Contracting & Procurement

1. Contracting & Procurement In the State of Washington

2. Government Contracts – Why?

3. How does it happen? • We manage over 1,200statewide contracts for everything from light bulbs and pencils, to vehicles and ferry boats, and a variety of professional services. • Annual worth of these contracts is $1.2 billion dollars,used by 950 state agencies, colleges, universities, school districts, cities, counties & non-profits. • Law requires us to competitively bid all state contracts, to achieve “best value” not just based on price, but quality and other factors are considered, such as warranty, delivery, customer service and life cycle cost. • Competition is important in order to allow all businesses an equal opportunity to compete for a state contract worth hundreds of thousands of dollars. • Interested vendors can access and participate in these bids by registering in the single statewide online vendor registration system known as “WEBS”… All opportunities to participate are posted in WEBS & emailed to registered vendors. • We reach out to small, minority, women and veteran owned businesses, and we look for green, sustainable, environmentally friendly products.

4. Finding “Best Value” How much more are you willing to pay for better taste or quality How much more are you willing to pay for name brand…

5. What’s most important to you – savings or quality? Price or life cycle?

6. Environmental or balancing the budget?

7. Once you decide – A contract outlines your agreement • Acceptance • Consideration • Offer • Obligation • Legal purpose • Competent parties • Definiteness What are the elements of a legally binding contract?

8. What are the key elements? Parties, Purpose, Term, Consideration Offer & Acceptance, Obligation, Ts & Cs Contract Clauses Appendix B – Specs Appendix C – Pricing Signature Page Appendix A – Master Terms & Conditions • Cover/Preamble • Section 1 - Scope • Section 2 - Term • Section 3 - Extension • Appendix C – Pricing

9. I want my Cookies! • What if my Vanilla Wafers don’t arrive before our kids’ afternoon break time? Or they are all broken? • What if my contract says Vanilla Wafers but I received Great Value brand? • What if the cookies are here but they go stale in less than a week? Delivery & Inspection Delivery & Specs Delivery & Warranty

10. Don’t make assumptions or verbal agreements with the delivery person • “Four Corners Rule” states that if the language is not found within the written words of the contract, then it does not have to be considered. • Bottom line: It excludes any assumptions or even any oral agreement you’ve made.

11. I think I’m paying too much! • I swear the Vanilla Wafers were only supposed to cost $470.01 for the year, that’s all I budgeted for! • Why are my invoices already saying $543.00?! Pricing Sheet

12. Cookie supplier won’t comply but I still need cookies! What are my legal options? To suspend or not suspend… Does my contract allow for suspension? Am I prepared with a back-up plan? Am I prepared to terminate and move on? What are the impacts?! • Cure process outlined • Clauses to cite in demand notice • What if they still don’t comply? • Types of termination allowed under contract

13. Changing or extending my cookie contract • Changes of any kind must be in writing via “Amendment” • Substantial changes should be mutually agreed and signed • Administrative changes can be unilateral, via letter to supplier • Price increases can only occur once per year and must be justified Price of Steel, Fuel or other Factors Minimum Wage Increase

14. Careers in Contracting • Entry Level Contracting Position “CS1” Job Posting – • Required:A Bachelor's degree involving major study inbusiness administration, public administration, business law, commerce, economics, mathematics, statistics, or closely allied field.   • AND • One year of experience in negotiating, administering, or terminating contracts, contract property management, contract cost or price analysis, or contract compliance administration.  • Additional qualifying experience may be substituted, year for year, for the required education (4 years + 1 year). • A Master's degree in one of the above academic disciplines may be substituted for the required experience.  • A law degree from an accredited college or university approved by the Washington State Bar Association may be substituted for the required experience and education.Must be proficient in the use of Microsoft Word and Excel. • Preferred/Desired Qualifications: • Three months writing and negotiating skills related to contracting • Three months working with Washington state laws and regulations or government contracting • Three months using the state’s contracting databases including WEBS and PCMS • Threemonths customer service experience, including vendor/customer relationship management

15. How Do I get Started? Become a Contracts Assistant! Learn on the Ground… BUT… Required Qualifications: Bachelor’s degree with major study in business administration, or closely allied field OR Associate’s degree with major study in business administration, or closely allied filed, AND One year experience assisting in the development, administration, or termination of contracts OR Three years’ experience assisting in the development, administration, or termination of contracts 

16. Where Can I get this experience? At any job you can show an interest in being involved in customer service, and customer or vendor contractual matters

17. Once you are in college, NIGP Student Membership will help you with resources, training and connections you need for a future in contracting. Join thousands of government procurement and contracting professionals across the country. A free student membership is available for the following: Undergraduate or graduate student majoring in business, public administration, materials management, or a related focus of study, We understand that you don’t have dollars to put toward member fees in professional organizations, so we want to make it easy for you to begin to explore what our profession is all about and take advantage of those member benefits that may help you now while you are still in school. Contract Management Certificate Program

18. Careers.wa.gov