Nigp-Cpp Module B - Focus 1 Strategy Questions & Answers

NIGP-CPP MODULE B - FOCUS 1 STRATEGY Questions & Answers Goal of Public Procurement The basic goal of public procurement is to satisfy the client by obtaining the optimum market response to solicitations for goods and/or services at a fair and reasonable price with exactly what is needed (i.e., quality) when it is needed (i.e., timeliness), while serving the long-term interests of the government by minimizing business and technical risks, accomplishing social and economic objectives, maximizing competition, and maintaining integrity Procurement Function Provide strategic value to governmental entities Public Procurement - Strategic Partner identified a need to define values and guiding principles for public procurement Link between Strategic Planning and Procurement Planning requires the gathering of extensive information from both internal and external sources. The strategic plan needs to provide the framework to develop procurement strategy and tactics Effective Procurement Operation impact the entity's ability to deliver needed services to demanding taxpayers. It can be Proactively or Reactively . Effective Procurement Operation Proactively the central procurement function can plan for and initiate action Effective Procurement Operation Reactively the central procurement function merely responds to the demands placed upon it The following factors influence whether procurement plays a proactive or reactive role in the planning process: a) The degree of sophistication in the entity planning process; b) How much the entity depends on procured goods and services to meet its mission. c) How top management views the procurement function. d) The maturity and evolution of the procurement function within the entity. e) The ability of procurement professionals to shift from tactical to strategic planning when driving resource allocation. strategic procurement planning process consists in: linking the procurement strategic plan to the entity's strategic plan. Strategic Plan A strategic plan is a course of action to achieve long-range goals, generally up to five years. Strategic plans reflect the company's direction and its purpose as stated in its mission statement. To develop strategic plans, top management must develop and use summary reports on finances, operations, and the external environment. Tactical Plan A tactical plan is a course of action to achieve short-term goals, generally within a year or less. Tactical plans are concerned with what the units beneath top management must do, how they must do it, and who has the responsibility. These plans have shorter time frames and narrower scopes than strategic plans. What steps should you take to create a Procurement Department's Strategic Plan? a) Obtain the Entity and Departmental (if available) Mission, Goals, and Objectives. b) Establish and train a Strategic Procurement Planning Team. c) Review Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the procurement function. d) Update the Procurement department's mission, goals, and objectives, if necessary, based on the above SWOT review. e) Review the projected budget for the entity to determine likely procurements for the coming year. Performance management is the process by which a procurement professional or organization establishes criteria based on strategic planning goals for the purpose of determining the results and quality of its activities. It involves creating a simple, effective system for determining whether the procurement team is meeting its objectives. Disadvantaged Business Business in which the majority of ownership belongs to members that have historically been determined to be socially and economically disadvantaged; they control daily business operations and management. Small Business An independently owned firm, corporation or establishment, having a small number of employees, low volume of sales, small amount of assets and limited impact on the market. Small Business Administration Congress created these administration, whose function is to "aid, counsel, assist and protect, insofar as is possible, the interest of small business concerns." Micro-Business Small business with five employees or less GREENWASHING The process of conveying a false impression or providing misleading information about how a company's products are more environmentally sound. SUSTAINABLE CONSTRUCTION THE PRACTICE OF CREATING STRUCTURES AND USING PROCESSES THAT ARE MORE ENVIRONMENTALLY AND RESOURCE EFFICIENTLY THROUGHOUT THE LIFECYCLE OF A BUILDING. LEED (Leadership in Energy and Environmental Design) An internationally recognized green building certification and is one of the most popular green buildings certification programs used worldwide Privatization The divestiture of management, assets and responsibility of a public function to the private sector. The function, formerly performed by the public entity, becomes controlled and owned by a private supplier. The divestiture may include the transfer of real and personal property. OUTSOURCING Occurs when an entity makes an informed decision to contract out a product, service, or business process that was previously provided by internal (in-house) resources. The responsibility for providing the contract out product, service or business, remains with the entity, and the entity pays for the contractor for the work done and administer the contractor.