Public Procurement and Ethics: Part 1

You’re wandering through the vendor show at the Florin Public Purchasing Association’s Annual Conference when you see it: a drawing for an iPad 2, right there in the Montoya Security Company booth. There’s a bowl half-full of business cards, and you find an extra card to drop in the bowl. Right before you put your card in the bowl, though, your friend and coworker Valerie rushes up to you and says, “Hey, wait! I don’t think we’re allowed to get stuff like that from vendors.”

“But it’s a random drawing!” you say, “They don’t know who’s going to win—it’s up to chance.”

“Sure,” Valerie responds, “but I remember hearing somewhere that we weren’t supposed to take gifts from vendors, even in a drawing.”

“That can’t be right,” you protest. “It’s not like a bribe or something. And it won’t influence me one way or another.”

“Fine, do it if you want,” says Valerie. “I’m not.”

Are you right? Is Valerie right? How do you decide what to do? Continue reading

Posted in Ethics and Procurement, Politics and Procurement | Tagged , , , , , | Leave a comment

Public Procurement In the Cloud

Ted Techie, the Sunshine City Procurement Manager, rushes into his boss’s office. “Hey, Francine!” he says, “Do you have a few minutes? I want to tell you about this article I just read about cloud computing and public procurement.”

“Sure, Ted. Have a seat,” responds Francine, the Sunshine City Finance Officer. “But before you say anything else,” she continues, “you better tell me what ‘cloud computing’ means. I have a feeling you’re not talking about the weather.”

“Right,” says Ted. “This is an oversimplification, but basically cloud computing describes services—like software or data storage—that you access over the internet.”

Francine looks confused. “Can you give me an example?”

“Sure,” responds Ted, “Have you heard of Gmail, Google’s mail program? Or Google’s online word processing and spreadsheet program, GoogleDocs?”

“Yes,” says Francine.

“Well,” explains Ted, “compare Gmail with Microsoft Outlook. Outlook is a program running on your computer. But Gmail runs on Google’s servers, and you access it through the internet. Same with Word and Excel—they are programs running on your computer, while Google Docs is all ‘in the cloud’—you access the program through the internet, and your documents are saved in the cloud, too.”

“I guess that makes sense,” says Francine, “but I still don’t see what that has to do with procurement.”

“I didn’t either,” Ted confesses, “until I read this article!” Continue reading

Posted in Bidding, Contract Management, Technology | Tagged , , , , , , , , , | Leave a comment

Procurement in Tough Times

In January, I gave a presentation to the Public Purchasing Association of North Central Texas on procurement in tough times. I first presented on this topic in March of 2009—before most of us guessed how tough these tough times would get, or how long they would last. From what I’ve seen, the two most common procurement problems for public entities in times like these are: (1) having less money to buy and build things, and (2) dealing with contractor and vendor non-performance.

The following discussion provides a couple of suggestions for dealing with both problems. I hope it will give you some ideas to help you pull though another tough budget year (or two or three). Continue reading

Posted in Bidding, Contract Management, Exceptions to bidding, Responsibility | Tagged , , , , , , , , , , , , , | Leave a comment

Procuring the Impossible

The newly-sworn-in city council of Reality City is having their first board meeting, and Finance Manager Frank Facts is giving his budget forecast presentation. New Councilmember Kirk interrupts Frank suddenly, “Frank, I must confess that I’m confused by this budget. I don’t see anything here in the budget about purchasing transporters.”

Frank pauses, open-mouthed, waiting for one of the other council members to laugh. When they don’t, Frank repeats, “Transporters?”

“Yes,” says Kirk. “As you know, the traffic in Reality City is really bad, and many of us have promised our constituents that we’d provide transporters to help ease traffic and cut down on pollution.” The other council members nod in agreement.

“Transporters, like ‘Beam me up, Scotty’?” asks Frank, disbelieving.

“Exactly,” says Kirk. “I assume this was just an oversight. But I want to see these transporters in the budget presentation for our next meeting, OK?”

“O…K….,” responds Frank, slowly, shaking his head. When Frank gets back to his office, he immediately calls the retired Reality City Finance Manager, Trish True. After he tells Trish what happened at the meeting, Frank asks, “Trish, what should I do?” Trish says, “I’ll tell you exactly what you need to do.”

Maybe you haven’t found yourself in Frank’s situation exactly. But I’ll bet you have been asked to work on purchases or projects that were doomed from the start. Or you’ve worked with elected officials or department heads who had unrealistic expectations. The advice Trish is about to give Frank will be useful in those situations, too. So let’s listen in: Continue reading

Posted in Politics and Procurement, Specifications | Tagged , , , , , , , | Leave a comment

Write to be understood

I just watched a fascinating TED talk (more about TED here) by a plain-language activist named Sandra Fisher-Martins. Ms. Fisher-Martins is on the Board of Directors of PLAIN (Plain Language Association InterNational), a “volunteer nonprofit organization of plain-language advocates, professionals, and organizations committed to plain language” (from their website).

Ms. Fisher-Martins had a lot of great things to say in this talk (note that it’s in Portuguese with English subtitles), but there was one thing in particular that I think is relevant to the kind of writing that public procurement professionals do. What is it? Continue reading

Posted in Specifications | Tagged , , , , , , | 1 Comment

Are Bid Protest Waivers Valid?

Prissy Purchaser is sick and tired of bid protests. It seems like she gets a new one every day, and they take up so much time—time she would rather spend writing specifications or reviewing bids. Prissy’s about to bid out a multimillion dollar construction project, and she knows there will be at least a couple of protests over it just because of how much money is involved. She’s reading over the specifications one last time when she has an idea. “Brilliant!” Prissy says to herself. She quickly adds the following sentence to the signature page of the invitation for bids: “By submitting a bid, the bidder waives its right to protest the award of the contract.

Is Prissy’s idea as brilliant as she thinks it is? Continue reading

Posted in Bidding, Protests | Tagged , , , , , , | Leave a comment

Federal Grants and E-Verify

There is a lot of confusion among local governments about federal grants and E-Verify. Most of the confusion revolves around this question: if we’re using federal grants to fund a project, do we need to require that our contractors use E-Verify? The answer depends on the requirements of the specific grant involved. Continue reading

Posted in Federal Grant Rules | Tagged , , , | Leave a comment

Contract Management In a Nutshell

Do either of these scenarios sound familiar to you?

Scenario 1: Porgy Purchasing Officer is talking with the City’s Engineer, Erin, about the bids they’ve received on a construction project for the new city hall. “It looks like Cheapo Construction is the low bidder again,” Porgy says to Erin.

“But we can’t award the contract to them!” Erin exclaims. “They did a horrible job last time! They kept ignoring our deadlines, they were always having to redo things because of their shoddy work, they never answered their phones, and they kept trying to sneak charges by us. Please tell me we won’t award the contract to them.”

“What?” protests Porgy. “That’s news to me. I didn’t see any of that in the file. If you don’t have documentation for any of that, we’re going to have a hard time awarding the contract to someone else.”

“What file? What documentation?” Erin asks.

Scenario 2: The County’s Buyer, Bess, is having lunch with her friend Helen, who works in the County’s Health and Human Services Department. Helen says to Bess, “Did you have anything to do with the new latex gloves they sent our department?”

“Sure,” replies Bess, “I worked on that bid. Why?”

“Well,” says Helen, “the County shouldn’t pay for those gloves. They all have holes in them. It’s dangerous!”

“Oh!” says Bess, horrified. “When did you notice this?”

“A few weeks ago,” says Helen.

“A few weeks ago?!?” says Bess, incredulously, “Why haven’t I heard about it? I mean…you did call the Purchasing Department, right?”

“No,” responds Helen defensively, “Why would I?” Continue reading

Posted in Contract Management | Tagged , , | 2 Comments

Psychology and Local Preferences

I’m going to start out this post with two scenarios that will seem completely unrelated–but you’ll see the connection soon, I promise.

Scenario 1: You’re watching a rugby match. You don’t know anything about rugby, and you don’t have a favorite team, but you’re stuck watching the game and all you know is that one team is losing badly and the other team is winning. Who are you going to root for?

Scenario 2: Your city is about to build a new City Hall. The cost of the project will be in the millions of dollars. The lowest bid is $2.5 million, and it’s from Countrywide Construction Company, one of the biggest contractors in the country. Countrywide is based in another state, thousands of miles away. The next lowest bid is $2,500,500, and it’s from Local Construction Company, a local contractor. Your procurement statute requires that you award the contract to the lowest responsive, responsible bidder. Both contractors are responsible, and both bids are responsive. You tell your city council that the contract must be awarded to Countrywide. The council members are outraged. Continue reading

Posted in Bidding, Ethics and Procurement, Local Preferences | Tagged , , , , , , , , | 3 Comments

Keys to Successful Procurement with Federal Grants

Every local government uses federal grants to pay for goods and services from time to time. And whether it’s American Recovery and Reinvestment Act (ARRA) funds or FEMA funds or Community Development Block Grant (CDBG) funds or some other kind of federal grant funds, special rules and potentially serious penalties–including losing the grant funds altogether–apply. So, what’s the secret to successful procurement with federal grants? Continue reading

Posted in Federal Grant Rules | Tagged , , , , , , , | Leave a comment