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Policy and Procedures Manual for Purchasing and Materials Management

Procedures

Specification Preparations Policy No.: PP-070
Supercedes No.:  
Effective Date: July 1, 2002 Page No.: 1 of 1

I.     PURPOSE

To define what form and information is needed from the Department submitting specifications to the Purchasing Division for formal solicitation.

II.    SCOPE

This procedure applies to all Town departments' specifications for formal solicitations.

III.   GENERAL

A specification is a description of the materials or services to be purchased. Thorough and careful preparation of the specification probably is the most important part of the bidding process.

Because the level of quality specified impacts directly the price, the Purchasing Division must be furnished with specifications that will fulfill but not exceed the requirements for which the materials, equipment or services are intended. When developing specifications it is necessary to follow the general policy of purchasing good, standard grades of merchandise that represent an optimum relationship between quality and price, always consistent with providing a satisfactory level of service.

All purchases of the Town must be based upon adequate specifications. A lengthy specification designed solely to eliminate competition is contrary to public purchasing laws and regulations and must be avoided. Specifications must have enough detail to afford a basis for full and fair competitive bidding based on a common standard and must be free from restrictions that would tend to reduce or eliminate competition.

The term “specifications,” is used interchangeable with the the terms, “purchase description,” “purchase specification,” “purchase requirement,” “commercial item description,” “scope of work,” and “statement of work.” A specification may include requirements for samples, prototypes, inspection, testing, warranty and packaging.

IV.   TYPES OF SPECIFICATIONS

There are several types of specifications. The development, selection and use of a particular type is dependent on the situation, time, information available and needs of the using department.

Performance Specifications:

This type describes the function and use of the product or exactly what the department wants to accomplish as an end result. This usually is considered as the most versatile type of specification. The supplier can apply the latest technologies and techniques to achieve the performance desired by the Town. Care must be taken so that when preparing this type of specification to solve a given problem, the product received does not cause other, unexpected problems. For example, requesting a method for eliminating ice on streets could result in the purchase of a chemical that effectively and efficiently melts ice but destroys asphalt in the process. Performance specifications must be reviewed carefully by the department to be certain that the Purchasing Division and the vendor can readily understand the essential nature of the problem to be solved.

Performance specifications are preferred since they communicate what a product is to do, rather than how it is to be built. Among the ingredients of a performance specification would be the following:

  • A general nomenclature or description;
  • Required performance characteristics (minimum/maximum) to include speed, storage capacity, production capacity, usage, ability to perform a specific function;
  • Operational requirements, such as limitations on environment, water or air cooling, electrical requirements;
  • Site preparation requirements for which the contractor will be responsible, such as electricity, plumbing, or for which the Town will be responsible;
  • Conversion requirements for maintaining a current equipment or system until switching to the new equipment or system;
  • Installation requirements;
  • Delivery requirements;
  • Maintenance requirements;
  • Supplies and parts requirements;
  • Warranty; and
  • Service location and response time.

Design or Technical Specifications:

This type of specification describes the construction of the item in detail. Although this may appear to be the best type of specification to use, the ordering department must have a complete understanding of the final product and its use before using it. Use of technical or design specifications may eliminate the vendor from liability as to the performance of the item after the purchase is made because someone other than the vendor has specified the performance. Because of this responsibility factor, technical or design specifications are among the most difficult to prepare.

Design and technical specifications are normally prepared by architects and engineers for construction or custom manufactured products. Among the ingredients of a design specification would be the following:

  • Dimensions, tolerances and specific manufacturing or construction processes;
  • References to a manufacturer's brand name or model number; and
  • Use of drawings and other detailed instructions to describe the product.

Brand Specifications:

A brand name may be used if it represents the quality desired and its use is intended to be illustrative. When a specification mentions a manufacturer's brand name or model number, it shall also include the words, “or equal.” In this regard, “or equal” is interpreted to mean, “substantially equal and capable of performing the essential functions of the referenced brand name or model.” Identify any specific features of the referenced brand that must be met.

The term “or equal” used frequently in specifications does not mean that the product will be evaluated as to whether it is exactly equal to the product named in the specification. “Or equal,” or the more preferable term, “or equivalent,” means that an alternative product will be evaluated to determine if it produces the same result as the brand specified. You should always be aware that the product proposed by a vendor might be substantially different from the specified product and that, if it produces the same results, it must be considered on an equal basis with the specified product. To avoid being faced with a limited choice such as this, it is important to add to the specification any mandatory physical characteristics of the product specified (such as general size, horsepower, weight, etc.) that must be met by the alternate bid to be accepted as “equivalent.” Although the purchaser reserves the right to be the final judge about the acceptability of an “equivalent” item, the justification can be extremely difficult to prepare unless any mandatory physical characteristics of the item desired are included in the specification. Try to avoid listing only a brand name or model number in the specification.

Scope of Work for Services

The following is an outline of the types of information that should be included in a scope of work for procurement of professional or other services:

  1. General Requirements: Describe the contractor's responsibility to provide a service or produce a specific study, design or report for the using department.
  2. Specific Requirements: Address the specific tasks, sub-tasks, parameters and limitations that must be considered in producing the service or final project. Such factors as the following should be included:
    • Details of work environment;
    • Minimum of desired qualifications;
    • Amount of service needed;
    • Location of service;
    • Definition of service unit;
    • Time limitations;
    • Travel regulations or restrictions;
    • Special equipment required; and
    • Other factors affecting working environment.
  1. Town Provided Materials or Services: List any plans, reports, statistics, space, personnel, or other Town provided items that must be used by the contractor.
  2. Deliverables, Reports and Delivery Dates: Identify the specific delivery dates for all documentation of products the contractor must furnish. Be clear about the expectations of the Town for the contractor's performance.

V.    SPECIFICATIONS “DO'S” AND “DON'TS”

A.  DO'S

    • Use the word, “shall,” to describe a command or mandatory requirement;
    • Use the words, “should” or “may,” to describe an advisory or optional requirement;
    • Be specific and detailed in presenting mandatory requirements; and
    • State a requirement of fact once and avoid duplication.

B.  DON'TS

    • Present something as mandatory if it is really only optional;
    • Write specifications or scope of work that restrict response to a single bidder/offeror; and
    • Place bid/proposal administrative or contractual terms in the specification portion of the document.

VI.   PREPARATION AND REVIEW OF SPECIFICATIONS

Departments are responsible for the first draft of specifications to be submitted to Purchasing. All specifications should be submitted to Purchasing on a 3.5” diskette in Microsoft Word format. Be certain the diskette properly identifies the data. A hard copy of the specifications shall accompany the submitted diskette. After Purchasing has reviewed the specifications and attached its standard terms and conditions, the Department will be forwarded a draft for final review. This draft will require a signature for approval by the Department Head and returned to Purchasing for continuation through the solicitation process.

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The Town of Collierville does not discriminate on the basis of race, color, national origin, age, sex, or disability in its hiring and employment practices, or in admission to, access to, or operation of its programs, services, and activities pursuant to Title VI of the Civil Rights Act of 1964 (42 U.S.C. 200d) and the Americans with Disabilities Act of 1990, Pub. L 101-336.


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