Regardless of size or scope of purchases of goods and services, the process is the same: specify, solicit and select.

Specify - Specifications are the foundation on which the quality and costs of goods and services are built. The more "specific" you are in you specifications, the less room for a vendor to substitute materials and methods, and the more likely you are to be satisfied with the results.

Specifications answer the questions - Who, What, Where, When, Why and How. Specifications can be prescriptive or performance based. Prescriptive specifications establish quantities of materials or frequencies of services; performance specifications establish the results desired. Performance specifications are more consistent with total quality management, since they permit the vendor to manage the process that produces the results desired by the customer.

Solicit - Soliciting estimates can involve competitive bidding or a negotiated contract.

A competitive bid is an offer or proposal of a price and other terms in a competition to obtain a contract to supply goods and/or services. A competitive bid involves two or more vendors, and requires a specification to insure that each bidder will provide the same or similar products or services.

Two approaches to competitive bidding are the low bid process and the RFP process. With the low bid process, the qualified bidder who can meet specifications at the lowest cost is awarded the contract.

The request for proposal (RFP) process is preferred for contracts for which it is difficult to produce a comprehensive specification. In the RFP process, each vendor submits its qualifications, its proposed methodology for providing the goods and services, and its price.

More weight is given to qualifications and methodology, and less weight to price, than under the low bid process. The RFP process is a more flexible way to purchase services, because it allows judgments by the purchaser.

A negotiated contract may be used because of difficulty defining the scope, past relationships with the vendor, or the special knowledge or skills of the vendor. This last case is often referred to as a sole-source provider.

The RFP process may be combined with the negotiated contract process. The RFP process identifies a vendor; price and other terms are negotiated with that vendor.

Select - Selecting a successful bidder in a competitive bid process requires careful analysis of each bid and how it meets the specifications. A chart is effective in evaluating bids. Each critical component of the specification is listed. For a low bid process, a check mark is entered to indicate that a bidder is providing a component. The bottom line enters the price. A quick look at the chart indicates the lowest price and if that bid meets the specifications.

For the RFP process, numerical ratings can be used in place of check marks, to provide numerical score for how well each bidder meets the specifications. This numerical score can be considered in conjunction with the quoted price to determine the successful vendor.

Questions raised may require a Request For Clarification (RFC) from one or more proposers before a selection is made.

When purchasing goods and services, remember SSS - Specify, Solicit and Select. Take time to develop your specification; you will be repaid in the quality of the goods and services you purchase.