2 USPS Supplying Practices Process Step 2: Evaluate Sources
2-1 Develop Purchase Plan
2-1.1 General
2-1.2 Preliminary Purchase Method Recommendation
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 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
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 T&M Contracts
2-18.8 Indefinite-Delivery Contracts
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 (BPAs)
2-18.12 Other Topics Considered
2-18.13 Clauses and Provisions
2-19 Consider Use of Renewals and Options
2-19.1 Renewals
2-19.2 Options
2-19.3 Consideration of Options
2-19.4 Options in Solicitation-Related and Contractual Documents
2-19.5 Other Topics Considered
2-19.6 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 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 End Products from Designated WTO GPA and FTA Countries
2-36.3 Designated WTO GPA and FTA Countries
2-36.4 WTO GPA and FTA Eligibility Thresholds
2-36.5 Lease, Rental, and Lease-Purchase Contracts
2-36.6 WTO GPA and FTA 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 Reviews and Approvals of Contractual Actions
2-41.2.1 Purchase Plans
2-41.2.2 Reviews and Approvals
2-41.2.3 Review and Approval Process for Competitive Actions
2-41.2.4 Review and Approval Process for Noncompetitive Actions
2-41.3 Terminations
2-41.4 Actions Exceeding a Contracting Officer’s Delegated Authority
2-41.5 Reporting and Certifying Contractual Actions Valued at $25 Million or More
2-41.6 Consultation with Assigned Counsel and the General Counsel⁄Law Department
2-41.6.1 General
2-41.6.2 Final Decisions on Contract Claims
2-41.7 Other Topics Considered
2-42 Postal Accountability and Enhancement Act Related Reports and Certifications
2-42.1 Reports on Contractual Actions Valued at $25 Million or More
2-42.2 Quarterly Certifications
2-43 Simplified Purchasing
2-43.1 General
2-43.2 Purpose
2-43.3 Use
2-43.4 Clauses and Provisions
2-43.5 Soliciting Proposals
2-43.5.1 General
2-43.5.2 Solicitation Requirements
2-43.5.3 Relative Importance of the Evaluation Factors
2-43.5.4 Oral Solicitations
2-43.5.5 Written Solicitations
2-43.6 Evaluation
2-43.7 Discussions and Negotiations
2-43.8 Contract Award
2-43.9 Notification to Unsuccessful Offerors
2-43.10 Contract Files for Simplified Purchases
2-43.11 Other Topics Considered