Certified Procurement Officer Training Overview

Online Certified Procurement Officer Training Module 1 1

Certified Procurement Officer Online Classes The purpose of this course is toprovide: The hierarchy of legislationand procurement rules. Foundational understanding of procurement and acquisition processes in state procurement. 2

Online Training Class Instructions Take each of the modules in order. Do not proceed to the next module until the module is thoroughly understood and notes have been written by you. They build upon each other. Be sure to pay close attention to learner outcomes for each module. Regardless of whether you have been a CPO in the past, you are required to understand all of the modules before proceeding. 3

Beneficial Resources The OklahomaCentral Purchasing Act Anti-Kickback Act of1974. Universal Public Procurement Certification Council (UPPCC) Code of Ethics American BarAssociation State and Local Model ProcurementCode Central Purchasing AdministrativeRules State and Local Government Procurement: A Practical Guide (National Association of State Procurement Officials) 4

Introduction to Procurement 5

Learner Outcomes Students will: Recall the definition of procurement. Memorize good business practices. Recognize the primary objective to public procurement. Define fiduciary duty. Recall barriers to maximum competition causing smaller bidders to be unable to compete. Memorize the differences between public sector and private sector purchasing. Recall the three things that govern public procurement. 6

What Does ProcurementMean? Procurement Purchasing, renting, leasing or otherwise acquiring any supplies, services or construction; includes all functions that pertain to the acquisition, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration. 7

What Does Procurement Mean? Procurement (cont.) The combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, storekeeping, salvage and disposal operations. NASPO State and Local Government Procurement A Practical Guide 8

Procurement:Accountability Public procurement professionals are held accountable for the use of public funds (tax dollars) entrusted to them. They are held to a high standard of record keeping, transparency and management of these funds. 9

Procurement: Good Business Practices Good business practices include: Requirement of good faith. Fiduciaryduty. Advancing the state sinterests. Avoiding conflicts of interest. 10

Procurement: Good Business Practices Requirement of Good Faith All parties involved in the negotiation, performance or administration of Oklahoma contracts must act in good faith. Each party must act with honesty and integrity and should not attempt to deceive or defraud another party. 11

Fiduciary Duty An individuals obligation to serve the best interests of selected stakeholders, especially those of their employer. NASPO State and Local Government Procurement A Practical Guide In your case, the taxpayers are your stakeholders, and the state not your agency is your employer. 12

Procurement: Good Business Practices Fiduciary Duty All public procurement professionals play an important role in ensuring that needed goods and services are procured in an efficient and economical manner. The public procurement professional is responsible for developing contracts at competitive prices to avoid waste and deliver the best value to the employer and to Oklahoma citizens. 13

Procurement: Good Business Practices Advancing the State s Interest The public procurement professional must strive to understand the strategic mission of the state and the agency for which they work. They should always be working for the best way to use public funds or work with existing resources to best fulfill those missions at the best value to the public. 14

Procurement: Good Business Practices Avoiding Conflicts of Interest All public procurement professionals must comply with their employer s guidelines with respect to reporting outside employment. 15

Procurement: Good Business Practices Avoiding Conflicts of Interest The public procurement professional should avoid any actions, relationships or business transactions that: Conflict with the lawful interests of the employer. Otherwise create conflicts of interest that taint the procurementprocess. the reputation of the state entity. the reputation of the State of Oklahoma. 16

Primary Objective of Public Procurement To satisfy the minimum need of the organization 17

PublicProcurement Public procurement The designated legal authority to advise, plan, obtain, deliver, and evaluate a government s expenditures on goods and services that are used to fulfill stated objectives, obligations and activities pursuant of desired policy outcomes. NASPO State and Local Government Procurement A Practical Guide 18

PublicProcurement Public procurement is governed by: Federal regulations FederalConstitution. Federal Law. Federal Rules. Agency regulations Agency Laws. Agency Procedures. Agency Policies. State regulations State Constitution. State Law. State Rules. 19

PublicProcurement In performing the duty of representing the taxpayers interests, public procurement officers must carry out their work in a transparent way and in accordance with laws, rules and policies, while all the time attempting to get the greatest competition. Barriers to maximum competition include making solicitations unnecessarily restrictive and bundling items or services so that smaller bidders are unable to compete. An example is requiring a statewide two-hour response time on a maintenance contract that restricts the award to one vendor. A multiple-award option increases competition. 20

PublicProcurement Primary stakeholders in the purchasing process are citizens, customer agencies, bidders, suppliers, elected and appointed officials, and the purchasing staff. They operate as a team. 21

PublicProcurement It s importantthat all stakeholders work together for the benefit of the state. We, in public procurement, are expected to: Provide the most efficient use of the taxpayers money. Provide the goods and services needed by the state to care for its citizens. Provide for the essential functions ofgovernment. 22

Private Sector vs. Public Sector Public procurement can be considered a special type of business-to-business (B2B) transaction. In our case it is government-to-business (G2B). Public purchasing is a central area of public spending where corruption stakes are high. All forms of corruption thrive on secrecy and silence. This makes the role of transparency very critical. 23

How is it Different? Be alert to The source of authority (statutes and rules). The delegation of that authority. In the private sector, a buyer can do whatever is not prohibited by law. In the public sector, a buyer can do ONLY what is authorized by law and implementing rules. 24

How is it Different? Among other things, public procurement law: Restricts contact between the procuring organization and bidders or suppliers in some phases of the procurement process. Opens the possibility to appeal to the courts if any party considers that the procuring organization has not acted in accordance with public procurement rules. 25

How is it Different? Did the public procurement transaction take place in accordance with: Statutes? Rules? The way the solicitation indicated it would? 26

How is it Different? Did the public procurement transaction take place in accordance with: Statutes? Rules? The way the solicitation indicated it would? Did we do what we said we would do? 27

How is it Different? Public Procurement Law Prohibits those involved in public procurement from accepting most things of value. Holds those in public procurement to a higher standard than state agency program staff or administrators (unless they are involved in award of acquisitions) and the private sector. 10 28

CONTINUE TO MODULE 2 29