Strategies for Managing Decentralized Procurement

Many public agencies, especially smaller ones, do not have any centralized procurement staff, but rely on others who have the actual need for goods and services to be responsible for the procurement and contracting function.

Strategies:  The following strategies can help ensure compliance with regulations and a consistent approach by the agency procuring goods and services.:

• Policies and Procedures:  Develop and adopt clear written policies and procedures that appropriately balance the culture of the agency, the experience and knowledge of the staff, and compliance with regulations and best practices.

• Accountability:  Agency leadership should make expectations clear to directors and managers that they will be held accountable for proper procurement practices.

• Training:  Provide in-depth training to staff who have been delegated with responsibility for procurement and contracting.  Directors and managers should also be trained. 

• Checklists:  Develop simplified checklists that can help those doing procurement and contracting with knowing what steps to follow.  The checklists should follow and be consistent with the written policies and procedures.

• Standard Templates:  Develop template documents for advertisements, RFPs, RFQs, purchase orders, consultant contracts, architectural/engineering contracts, construction contracts, service contracts, etc.  These template documents should be in compliance with the requirements, and should be protected so they are not changed without deliberate action.

• Check and Balances:  Ensure there are sufficient checks and balances in place to reduce risks of one person taking inappropriate procurement and contracting actions.  Appropriate levels of approval, based on dollar amount, should be part of the policies and procedures.

• Grants:  Designate staff who are responsible for reading and ensuring compliance with the terms of state or federal grants.

• Pre-Audits:   Establish a process for pre-audits of your policies and procedures, checklists, standard templates, and specific procurements and contracts by either agency staff or outside experts.  The purpose of pre-audits is to identify and correct problem areas before an actual state or federal audit of your agency.  Because staff and regulations change regularly, pre-audits should be conducted at least on an annual basis.

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

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