Purchasing Directors’ Meeting February 19, 2009. 2 Agenda Introduction – 44A (Renegotiation Portion) –State Term Contract for Paper Gwenn Godfrey, Chief,

Purchasing Directors’ MeetingFebruary 19, 2009

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• Agenda• Introduction – 44A (Renegotiation Portion)

– State Term Contract for Paper

• Gwenn Godfrey, Chief, Bureau of General Services,Florida Department of Environmental Protection– Renegotiation of Contracts at FDEP

• Tony Garcia, Departmental Purchasing Director, Department of Management Services– Renegotiation of Contracts in Departmental Purchasing at DMS– Negotiation Strategies and Tactics

• Charles Covington – Hot Topics

• Reminder About Next Meeting Date


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S.B. 44A (Renegotiation Portion)

Excerpts from S.B. 44A:

…review existing and proposed contracts for the purpose of reducing contract payments; authorizing agencies to renegotiate contracts;…

Section 1. Notwithstanding any provision of law to the contrary, each state agency shall review existing and proposed contracts with private providers and public-private providers in an effort to reduce contract payments. It is the statewide goal to achieve substantial savings; however, it is the intent of the Legislature that the level and quality of services not be affected. Each agency may renegotiate contracts consistent with this section. The Legislature intends that its substantive and fiscal committees will review the results of this effort and the effectiveness of each agency in meeting the goal. This section expires July 1, 2009.

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Chapter 287, Florida StatutesNegotiation Process

Quick Look at Invitations to Negotiate

287.057(3)(a), F.S.

• If an ITB or RFP won’t result in best value, ITN can be used.

• Agency must explain why negotiation may be necessary in order for the state to achieve the best value.

• Evaluate and rank and then select which to commence negotiations.

• Award the contract to the responsible and responsive vendor that the agency determines will provide the best value to the state.

• Award memo - file must contain a short plain statement that explains the basis for vendor selection and sets forth the vendor's deliverables and price, and why this vendor offers the best value.

287.012(4), Florida Statutes:

(4) "Best value" means the highest overall value to the state based on objective factors that include, but are not limited to, price, quality, design, and workmanship.

Definition of “Best Value”

Procurement TimelineProcurement TimelineB

ID D

EVEL

OPM

ENT

BID

REL

EASE

D

INTE

NT

TO A

WA

RD

PO

STED

FIN

AL

OR

DER

Bid Development1 – 12+ months

Competitive Bid2 – 4+ months

Protest2 – 4+ months

Que

stio

n an

d An

swer

Pha

se

Res

pons

es R

ecei

ved

and

Eval

uate

d

Neg

otia

tion

in a

n IT

N

Age

ncy

Dec

ides

to U

se IT

N

Relationship Between the ITN, Negotiations and the Contract

• Style of Negotiations May Vary

• Concurrent vs. Serial Negotiations– What does the ITN say?

• Form and Substance

• Flexibility

• Think on Your Feet

Observations regarding ITN Negotiations

The First Negotiation Session• Introduction• Best value• Expectations • Initial Issue Identification• Concerns

– 119– 286

• Presentation• Q&A / Preliminary Negotiations

After the first round…

• Email or other written verification or resolution of issues

• Subsequent negotiations (in person or telephonic)– Recorded in full

• Best and final offer

• Memo

Goal:

Achieve the “best value” for the state.

Related Issues

• Certified Negotiator

• Project Management Professional

287.057(17)(b), Florida Statutes

• Temporary Rebid Exemption

• Trade Secret and Confidential Information

• Recording Negotiations

Public Meetings and Public Records Issues

Final Thoughts

• Ask questions

• Ask for clarification

• Get it in writing (and make sure it ends up in the final contract)

• Clearly resolve issues and move on to remaining ones

• Price / BAFO

• Public Meetings - final, fact finding, strategy (Silver Express)

Disclaimer

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Next Meeting

March 19, 2009

2:00 – 4:00 pm

Documents

Purchasing Directors’ Meeting February 19, 2009. 2 Agenda Introduction – 44A (Renegotiation Portion) –State Term Contract for Paper Gwenn Godfrey, Chief,