The e-procurement at Kentucky and North Carolina are different. In Kentucky, Model procurement code of Legislation is followed in which the state must bid, negotiate with vendor and award contract to vendor. At the same time, the most common and preferred method of purchasing is through competitive sealed bidding. The procurement is based on both complex and technical requirements, and through formal requests for proposal, the competitive bid is negotiated. While the least followed purchasing method is the formal bid that is issued by a competitive solicitation, it’s open and after a request for proposal is it awarded to any vendor.
In North Carolina, the country department of financial services is responsible for overseeing this e-procurement process. This process is based on two types of bids that are formal and informal. The formal bids are for projects that are above $500,000 whole informal bids are for project less than $500, 000. Under the formal bid process, the vendor is selected based on a competitive sealed bid process like in Kentucky. While the informal bid process, the project is assigned to a vendor who quotes the lowest prices. Therefore, an informal solicitation document is stored in compliance with the state’s records law and retention schedule.
- vendor search
Both the states follow the same vendor search process, in Kentucky, the contracts are advertised on the newspapers, journals, and issuing agencies. While in North Caroline the contracts of formal bidding are through advertisement on newspapers. Both the user of the state competitive sealed bid process and all bids are read aloud in public and one how to quote low price the contract is awarded to that vendor. But the point when North Caroline adopt a different approach for vendor search is in informal bidding. It is up to the country department whether they choose a formal process or informal process for bidding because it is the case it is not obligatory to assign the contract to the lowest bidder. But it is recommended that a formal bid process must be followed to avoid any rebidding.
- Requests for proposals
Request for proposal is followed in both stated under the formal bidding request. Both states consider it a desirable way to acquire good and services. It is preferable because they prefer quality as compared to just low bid. Mostly, the request for proposal is applied to those projects that are a combination of both goods and services.
- involvement of various types of vendors
Both states have different types of vendors. The vendors can be from the minority, small business and women as well. Both states allow everyone to do business with the state. North Caroline introduce a program with the name of MWSBE Program. Under this program, small business, women vendors and minorities are given opportunities to work with the state. This initiative was taken by North Caroline only to encourage them, although the rules or regulations of procurement are the same for everyone. On the other hand, Kentucky Equal Employment Opportunity Act is for the encouragement of small business that is operated under the minority business enterprise.
- Negotiations
The terms of negotiation followed by both states are different. In Kentucky, the commonly used method for contracting is the sealed bid method, but when this method is not practical, then the competitive negotiation method is also used. The request for proposal from the side of the vendor is analyzed, and upon the decision criteria, the contract is awarded. While in North Caroline, the negotiation is different. Once the lowest bidder is identified, the Country manager must negotiate with the firm. If this mutually satisfactory contract is not negotiated than it is on the Manager that he may terminate the negotiation.
- other elements of contract negotiations
General negotiation takes place at Kentucky, but in North Caroline, the negotiation is further divided into two categories. One is an individual project, in which the manager negotiates with the vendor and if there is no mutual understanding, then the contract will be dismissed. Second is multiple projects, in these multiple and park bound projects the company select the best-qualified firm based on their qualification and unique criteria that are made according to the project. The Country manager then negotiates with the chosen firm, and based on mutual understanding; the contract is awarded; otherwise, the country manager terminates the contract and start negotiating with another firm.
- Consider the steps of the contract management process (procurement cycle):
Procurement planning
In Kentucky, the procurement planning is controlled by “Division of material and procurement services”. The eProcurement website of the state allows the bidder to register themselves and bid on the listed projects. In North Caroline, the procurement planning is centralized by a Department of financial services that are controlled by procurement division. The eProcurement System of the further state assists in the procurement of products and services. But in North Caroline, the Procurement card initiative helps the state to made incidental purchases. It is a quick payment tool through which urgent services or products can be availed.
solicitation planning
In Kentucky, solicitation planning comes under the standard purchasing process that is followed by state agencies. The stages involved in it are public bid, solicitation, receipt of bid, evaluation and contract award. In procurement, the small solicitation is advertised in the Louisville Defender while large solicitations are advertised at Lexington Herald leader. In North Caroline, formal Solicitation is followed in which purchasing department ask the BOCC to approve the contract of the selected bidder. In this way, authorization is exercised to the purchasing department.
Solicitation
In Kentucky, the solicitation estimates about needed to be quantitated, but it does not guarantee the specific amount that is to be purchased. Most of the solicitations allow a minimum of one to two weeks between the initial offering and the time the bid is open. All these solicitations are posted outside the bid room. On the other hand, in North Caroline, solicitation is divided into two different types. One is formal in which those contracts are awarded that is up to $100,000. The informal Solicitation is used for that expenditure that exceeds $100,000. Hence, in North Caroline, the solicitation document is mainly used to solicit bids informal ways.
Source selection
Kentucky and North Caroline adopt almost the same sources of selection. The agencies of both define evaluation factor according to the project and assign relative weights to them. All the firms who bid are evaluated on these attributes. Those who qualified are granted to further negotiation for the final award of contract.
Contract administration
In Kentucky, three types of contracts are used that are managed under the division of contract procurement. Sealed bid method is used to award a contract to a bidder. Through the competitive negotiation method, the contract is awarded. In North Caroline, the contract administration is under the country manager; it is the responsibility of the country manager to execute and amendments in the contract. A country manager also terminates the contract. The amount that is mentioned in the contract is the sum of all the expenditure.
Contract closeout or termination
In Kentucky, if the secretary determines that there is a delay in the contract due to administrative challenges, defaults and bid protest, then the contract will be terminated. In North Caroline, the department directors have the authority to terminate the contract even they are approved by the country manager, except those when termination payment is required. As BOCC also approves contracts; thus, BOCC also presents in termination of the contract. Hence, both states follow different termination procedure.
The right selection of vendor according to the developed criteria by the administrative authorities must be carefully developed by the professional because a minor mistake in allocating contract to a wrong person would cost millions of losses to the state. As these projects are stated at the state level, therefore, every step of the procurement process must be carefully implemented to save the state from any loss.