# Presentation: 040105

## Discussion Topics

- “Procurement”
- Putting the Pieces Together

## Acquiring Goods and Services 

*Acquiring Goods and Services *

**An Overview for **
**Department of Commerce Supervisors              **
**Dr. Daniel S. Alexander II****           ****March 2004   **

## Discussion Topics

- A Quick Overview
- Procurement Fundamentals – Public Buying
- Show You The Big Picture
- Explain How Your Office May Obtain Goods and Services – *The Procurement Process*
- Buying Things On The Road
- Briefly Discuss the Purchase Card Program
- Provide Contact Information
- Share Some References
- Answer Your Questions

## Overview

- The Federal procurement process is governed by numerous laws and regulations designed to maintain the public's confidence in the integrity, fairness and openness with which the government conducts business.
- With few exceptions, only warranted employees, known as "Contracting Officers", may enter into contracts on behalf of the Government.
- In addition to obtaining goods and services, the federal procurement process is also used to achieve federal socio-economic and other policy objectives.
- Required sources of supply, small business, and other considerations must be taken into account.

## Procurement Fundamentals“Public Buying Principles” 

- 41 U.S.C. 401 Office of Federal Procurement Policy Act Requirements:
- Promote full and open competition.
- Promote the participation of small business concerns.
- Promote fair dealings and equitable relationships with the private sector.
- Promote specifications describing needs in terms of functions to be performed or performance required.
- Required to the extent practicable the use of commercial products.
- Eliminate fraud and waste in the procurement process.
- Consider an offeror’s past performance.
- Ensure payment is made in a timely manner and only for the value received.

## The Procurement System“The Big Picture”       Policy 

**Congress**

**Office of Federal **
**Procurement Policy**

***Department ***
***Of Commerce***

**Office of Acquisition**
**Management**

**Implements Government-wide Procurement Policy**

**The Procurement System***“The Big Picture”       Policy*

**President**

**Statutes**

**Initiatives**

***Department of ***
***Defense***

***General Services***
***Administration***

***National Aeronautics***
***&Space Administration***

**Federal Acquisition Regulation**

***Department of ***
***Labor***

***Small Business ***
***Administration***

## The Procurement System“The Big Picture”    Contracting

**Program Offices**

**Congress**

***Department ***
***Of Commerce***

**Office  of General **
**Counsel  **

**Office of Acquisition**
**Management**

**Office of Executive**
**Budgeting**

**Develop requirements**
**Provide technical support during source evaluation process.**
**Manage the technical aspects of the contract.**

**Manages the pre & post award procurement  process**

**The Procurement System***“The Big Picture”*    Contracting

**President**

**Confirms legal sufficiency**

**Certifies funds are available.**

**Statutes**

**Initiatives**

- How Can Your Office Acquire Goods and Services ?

**There are three basic phases in the Procurement Process.**
- 	Presolicitation Phase
- 	Solicitation Phase
- 	Post Award and Administration Phase

**Notes:**
COTR Training
YEAR END TRAINING
Purchase Card Training
MOU Training

## How Can Your Office Acquire Goods and Services ? 

**2. Contact procurement and inform them of your needs.**
**3. Obtain funds certification. **

**1.  Conduct the Procurement.**

**1. Manage the      Procurement.**

**Customer**

**Procurement Office**

- How Can Your Office Acquire Goods and Services ?

**Distribution of Effort - Who is Responsible?**

_**Presolicitation  Phase**_

_**Solicitation Phase**_** **

_**Post Award Admin.  Phase**_**  **

**The required level of effort shifts between each phase.   Be aware of the resource requirements.**

## Process StepsPresolicitation Phase

**  ****Determination of Need**
-    Annual forecasting requirements
-    Acquisition planning required for each procurement
-   **Identifying & Defining the Requirement **
-   Develop the specifications, statement of work/objectives
-   Develop the government’s independent estimate
-   **Initiating the Procurement**
-   Purchase Requests (PRs) *(funding certification on a CD-435) *
-   **Analyzing the Requirements**
-   Specification or Statements of work/objectives (“The What, How Much, & How Good”)
-   **Sourcing**
-   Extent of competition
-   Selection Factors
-   Procurement Method
-   Procurement Planning

##  What You Will Need to Provide to the procurement specialist?

**Presolicitation Phase**** **
- 	A form CD-435 – Purchase Request form
- 	A detailed description of what you need
- 	A list of recommended vendors
- 	An estimate of the cost of the item
- 	The date when you need the product or service
- 	As appropriate, authorization from your servicing Director to make the purchase
*	*

## Process Steps Solicitation and Award Phase

**  ****Solicitation**
-   Terms and Conditions
-   Obtain legal sufficiency review of the solicitation. *(1-2 weeks)*
-    Evaluate the proposal - clauses, terms, and conditions
-    Evaluate the technical statement of work/objectives
-   Soliciting offers
- Issue the solicitation *(4 weeks)*
**  ****Evaluation**
-   Bid evaluations
-   Proposal evaluation
-   Evaluate the technical and cost/price aspects of the proposals
-   Document findings
-   May or may not give the firms an opportunity to revise their proposals
**  ****Discussions**
-   Determine a competitive Range - *(As needed)*

**Notes:**
67 days to 270 days

## Process Steps Solicitation and Award Phase

**  ****Award  **
-   Selection for award
-   Executing awards
-   Debriefing
-   Protests *( up to 12 weeks)*

**Notes:**
66 days to 274 days depending

## The Most Important Thing You Can Do?

- Contact your procurement specialist as soon as you know you need to conduct a procurement.

**Notes:**
66 days to 274 days depending

## Let Us Help Put the Pieces Together 

**Notes:**
66 days to 274 days depending

## You may have an unauthorized commitment on your hands.

By Federal Regulation, only contracting officers have authority to enter into, administer, or terminate contracts.

- By Federal Regulation, only contracting officers have authority to enter into, administer, or terminate contracts.

**What happens if you ordered or purchased something, and didn’t go through the process?**

## Contact your servicing procurement office to inform them of the problem.  The procurement office will ask you to complete a ratification.

Ratifications – the short definition:
Are justifications that explain the circumstances of the acquisition.
Explain why it was purchased by other than a Contracting Officer.
Certifies that funds were available.
Allows the government to pay the contractor for the product or service.

Without an approved ratification, you will be personally liable for the acquisition – regardless of the value.

**Ratifications – the short definition:**
- Are justifications that explain the circumstances of the acquisition.
- Explain why it was purchased by other than a Contracting Officer.
- Certifies that funds were available.
- Allows the government to pay the contractor for the product or service.
**Without an approved ratification, you will be personally liable for the acquisition – regardless of the value.**

**What happens if you ordered or purchased something, and didn’t go through the process?**

## If authorized on your travel orders, you may charge miscellaneous meetings expenses to your travel card.

If not authorized on your travel orders, or if the item is not properly chargeable to your travel card:
Call your servicing procurement office. 
We will help you with the acquisition.

If in advance of a trip, you know you will need to acquire a good or service, contact the procurement office prior to your departure.  We can assist you in planning or placing the acquisitions before you arrive or while you’re at your destination.

**If not authorized on your travel orders, or if the item is not properly chargeable to your travel card:**
- Call your servicing procurement office.
- We will help you with the acquisition.
- If in advance of a trip, you know you will need to acquire a good or service, contact the procurement office prior to your departure.  We can assist you in planning or placing the acquisitions before you arrive or while you’re at your destination.

- Buying Things On the Road?

## Purchase Card What is it?

- A purchase card is a procurement tool that works much like a traditional credit card.
- Although it looks like a credit card, all the same procurement rules apply to its use.
- If you often have acquisition needs during travel, this may be a tool you and/or your Director may want to consider having.
- If interested, please contact your servicing procurement office for additional information.

## Purchase CardHow to get one

**Basic Steps include:**
- Contact the Agency Purchase Card Program Coordinator (APC) at     (202) -482- 0997.
- Successfully complete a GSA on-line purchase card training course.
- Successfully complete the purchase card test for certification.
- Forward certification and Purchase Card Set-up form to the APC.

## Purchase Card Purchases Requiring Advance Approvals

**The following purchases require advance approval from the Head of the Contracting Office (HCO).**
**The following purchases require approval by the HCO:**
- Recruitment Ads
- Other Newspaper Ads
- Motor Vehicle Leases
- Meals, Drinks, Lodging
- Printing/Duplicating
- Publication in Journals
**Cardholders must retain such approvals in their files.**

## Purchase CardPurchases Including Meals, Drinks, or Lodging

- Purchases including meals, drinks, or lodging require advance written approval by the HCO.
- The approval request must document how the meals, drinks, or lodging will support the mission of the office.
- Value of meals or lodging must be deducted from employee per diem.
- The purchase of “light refreshments” such as drinks must receive advance HCO approval. However, the value of light refreshments is not to be deducted from per diem.
- Payment of meal and refreshment charges that are included in non-governmentally sponsored conference registration fees do not require advance HCO approval.

## Purchase Card  Special Rules for Conference Fees

- Conference registration fees including meals and light refreshments may be paid by purchase card only if:
- 	“***the meals or refreshments are not separate charges; AND the conference is hosted by a nongovernmental organization.”***
**Head of the Contracting Office approval is not required for the purchase of meals or drinks if these conditions are met.**
- 	Per diem must be reduced by the value of meals.
- 	Per diem is not reduced by the value of light refreshments.

## Purchase Card Prohibited items

- Purchase of Rent or lease land or buildings for a period exceeding one year.
- Purchase of travel-related expenses (excluding conference rooms, meeting spaces, and local transportation expenses).
- Cash advances.
- Purchase of “personal convenience” items.
- Purchase of fleet services and supplies.
**If in doubt about whether a purchase is permitted, call the Agency Purchase Card Program Coordinator at (202) 482-0997.**

## Contact Information

- Room:  6521Telephone:  482-6100Fax: 482-4988 or 501-8122

## Michael S. Sade			Christine Makris
Director for Acquisition Management          	 Deputy Director for Acquisition Management
and Procurement Executive	      	 and Procurement Executive
(202) 482-4248		      	 (202) 482-4248 

Tiffany T. Hixson (HCO)		Sharon Leigh 
Director for Commerce Acquisition Solutions	Head of Contracting & Program Manager
& Head of Contracting			Commerce IT Solutions Branch		
(202) 482-6100			(202) 482-5543

Mona-Lisa Dunn			Deborah Locke
Team Lead – Business Solutions		Team Lead – IT Acquisition Team
(202) 482-2641	 		Commerce IT Solutions Branch
					(202-482-3416			

Dr. Daniel S. Alexander II		Frank Krempa
Team Lead – Customer Outreach & Programs	Small Business Specialist & BankCard Coordinator
(202) 482-7426			Customer Outreach & Programs
					202-482-0997

- Director for Acquisition Management          	 Deputy Director for Acquisition Management
- and Procurement Executive	      	 and Procurement Executive
- (202) 482-4248		      	 (202) 482-4248
- Tiffany T. Hixson (HCO)		Sharon Leigh
- Director for Commerce Acquisition Solutions	Head of Contracting & Program Manager
- & Head of Contracting			Commerce IT Solutions Branch
- (202) 482-6100			(202) 482-5543
- Mona-Lisa Dunn			Deborah Locke
- Team Lead – Business Solutions		Team Lead – IT Acquisition Team
- (202) 482-2641	 		Commerce IT Solutions Branch
- 					(202-482-3416
- Dr. Daniel S. Alexander II		Frank Krempa
- Team Lead – Customer Outreach & Programs	Small Business Specialist & BankCard Coordinator
- (202) 482-7426			Customer Outreach & Programs
- 					202-482-0997

- Principal Contacts in the Office of Acquisition Management

## References

**Commerce Forms:  http://www.doc.gov/forms/fdirect.htm**
**Office of Acquisition Management:  http://oamweb.osec.doc.gov/**
**Commerce BankCard Center:  http://casc.noaa.gov/bankcard/bankcard.html**
**Federal Acquisition Regulations:  http://www.arnet.gov/far/**

## Any Questions?

**Notes:**
COTR Training
YEAR END TRAINING
Purchase Card Training
MOU Training

- Call if I may be of help.
- Dan Alexander (202)482-7426
- Or
- Send your questions via email  to   _[dalexander@doc.gov](mailto:dalexander@doc.gov)_
- May you have great success!

**Notes:**
COTR Training
YEAR END TRAINING
Purchase Card Training
MOU Training