[00:11:16.540]you often think about this pretty regularly.
[00:11:18.610]You even challenge somewhat a salesman,
[00:11:21.730]can't you do better on this?
[00:11:24.164]You know, those types of things in your personal life
[00:11:27.290]and the same is true of procurement.
[00:11:29.980]Except the difference is here at University of Nebraska,
[00:11:32.740]we're all spending state dollars, and, you know,
[00:11:36.350]federal funds and things like that.
[00:11:38.060]So the rules around this are definitely,
[00:11:41.260]you know, very clear.
[00:11:43.110]You also tend to see,
[00:11:44.770]in a marketplace with competition, improved quality.
[00:11:48.410]You definitely, when a competition is there,
[00:11:50.890]you get more differentiation
[00:11:52.730]between the products and services that you need and choices.
[00:11:57.790]Often suppliers will find ways
[00:11:59.890]to differentiate their services by adding something
[00:12:04.170]that might make the service they provide even more unique
[00:12:07.270]or perhaps they hire people that have more specialization
[00:12:10.610]in an area when it comes to professional services.
[00:12:14.330]The competitive market also typically indicates
[00:12:17.840]you're going to find the top suppliers
[00:12:19.740]will have very efficient operations.
[00:12:22.250]They find ways to drive down
[00:12:24.650]their internal operating costs,
[00:12:26.810]which in turn translates in a better,
[00:12:29.120]more competitive price for us.
[00:12:31.500]And last but not least,
[00:12:32.660]they're focused on customer service and satisfaction.
[00:12:35.410]Because at the end of the day,
[00:12:36.590]they've gotta compete for your business and they understand,
[00:12:40.380]especially here at the university.
[00:12:42.440]that we are obligated to follow policies for good reason.
[00:12:47.700]Conversely without competition,
[00:12:50.100]the opposite is true, generally speaking.
[00:12:52.730]It does not mean that with limited sources
[00:12:57.630]that we aren't able to negotiate.
[00:13:00.170]But generally speaking, economics majors will tell you
[00:13:03.810]that all of the five bullets on the right are true
[00:13:06.840]in a non competitive market.
[00:13:09.010]I'm not here to talk about politics,
[00:13:11.140]but there's a lot written on this.
[00:13:15.160]Suppliers just typically, when they're the only game in town
[00:13:18.630]or believe they are or want you to believe they are,
[00:13:22.200]tend to have little incentive
[00:13:23.520]to increase efficiency of their operations
[00:13:25.790]and often don't offer as good a service as you might find
[00:13:30.040]alongside the prices.
[00:13:32.880]Being not competitive or you don't even have anything
[00:13:37.090]to benchmark them against.
[00:13:38.720]So, quality is often likely to suffer.
[00:13:42.260]So this is kind of the foundation
[00:13:43.980]as to why the board supports, you know,
[00:13:46.820]this policy consistent with state legislation as well.
[00:13:52.660]So, now let's talk about all of this business
[00:13:55.510]about competition or non-competition,
[00:13:58.330]is basically the new word
[00:14:00.900]we wanna make sure you understand
[00:14:02.910]around the phrase commonly known as a sole source.
[00:14:07.370]The reason for the definition change
[00:14:10.590]is just to be more accurate
[00:14:13.100]because sole source is a quick hit
[00:14:15.570]and that's probably a word
[00:14:16.930]that is gonna stay around for a long time.
[00:14:20.230]I probably can't erase it from anyone's vocabulary,
[00:14:23.030]including our own.
[00:14:24.570]But the definition is really a non-competitive source
[00:14:28.950]or a purchase, and they typically should be rare
[00:14:34.230]and not commonplace.
[00:14:36.970]Now, that doesn't mean they don't occur.
[00:14:40.170]What that means is there are a lot of criteria
[00:14:43.220]that we have guidelines
[00:14:45.530]that we need to follow as a university,
[00:14:47.790]to ensure that we comply with board policy,
[00:14:51.280]as well as federal regulations.
[00:14:54.530]So what a non-competitive purchase is,
[00:14:58.360]is something where only one known source exists.
[00:15:03.070]That doesn't mean I haven't had time to find another source,
[00:15:06.860]that means only one known source exists.
[00:15:09.310]Because if you haven't had time,
[00:15:11.350]it possibly could be an emergency purchase,
[00:15:14.770]but also the situation where someone waits
[00:15:17.160]till the last minute and doesn't source alternatives,
[00:15:21.180]is not by and of itself considered
[00:15:23.610]an emergency purchase under board policy.
[00:15:26.160]So I just wanna be clear about that.
[00:15:28.710]Specifications, and by the way,
[00:15:30.920]I am not just quoting board policy
[00:15:33.000]or including federal guidelines
[00:15:36.850]on uniform guidance for purchasing.
[00:15:40.260]Specification should not be written so narrowly,
[00:15:42.780]that would prohibit competitive sourcing.
[00:15:45.700]Again, back to that word competitive,
[00:15:47.950]which is the underlying meaning behind the whole process
[00:15:51.080]of why do you need buy it from this supplier
[00:15:53.760]and not check anyone else?
[00:15:56.290]Documented research, that underscore of documented means
[00:16:00.970]we will need to ask for
[00:16:03.450]any kind of research that's been done
[00:16:06.020]to defend that non-competitive source.
[00:16:09.920]And that's why the reason, quote, unquote,
[00:16:12.920]sole source isn't applicable because many times,
[00:16:17.000]it's just that that one source has what the person needs
[00:16:21.550]but they have done some market research.
[00:16:24.280]Henceforth, it's really not a single source product,
[00:16:27.440]it's just this is the best one for my needs.
[00:16:31.660]No other reasonable alternative source exist
[00:16:33.987]for the requirements that you're looking for
[00:16:36.430]or your stakeholders looking for,
[00:16:39.260]that also has to be documented.
[00:16:41.130]We need to understand the justifiable reasons behind that.
[00:16:45.440]In the rare instance that only one source needs to specify
[00:16:49.030]meets the project, and a common example of this
[00:16:53.010]might be public utilities.
[00:16:55.190]For instance, you might be in a certain area
[00:16:57.720]where you can only work with one cable provider
[00:17:01.010]or maybe there's only one electric services provider
[00:17:04.730]in the area,
[00:17:05.563]though some utilities are actually becoming more free market
[00:17:09.823]than in the past.
[00:17:11.820]So those are some characteristics
[00:17:13.870]of what a non-competitive purchase looks like.
[00:17:17.220]What they're not is a preference programming product,
[00:17:23.180]that's pretty straightforward.
[00:17:25.590]If Sony is the only product that will do what you need,
[00:17:30.260]and by the way, I'm not picking on Sony, in some cases,
[00:17:35.260]it doesn't necessarily mean the brand is wrong
[00:17:39.320]as much as the fact that you might be able to purchase it
[00:17:41.640]from more than one source.
[00:17:42.880]A lot of products can be sourced from multiple resellers
[00:17:46.710]and offer advantage pricing depending on what you're getting
[00:17:51.530]but strict preference for a brand name product,
[00:17:54.340]by and of itself, needs to be justified.
[00:17:57.340]So that that statement just can't be taken
[00:17:59.880]on its merit alone.
[00:18:01.660]Also if there's more than one potential bidder or offer
[00:18:05.550]for a product or service,
[00:18:07.580]proprietary products alone do not automatically justify
[00:18:12.600]a sole source, uniqueness alone may not either.
[00:18:17.470]So, again, what we're going back to is the definitions
[00:18:20.280]on the left hand side of the screen,
[00:18:22.640]and I probably am gonna sound a little repetitive
[00:18:26.160]as I continue through this presentation.
[00:18:28.470]But what we're trying to do is provide examples
[00:18:31.420]so we can help our stakeholders help everyone,
[00:18:35.870]not only those of you on the call but people across campuses
[00:18:39.560]and in the offices out across the state,
[00:18:42.640]know what we need in order to provide a audit proofs,
[00:18:48.300]non-competitive purchase document.
[00:18:52.310]So let's talk a little bit about common myths
[00:18:54.730]around sole source or non-competitive source procurements.
[00:18:58.730]And a few things we hear are,
[00:19:01.727]"Well, an RFP takes longer to run than a sole source takes."
[00:19:07.120]We have heard,
[00:19:07.953]"A sole source is a way to get around completing an RFP."
[00:19:12.350]These are actual quotes and we're not giving you the names
[00:19:15.670]but these are some things we've heard.
[00:19:17.757]"Savings differences between a sole source
[00:19:20.127]"and an RFP are minimal."
[00:19:22.140]And. "Sole sources are easy."
[00:19:24.130]And that probably, that fourth one there
[00:19:26.360]is probably the most common thing people believe
[00:19:29.320]and then we start asking for information
[00:19:32.690]because we're required to get
[00:19:34.980]the justification documented appropriately
[00:19:38.300]and people find out differently.
[00:19:39.890]So let's talk about each one of these individually.
[00:19:43.360]The first one, it is false.
[00:19:45.770]An RFP, actually it or a, excuse me, a sole source,
[00:19:50.620]often takes longer to document the rationale
[00:19:53.700]than it does to run an RFP.
[00:19:55.650]Now depending on what we're looking for, by the way,
[00:19:58.540]those of you who've been through an RFP,
[00:20:00.310]know that there can be some time consuming RFPs.
[00:20:05.260]We also have ITBs which are known as,
[00:20:07.930]if you been on other PED Talks,
[00:20:09.920]an invitation to bid where we bid strict specifications
[00:20:14.320]and literally low price wins.
[00:20:17.220]But I have seen sole source request take weeks
[00:20:22.050]to get completed and documented accurately,
[00:20:24.720]so it is not always the case.
[00:20:27.410]So starting out prepared and understanding
[00:20:29.720]what the potential market for your product
[00:20:31.750]is going to make life a lot easier
[00:20:33.260]so that we can help you through this process.
[00:20:35.860]A sole source is not a way to get around completing an RFP.
[00:20:40.290]Board policy states very clearly, as I said before,
[00:20:44.020]competitive bidding is always,
[00:20:47.130]it's virtually always an option
[00:20:48.930]and it's required in many cases.
[00:20:51.750]Or on the contrary, you have to prove that you can't
[00:20:55.860]which is almost like the first line
[00:20:59.250]at more challenging than actually just dependably fitting in
[00:21:03.030]and getting one response,
[00:21:05.360]it just depends on the nature of the situation.
[00:21:08.570]The savings question,
[00:21:10.960]savings are actually quite significant and it varies greatly
[00:21:16.090]but it depends on the category when competitive bidding
[00:21:18.590]or compared pricing analysis performed.
[00:21:21.870]And in some limited market scenarios,
[00:21:25.280]you can find that just a quick market comparison
[00:21:28.830]will tell you what the play on the market can be
[00:21:31.140]which can help understand, if competitive,
[00:21:33.203]it will be successful at how much it might yield.
[00:21:37.030]And sole sources being easy, I think I answered that before.
[00:21:42.180]Often purchases that are believed to be a single source
[00:21:45.020]are available from other suppliers,
[00:21:47.390]which flat-out invalidates the use
[00:21:49.780]of the sole source approvals.
[00:21:51.120]So let's...
[00:21:53.230]Talk with us initially so we can help you
[00:21:56.480]and the stakeholder,
[00:21:57.800]ultimate stakeholder determine the best approach on these
[00:22:02.530]because otherwise, we end up taking more time at the end
[00:22:05.620]and it's really a road race to try to get documented
[00:22:08.830]so you get your purchase in time.
[00:22:13.530]Other statements that do not constitute a sole source.
[00:22:16.800]I think I said this before, "I like the brand
[00:22:19.047]"and it has the best features for my department."
[00:22:22.410]I've got some examples later where we're gonna talk about
[00:22:24.900]better ways to work certain things
[00:22:27.010]because sometimes it is the choice of verbiage,
[00:22:29.920]but by and of itself, just because I like Lenovo computers
[00:22:35.490]doesn't necessarily mean
[00:22:37.500]that we shouldn't compare Lenovo computers with others.
[00:22:40.220]Which, by the way, I'm a little plug for our IT department,
[00:22:44.180]our VITS organization, we do have some great standards,
[00:22:48.470]and among those choices are Dell, Lenovo,
[00:22:51.210]and other types of products that maybe many of you
[00:22:54.530]are already using.
[00:22:56.127]"We want to buy it locally so we don't pay freight."
[00:23:00.420]In a global economy,
[00:23:01.840]opportunities for purchasing from suppliers who can deliver
[00:23:06.630]and not charge you even for delivery
[00:23:09.880]or don't charge you a lot for delivery
[00:23:12.700]or almost eat the cost of shipping it to you,
[00:23:16.140]because they wanna be competitive is a very real thing
[00:23:19.830]in the world we live in today.
[00:23:22.750]And buying locally, by and of itself, isn't a bad thing,
[00:23:27.970]but that's not a reason solely by itself
[00:23:31.200]for a non-competitive purchase.
[00:23:33.810]This is the supplier we've always used
[00:23:35.690]and they're the best for this project.
[00:23:38.330]This is one we hear a lot.
[00:23:40.180]I'm not going to say that that incumbent supplier
[00:23:44.350]won't ultimately demonstrate their best for the project,
[00:23:47.160]the key to this particular line is,
[00:23:50.670]again, where policy wants us to prove
[00:23:54.480]the competitive nature of purchase,
[00:23:57.060]and depending on the threshold of that spend,
[00:24:00.520]a bid is in order.
[00:24:03.840]And, "We have a close relationship with this vendor."
[00:24:07.460]That would never be a reason, by and of itself,
[00:24:10.910]a close relationship happens
[00:24:12.810]because maybe you've worked with them for a long time,
[00:24:15.600]that doesn't necessarily mean that that supplier
[00:24:18.090]is the only one or that they have,
[00:24:21.310]that would have to be re-documented as well.
[00:24:23.390]There has to be something substantial,
[00:24:26.040]not because we like them.
[00:24:28.540]So as I promised,
[00:24:29.610]a few examples that don't justify a sole source
[00:24:33.470]and a good rewrite.
[00:24:34.780]So, "We have a piece of equipment that only supplier A
[00:24:38.307]"can service and/or provide parts for,
[00:24:40.787]"and we like the supplier."
[00:24:43.710]So here's an example of an actual one
[00:24:47.290]that we helped a customer rewrite and we got very specific
[00:24:53.780]'cause as we talked to the stakeholder,
[00:24:56.060]we learned that the real reason behind this
[00:24:59.740]was easily, I don't wanna say easily, but documentable.
[00:25:03.520]So it's a matter of putting what matters into that rewrite
[00:25:06.580]that specifies a specific product that does certain things
[00:25:12.060]that fits with another piece of equipment that we have,
[00:25:15.670]and this particular supplier is the only one
[00:25:18.600]with the technicians capable of supporting
[00:25:21.350]the equipment that we need.
[00:25:23.430]And very clear documentation, by the way,
[00:25:26.010]on top of this rewrite,
[00:25:27.770]we also have information that supports
[00:25:30.670]that attached to the purchase.
[00:25:32.470]Again, depending on the level of the purchase,
[00:25:35.280]which a few slides later,
[00:25:37.180]I do show the breakdown of signature authority
[00:25:40.560]associated with a sole source.
[00:25:44.420]It's always important,
[00:25:46.390]I think the minimum threshold is 10,000,
[00:25:49.780]I'm correct about that,
[00:25:51.820]that we have to have that documented.
[00:25:53.960]So, actually, I'm just gonna requote myself,
[00:25:57.030]I think so with five.
[00:25:58.520]But when we get to that slide,
[00:26:00.190]we'll talk about that in detail.
[00:26:02.600]Another example, we require a new widget,
[00:26:06.220]we've looked at several widgets
[00:26:07.610]and this is the best one out there,
[00:26:09.050]a lot of other schools use the widget
[00:26:10.970]and it's the best widget ever.
[00:26:13.210]Again, we're doing a little, it's, you know,
[00:26:17.580]a little extreme to just show the example,
[00:26:19.980]but we do get a lot of requests that say,
[00:26:22.467]"Hey, it's the best one I've ever seen as school ABC,
[00:26:26.387]"as school XYZ, use it."
[00:26:29.060]Again, that's not the reason for sole source.
[00:26:33.000]We're conducting research on such and such.
[00:26:36.710]In this case, high-power fiber lasers,
[00:26:39.230]and by using this equipment,
[00:26:41.750]this particular product will do this, this and this
[00:26:45.810]and that is exactly what we need
[00:26:47.820]and this is a source that can provide the specialized
[00:26:51.150]service and product that we're looking for.
[00:26:53.710]Details, details, details.
[00:26:57.720]So here's the chart we provided.
[00:26:59.810]Yeah, it starts at five, I apologize,
[00:27:01.760]you'll all know when it's time.
[00:27:04.250]The checklist for non-competitive purchase
[00:27:06.250]of goods and services.
[00:27:09.550]And we'll talk about the chart in a minute,
[00:27:11.500]but we need that detailed sign justification.
[00:27:16.230]In some cases, we need to make sure
[00:27:18.570]that there's no conflict of interest,
[00:27:20.290]which already is talked about
[00:27:22.520]and it's addressed in the non-competitive procurement form.
[00:27:29.060]Any time you sign a contract,
[00:27:31.090]you also declare a non-conflict of interest
[00:27:34.000]or request a contract as a user or a fund approver
[00:27:37.870]for that particular purchase.
[00:27:40.970]It's ensuring that there is no conflict of interest
[00:27:43.500]in purchasing that from the supplier
[00:27:45.950]that is being recommended as a non-competitive source.
[00:27:49.610]We also need the funding approval
[00:27:51.330]of the principal business officer.
[00:27:53.130]By principal business officer,
[00:27:54.670]we mean the person that owns that...
[00:27:58.150]The supervisor, the person that owns that
[00:28:00.190]would typically be signing off on the purchase anyway
[00:28:03.200]from your department, so that's funding approval.
[00:28:06.770]And then when it comes to authorization, and by the way,
[00:28:12.610]under $10,000 requires the approval of the department head,
[00:28:16.340]and exceeding that, see the table at right.
[00:28:19.830]So, in this case,
[00:28:23.620]what we do is procurement services can sign,
[00:28:27.570]sell sole sources under $150,000.
[00:28:31.850]After that, they have to go to
[00:28:34.140]the vice chancellor of business and finance,
[00:28:36.670]and over $400,000, they go to the Board of Regents.
[00:28:42.120]And by the way, that is not changed
[00:28:45.640]as a result of signature authority, this stayed the same,
[00:28:49.760]they did not touch the non-competitive sourcing thresholds,
[00:28:54.600]they left them alone,
[00:28:56.240]the micro purchase threshold, though, was lowered.
[00:29:00.810]And that was the bigger difference
[00:29:03.280]because these used to be, I believe, it was at 25,000,
[00:29:06.750]the approval was required.
[00:29:08.470]But the upper threshold stayed the same
[00:29:10.790]and did not change with the higher thresholds
[00:29:13.520]for signature authority going to the Board of Regents.
[00:29:16.660]I hope that wasn't confusing, if we get a question,
[00:29:19.170]I wouldn't be surprised.
[00:29:21.840]Again, as usual to this document
[00:29:24.380]will be posted and available,
[00:29:26.420]the recorded presentation for people to followup.
[00:29:29.980]Thanks, Emily, appreciate it.
[00:29:33.420]So just a few more points regarding competition
[00:29:38.210]because I start presentation out with that
[00:29:41.000]and that's really the reason
[00:29:42.430]the non-competitive procurement form exists
[00:29:45.430]is to ensure that we're building processes
[00:29:49.070]around procurement that make sure
[00:29:51.750]that we are competitively sourcing goods whenever possible.
[00:29:56.690]And these are some updates or some clarifications
[00:29:59.880]from board policy.
[00:30:02.480]For those of you that may not know this,
[00:30:04.330]whenever something is competitively bid,
[00:30:07.960]if we go out to the street to get competitive bids
[00:30:11.540]and that is over $150,000,
[00:30:15.180]we do publicly notify the marketplace of the bid.
[00:30:20.760]And we use our E-commerce system, our E-procurement,
[00:30:24.240]I'm sorry, our E-sourcing system known as E-bid
[00:30:27.810]and that serves as public notification.
[00:30:30.250]In some cases, we also take out ads,
[00:30:33.220]it depends on the type of data that we're putting in,
[00:30:36.050]putting out on the street.
[00:30:37.920]We are, according to board policy,
[00:30:40.440]we are to ensure we have an adequate number
[00:30:42.660]of qualified sources, and many times,
[00:30:45.750]we will ask the stakeholder to ensure
[00:30:48.720]that they look through the bid list with us
[00:30:51.340]to make sure that we have everybody
[00:30:53.210]that they wanna make sure are included,
[00:30:54.850]including other suppliers
[00:30:56.620]who have subscribed to our E-bid system.
[00:30:59.900]And then the bid has to be open for a minimum of 15 days,
[00:31:04.330]that's calendar days,
[00:31:06.050]in order for it to be considered legitimate.
[00:31:10.370]The only person or persons that have the authority
[00:31:13.410]to waive that, it's senior leadership for the university,
[00:31:18.650]so it would have to be a request made
[00:31:21.180]to change that time frame because it is work policy.
[00:31:25.680]The last two statements are recently enhanced
[00:31:29.680]based on last year's or maybe it was two years ago,
[00:31:33.410]updates to federal uniform guidance.
[00:31:36.610]If a contractor is consulted to assist in writing specs
[00:31:40.810]for an RFP or any quoting opportunity,
[00:31:44.540]they must be excluded from competing for such an event.
[00:31:49.810]And this is something you have to be careful about
[00:31:52.580]because in some areas where we are hiring a consultant
[00:31:55.760]to help us with a project or something of that nature,
[00:32:00.350]if they write the specifications, et cetera,
[00:32:03.800]they won't be eligible to participate in the,
[00:32:06.050]or even assist with that.
[00:32:08.070]That's considered unfair advantage
[00:32:10.620]and takes the competition out of the opportunity,
[00:32:13.800]so federal government added that clause.
[00:32:18.360]And another one that's important to note
[00:32:20.440]is that restrictive specifications shall not be used
[00:32:25.030]except in cases of emergency or for the purchase of unique
[00:32:28.610]or non-competitive articles or services.
[00:32:31.160]They call that out very specifically
[00:32:32.960]so that someone doesn't write it
[00:32:34.680]so that only one supplier can reverse-engineer it
[00:32:39.730]so that only one supplier can receive the opportunity, so.
[00:32:45.190]That kind of takes care of the topic.
[00:32:48.250]I will point you to the form, and as I said, it was revised.
[00:32:54.160]It actually was just revised and approved
[00:32:56.750]by the supply chain council for the University of Nebraska.
[00:33:01.670]This is a system-wide council, I have a seat on that council
[00:33:06.000]along with the other three campuses.
[00:33:08.830]The council, I might have mentioned it on previous calls,
[00:33:12.130]is a group of five representatives from the campuses
[00:33:17.920]and then Varner at our Central Administration,
[00:33:21.720]and we're working to standardized forms and procedures
[00:33:26.020]that are used to procurement across the university,
[00:33:28.230]as well as seek opportunities
[00:33:30.300]for more competitive negotiation wherever possible.
[00:33:34.440]This link in the presentation will take you to our website
[00:33:38.750]and I've got the form up for everyone's view.
[00:33:43.130]Let's go to, sorry, escape the full page,
[00:33:49.760]and then, on the link, you'll be on the page for forms,
[00:33:55.880]you can also link it to policies.
[00:33:58.410]And it is called non-competitive purchase documentation,
[00:34:01.740]but thanks to Emily, she did leave the word out there,
[00:34:04.330]so if you search,
[00:34:05.560]I think the keywords still say sole source too,
[00:34:08.260]so if you search sole source, you'll find it.
[00:34:11.220]And the document looks like this,
[00:34:13.960]so let me see if I can bring up the form,
[00:34:17.260]I thought I had it open.
[00:34:18.660]Ah, we'll just click on it.
[00:34:23.320]It is a fillable PDF.
[00:34:27.850]And what has been updated in the form
[00:34:31.100]is the references to board policy
[00:34:35.330]have been updated to match the rewrite of board policy.
[00:34:39.310]In essence, they are fairly pretty much the same
[00:34:43.860]with few clarifications, but the references were different
[00:34:48.140]and the board of policy reference changed.
[00:34:50.870]We've added a couple of check boxes,
[00:34:53.160]and we've also asked not only for a signature
[00:34:56.590]of the requester of funding approver,
[00:34:58.350]but also a place where you print your name.
[00:35:01.040]And we tried to keep it to one page
[00:35:05.070]because we feel if you need to add more
[00:35:07.450]than this paragraph will allow you,
[00:35:10.080]where it says description supporting the purchase,
[00:35:13.700]we want you to attach a memo to the document
[00:35:17.710]and clearly reference its attachment to this.
[00:35:22.480]So if anybody wants me to go through anything again,
[00:35:25.260]I know we're at the top of the hour
[00:35:27.420]and that'll give you 30 minutes back in your busy days,
[00:35:30.780]do we have any questions at all?
[00:35:32.110]No questions so far.
[00:35:34.460]Great, pretty straightforward.
[00:35:49.220]I wish I was playing Jeopardy music.
[00:35:51.083](laughs)
[00:35:52.120]Okay, nobody wants me to sing,
[00:35:54.760]so I will just mention that next month,
[00:35:59.420]Mary is gonna join us.
[00:36:00.760]Mary, what's the topic next month?
[00:36:02.660]Next month, we are gonna do a walk-through
[00:36:04.770]of the new eSHOP.
[00:36:07.630]Yeah, that's great.
[00:36:10.140]Everybody's looking for--
[00:36:11.100]And a more detail walkthrough
[00:36:12.320]than I have been shown.
[00:36:14.660]Get a good crowd for that.
[00:36:17.040]Also, we just wanted to make a comment,
[00:36:19.440]we know that there have been some of you
[00:36:21.150]that have gotten a little, it's still a little confusing
[00:36:25.160]'cause we had some old expired
[00:36:26.660]calendar invitations out there for PED Talks on calendars,
[00:36:29.810]that for some reason, when we removed that,
[00:36:34.640]have not left everyone's calendars.
[00:36:36.390]It's almost like they're ghosts invitations.
[00:36:38.900]Please remove those yourself and when attending,
[00:36:43.770]use instructions on the following web page link,
[00:36:47.450]and Emily keeps that updated.
[00:36:49.300]You wanna tell people about that a little bit?
[00:36:51.010]Yeah, so I update that after every PED Talk
[00:36:54.960]to show what the next one will be.
[00:36:57.210]I also email out to our procurement newsletter lister
[00:37:01.670]for the upcoming PED Talk coming out
[00:37:03.940]and a calendar invite for that,
[00:37:06.300]and that calendar invite is just for that month alone,
[00:37:09.520]it's not for a reoccurring meeting.
[00:37:12.580]We have changed the dates
[00:37:14.270]to accommodate people's schedules when needed,
[00:37:16.940]so it's hard for us to keep on a recurring basis
[00:37:20.170]that second or third Thursday.
[00:37:22.810]The good stuff.
[00:37:23.643]Plus, we ended up with problem
[00:37:25.550]with the expired Outlook invitations.
[00:37:27.260]Yes, and the Zoom meeting also changed,
[00:37:29.840]this is the museum meeting that we're using for it as well.
[00:37:32.240]So you do know people that are still using the old one,
[00:37:35.390]just tell them to make sure it's deleted from the calendar
[00:37:37.510]and look on the website for the updated information.
[00:37:41.610]So I know this is a really exciting topic
[00:37:45.270]but I'm guessing people might have questions following up,
[00:37:49.410]don't hesitate to let us know, and please go look
[00:37:53.130]for the new non-competitive purchase form, it's out there.
[00:37:57.440]I hope it's...
[00:37:58.960]It might even be a little easier to out than it used to be.
[00:38:02.550]But you will need,
[00:38:03.950]if you've got more than a couple of sentences,
[00:38:06.690]and again, we like details because we need them
[00:38:10.140]because as we said previously in the presentation,
[00:38:13.590]policy requires that we get that information,
[00:38:16.650]and we'll do our best to help you.
[00:38:19.470]In fact, one of the things we are trying to come up with
[00:38:22.350]on our website are some examples to help people choose from
[00:38:27.670]but this PowerPoint was developed with the hope
[00:38:31.070]to help introduce the concept of what, you know,
[00:38:34.550]a good non-competitive purchase looks like
[00:38:37.570]and we know they happen.
[00:38:40.430]So anything we can do to help your learning experience
[00:38:43.480]or help you teach anyone how to do that, let us know,
[00:38:46.710]the earlier, the better.
[00:38:48.900]Anything to add, Emily or Mary?
[00:38:51.384]No.
[00:38:52.460]Okay.
[00:38:53.720]We'll get you 28 minutes back in the rest of your day,
[00:38:57.020]and thank you for joining us.
[00:38:58.920]We're happy to have you.

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PED Talks February 2020

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