Sourcing is the selection of the best supplier to fulfill a need. Sourcing includes market analysis, determination of procurement method, determination of contract type, selection of delivery methods, and related functions associated with a successful procurement action. Solicitation is the process of requesting offers from the marketplace prior to selection of an offeror to fulfill the need of the public entity.
Contract development and management are the final stages of a successful procurement event. Evaluation of offers leads to determination of best value to the requesting entity and award of a contract or contracts to the most advantageous offeror(s). Contract management is a comprehensive phrase which includes programming, planning, budgeting, sourcing, and contract execution, followed by contract administration. Contract administration is a function of overseeing supplier performance and guiding a contract to full and successful completion and closeout.
Leadership in public procurement is the process of applying knowledge and competencies to achieve organizational success. Leadership includes the ability to be aware of and manage interpersonal relationships judiciously and empathetically. Procurement organizations serve the needs of the public entity, including: delivering the tools required to provide service to citizens, providing leadership in the procurement function focusing on the overall planning, policy development and execution, hiring and retaining qualified staff, fostering positive interaction with support and oversight bodies, and continuous monitoring and improvement.
Business principles provide the foundation for operational efficiencies to maximize the success of the procurement function. These principles are relevant in all phases of the procurement cycle including planning, budgeting, management of inventories, internal and external audits and reconciliations. These principles guide decisions and actions which impact operations and compliance.