2 Postal Service Supplying Practices Process Step 2: Evaluate Sources

2 Postal Service Supplying Practices Process Step 2: Evaluate Sources

2-1 Develop Purchase Plan

2-1.1 General

2-1.2 Purchase Method Recommendation Planning

2-1.3 Components of a Purchase Plan

2-1.3.1 Competitive Purchases

2-1.3.2 Noncompetitive Purchases

2-1.4 Purchase Plan Review and Approval

2-1.5 Other Topics Considered

2-2 Start Request for Proposal (RFP) Development

2-2.1 Requests for Proposals

2-2.2 Statement of Objectives

2-2.3 Statement of Work

2-2.4 Performance Work Statement

2-2.5 Specifications

2-2.6 Product Descriptions

2-2.7 Other Topics Considered

2-3 Update/Refine Total Cost of Ownership Analysis

2-3.1 TCO Analysis

2-3.2 TCO Estimate

2-3.3 TCO Formula

2-3.4 Other Topics Considered

2-4 Formulate Project Budget and Request Funding

2-4.1 Budget

2-4.2 Request Funding

2-4.3 Supply Chain Management Impact

2-4.4 Other Topics Considered

2-5 Perform Value Chain Mapping and Analysis

2-5.1 Importance of Value Chain Mapping and Analysis

2-5.2 Constructing a Value Chain Map

2-5.3 Activity Based Costing

2-5.4 Key Performance Indicators

2-6 Involve Suppliers in Planning

2-6.1 Identification of the Right Suppliers

2-6.2 Communication

2-6.3 Well-Documented and Understood Guidelines

2-6.4 Purchase/SCM Team Project-Level Expertise

2-6.5 Other Topics Considered

2-7 Conduct Should-Cost Analysis

2-7.1 When to Conduct

2-7.2 Sources for Analysis

2-7.3 Possible Results

2-7.4 Components of a Should-Cost Analysis

2-7.5 Other Topics Considered

2-8 Conduct Spend Analysis

2-8.1 Spend Analysis Process

2-8.2 Define and Extract Data

2-8.3 Review Item Purchase History

2-8.4 Validation

2-8.5 Refine and Classify

2-8.6 Analyze Data

2-8.7 Identify Opportunities

2-8.8 Other Topics Considered

2-9 Perform Switching-Cost Analysis

2-9.1 General

2-9.2 Types of Switching Costs

2-10 Determine Extent of Competition

2-10.1 Market Surveillance

2-10.2 Competitive Purchases

2-10.3 Noncompetitive Purchases

2-10.3.1 General

2-10.3.2 Business Scenarios

2-10.3.3 Noncompetitive Purchase Request

2-10.3.4 Competition Advocate

2-10.3.5 Contracting Officer Evaluation and Recommendation

2-10.3.6 Collaboration

2-10.3.7 Purchase Method Approval Authorities

2-10.3.8 Publicizing

2-10.3.9 Documentation

2-10.4 Other Topics Considered

2-11 Develop Life Cycle Support Plan

2-11.1 Component Categories and Supporting Elements

2-11.2 Life Cycle Management Team

2-11.3 Life-Cycle Phases

2-11.4 Concept Development Phase

2-11.5 Planning and Specification Phase

2-11.6 Purchase Phase

2-11.7 Production and Deployment Phase

2-11.8 Operations (Use) and Support Phase

2-11.9 Relocation and Disposal Phase

2-11.9.1 Relocation

2-11.9.2 Disposal

2-11.10 Other Topics Considered

2-11.11 Clauses and Provisions

2-12 Develop Preliminary Investment Recovery Plan

2-12.1 Identify Surplus

2-12.2 Supplier Responsibilities

2-12.3 Make Preliminary Decision

2-12.4 Recycle (Scrap)

2-12.5 Reallocate (Relocate and Redeploy)

2-12.6 Resell

2-12.7 Remarket (Resell to the Supplier)

2-12.8 Return

2-12.9 Remanufacture

2-12.10 Remove

2-12.11 Quadrant Approach

2-12.11.1 Quadrant I: Noncore/Customized Purchases

2-12.11.2 Quadrant II: Core/Customized Purchases

2-12.11.3 Quadrant III: Noncore/Standard Purchases

2-12.11.4 Quadrant IV: Core/Standard Purchases

2-12.12 Other Topics Considered

2-12.13 Clauses and Provisions

2-13 Purchase From Mandatory Sources

2-13.1 Javits-Wagner-O’Day Act (41 U.S.C. 8501–8506)

2-13.2 Randolph-Sheppard Act (20 U.S.C. 107 et seq.)

2-13.3 Defense Energy Support Center

2-13.4 Other Topics Considered

2-14 Clarify Data Rights and Intellectual Property Issues

2-14.1 The Postal Service’s Motivation on Data Rights and Intellectual Property

2-14.2 Defining Data Rights and Intellectual Property

2-14.3 Technical Data Rights

2-14.4 Computer Software Rights

2-14.5 Special Works

2-14.6 Existing Works

2-14.7 Patent Rights

2-14.8 Indemnity

2-14.9 Limited and Restricted Rights

2-14.10 Royalties and License Fees

2-14.11 Repair Parts

2-14.12 Professional Services

2-14.13 Purchase/SCM Team

2-14.14 Clauses and Provisions

2-15 Consider Auctions

2-15.1 Forward Auction

2-15.2 Reverse Auctions

2-15.3 Postal Service Benefits

2-15.4 State of the Marketplace

2-15.5 Number of Qualified Suppliers

2-15.6 Commodity Product

2-15.7 Buyer’s Importance to Potential Suppliers

2-15.8 Excess Capacity in Industry

2-15.9 Price

2-15.10 Flexibility

2-15.11 Award

2-15.12 Supplier Perspective

2-15.13 Auction Services and Technology

2-15.14 Key Considerations

2-15.15 Quadrant Approach

2-15.15.1 Quadrant I: Custom/Noncore Purchase

2-15.15.2 Quadrant II: Custom/Core Purchase

2-15.15.3 Quadrant III: Standard/Noncore Purchase

2-15.15.4 Quadrant IV: Standard/Core Purchase

2-15.16 Other Topics Considered

2-16 Consider Performance-Based Contracting Arrangements

2-16.1 Appropriate Circumstances for Use of Performance-Based Contracts

2-16.2 Different Types of Performance-Based Contracts

2-16.3 Key Elements of Performance-Based Contracts

2-16.4 Indicators and Performance Measures

2-16.5 Incentives

2-16.6 Quality Assurance Plan and Examination

2-16.7 Considerations for Using a Performance-Based Contract

2-16.8 Quadrant Approach

2-16.8.1 Quadrant I: Custom/Noncore Purchase

2-16.8.2 Quadrant II: Custom/Core Purchase

2-16.8.3 Quadrant III: Standard/Noncore Purchase

2-16.8.4 Quadrant IV: Standard/Core Purchase

2-16.9 Other Topics Considered

2-17 Determine Need for Progress or Advance Payment

2-17.1 Advance Payments

2-17.2 Progress Payments

2-17.3 Other Topics Considered

2-17.4 Clauses and Provisions

2-18 Select Contract Type and Period of Performance

2-18.1 Contract Selection Factors

2-18.2 Contract Types

2-18.3 Firm Fixed Price Contract

2-18.4 Fixed-Price Incentive Contract

2-18.5 Fixed-Price Contract with Economic Price Adjustment

2-18.6 Cost-Reimbursement Contracts

2-18.6.1 Cost Plus Incentive Fee Contract

2-18.6.2 Cost Plus fixed-fee Contract

2-18.6.3 Cost Plus Award Fee Contract

2-18.6.4 Provision

2-18.6.5 Clauses

2-18.7 Time-and-Materials Contracts

2–18.7.1 General

2-18.7.2 Material and Material Handling Costs in Time-and-Materials Contracts

2-18.7.3 Retainage under Time-and-Materials Contracts

2-18.8 Indefinite-Delivery Contracts

2-18.8.1 General

2-18.8.2 Types of Indefinite-Delivery Contracts

2-18.8.3 Pricing

2-18.8.4 Award of a Single Indefinite-Delivery Contract or Multiple Indefinite-Delivery Contracts

2-18.8.5 Determining Whether to Compete Orders – Multiple Awards

2-18.8.6 When Order Issuance Will Be Determined Through Further Competition – Multiple Awards

2-18.8.7 Ordering

2-18.9 Performance-Based Contracts

2-18.10 Letter Contracts

2-18.11 Ordering Agreements

2-18.11.1 General

2-18.11.2 Limitations

2-18.11.3 Content of the Agreement

2-18.11.4 Ordering

2-18.11.5 Pricing

2-18.11.6 Basic Pricing Agreements

2-18.12 Other Topics Considered

2-18.13 Clauses and Provisions

2-19 Consider Use of Options

2-19.1 Options

2-19.1.1 Use

2-19.1.2 Evaluating Options

2-19.1.3 Setting Limits for Options

2-19.1.4 Prices

2-19.1.5 Expressing Options in a Contract

2-19.1.6 Exercising Options

2-19.2 Other Topics Considered

2-19.3 Clauses and Provisions

2-20 Develop and Finalize Sourcing Strategy

2-20.1 Sourcing Strategy

2-20.1.1 General

2-20.1.2 Sourcing Types

2-20.2 Use of Multiple Suppliers

2-20.3 Use of Single Suppliers

2-20.4 Other Topics Considered

2-20.5 Other Considerations

2-21 Define Supplier Diversity Objectives

2-21.1 Definitions

2-21.2 Supplier Diversity Objectives

2-21.3 Supporting Supplier Diversity

2-21.4 Management Involvement

2-21.5 Communication/Outreach

2-21.6 Sourcing Considerations

2-21.7 Subcontracting

2-21.8 Training and Development

2-21.9 Tracking Progress

2-21.10 Performance Indicators

2-21.11 Recognition

2-21.12 Other Topics Considered

2-21.13 Clauses and Provisions

2-22 Prequalify Suppliers

2-22.1 Evaluation Factors

2-22.2 Preliminary Prequalification Survey

2-22.3 Selecting Suppliers

2-22.4 Notification

2-22.5 Reassessment

2-23 Define Contract Management Metrics

2-23.1 Measurable Performance Elements

2-23.2 Aspects of Performance Metrics

2-23.3 Risk Management

2-23.4 Sources for Metrics

2-23.5 Metrics Design

2-23.6 Defining the Baseline

2-23.7 Other Topics Considered

2-24 Review and Finalize Request for Proposals (RFP)

2-24.1 General

2-24.2 Types of Proposals

2-24.3 Presolicitation Workshops

2-24.4 Verify Available Resources

2-24.5 Draft RFPs Review

2-24.6 Contract Types

2-24.7 Other Topics Considered

2-24.8 Clauses and Provisions

2-25 Form Proposal Evaluation Team

2-25.1 Identification of Proposal Evaluation Team Members

2-25.2 Identifying and Selecting Members

2-25.3 Identifying and Selecting Functions

2-25.4 Other Topics Considered

2-26 Develop Proposal Evaluation Strategy

2-26.1 Best Value

2-26.2 Proposal Evaluation Strategy and Factors

2-26.3 Cost/Price Factors

2-26.3.1 Relationship of Cost or Price Factors to Other Evaluation Factors

2-26.4 Past Performance and Supplier Capability

2-26.4.1 Past Performance

2-26.4.2 Supplier Capability

2-26.5 Site Visits

2-26.6 Preaward Survey

2-26.7 Subcontractors

2-26.8 Other Evaluation Factors

2-26.8.1 General

2-26.8.2 Use

2-26.8.3 Scoring Systems

2-26.9 Quadrant Approach

2-26.9.1 Quadrant I: Custom/Noncore Purchase

2-26.9.2 Quadrant II: Custom/Core Purchase

2-26.9.3 Quadrant III: Standard/Noncore Purchase

2-26.9.4 Quadrant IV: Standard/Core Purchase

2-26.10 Other Topics Considered

2-27 Issue RFPs and Publicize Requirements

2-27.1 Publicizing Requirements

2-27.2 Availability of the RFPs

2-27.3 Government-wide Point of Entry

2-27.4 Other Media

2-27.5 Presolicitation Notices

2-27.6 Preproposal Conference

2-27.7 Other Topics Considered

2-28 Conduct Reverse Auctions Where Appropriate

2-28.1 Plan and Define Auction Requirements

2-28.2 Determine Software Platform/Service Provider

2-28.3 Communication and Training

2-28.4 Conduct Auction

2-28.5 Award

2-28.6 Other Topics Considered

2-29 Issue Amendments

2-29.1 Amendment Content

2-29.2 Failure to Acknowledge Amendments

2-29.3 Other Topics Considered

2-30 Receive and Record Proposals

2-30.1 Modification and Withdrawal

2-30.2 Late Proposals and Modifications

2-30.3 Other Topics Considered

2-31 Implement Proposal Evaluation Strategy

2-31.1 Proposal Evaluation

2-31.2 Individual Evaluation

2-31.3 Comparative Evaluation

2-31.4 Disclosure and Use of Information

2-31.4.1 Policy

2-31.4.2 After Receipt of Proposals

2-31.5 Other Topics Considered

2-31.6 Clauses and Provisions

2-32 Assess Technology Implications

2-32.1 Personnel Checking the Technology Implications

2-32.2 Knowledge of the Postal Service

2-32.3 Feasibility of the Supplier Solution

2-32.4 Effect of the Solution on the Postal Service

2-32.5 Viability of the Solution and Emerging Technology

2-32.6 Other Topics Considered

2-33 Perform Risk Analysis on Supplier Proposals

2-33.1 Risk Analysis Objective

2-33.2 Proposal Risks Identification

2-33.3 Proposal Risk Assessment

2-33.4 Risk Analysis Output

2-33.5 Other Topics Considered

2-34 Conduct Price/Cost Analysis

2-34.1 Comparison of Competitive Offers

2-34.2 Comparison with Regulated, Catalog, or Market Prices

2-34.3 Comparison with Historical Prices

2-34.4 Pricing Noncompetitive Offers

2-34.5 Use of Independent Cost Estimates

2-34.6 Cost Analysis

2-34.7 Allowable Costs

2-34.8 Reasonableness

2-34.9 Allocable to the Contract

2-34.10 Unallowable Costs

2-34.11 Cost Realism

2-34.12 Allowances and Charges

2-34.13 Cost or Pricing Data

2-34.14 Certification of Cost or Pricing Data

2-34.15 Certificate of Current Cost or Pricing Data

2-34.16 Other Topics Considered

2-34.17 Clauses and Provisions

2-35 (Reserved)

2-36 Evaluate Foreign and Domestic Proposals

2-36.1 Domestic End Products

2-36.2 Designated Countries

2-36.3 End Products from Designated Countries

2-36.4 Designated Country Eligibility Thresholds

2-36.5 Lease, Rental, and Lease-Purchase Contracts

2-36.6 Designated Country Service Exceptions

2-36.7 Construction Materials

2-36.8 Limitations

2-36.9 Non-Available Products

2-36.10 Other Topics Considered

2-36.11 Clauses and Provisions

2-37 Hold Discussions

2-37.1 Discussions

2-37.2 Process

2-37.3 Potential Points of Conflict

2-37.4 Other Topics Considered

2-38 Negotiate with Suppliers

2-38.1 Negotiation Considerations

2-38.2 Prepare for Negotiations

2-38.3 Best Alternative to a Negotiated Agreement

2-38.4 Conducting Negotiations

2-38.5 Documenting Results

2-38.6 Quadrant Approach

2-38.6.1 Quadrant I: Noncore/Customized Purchases

2-38.6.2 Quadrant II: Core/Customized Purchases

2-38.6.3 Quadrant III: Noncore/Standard Purchases

2-38.6.4 Quadrant IV: Core/Standard Purchases

2-38.7 Other Topics Considered

2-39 Subcontracting with SMWOBs

2-39.1 Subcontracting Plans

2-39.2 Suppliers Use of Subcontractors

2-39.3 Other Topics Considered

2-39.4 Clauses and Provisions

2-40 Produce Contract Award Recommendation

2-40.1 Contract Awards

2-40.2 Best Value Determination and Award Recommendation

2-40.2.1 Competitive

2-40.2.2 Noncompetitive

2-40.3 Contract File

2-40.3.1 Contract Files for Competitive Contracts

2-40.3.2 Contract Files for Noncompetitive Contracts

2-40.4 Required Preaward Activities

2-40.5 Other Topics Considered

2-41 Obtain Selected Reviews and Approvals

2-41.1 General

2-41.2 Estimated Total Dollar Value

2-41.3 Reviews and Approvals

2-41.3.1 Review and Approval Authorities

2-41.3.2 Reviews and Approvals of Contract Awards, Modifications, and Ordering Agreements

2-41.3.3 Reviews and Approvals of Purchase Plans

2-41.3.4 Reviews and Approvals of Delivery and Task Orders Against Indefinite-Delivery Contracts

2-41.3.5 Terminations

2-41.3.6 Exemptions

2-41.4 Review and Approval Process for Competitive Actions

2-41.5 Review and Approval Process for Noncompetitive Actions

2-41.6 Actions Exceeding a Contracting Officer’s Delegated Authority

2-41.7 PAEA Reporting and Certifying of Contractual Actions

2-41.8 Consultation with Assigned Counsel and the General Counsel/Law Department

2-41.8.1 General

2-41.8.2 Final Decisions on Contract Claims

2-41.9 Other Topics Considered

2-42 Postal Accountability and Enhancement Act Related Reports and Certifications

2-42.1 Reporting of Contractual Actions Under the PAEA

2-42.2 Quarterly Certifications

2-43 Simplified Purchasing

2-43.1 General

2-43.2 Purpose

2-43.3 Use

2-43.4 Soliciting Proposals

2-43.4.1 General

2-43.4.2 Solicitation Requirements

2-43.4.3 Relative Importance of the Evaluation Factors

2-43.4.4 Oral Solicitations

2-43.4.5 Written Solicitations

2-43.5 Evaluation

2-43.6 Discussions and Negotiations

2-43.7 Contract Award

2-43.8 Notification to Unsuccessful Offerors

2-43.9 Contract Files for Simplified Purchases

2-43.10 Other Topics Considered

2-43.11 Clauses and Provisions

2-44 Consideration and Use of Specific Clauses

2-44.1 Most Favored Customer Pricing

2-44.2 Clauses and Provisions:

2-44.3 Other Topics Considered

2-44.4 (Reserved)