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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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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 ...

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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See Also This Related BrainMass Solution

Procurement Strategy for American Property Development Corporation

Scenario:

American Property Development Corporation (APDC) a designer and developer of outdoor shopping malls and small office complexes has decided to standardize their project management practices and processes across the national organization. The goal is to standardize on one single project scheduling tool, and have the tool installed and to be operational within 90 days. To this end they are forming a central Project Management Office (PMO). Until now, project managers (there are 40 presently on staff distributed all over the USA and Canada) have been able to use whatever scheduling tool they liked, within their budget constraints. They have also been able to buy equipment and engage contractors at will. The PMO will be determining one scheduling tool that all PMs will be expected to use, exclusive of any other scheduling tools. The PMO will also develop and implement a standardized procurement process. Since the PMs are located across the USA and Canada, a web-based solution seems likely to be the most successful tool.

Solution:

I have chosen to purchase the scheduling tool. In addition to purchasing the software, I need to procure additional goods and services to implement and deploy the tool. Specifically, I will also need to:

- Hire technicians to install and configure the software for your environment
- Hire a training entity to teach the student PMs the mechanics of using the new tool
- Buy a new server and software to run the tool and house the project database
- Hire tool usage experts to transfer knowledge to the student PMs about the use of the tool on the job for the first 60 days after going "live"
- Plan for the removal and disposal of the no longer to be used scheduling tool software and hardware.

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