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Procurement Strategies

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1. Which of the two procurement strategies is most effective for a human services agency? Does the procurement system serve the best interests of human services agencies and those they support?

2. Read the scenario, on pp. 172-73 of your text, regarding the Kansas Department of Social and Rehabilitative Services. Are there any problems with this form of government contract? Would another type of contract be more beneficial? Explain your reasoning.

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Solution Summary

The Request for Purchase (RFP) tends to be used more in the human services agency for the "soft services" such as counseling

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Which of the two procurement strategies is most effective for a human services agency?
The Request for Purchase (RFP) tends to be used more in the human services agency for the "soft services" such as counseling, therapies, teaching, modeling, reinforcing parenting, etc. The Invitation for Bids (IFB) is used for "hard services" such as transportation, food services, shelters and the like (Martin, 2001). Both serve a valued purpose; however, in human services, importance should be place on the value of the service and getting the best services for the best price (even if it means paying a bit more for the service). The Request for Bid allows for negotiation and there is some give and take from both sides and the outcome is agreeable. An IFB does not allow for negotiation so if a human services agency is just looking for a good price, they would use the IFB. An IFB would not be appropriate when an organization is looking for counseling services or a program to serve its community. In general, the RFB is the better of the two procurement strategies when requesting services, programs and trainings.
Does the procurement system serve the best interests of human services agencies and those they support?
The procurement system not only serves the best interests of the agency, but also the clients it serves; however, there is an additional procurement strategy not mention in the text which was found during research. This strategy is called the Value-Based Purchasing (VBP) strategy (Texas Health and ...

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