best practices procurement California Association of Public Procurement Officials.
Print Page   |   Sign In   |   Register
Global Procurement Best Practices
Share |


There are three primary audit types: compliance, financial, and performance. Preparation for an audit through regularly conducted self-assessments ensures that procurement professionals can readily provide up-to-date documents and data that may be requested by an auditor. Participating in an audit helps an agency’s procurement staff maintain a professional approach that promotes effective stewardship of public funds and best value for the constituents served by the agency.


Cooperative Contracts for Public Procurement
Cooperative Procurement is a term that refers to the combining of requirements of two or more public procurement entities to leverage the benefits of volume purchases, delivery and supply chain advantages, best practices, and the reduction of administrative time and expenses. Cooperative procurement efforts may result in contracts that other entities may “piggyback”.


Cybersecurity for Procurement
The significance of cybersecurity has grown in recent years as a result of the increased frequency, size, and visibility of breaches in the realms of business and politics. Even as the importance of strong passwords, multi-factor authentication, and phishing awareness have become common knowledge, threats and their associated risks continue to evolve


Developing Evaluation Criteria
Before issuing the solicitation, procurement professionals and applicable stake-holders must establish the criteria by which the resulting bids or proposals will be evaluated. Once the appropriate procurement method is selected, criteria should be established to evaluate bids or proposals for the most economically advantageous offer for the contracting authority, or for the lowest price.


Developing a Procurement Policy Manual
A policy is a governing set of principles which establish the general parameters for an organization to follow in carrying out its responsibilities.



Historically, the terms scope of workand statement of workhave been used interchangeably, inconsistently, or in contradictory ways. Some entities have specifically defined these terms for their own usage. As a result, definitions that form the basis for discussions and clear, more universal guidance must be established. This practice provides those definitions, distinguishes between the two terms, and sets a standard for how these terms are used in the professional language of public procurement.


Ethical Procurement
Ethical procurement prohibits breach of the public’s trust by discouraging a public employee from attempting to realize personal gain through conduct inconsistent with the proper discharge of the employee’s duties.


Evaluation Process
The receipt, opening, and evaluation of requested documentation from potential suppliers must be carried out by a competent evaluation panel and in accordance with all applicable laws, as well as the principles of impartiality and transparency. Those involved in the process must maintain integrity and professionalism in all aspects of evaluation. All submissions received must be kept secure during the evaluation process. The confidentiality of the submitted documents must also be maintained subject only to applicable freedom of information or public records legislation.


An Invitation for Bids (IFB) procurement method may be chosen when requirements are known and the award is based primarily on price, which can include total cost of ownership. This expansion of low price only to consideration of the total life cycle in determining the best price is noteworthy in terms of future trends in sourcing. The ABA Model Procurement Code calls the IFB method of source selection “Competitive Sealed Bidding.” This practice document differentiates between an IFB, which is the solicitation document, and the competitive sealed bid (referred to as a “bid”), which is the response to the IFB. To be eligible for recommendation of award, a bid must be “responsive” and the bidder must be “responsible.” For procurements that fit the criteria for use of an IFB, adherence to the practice guidance supports the procurement professional in navigating a successful IFB process and the achievement of desired outcomes.



Procuring IT requires “the involvement of all key stakeholders at an early stage (procurement, legal, budget/finance, security, IT, and business leadership).”  (Kelly et al., 2015). Knowledge of the specific IT area for the commodity being procured, including terminology and attributes, is essential.  Procurement must also be familiar with laws and entity policies, processes, and procedures that guide the procurement.



The first practice on IT Procurement provided an overview of the four commodity types of software, hardware, services, and support and maintenance. This practice, number two in the series, takes a closer look at IT software procurement and its unique considerations such as licensing, source code, and data ownership.



Procurement should use solicitation templates specifically developed for the procurement of IT hardware. The procurement professional must take the highly technical information inherent in IT procurements and communicate it clearly and effectively in solicitations, negotiations, contracts, and during implementation.



IT services include suppliers that assess entity needs, challenges, and ways to improve systems;
write software code; process data; document the existing environment; conduct system cleanup;
implement new or updated systems; and migrate old systems to new. Oftentimes, support and
maintenance services require consultants with very narrow fields of interest, such as cyber
security, telecommunications, IT efficiency, disaster recovery, and software specific


Market Research Process (NEW)

The public procurement professional is responsible for conducting the Market Research Process,
which is comprised of three distinct activities:
   1. Market Research
   2. Market Analysis
   3. Market Intelligence

The Market Research Process is critical because it provides the procurement professional with
relevant and current information to make the most appropriate decision regarding the
procurement of commodities and construction.


Lease Purchase Decision
Lease-Purchase Decision is a decision based on the results of a cost/benefit analysis of the costs to own, costs to lease, and the advantages and disadvantages of any relevant qualitative factors. (ISM, 2000).


Outsourcing: An informed decision by an organization to contract outside of the organization for a product, service or business process that had previously been provided internally (in-house).

Performance Based Contracting

Performance Based Contracting is a results-oriented contracting method that focuses on the outputs, quality, or outcomes that may tie at least a portion of a contractor’s payment, contract extensions, or contract renewals to the achievement of specific, measurable performance standards and requirements. These contracts may include both monetary and non-monetary incentives and disincentives.


Performance Management
Performance management is an ongoing, systematic approach to improving results through evidence-based decision making, continuous organizational learning, and a focus on accountability for performance. Performance management is integrated into all aspects of an organization’s management and policy-making processes, aligning an organization’s practices so it is focused on achieving improved results for the public.


Performance Measurement
Performance measurement is the process by which procurement establishes criteria, based on strategic planning goals, for determining the results and quality of its activities. It involves creating a simple, effective system for determining whether procurement is meeting its objectives.

Performance Metrics

Performance Metrics is the term given to the measurement of performance. An analytical application of measurements that allows comparison of performance standards.

A protest is defined as a written objection by an interested party to a solicitation or an award of a contract with the intention of receiving a remedial result. Procurement must ensure that a protest policy is established and documented for the entity. Understanding the context and motivation for the filing of a protest may be as important as the specific protest issue. The procurement professional should ensure that the legal department or legal counsel is aware of and may advise on action regarding protests. Throughout the solicitation process, Procurement and stakeholders should employ procurement best practices that promote transparency, accountability, and maximize competition. Conducting a protest closeout assessment after a protest has been resolved supports continual improvement in the procurement process.


Public-Private Partnership (P3): Facilities and Infrastructure
P3s are procurements that combine design and build components under one contract between the public sector and the private sector. This practice provides guidance to the public procurement professional who is considering a Public-Private Partnership (P3) as an appropriate solution to a stated need or requirement. It defines P3s in the context of the construction of public facilities and infrastructure and is intended as a reference, to be shared with elected public officials, government executives, and private sector executives on the use of and procurement through P3 contracts.


Qualifications-Based Selection for Architectural and Engineering Services
Qualifications-Based Selection (QBS) is a procurement process for the competitive selection of architectural and engineering services under which the most appropriate professional or firm is selected based on qualifications such as knowledge, skill, experience, and other project-specific factors, rather than on fees. Fair and reasonable fees are negotiated with the top-ranked firm for an agreed-upon scope of services.

Risk Management
Risk management is a process including the identification and analysis of risk; and the decision to either accept or mitigate the exposure to such risk when compared to the potential impact on the achievement of the organization’s objectives.


Request for Proposal (NEW)

The guidance in this practice is offered to clarify terminology, identify factors favorable to
issuing an RFP, and conduct a procurement from development of the RFP through contract
award. It is recommended that this practice be read in conjunction with “The Evaluation Process for
a Request for Proposals” and “Developing Evaluation Criteria”.


Selecting the Appropriate Construction Project Delivery Method

Selection of a construction project delivery method will depend on which delivery methods are permitted by legislation and will be determined through a business analysis of the project characteristics. Project characteristics may include price, complexity of scope, risk, and qualifications, experience, capability, and capacity of the contractor. The attributes of each project characteristic and the priorities of the entity will also help determine which method is selected.


Specifications define precise requirements of commodities (i.e., goods and services) sought through a solicitation process. To understand the context in which the commodity will be used and with clear knowledge of statutes, regulations, policies, market availability, budget, and the strategic plan of the entity, procurement professionals collaborate with end users to translate a particular need into detailed requirements. Written with an intent to maximize competition, specifications should use language that is relevant to and understood by potential offerors.

Spend Analysis
Spend Analysis is the process of collecting, cleansing, classifying and analyzing expenditure data from all sources within the organization (i.e. purchasing card, eProcurement systems, etc.). The process analyzes the current, past and forecasted expenditures to allow visibility of data by supplier, by commodity or service, and by department within the organization. Spend analysis can be used to make future management decisions by providing answers to such questions as: what was bought; when was it bought; where was it purchased; how many suppliers were used and how much was spent with each; how much was paid for the item.


Strategic Procurement Planning
Strategic planning is the process of creating alignment and consistency of action that results in documents that establish the long-range objectives and overall strategy or course of action by which an organization fulfills its mission.

Strategic Procurement Planning (SP2) is the transformation of an organization’s mission, goals, and objectives into measurable activities to be used to plan, budget, and manage the procurement function within the organization. The ultimate goal is to bring about positive change in organizational culture, systems, and operational processes.

Supplier Relationship Management (SRM)
Supplier Relationship Management (also called Vendor Relationship Management) is a set of principles, processes, and tools that can assist organizations to maximize relationship value with suppliers and minimize risk and management of overhead through the entire supplier relationship life cycle.Supplier Relationship Management has two aspects, which are: clear commitment between the supplier and the buyer, and the objective of understanding, agreeing, and whenever possible, codifying the interactions between them.


Sustainable Procurement Practice
Sustainable procurement is a purchasing and investment process that takes into account the economic, environmental and social impacts of the entity’s spending. Sustainable procurement allows organizations to meet their needs for goods, services, construction works and utilities in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organization, but also to society and the economy, while remaining within the carrying capacity of the environment”.


The Place of Public Procurement Within the Entity
The placement of Procurement should be operationally distinct from other departments and divisions. The 'Place of Procurement' refers to positioning Procurement within the entity to optimize the influence and impact of Procurement on internal and external stakeholders.

This best practice builds a case for the strategic placement of the Procurement function. This placement maximizes the effectiveness of Procurement within the entity and is critical for the entity to fully benefit from Procurement operations.


Procurement Technology helps accelerate business improvements. It allows for the making, modification, usage, and knowledge of tools, machines, techniques, crafts, systems, or methods of organization, to solve a problem, improve a pre-existing solution, achieve a goal, or perform a specific function in relation to procurement and the procurement process.


Transparency in Public Procurement
Transparency can be defined as timely, easily understood access to information. Transparency assists in ensuring that any deviations from fair and equal treatment are detected very early, and makes such deviations less likely to occur. It protects the integrity of the process and the interest of the organization, stakeholders, and the public.


Best Practices

More InfoHide Info ]
procurement global best practices provide definitions, context, and guidance on relevant public procurement topics. They result from collaboration by and input from content experts and are subject to public review.
Item Name Posted By Date Posted
Audits.pdf PDF (321.52 KB) Administration 8/8/2018
Cooperative Contracts.pdf PDF (101.25 KB)  more ] Administration 2/28/2018
Cybersecurity for Procurement PDF (302.62 KB) Administration 4/30/2020
Developing a Procurement Manual.pdf PDF (129.45 KB)  more ] Administration 2/28/2018
Developing Evaluation Criteria.pdf PDF (133.22 KB) Administration 12/7/2016
Distinguishing Between SCOPE AND STATEMENT Work PDF (157.13 KB)  more ] Administration 2/28/2018
Ethical Procurement.pdf PDF (133.39 KB) Administration 12/7/2016
Evaluation Process.pdf PDF (197.35 KB) Administration 12/7/2016
Invitation to Bid.pdf PDF (258.69 KB) Administration 3/21/2018
IT Procurement.pdf PDF (267.54 KB)  more ] Administration 2/28/2018
IT Software Procurement.pdf PDF (279.42 KB)  more ] Administration 2/28/2018
IT_Procurement_Series_3_Hardware_Final_2.pdf PDF (154.53 KB) Administration 1/28/2019
IT Procurement #4 (Services/Support/Maint./Cloud) PDF (193.02 KB) Administration 7/24/2019
Outsourcing.pdf PDF (130.66 KB) Administration 12/7/2016
Lease-Purchase Decision.pdf PDF (194.04 KB) Administration 12/7/2016
market-research-global-best-practice.pdf PDF (268.82 KB) Administration 8/14/2019
Performance Based Contracting.pdf PDF (136.35 KB) Administration 12/7/2016
Performance Management.pdf PDF (145.28 KB) Administration 12/7/2016
Performance Measurement.pdf PDF (94.38 KB) Administration 12/7/2016
Performance Metrics.pdf PDF (124.43 KB) Administration 12/7/2016
Protests.pdf PDF (154.13 KB) Administration 12/7/2016
Public-Private Partnership (P3) Facilities and.pdf PDF (653.93 KB) Administration 12/7/2016
Qualifications Based Selection.pdf PDF (132.31 KB) Administration 12/7/2016
Risk Management.pdf PDF (160.72 KB) Administration 12/7/2016
rfp-practice3.pdf PDF (254.92 KB) Administration 8/14/2019
Selecting the Appropriate Construction Project.pdf PDF (295.58 KB) Administration 7/10/2018
Specifications.pdf PDF (256.89 KB) Administration 12/7/2016
Spend Analysis.pdf PDF (132.23 KB) Administration 12/7/2016
Strategic Procurement Planning.pdf PDF (96.98 KB) Administration 12/7/2016
Supplier Relationship Management.pdf PDF (153.76 KB) Administration 12/7/2016
Sustainable Procurement.pdf PDF (131.17 KB) Administration 12/7/2016
The Place of Public Procurement within Entiry.pdf PDF (206.66 KB) Administration 12/7/2016
Technology Public Procurement.pdf PDF (131.66 KB) Administration 12/7/2016
Transparency.pdf PDF (122.07 KB) Administration 12/7/2016
3121 Park Avenue, Ste C
Soquel, CA 95073
(831) 464-4896
Copyright 2020

Follow @Cappo_Inc
Association Management Software Powered by YourMembership  ::  Legal