Decisions, Decisions, and still more
Decisions
Tom Mayer
Jason Soza
Paul Mash
Steve Perlstein
Lifts
Director
State of Alaska
CPO
State of Alaska
Asst. Director
State of Utah
Gov. Sales Manager
Mohawk
Why are we here?
• Partnering
• Education and Training
• Networking
The definition of a decision……….
• A choice that you make about something
after thinking about it: the result of
deciding
• The ability to make choices quickly and
confidently
What do you need to make a Decision
“The great thing about fact-based
decisions is that they overrule the
hierarchy”. Jeff Bezos
How do you make decisions…
“It’s not hard to make decisions when you
know what your values are”. Roy Disney
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Integrity
Honesty
Fairness
Professionalism
When do you make a decision…
“When a decision has to be made, make it.
There is no totally right time for anything”.
General George Patton
What drives the decisions for government
procurements?
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Political Issues
Time
Specifications
Vendor Pool
Regional Coverage
Who Makes the Decisions?
• The States
• The Cooperative Organizations
• The Vendor Community
State Decision Points
• What is the total cost of ownership?
• Is there funding?
State Decision Points
• Is it a want or a need?
• Does an existing contract vehicle
exist?
State Decision Points
• Can we aggregate our needs with
others in a cooperative purchase?
• Do we have the time and resources?
State Decision Points
• What are the risks?
• What solicitation method do we use?
State Decision Points
• Is there volume, demand, and are the
potential savings worth procuring &
administering the contract?
Cooperative Organization Decision Points
• Commodity Identification
• Can we staff it adequately?
• Can we enlist external procurement
units?
Cooperative Organization Decision Points
• Is it conducive to a Cooperative?
• Are there enough bidders to ensure
competition?
• Can the supplier base meet the large
demand?
Cooperative Organization Decision Points
• Are there any potential distribution
issues?
• Who needs the item or service?
• How often is the item or service needed?
Cooperative Organization Decision Points
• Survey of the buyers to validate the
research
• Develop a Sourcing Team
• Creating the solicitation
Cooperative Organization Decision Points
• Advertise the Opportunity to the
Vendor Community
• Local Vendor considerations
• Evaluation and Award
Cooperative Organization Decision Points
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Contract Administration
Contract Utilization analysis
Contract expansion
Are the Buyers Happy with the Contract?
Cooperative Organization Decision Points
• Are the Suppliers Happy with the
Contract?
• Spend Volume vs. Administration Costs
• Price comparison to market and spot buy
Cooperative Organization Decision Points
• Are the Suppliers Happy with the
Contract?
• Spend Volume vs. Administration Costs
• Price comparison to market and spot buy
Vendor Decision Points
• Can my company make money on this
contract?
Vendor Decision Points
• What about my dealer network?
Vendor Decision Points
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Can my company support this contract?
Vendor Decision Points
• Can I meet the reporting
requirements?
Vendor Decision Points
• Can my company meet the T’s & C’s?
-50 States
-50 State Procurement Attorneys
-50 Interpretations
Vendor Decision Points
• Can my company meet the delivery
time requirements?
Vendor Decision Points
• How much business will this contact
bring my company?
OR
Vendor Decision Points
• Will my sales force buy in?
Vendor Decision Points
• Will it be a turn key contract?
Vendor Decision Points
• Does the contract include everything
my client needs?
• Legal and contractual obligations to
dealer network
Some thoughts on making decisions……
• Collect the data
• Look at all the angles
• Consider how your decisions affect others in
the chain
• Can you pass the red face test
• Questions?