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Procurement Process Checklist

This Comprehensive Procurement Checklist can be adjusted by organisations to review internal processes and guarantee that all procurement demands are met. Considered suppliers can also use this checklist to look into reaching possible government demands for procurement.
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Procurement Process Checklist

Procurement Checklist (Local Government Purchasing)

AUTHORITY & RESPONSIBILITY

Is there legal or ordinance authority for placing purchasing authorisation with one official or department?

Does the authorisation continue to federally funded programs?

Does the authorisation forbid delegation of portions of the authority to other parts in the government?

Is there a written procurement legal, ordinance, policy statement or the alike?

• locating purchasing responsibility in a specific position within the government independent of significant using activities?

• explaining the overall purchasing goals and objectives?

• defining the authority of the purchasing department in all regards of acquisition, contract administration, quality insurance and surplus assets transfer and disposal?

• particularly setting out all aspects of buying delegated to other departments, and the way in which such activities are to be monitored and regulated by purchasing?

• giving that purchasing may promulgate implementing regulations?

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

Do the statutes, ordinances or regulations order money limits for each of the different degrees of formality used in soliciting bids?

Are these factors added in the invitation for bids so that the possible bidder knows what is needed?

Does purchasing have written policies and guidelines determining what factors are to be analysed in determining the responsiveness of a bid as well as the contractor's ability to perform?

Does purchasing have written procedures and guidelines governing the use in the bid specification of such clauses as...

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

• Option for further units above the specific quantity?

• Alternate prices, with and without trade-ins?

PLANNING & SCHEDULING ACQUISITIONS

Is the purchasing department involved in all top-level planning concerning future procurement practices or requirements?

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

• to give past usage data?

• to forecast future item demands?

Is the government's financial management information system is structured to gather such data as quantities purchased, adjusting frequencies, vendor performance and part prices per transaction?

Does the purchasing department use market research to guard economic information which may influence purchasing, such as...

• transportation costs?

• changes in local program requirements?

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

• technical progress influencing supply or equipment production?

• seasonal demands or fluctuating markets?

Are value analysis appraisals made yearly for a specified percentage of items being obtained?

Does the program include the use of questionnaires or discussions with other government parts as well as prospective suppliers?

Does purchasing examine at least yearly past usage and demand forecasts to evaluate the potential for consolidating and/or reducing purchase demands?

Does purchasing have an ongoing program to evaluate the appropriateness of the manner used to satisfy demands?

Does purchasing use for satisfying demands contracting methods such as...

• estimated (indefinite) quantity, unspecific period (until cancelled by one of the parties)?

• minimum (guarantee) quantity, specific period?

• estimated (indefinite) quantity, specific period?

• specific quantity and period?

Has the decision to use a specific form of contracting for satisfying specific demands been reevaluated throughout the last year?

Does purchasing make lease v. purchase connections in getting equipment, such as vehicles?

Does purchasing judge whether it is more economical to make the object or do the service in-house v. contracting out?

Does purchasing...

• need that requisitions or purchase offers be signed by responsible department officials?

• consider different departments' purchase offers for the same or similar items to see whether con¬solidation may reach economies?

• monitor regularity and volume of purchases of the same or alike items to see whether a term contract may be cheaper?

• have written methods to govern how such potential is to be classified?

COMPETITION

Does a statute, ordinance, or regulation need purchasing to use competitive methods for obtaining supplies, materials, equipment and services other than professional?

Does purchasing..

• engage in contracting for professional services?

• prescribe methods followed in such contracting?

• examine the procurements made for compliance with such procedures?

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

• keep and update a list of prospective bidders?

• have written criteria directing the addition, deletion and reinstatement of bidders and vendors and the potential of bidders to operate under the terms and conditions of the proposed acquirement?

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

• prepare or have the authorisation for review and approval of bid invitations?

• have written methods governing the receipt, control, opening and assessment of bids?

• have authority to define which bids have the terms and conditions of the invitation?

Is there a provision governing appropriation when formal bidding is not needed?

Are written records needed for all informal negotiations except inprest fund investments?

Is the number of vendors needed to be contacted under different conditions specified?

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

Is there a provision explaining the special methods to be followed when competitive methods are not used...

• in emergencies?

• when items are to be taken only for testing?

• where there is no reliable competition or one source, where patents or exclusive rights exist; or where standardisation/interchangeability is advantageous?

Is there a demand to document the outcomes of the program periodically?

Are there statutes, regulations, or policies influencing open competition, such as "local purchase" demands?

Is there a formal program for identifying suppliers not earlier solicited?

STANDARDIZATION & SPECIFICATIONS

Is there a central stockroom from which all departments and agencies are needed to draw supplies and equipment?

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

Is there a catalogue of items in place from the stockroom?

Are purchasing standardise items commonly used by at least two departments or agencies?

Does purchasing need written justification for item purchase outside the stockroom standard?

Are brand names avoided or expressly declared to be only descriptive and not restrictive?

Are there written rules covering methods for placing and excluding products and brands from these lists?

Are performance specifications used rather than prescriptive specifications?

Where specifications are prepared for specific items or services by departments and agencies, does purchasing have the power to examine, modify and approve them?

Does buying use qualified product lists or lists of acceptable brands as an option for developing its own specifications?

INSPECTION & TESTING

Does purchasing have the power to establish and oversee a program of review of deliveries to ensure that items delivered meet specifications?

Are there written directions governing receipt and inspection of deliveries?

Does purchasing routinely control the inspection program?

Was there a determination as to...

• determine the items to be examined compliance with specifications?

• the regularity of the testing?

• those who should perform the testing?

Are there written methods covering the handling of user and/or contractor criticisms?

PROPERLY MANAGEMENT

Does purchasing participate in the inventory methods of the government to ensure that...

• expendable property is appropriately controlled?

• nonexpendable property is identified?

• assigned for accountability to the specific parts of the government?

• periodical inventories of expendable and nonexpendable property are used?

Does purchasing prevent a copy of the inventory documents for all parts of the government so that it may identify equipment which may be available to decrease or eliminate the purchase of additional items?

Is purchasing assigned the authority to oversee the surplus and scrap programs?

Are spot checks made and records kept of equipment usage?

Does purchasing have written methods for...

• disposing of not needed or unusable items?

• timely identification and documentation of surplus and scrap items to purchasing?

• informing other departments and agencies of available usable surplus?

PROFESSIONAL DEVELOPMENT

Does the local government support the purchasing officials and technical personnel...

• to keep in track with procurement trends?

• to obtain formal training and education as a supplement to their job-gained knowledge?

Does the local government provide support for the above by giving funding?

COOPERATIVE PURCHASING

If there are no statutory prescriptions, does purchasing...

• enter into common or cooperative purchasing agreements with other regional government?

• purchase from state contracts?

• have a program for constantly searching for ways to increase potential savings through improved use of cooperative purchasing arrangements?

Where cooperative purchasing is applied, does purchasing have a program for assessing any further costs involved to define whether the total costs may be higher than the costs of buying separately?

AUDIT & EVALUATION

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

Are yearly performance goals, both quantitative and qualitative, organised for the purchasing unit?

Does purchasing report periodically on its performance?

Is management needed to measure the purchasing organisation's performance?

Which of the following indices are kept or otherwise accessible to monitor purchasing activities:

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

• emergency purchases?

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

• user criticisms?

• purchasing cost per purchase order assigned?

• out-of-stock states?

• dollar value of inventory?

• other? Specify!

Completion

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