CGFO - Financial Administration -
Purchasing/Procurement
Cooperative Pitfalls - ✔️✔️No cost-savings unless all participants buy
No enforce-ability invites abuse
Prompt Payment - ✔️✔️Pay contractor within 30 days
Slow paying affects competition:
Increased prices
Slow cash flow
Reduced participation
F.S. 287.055 - ✔️✔️Consultants Competitive Negotiation Act (CCNA)
Engineers, architects, etc.
Price not a determining factor
No fewer than three firms considered
F.S. 288.7055 - ✔️✔️State Contracts - Florida Small Business Development
Reinventing Purchasing - ✔️✔️Managers have purchasing cards
Higher purchasing floor
Effective information technology
Choice and customization available
Best-value vs. low-cost
Long-term partnership
Privatization - ✔️✔️Divestiture of BOTH management and assets of public function to
the private sector
Outsourcing - ✔️✔️Divestiture of ONLY the management of a public function to an
outside source
Competition - ✔️✔️Provide fair opportunities to qualified vendors to vie against each
other to offer the best prices, quality, and service
Kickback - ✔️✔️Accepting value to influence award of contract
Price Fixing - ✔️✔️Arrangement between competitors that interfere with the price
Bid Rigging - ✔️✔️Horizontal agreements among competitors to manipulate
competitive bidding process
, Managed Competition - ✔️✔️Requiring in-house service units to compete with external
providers
Monopolization - ✔️✔️Single firm has control and charge any price without fear of
losing business in the market
Bribe - ✔️✔️Promise, obligation, gift, or reward in order to secure contract
Attempt to influence outcome, should declare the contract void
Blanket Order - ✔️✔️Arrangement with vendor to provide item(s) or service on an as
required/needed basis over-the-counter
Procurement Team - ✔️✔️Budget Office
Program Manager (or department rep)
Purchasing Staff
Legal Staff
Accounting
Procurement Stages - ✔️✔️Planning
Scheduling
Vendor Selection
Contract Administration
A Good Purchasing Policy Has - ✔️✔️Performance Measures
Vendor selection/preference guidelines
A defined way to purchase commodities, services and capital items
National Association of State Procurement Officials (NASPO) - ✔️✔️Refers to
principles and practices
Provides road map
Utilize book
Procurement Program - ✔️✔️NASPO
Every program has strengths and weaknesses
Results depend on laws, rules, management, tradition, and resources
Competitive Process Essential Elements - ✔️✔️Ordinance
Documents
Opening bids are part of public record
Gifts of vendors
Conditions of long-term contracts
Anti-competitive practices
Identical low-bid awards
Purchasing/Procurement
Cooperative Pitfalls - ✔️✔️No cost-savings unless all participants buy
No enforce-ability invites abuse
Prompt Payment - ✔️✔️Pay contractor within 30 days
Slow paying affects competition:
Increased prices
Slow cash flow
Reduced participation
F.S. 287.055 - ✔️✔️Consultants Competitive Negotiation Act (CCNA)
Engineers, architects, etc.
Price not a determining factor
No fewer than three firms considered
F.S. 288.7055 - ✔️✔️State Contracts - Florida Small Business Development
Reinventing Purchasing - ✔️✔️Managers have purchasing cards
Higher purchasing floor
Effective information technology
Choice and customization available
Best-value vs. low-cost
Long-term partnership
Privatization - ✔️✔️Divestiture of BOTH management and assets of public function to
the private sector
Outsourcing - ✔️✔️Divestiture of ONLY the management of a public function to an
outside source
Competition - ✔️✔️Provide fair opportunities to qualified vendors to vie against each
other to offer the best prices, quality, and service
Kickback - ✔️✔️Accepting value to influence award of contract
Price Fixing - ✔️✔️Arrangement between competitors that interfere with the price
Bid Rigging - ✔️✔️Horizontal agreements among competitors to manipulate
competitive bidding process
, Managed Competition - ✔️✔️Requiring in-house service units to compete with external
providers
Monopolization - ✔️✔️Single firm has control and charge any price without fear of
losing business in the market
Bribe - ✔️✔️Promise, obligation, gift, or reward in order to secure contract
Attempt to influence outcome, should declare the contract void
Blanket Order - ✔️✔️Arrangement with vendor to provide item(s) or service on an as
required/needed basis over-the-counter
Procurement Team - ✔️✔️Budget Office
Program Manager (or department rep)
Purchasing Staff
Legal Staff
Accounting
Procurement Stages - ✔️✔️Planning
Scheduling
Vendor Selection
Contract Administration
A Good Purchasing Policy Has - ✔️✔️Performance Measures
Vendor selection/preference guidelines
A defined way to purchase commodities, services and capital items
National Association of State Procurement Officials (NASPO) - ✔️✔️Refers to
principles and practices
Provides road map
Utilize book
Procurement Program - ✔️✔️NASPO
Every program has strengths and weaknesses
Results depend on laws, rules, management, tradition, and resources
Competitive Process Essential Elements - ✔️✔️Ordinance
Documents
Opening bids are part of public record
Gifts of vendors
Conditions of long-term contracts
Anti-competitive practices
Identical low-bid awards
