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Procurement Checklist (Local Government Purchasing)

AUTHORITY & RESPONSIBILITY

  • Is there statutory or ordinance authority for placing purchasing authority with one official or department?

  • Does the authorization extend to federally funded programs?

  • Does the authorization prohibit delegation of portions of the authority to other units in the government?

  • If not, what delegations of authority are currently in effect?

  • Is there a written procurement statute, ordinance, or policy statement...

  • • locating purchasing responsi-bility in a special position within the government independent of major using activities?

  • • describing the overall pur-chasing goals & objectives?

  • • specifying the authority of the purchasing department in all aspects of acquisition, contract administration, quality assurance, and surplus property transfer and disposal?

  • • specifically setting out all aspects of purchasing delegated to other departments, and the manner in which such activities are to be monitored & controlled by purchasing?

  • • providing that purchasing may promulgate implementing regulations?

  • • covering a code or standard of conduct governing the performance of purchasing officials and personnel as well as contractors or their agents?

  • Do the statutes, ordinances, or regulations prescribe dollar limits for each of the varying degrees of formality used in soliciting bids?

  • If so, list source, limits, and degree of formality

  • Does purchasing have written policies & guidelines defining what factors are to be considered in determining the responsiveness of a bid as well as the contractor's capacity to perform?

  • Are these factors included in the invitation for bids so that the potential bidder knows what is required?

  • Does purchasing have written policies & guidelines governing the use in the bid specification of such clauses as...

  • • Option for additional units above the specific quantity?

  • • Alternate prices, with & without trade-ins?

  • • Conditions under which all bids may be rejected in whole or in part?

PLANNING & SCHEDULING ACQUISITIONS

  • Is the purchasing department included in all top-level planning affecting future procurement practices or needs?

  • Does purchasing have written instructions governing itself or using departments and agencies...

  • • to forecast future item needs?

  • • to provide past usage data?

  • Is the government's financial management information system structured to accumulate such data as quantities purchased, ordering frequencies, vendor performance, and unit prices per transaction?

  • Does the purchasing department use market research to secure economic information which may affect purchasing, such as...

  • • current market conditions of items bought on long-term contracts?

  • • changes in local program needs?

  • • technical progress affecting supply or equipment production?

  • • seasonal requirements or fluctuating markets?

  • • transportation costs?

  • Are value analysis appraisals made annually for a stipulated percentage of items being procured?

  • If so, which of the following considerations are covered by the appraisals

  • • new sources of supply?

  • • standardization of items?

  • • identification of new and better products?

  • • identification of alternative products, including aspects of price and quality?

  • • storing and handling, vendor stocking costs?

  • other? Specify

  • Does purchasing review at least annually past usage and requirement forecasts to assess the potential for consolidating and/or reducing purchase requirements?

  • Does purchasing have an ongoing program to assess the appropriateness of the manner used to satisfy requirements?

  • Does the program involve the use of questionnaires or discussions with other government units as well as prospective suppliers?

  • Does purchasing use for satisfying requirements contracting methods such as...

  • • definite quantity, definite period?

  • • minimum (guarantee) quantity, definite period?

  • • estimated (indefinite) quantity, definite period?

  • • estimated (indefinite) quantity, indefinite period (until canceled by either party)?

  • Has the decision to use a particular form of contracting for satisfying specific requirements been reassessed during the last year?

  • Does purchasing make lease v. purchase comparisons in acquiring equipment, such as vehicles?

  • Does purchasing evaluate whether it is more economical to make the item or perform the service in-house v. contracting out?

  • Does purchasing...

  • • monitor frequency & volume of purchases of the same or similar items to see whether a term contract might be cheaper?

  • • monitor different departments' purchase requests for the same or similar items to see whether con¬solidation may achieve economies?

  • • have written procedures to govern how such potential is to be identified?

  • • require that requisitions or purchase requests be signed by responsible department officials?

COMPETITION

  • Does a statute, ordinance, or regulation require purchasing to use competitive procedures for acquiring supplies, materials, equipment, and services other than professional?

  • Does purchasing..

  • • participate in contracting for professional services?

  • • prescribe procedures followed in such contracting?

  • • review the procurements made for compliance with such procedures?

  • In securing formal bids for contract purchases, does purchasing...

  • • prepare or have the authority for review & approval of bid invitations?

  • • maintain & update a list of prospective bidders?

  • • have written criteria governing the addition, deletion, and reinstatement of bidders and vendors, and the potential of bidders to perform under the terms and conditions of the proposed procurement?

  • • have written procedures governing the receipt, control, opening & evaluation of bids?

  • • have authority to determine which bids have the terms & conditions of the invitation?

  • • maintain a record (such as a bid history record) to help purchasing identify collusive bidding practices?

  • Is there a provision governing procurement when formal bidding is not required?

  • Are written records required for all informal negotiations except inprest fund purchases?

  • Is the number of vendors required to be contacted under various conditions specified?

  • Is there a policy stipulating the conditions under which blanket purchase orders may be used?

  • Is there a provision defining the special procedures to be followed when competitive procedures are not used...

  • • in emergencies?

  • • where there is no responsible competition, or one source; where patents or proprietary rights exist; or where stand-ardization/interchangeability is advantageous?

  • • when items are to be acquired solely for testing?

  • Are there statutes, regulations, or policies affecting open competition, such as "local purchase" requirements?

  • Is there a formal program for identifying suppliers not previously solicited?

  • Is there a requirement to document the results of the program periodically?

STANDARDIZATION & SPECIFICATIONS

  • Does purchasing standardize items commonly used by two or more departments or agencies?

  • Is there a central stockroom from which all departments & agencies are required to draw supplies & equipment?

  • Is there a catalog of items available from the stockroom?

  • Does purchasing require written justification for item acquisition outside the stockroom standard?

  • Where specifications are prepared for special items or services by departments & agencies, does purchasing have the power to review, modify, and approve them?

  • Are brand names avoided or expressly stated to be only descriptive (identifying salient features) and not restrictive?

  • Are performance specifications rather than prescriptive specifications used?

  • Does purchasing consider using commercial standards, or specifications developed by the Federal, State, or other local government units and found acceptable, in lieu of developing its own specif i-cations?

  • Does purchasing use qualified product lists or lists of acceptable brands as an alternative to developing its own specifications?

  • Are there written criteria covering procedures for placing and removing products and brands from these lists?

INSPECTION & TESTING

  • Does purchasing have the authority to establish and oversee a program of inspection of deliveries to insure that items delivered meet specifications?

  • Are there written instructions governing receipt & inspection of deliveries?

  • Does purchasing routinely monitor the inspection program?

  • Has there been a determination as to...

  • • The items to be tested to determine compliance with specifications?

  • • The frequency of the testing?

  • • Those who should do the testing?

  • Are there written procedures covering the handling of user and/or contractor complaints?

PROPERLY MANAGEMENT

  • Does purchasing participate in the inventory procedures of the government to insure that...

  • • expendable property is properly controlled?

  • • nonexpendable property is:<br>- identified?<br>- assigned for accountability to specific units of government?

  • • periodic inventories of expendable and nonexpendable property are taken?

  • Does purchasing secure a copy of the inventory documents for all units of government so that it may identify equipment which may be available to reduce or eliminate purchase of additional items?

  • Is purchasing assigned the authority to supervise the surplus and scrap programs?

  • Are spot checks made and records kept of equipment utilization?

  • Does purchasing have written procedures for...

  • • timely identification and reporting of surplus & scrap items to purchasing?

  • • notifying other departments & agencies of available usable surplus?

  • • disposing of unneeded or unusable items?

PROFESSIONAL DEVELOPMENT

  • Does the local government encourage the purchasing officials and technical staff...

  • • to keep current with procurement trends (e. g., affiliate with professional purchasing associations)?

  • • to secure formal training and education as a supplement to their job-acquired knowledge?

  • Does the local government provide support for (1) & (2) above by providing funding?

COOPERATIVE PURCHASING

  • If there are no statutory prohibitions, does purchasing...

  • • enter into joint or cooperative purchasing agreements with other local government?

  • • purchase from State contracts?

  • • have a program for continually searching for ways to increase potential savings through increased use of cooperative pur-chasing arrangements?

  • Where cooperative purchasing is used, does purchasing have a program for evaluating any additional costs involved to determine whether the total costs may be higher than costs of buying separately?

AUDIT & EVALUATION

  • Is there an internal or external audit of the procurement system to evaluate the effectiveness or economy with which it is making purchases?

  • Are annual performance goals, both quantitative and qualitative, established for the purchasing unit?

  • Does purchasing report periodi-cally on its performance?

  • Is management required to measure the purchasing organization's performance?

  • If so, is this periodically accomplished and documented?

  • Which of the following indices are maintained or otherwise available to monitor purchasing activities:

  • • purchasing cost (includes cost of central stores operation) per $1,000 of procurement?

  • • purchasing cost per purchase order issued?

  • • cost of central stores per $1,000 of stores procurement?

  • • user complaints?

  • • out-of-stock condition?

  • • dollar value of inventory?

  • • emergency purchases?

  • other? Specify

Completion

  • Comments/Recommendations

  • Prepared by: Full Name and Signature

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