CPPB - Domain 1 Procurement Administration | 2023/24

CPPB - Domain 1 Procurement Administration | 2023/24 Good performance measures need to be meaningful for all participants including: - Procurement professionals, clients and suppliers Good performance measures need to be stated in terms of the higher-level objectives of the central procurement office or else they will lose: - their impact Good performance measures need to be: - fair, easy to collect, consistent and objective Performance measure activities must be measured against a metric. Metrics include: - Inputs, outputs, outcomes, efficiency measures and effectiveness measures Inputs: - Measure resources used. They include labor, materials, equipment and supplies. Demand for services may also be considered Outputs: - Record activity or effort that can be expressed in a quantitative or qualitative manner. Consider: total number of new contracts, total number of employees who obtained professional certification, total spend. Cycletime - Time to produce a PO, Inventory turnover Customer Satisfaction - Number of Disputes subtract Number of change orders Outcomes - Assess results of an activity and show whether expected results were achieved (customer service, improved performance of supplier, employee retention) Efficiency Measures - Represent the ratio of inputs to outputs or outcomes Effectiveness Measures - Reflect how long it takes to process a request for procurement (purchase orders, bids, etc.) The following are examples of methods that may be used to measure procurement performance: - Performance reviews, regular staff meetings, benchmarking, performance indicators, performance targets and quality management tools Seven rights of procurement are: - Right materials, right quantity, right time, right place, right source, right service and right price Common performance indicators: - Cost reduction, supplier/industry development, supplier performance, efficiency of internal procurement systems and customer satisfaction ERP stands for: - Enterprise Resource Planning (automated procurement system) When considering an automated procurement system one should factor in these elements: - Functional requirements, hardware and software support, installation and training, maintenance and one-time costs and recurring costs The framework for good record keeping includes: - The values and guiding principles of transparency and accountability Solicitation files serve as: - Official factual record of events, information required under freedom of information laws, information required by the contract administrator and information required for a pre or post award audit. What is a critical function of managing the procurement process: - The maintenance of document files What should the contract files contain: - Executed contract, required bonds, conflict forms, post-award documentation, notice to proceed, approvals/disapprovals of contract, documentation of performance monitoring, modifications, documentation to delivery date or contract price, documentation for settlement claims/disputes, stop work/suspension of work notices, inspection/acceptance documentation and contract closeout Basic factors to consider regarding procurement records retention include: - Legal or statutory requirements, historical requirements and administrative requirements Cooperative procurement refers to: - The action taken when two or more entities combine their requirements to obtain advantages of volume purchases including administrative savings and other benefits Cooperative procurement refers to: - A variety of arrangements whereby two or more public procurement units purchase from the same supplier or multiple suppliers using a single IFB or RFP Cooperative procurement refers to: - Efforts that may result in contracts upon which other entities may "piggyback" Cooperative procurement: - 2 or more public entities combining orders to achieve volume discounts Cooperative procurement that have complicated requirements are: - Information technology, medical equipment and services, pharmaceuticals and fleet vehicles Benefits of cooperative procurement: - Cost reduction and reduces administrative costs Piggybacking is: - A form of intergovernmental cooperative contracting in which an entity will be extended the pricing and terms of a contract entered into by a larger entity Cooperative agreements between various governmental entities and non-profit are essential to: - Reduce cost and save staff time Cooperative purchasing program provide what benefits? - Economies of scale through standardizing, higher quality commodities and services, shared professionals and effectively allocated resources, administrative costs and efforts spread across jurisdictions and convenience of order from a catalog of contracts Legal authority to engage in cooperative procurement is determined by: - The laws of a jurisdiction Statutes