CPPB - Domain II Sourcing Latest Update Rated A

CPPB - Domain II Sourcing Latest Update Rated A Scope of Work Typically developed by procurement to be included in the solicitation to procure services or other more complex combinations of products and services. Sometimes called "Performance Specification" PWS Performance Work Statement SOO Statement of Objectives Statement of Work The proposed solution by the successful proposer responding to the Scope of Work appearing in the solicitation. Benchmarking The act of measuring a process, service or product against the characteristics of the recognized leaders in the given area of review IFB Invitation for Bid, also known as competitive sealed bidding. Preferred method for acquiring goods, some services and some construction for public use. Award is made to the lowest responsive and responsible bidder. RFQ Request for quotation. Also known as informal competitive bidding. Generally used for small orders under a certain dollar threshold. RFP Request for Proposals. Allows the reviewer or evaluator to consider factors other than price ITN Invitation to Negotiate. Used when the procurement authority deems it is in their best interest to negotiate with offerors to achieve "best value" RFQU Request for Qualifications. Used when the award is base on the qualifications of the supplier. RFI Request for Information. Used to solicit information from the supplier community LOI Letter of Interest. Less formal, less expensive approach to gathering information form suppliers. NOI Notice of Intent. Public notice issued to announce the intended award of an agreement to a certain supplier or service provider Sole Source May result because only one supplier possesses the unique ability or capability to meet the particular requirements of the solicitation TCO Total Cost of Ownership Total Cost of Ownership A measure of all the cost components associated with the procurement of a product or service LCC Life Cycle cost Life Cycle Cost The total cost of ownership over the life span of the asset. Takes into account operating, maintenance, the time value of money, disposal and other associated costs of ownership TCO/LCC is most appropriate when The original purchase price is high, life cycle is long, operating costs are large, energy consumption or maintenance costs significant throughout the life of the asset and/or required on Federal Government large capital asset equipment purchases Make, Lease or Buy Concept Four step process Four step process for Make, Lease or Buy Define the outputs being analyzed, determine costs that will be saved if the requirements is outsourced, compute the costs of contracting from the private sector and compare the difference and make decision Operating Leases Characterized by their duration. Most are short-term, for a fixed period of time that is considerably less than the life of the equipment being leased. Financial Lease Used as a financing tool and may generate long-term benefits Full Payout Leases The lessee pays the full purchase price, plus interest charges, maintenance, insurance and administration costs Partial Payout Lease Gives the lessee credit for the residual