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Interim Internal Purchasing Guidelines > 4 Purchasing > 4.2 The Purchasing Process
A certain amount of planning is central to the success of any purchase. See
Chapter 2 for information regarding purchase planning, supplier-selection
strategies, contract types, etc.
4.2.2.a General. The solicitation should clearly state the needs of the Postal Service
and clearly communicate how proposals will be evaluated, including whether
extra evaluation credit may be given for technical solutions that exceed the
requirements of the solicitation (see 2.1.7.b.3). If oral presentations (see
4.2.4) will be part of the evaluation, suppliers should be made aware of what
will be discussed (including price, if applicable) during the presentations.
4.2.2.b Types. Solicitations for proposals or quotations may be done in writing or
orally.
1. Written Solicitations. Because written solicitations provide a clearer
understanding of the requirement, they should be used whenever
practicable. Purchasing teams are strongly encouraged to consider the
use of oral presentations to reduce cycle times and improve
understanding of proposals. Form 8203, Order/Solicitation/Offer/Award,
or equivalent should be used as the request for proposal and
subsequent contract.
2. Oral Solicitations. An oral solicitation may be used when a written
solicitation would be impracticable, as when processing a written
solicitation would cause a delay detrimental to the Postal Service, or a
standing price quotation is being verified. In these cases, Form 8203 is
used as a purchase order.
3. Standing Price Quotations. When it is the practice for suppliers to
furnish standing price quotations on supplies or services required on a
recurring basis, this information may be used instead of issuing a
written solicitation for each purchase. In such cases, the contracting
officer must ensure that the price information is current and that the
Postal Service obtains the benefit of the suppliers' trade discounts.
4.2.2.c Publicizing. See 3.4.3.
4.2.2.d Draft Solicitations. In order to further ensure the clarity and completeness of
solicitations, purchase teams should consider circulating draft solicitations
within the particular supplier community for review and comment. In addition,
solicitations for information or planning purposes may be justified; in such
cases, the solicitation must contain Provision A-2, Solicitation for Information
or Planning Purposes. Purchase teams may also consider issuing
presolicitation notices (see 3.5.3.b).
4.2.2.e Solicitation Provisions. Provisions 4-1, Standard Solicitation Provisions, 4-2,
Evaluation, and 4-3, Representations and Certifications, form the basic
documentation of Postal Service solicitations. Provision 4-1 may be modified,
added to, or supplemented when the purchase team determines that doing
so will add to the success of the purchase, as may paragraphs (b.) and (c.) of
Provision 4-2; when doing so, purchase teams must consult assigned
counsel, unless the purchase team intends only to replace any paragraph of
either provision with a provision included in Appendix A addressing the same
subject matter as the paragraph replaced. The fill-in portions of paragraph
(a.) of Provision 4-2 also may be completed without consultation, but counsel
should always be consulted when the evaluation scheme included in this
paragraph is unusual, particularly complex, or circumstances of the purchase
otherwise suggest that consultation is advisable. Provision 4-3 may not be
modified, added to, or supplemented.
4.2.2.f Proposal Preparation Time. Consistent with the objectives of the purchase
(including whether the solicitation will be competed among prequalified
suppliers only), solicitations must allow sufficient time for suppliers to prepare
and submit proposals.
1. When the competitive purchase method will be used, enough suppliers
should be solicited to ensure adequate competition. In addition,
contracting officers should make a reasonable effort to provide copies
of solicitations to any supplier requesting one. If the requirement is
being competed among prequalified suppliers, suppliers not on the
prequalification list may be provided a copy of the solicitation, but they
must be explicitly told that the Postal Service plans to award the
resulting contract to a supplier on the prequalification list. Requests for
copies may be denied once a reasonable number of copies have been
distributed to the solicited suppliers and others who have requested
them. In their role as business leader of the purchasing process,
contracting officers should fully explain to suppliers the unavailability of
solicitations.
2. Alternatively, the contracting officer may make available through
FedBizOpps (www.fedbizops.gov), the Governmentwide Point of Entry
(GPE), solicitations publicized through the GPE (see 3.5.3.b), including
specifications and other pertinent information determined necessary by
the contracting officer. When practicable and cost effective, the
contracting officer may make additional solicitation-related information
accessible through the GPE.
3. When a solicitation or solicitation package is so voluminous that it is
impracticable to reproduce a reasonable number of copies for those
requesting them, a limited number of copies should be made available
for sale; the cost should include the cost of reproduction and postage.
1. Whenever circumstances suggest that it would add to the success of
the purchase, such as when a solicitation contains complicated
specifications or statements of work, a preproposal conference may be
held to brief suppliers. Notice of the preproposal conference should be
contained in the solicitation. If time allows, suppliers should be allowed
to submit written questions in advance, so that prepared answers may
be distributed at the conference.
2. The entire purchase team should attend the conference. The
contracting officer or a designated representative must conduct the
conference, with the assistance of the purchase team and assigned
counsel, as appropriate.
3. A record of the conference must be furnished to all of the suppliers who
received the solicitation. Because the role of that record is to ensure
that all prospective suppliers fully understand the Postal Service's intent
with respect to the purchase, and not necessarily to provide a verbatim
reconstruction of the conference, the record may be edited for clarity
and brevity and corrected where necessary.
1. Solicitations must be amended when changes such as quantity,
specifications, delivery schedule, date of receipt of proposals, or
changes to clarify or correct solicitation ambiguities or defects are
necessary. When solicitations are amended, suppliers must be
provided sufficient time to consider the amendment in the preparation
or revision of their proposals. When it is necessary to give notification of
a change by telephone or some other means, confirmation by written
amendment must follow.
2. When deciding which suppliers are affected by a change, contracting
officers should consider the stage of the purchase:
(a) If proposals are not yet due, the amendment must be sent to all
suppliers who received the solicitation; if the solicitation had been
previously posted, the amendment must be similarly posted.
(b) If the time for receipt of proposals has passed but proposals have
not been evaluated, the amendment must be sent to the suppliers
who provided proposals.
4.2.2.j Cancellation of Solicitations. As the solicitation process is costly both to the
Postal Service and suppliers, solicitations should be canceled for only the
most compelling reasons and cancellation should be made as early in the
process as cancellation, and must be sent to all of the suppliers who received
the solicitation. If the solicitation is canceled before the date for receipt of
proposals, any proposals received must be returned unopened to the
suppliers.
1. General
(a) As business leader of the purchase team, the contracting officer
is granted broad discretion regarding the release of information
during the purchasing process. In doing so, the contracting officer
must take care that the integrity of the process is not
compromised. Generally, it makes good business sense for
potential suppliers to be as informed as possible during the
process.
(b) If, during the purchasing process, the contracting officer
determines that dissemination of information is necessary to
enhance competition or otherwise improve the effectiveness of
the purchase, the information should be released. Depending on
the nature of the information, it may be released as an
amendment to the solicitation or as general information given out
for the purpose of clarification. Again, the contracting officer must
consider the stage of the purchase and the potential for
compromising the integrity of the purchasing process.
2. After Receipt of Proposals
(a) Information concerning the content of proposals or the number or
identity of suppliers may not be disclosed outside the Postal
Service, except when necessary for proposal evaluation, or to
anyone in the Postal Service not having a legitimate interest.
(b) During the preaward period, only the contracting officer, the
contracting officer's supervisor having contracting authority, the
purchase team or the evaluation team (see 4.2.5.b) may transmit
technical or other information and conduct discussions with
suppliers. Information may not be furnished to any supplier if,
alone or together with other information, it may afford that
supplier an advantage over other suppliers. However, general
information that is not prejudicial to other suppliers or to the
integrity of the purchasing process may be furnished upon
request.
(c) Depending on the nature of the purchase, suppliers may place
restrictions on the disclosure and use of data contained in their
proposals. When it is anticipated that suppliers will wish to use
such restrictions, purchase teams should include Provision A-1,
Restriction on Disclosure and Use of Data, in the solicitation. The
portions of the proposal that are so restricted (except for
information obtainable from another source without restriction)
must be used only for evaluation and may not be disclosed
outside the Postal Service, except when necessary for proposal
evaluation, without the permission of the offeror.3.
3. Release of Solicitation Mailing Lists. Solicitation mailing lists may be
released when the contracting officer deems a purchase highly
competitive and that competition will not be harmed by the release. The
contracting officer should also consider the potential for subcontracting
opportunities when considering releasing the list.
4.2.3.a General. Proposals must be marked with the date and time of receipt, and
kept secure until they are provided to the evaluation team.
4.2.3.b Modification and Withdrawal. Proposals may be modified or withdrawn by
written or electronic notice before the specific contract is awarded.
1. Proposals and modifications of proposals are late if received after the
date and time established in the solicitation for receipt of proposals.
This does not include the normal revisions of proposals made by a
supplier during discussions (see 4.2.5.c).
2. Late proposals and modifications may be considered in accordance
with paragraph e of Provision 4-1. It is normally in the interest of the
Postal Service to consider a late proposal when doing so would not
cause a delay in the evaluation process, or the proposal was late
because of mishandling after receipt, or the proposal offers a significant
cost, quality, or technical benefit. It is not in the interest of the Postal
Service to consider any proposal received so late that its consideration
would jeopardize, or give the appearance of jeopardizing, the integrity
of the purchasing process.
3. When a late proposal or modification is not considered, the supplier
must be given written notification that its proposal or modification was
received late and was not considered.
4. Each late proposal must be retained in the solicitation file with a
statement as to whether it was considered, and the rationale as to why
or why not.
4.2.3.d Failure to Acknowledge Amendments. Generally, it is in the Postal Service's
interest that suppliers be as informed as possible. Therefore, if a supplier fails
to acknowledge a solicitation amendment, or if a proposal contains a
suspected mistake, the contracting officer should question the suppler as to
the matter. Suppliers should be granted the opportunity to address
amendments or correct mistakes if doing so will enhance competition and not
otherwise compromise the integrity of the purchasing process.
4.2.4.a General. Oral presentations are a performance evaluation method (see 4.2.5)
used to evaluate a supplier's experience, ability, and proposed method to
perform the work called for in the solicitation. As a general rule, their use can
speed up the evaluation process and provide a better picture of both the
suppliers understanding of the solicitation requirements and its proposed
approach to meeting the Postal Service's needs. During oral presentations
suppliers may address any or all of a solicitation's performance evaluation
factors (see 2.1.9).
4.2.4.b Discussions. Discussions (see 4.2.5.c) are encouraged during oral
presentations in order that the suppler gain a better understanding of the
Postal Service's expectations and the Postal Service gain a better
understanding of the supplier's abilities. The contracting officer, as business
leader of the purchase team, must ensure that all suppliers taking part in oral
presentation are treated fairly and that any proprietary information presented
is protected. Contracting officers must also ensure that any understanding
reached as a result of discussions taking place during oral presentations are
reflected in the final contract.
1. Purpose. Performance evaluation is a two-step process: (a) evaluation
of individual proposals in relation to the solicitation's stated
performance evaluation factors; and (b) comparative evaluation of the
individual proposals in relation to each other in order to judge each
proposal's relative value. Either of these steps may include discussions
with suppliers (see 4.2.5.c). Depending on the quality of the proposals
received, performance evaluation may be an interactive process
through which the Postal Service determines which supplier or
suppliers offers the best value, and most merits contract award.
2. Individual Evaluation. The first step consists of analyzing an individual
proposal's strengths, weaknesses, and risks, and documenting
conclusions reached regarding the proposal. This narrative should be
prepared simultaneously with the scoring and, in addition to
documenting the proposal's strengths, weaknesses, and risk, must
provide the evaluation team's rationale for a particular supplier's score.
Proposed prices may also be examined and evaluated in order to gain
an understanding of the supplier's approach to the purchase and its
grasp of the resources needed for successful performance. The team
must arrive at a consensus decision for each proposal and should do
so as soon as possible after review and evaluation.
3. Comparative Evaluation. The second step of the process requires the
comparison of the relative value offered by each proposal in relation to
its competitors. This comparison of proposals is extremely important
and must describe the differences between proposals and assess the
value of the differences or the impact that the differences will have on
the Postal Service.
1. Purchase Team. The purchase team is responsible for the overall
direction of the purchase. This includes establishing the purchase plan
and the supplier-selection strategy, and determining which supplier or
suppliers offer the best value to the Postal Service (however, see
4.2.5.d.1). In all of these functions, the contracting officer heads the
team.
2. Evaluation Team. The evaluation team is responsible for evaluating and
comparing the relative worth or value of competitive proposals in
accordance with the supplier-selection strategy developed for the
purchase. Selected members of the purchase team (including the
contracting officer, and others, if warranted) make up the evaluation
team. Evaluation teams judge the relative value of a proposal in relation
to the solicitation's performance factors, participate in oral
presentations, and rank proposals as to the value they offer the Postal
Service. Teams may also be established to evaluate a supplier's price
or cost proposal. In these cases, panel members need not be members
of the purchase team. Prices or estimated costs must be evaluated in
accordance with Chapter 5.
3. Contracting Officer. The contracting officer oversees the performance
evaluation process. This includes leading discussions with the suppliers
(see 4.2.5.c), and making reasoned business decisions to ensure the
best interests of the Postal Service, the success of the particular
purchase, and the overall fairness and integrity of the purchase.
1. Definition. Discussions include all communications held with suppliers
during the purchasing process; the term "discussions" is used in this
PM in its common dictionary sense, and not as defined or
circumscribed in previous Postal Service purchasing regulations or
similar regulations of other Federal agencies.
2. Purpose. Discussions may be held in order to (a) allow for the
clarification of matters contained in a proposal that raise questions
regarding acceptability or evaluation score; (b) address suspected
mistakes or questionable assumptions; and (c) obtain the best value to
the Postal Service and establish final contract terms and conditions.
Discussions need not be held with individual suppliers when, after
evaluation and comparison of their proposals, it becomes apparent that
their proposals do not offer the best value to the Postal Service and
could not be improved to do so without extensive and substantial
revision. The contracting officer is responsible for the conduct of
discussions. During the conduct of discussions, contracting officers
must ensure that no leveling or technical transfusion occurs.
3. Use
(a) During the evaluation process, including during oral
presentations, discussions may be held with any supplier in order
to clear up misunderstandings or uncertainties or to gain a better
understanding of the supplier's responses and intent regarding
the solicitation's provisions including its performance factors, and
any aspect of a supplier's proposal including price, in order to
obtain a more informed comparison of the relative value of
individual proposals. Information provided to the Postal Service
during discussions must be protected.
(b) After proposal comparisons have been made, further discussions
may be held to address any outstanding matters. These
discussions should be made with a sufficient number of suppliers
for the purchase team to be confident that it can reasonably
determine which supplier or suppliers offers the best value to the
Postal Service. However, the fact that discussions are held with
one or more offerors does not require that discussions be held
with other offerors if there is no business necessity for additional
discussions. Offerors whose offers are not the subject of
discussions need not be afforded a specific opportunity to revise
their offers.
(c) Suppliers whose offers are the subject of discussion at any stage
must be given sufficient time to revise their proposals in light of
those discussions. The time provided must be reasonable in view
of the complexity and extent of the issues discussed, but the time
provided one supplier need not be the same as that provided
another.
(d) The final stage of discussions is reaching agreement on the
contract's terms and conditions with the apparently successful
supplier. The goal of this stage is to reach the best business
arrangement for the Postal Service, and during this stage any
remaining issues should be addressed and revised. However, if
the extent of these issues may reasonably be viewed as changing
the rationale for determining the best value to the Postal Service,
the contracting officer must consider reopening discussions with
other suppliers. In no event may changes be made to the Postal
Service's requirements of the supplier's proposal which, if made
before supplier selection, would have affected the basis for the
selection.
1. Responsibility. After evaluation, comparative analysis and ranking of
the proposals (including price proposals) and, if necessary, discussions
with suppliers, it must be determined which supplier or suppliers offer
the best value to the Postal Service. This determination should be
reached through the consensus of the purchase team; if consensus
cannot be reached, the contracting officer must make the determination
based upon the business and competitive needs of the Postal Service,
as expressed in the solicitation.
2. Process. At the heart of this decision are (a) the trade-off judgment
between price and the value offered in a supplier's proposal, (b) the
relative value offered by a supplier or suppliers in relation to the
competition, and (c) whether a lower cost is worth the lesser technical
value (and potentially higher risk), or whether a higher price is worth the
increased technical/managerial capabilities (and potentially lower risk).
These judgments must be consistent with the relative significance of
the identified performance evaluation factors and the relationship of
those factors to cost/price factors as established in the solicitation (see
2.1.10).
3. Documentation. The purchase team must clearly understand, explain,
and document the rationale for the best value determination, including
the extent and result of any discussions with the supplier awarded the
contract and any other offerors.
4.2.6.a Contract award is made by execution of a contract by both parties, or by
written acceptance of or performance against a purchase order.
4.2.6.b If a proposed award requires higher-level review and approval or a delegation
of contracting authority, award may not be made until the approval or
delegation has been obtained (see 1.4).
4.2.6.c When more than one award results from any single solicitation, separate
award documents must be executed. When an award is made to a supplier
for fewer than all items that may be awarded to that supplier, and additional
items are being withheld for subsequent award, the first award to that
supplier must state that the Postal Service may make subsequent awards on
additional items within the proposal acceptance period, if applicable. When
two or more awards are made to a single supplier under a solicitation, the
original copy of the proposal must be attached to the retained office copy of
the first award, and duplicate copies attached to succeeding awards.
4.2.7.a Clauses 4-1, General Terms and Conditions, contains the basic terms and
conditions for Postal Service contracts. Depending on the particular
purchase, these terms and conditions may be modified or added to in order
to protect the interests of all parties and ensure the success of the purchase.
These general terms and conditions are discussed in Appendix B, Contract
Clauses, as are other clauses which, depending on the nature of the
purchase, the type of contract, and other policies outlined elsewhere in this
PM, may be required in the contract. When one of the clauses contained in
Appendix B is used to replace a paragraph addressing the same subject
matter in Clause 4-1, consultation with assigned counsel is not required.
4.2.7.b Clause 4-2, Contract Terms and Conditions Required to Implement Policies,
Statutes, or Executive Orders, incorporates by reference those clauses
required to implement selected policies, and laws and Executive Orders
applicable to certain Postal Service contracts, such as (1) purchases of
supplies subject to the Postal Service's domestic preference policy, (2)
services covered under the Service Contract Act, or (3) design and
construction contracts covered under the Davis-Bacon Act. Depending on the
particular purchase, Clause 4-2 is added to the solicitation and contract, and
contracting officers must specify by checking-off which of the additional
clauses apply. When used, neither Clause 4-2 nor the additional clauses
added by reference may be modified unless a deviation has been reviewed
and approved by an individual at a higher level than the contracting officer
who holds deviation approval authority (see 1.3.2.b.2). In addition, any
changes to paragraph b. of Clause 4-2 must be reviewed by assigned
counsel and the Office of Inspector General before a related deviation
request is submitted.
4.2.7.c Form 8203, Order/Solicitation/Offer/Award, or an equivalent may be used as
the cover sheet for Postal Service contracts. The form contains buyer,
supplier, and line-item information.
4.2.7.d Modifying Clauses. Subject to the restrictions in 1.3.1.b, 4.2.7.b, and
Appendix B, clauses cited in this PM may be modified, added to or replaced
by purchase teams when doing so is in the competitive and business
interests of the Postal Service. Except as noted above as to Clause 4-1,
purchase teams must consult assigned counsel before any clause is
modified, added to, or replaced, and particular care must be taken when the
terms of the given clause will have an impact on business objectives subject
to other Postal Service policies (such as Clauses 1-2, Advance Payments,
and 1-3, Progress Payments).
4.2.8.a Within 3 days after award, the contracting officer must send all suppliers that
submitted proposals a written notice including:
1. The number of proposals received;
2. The name and address of each supplier receiving an award;
3. The items, quantities, and unit prices of each award, or the total of
estimated cost and fee for cost-reimbursement contracts;
4. If award was made without discussions, a statement to that effect; and
5. A statement that briefly describes the business reasons for the award.
The statement must provide the pertinent facts that led the purchase
team to determine that a particular proposal offered the best value to
the Postal Service. For example:
"The offeror had the highest-rated performance evaluation factors and
the second-lowest price. The evaluation scheme provided that the
performance evaluation factors were more important than price in the
award decision." (Statements such as "award was made to the offeror
proposing the best value in accordance with the solicitation," which do
not describe the solicitation's evaluation scheme or how the successful
offeror most satisfactorily complied with that scheme, do not meet this
requirement.)
4.2.8.b If numerous multiple awards are made, the notice may state where award
details may be reviewed.
4.2.9.a Timing. An offeror may be debriefed upon written request received by the
contracting officer within 3 days following the offeror's receipt of notice of
award. When practicable, untimely debriefing requests received beyond that
time may be honored. To the maximum extent practicable, any debriefing
should occur within 5 days after receipt of the written request.
4.2.9.b Method. Debriefing may be done in person, in writing, by electronic means, or
any other method mutually acceptable to the contracting officer and the
supplier.
4.2.9.c Purpose. Debriefings are intended to explain to a supplier how its proposal
was evaluated and to help it prepare for future purchase opportunities.
Contracting officers should fully explain the rationale for contract award, and,
if necessary, use the debriefing as a means of educating suppliers in the way
the Postal Service conducts its purchases. Suppliers may be told their
relative strengths and weaknesses, and, if proposals were ranked, their
ranking. Suppliers may also be told their rating and that of the successful
offeror; however, no point-by-point comparisons with other proposals or
further breakdown of other evaluated scores may be made.
1. Information must not be disclosed to any supplier as to another
supplier's:
(a) Trade secrets;
(b) Restricted data or privileged or confidential manufacturing
processes or techniques; or
(c) Business and financial information that is privileged or
confidential, including cost breakdowns, profit, indirect cost rates,
and similar information.
2. The contracting officer or a designated representative must conduct the
debriefing, with the assistance and participation of the purchase team
and assigned counsel, as appropriate.
3. The contracting officer must include a summary of the debriefing in the
solicitation file.
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