President s Corner. The Answer Is So Simple. 1 M issouri Association of Public Purchasing. In This Issue President s Corner... 1

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1 Spring, 2014 Vol. 44, Issue #1 Chapter #3 of NIGP-The Institute for Public Procurement In This Issue President s Corner... 1 Calendar & Events... 2 News Where Are They Now? Purchasing Puzzle Writers: William D. Bill Noyes, Melinda Bobbitt, Cale Turner, Gary Stoll We support education as a means to continually furnish excellence in our ranks. We promote ethical, efficient and cost effective procurement practices for the promotion of integrity and best value for our public stakeholders. President s Corner The Answer Is So Simple By William D. Bill Noyes MAPP President, CPPO, CPPB Hey, Purchasing! Can you get me a (fill in commodity or service here)? I needed this yesterday!!! Do you ever get the feeling a statement such as the one above precedes every requisition that hits your desk? So many things need to be done and sometimes, despite the best of intentions, things slip past (or the sneak up on you). There are places to be, projects to work, tasks to complete, and deadlines to meet. Your job (and possibly a 2 nd job), combined with the pressures of daily life (family, friends, school, volunteer activities, etc.), all take time and it seems like so often, we catch ourselves working long hours and saying time flies. I m sure I m not the only person who sometimes feels overwhelmed. Sometimes it s hard to even know where to start. What is the priority task? There is so much to do and no matter how many tasks are completed, it seems many more things are found which still need to be done. I am submitting the following story, which I ran across years ago. When things get too hectic and time starts flying, I have found this story helps me re-evaluate and re-assess priorities and to keep everything in perspective. Maybe this will help you too. Chapter Member of: So, what is the priority? The following article has always helped me to remember that, for me at least, The Answer Is So Simple. This was condensed in the May 1995 issue of Reader s Digest from an article originally written by Bob Greene of the Chicago Tribune (to give credit where credit is due). 1 M issouri Association of Public Purchasing

2 Calendar & Events President s Corner continued Passing through the Atlanta airport one morning, I caught one of those trains that take travelers from the main terminal to their boarding gates. Free, sterile, and impersonal, the trains run back and forth all day long. Not many people consider them fun, but on this Saturday I heard laughter. At the front of the first car looking out the window at the track that lay ahead were a man and his son. We had just stopped to let off a passenger, and the doors were closing again. Here we go! Hold on to me tight! the father said. The boy, about five years old, made sounds of sheer delight. I know we re supposed to avoid making racial distinctions these days, so I hope no one will mind if I mention that most of the people on the train were white, dressed for business trips or vacations and that the father and son were black, dressed in clothes that were just about as inexpensive as you can buy. Look out there! the father said to his son. See that pilot? I bet he s walking to his plane. The son craned his neck to look. After I got off the train, I remembered something I wanted to buy back in the terminal. I was early for my flight, so I decided to go back. I did and just as I was about to reboard the train to return to my gate, I saw the man and his son had returned too. I realized then that they hadn t been heading for a flight, but had just been riding the shuttle. You want to go home now? the father asked. I want to ride some more! More? the father said, mock exasperated but clearly pleased. You re not tired? This is fun, the son replied. All right, the father replied, and when the door opened we all got on. There are parents who can afford to send their children to Europe or Disneyland, and the children turn out rotten. There are parents who live in million-dollar houses and give their children cars and swimming pools, yet something goes wrong. Rich and poor, black and white, so much goes wrong so often. Where are all these people going, Daddy? the son asked. All over the world, came the reply. The other people in the airport were leaving for distant destinations or arriving at the ends of their journeys. The father and son, though, were just riding this shuttle together, making it exciting, sharing each other s company. There are so many troubles in this country crime, the murderous soullessness that seems to be taking over the lives of many young people, the lowering of educational standards, the increase in vile obscenities in public, the disappearance of simple civility. So many questions about what to do. Yet, here was a father who cared about spending the day with his son and who had come up with this simple plan on a Saturday morning. The answer is so simple: parents who care enough to spend time, and to pay attention, and to try their best. It doesn t cost a cent, yet it is the most valuable thing in the world. The train picked up speed, and the father pointed something out, the boy laughed again, and the answer is so simple. 2 M issouri Association of Public Purchasing

3 Calendar & Events Things Are Happening in 2014 By William D. Bill Noyes MAPP President, CPPO, CPPB I m pleased to report we had a very productive meeting of the MAPP Board of Directors on Wednesday, March 5 th. This meeting was originally scheduled for February 5 th, but bad weather made it hazardous to travel and it was necessary to postpone the scheduled meeting until March. However, despite the delay in having our first face-to-face meeting of the year, your board accomplished a lot of things when we were finally able to meet. Here s what s been happening so far in 2014: 1) The chapter s annual submissions to NIGP such as the Chapter Leader Form, Chapter Seminar Agreement, Chapter Members Data Form, Chapter Financial Form, and Group Exemption Update Form, were all submitted before their required deadlines. 2) I participated in a conference call of chapter leaders from NIGP Region 10 (the region MAPP is a part of) as well as a Chapter Leaders Orientation Webinar. 3) MAPP Vice-President Melinda Bobbitt, attended the NIGP Leadership Symposium. 4) MAPP continues to be represented on the Kansas City Regional Purchasing Exposition (KCRPE) planning committee. We are co-hosting KCRPE along with the Mid-America Council of Public Purchasing (MACPP), and the Kansas Association of Public Purchasing (KAPP) this fall. 5) The MAPP 2013 financials have been submitted to our accountant for preparation of tax returns for the chapter and the board reviewed and approved the 2014 chapter budget. 6) Annual membership dues notices were sent out and collections are coming in nicely. Thanks to all members for their prompt attention to the payment of their dues. 7) Past-President Cale Turner has solicited nominations for our annual chapter Buyer and Manager of the Year awards and the Linda D. Windsor Distinguished Service Award, which will all be presented at the upcoming MAPP Spring Conference. 9) Tim Karle s appointment to the MAPP Board of Director s to fill an open position as Program committee chair was approved and he will be sworn in at the next board meeting. 10) The 2013 spring conference is coming soon and plans and details continue to be reviewed. Please submit your registration and make your hotel reservations as soon as possible. This conference is gonna be a good one! 11) A new platform for MAPP to be able to accept credit card payments for dues and conference registrations is now up and running on our website ( 12) The board has received and approved a few scholarship applications for the spring conference the NIGP Forum. The scholarship application is on the website and funds are available to assist qualified members. Check of the form for the various criteria and don t hesitate to apply if financial aid is need to participate in these activities. The following is the schedule of future MAPP Board meetings for Meetings are held at the Columbia Chamber of Commerce building (300 S. Providence Rd., Columbia, MO ) except those held in conjunction with the spring and fall conferences. Any member is welcome and invited to attend our meetings and/or is encouraged to share any thoughts, concerns, or ideas with any officer or board members so these may be discussed: May 14 10:00 AM Columbia Hampton Inn (prior to start of spring conference) June 4 10:00 AM Columbia Chamber of Commerce August 6 10:00 AM Columbia Chamber of Commerce October 8 10:00 AM Blue Springs Hilton Garden Inn (prior to start of KCRPE conference) December 3 10:00 AM Columbia Chamber of Commerce 8) The chapter received a proclamation from the Governor of the State of Missouri declaring March as Purchasing Month. 3 M issouri Association of Public Purchasing

4 Calendar & Events The MAPP Spring Conference is May 14-16, 2014 at the Hampton Inn & Suites in Columbia, MO. Last date for registration is 12:00 p.m., April 12, If you do not reserve your hotel room by then, they will release the block and it is graduation weekend in Columbia, so very difficult to get a reasonably priced room. We also need to confirm with the hotel the numbers of attendees for our meals. For those of you attending the breakout sessions, please come prepared to respond to this question: "If you could change one thing about public procurement, what would it be? Conference Agenda Follows: 4 M issouri Association of Public Purchasing

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7 Calendar & Events MAPP WEBSITE ONLINE PAYMENT TOOL NOW AVAILABLE FOR DUES AND CONFERENCE REGISTRATIONS!!! Missouri Association of Public Purchasing 7

8 Calendar & Events Congratulations to Tim Karle, Procurement Unit Manager for the MO Department of Social Services, on his recent appointment as Program Chair for the MAPP Board. The Program Chair position was open upon previous Chair Melinda Bobbitt s election as MAPP Vice-President. Tim s appointment was made effective by a unanimous board approval on March 5, 2014 at the MAPP Board of Directors meeting. The term of this appointment will run through December Tim is tasked with planning and organizing the 2015 MAPP Spring Conference and Reverse Vendor Fair which will be held in the Springfield, MO area. NIGP Leadership Development Symposium By Melinda Bobbitt, CPPO, CPPB MAPP Vice- President As the newly elected Vice-President of MAPP, I had the opportunity to attend NIGP s 1 st annual Leadership Development Symposium that was offered to Vice Presidents of local chapters. The symposium was held January 30 February 1 in Washington D.C. There were 53 chapters represented with 61 chapter leaders attending. We studied and read the book Strengths Based Leadership, and took two assessment tests: o o StrengthFinder Assessment which mapped our strengths in the four domains of leadership strength: executing, influencing, relationship building and strategic thinking. How I See Myself : Behavior Style Assessment from The Effectiveness Institute. The best part of the symposium was networking with other chapter members to find out interesting things they were doing in their chapters. One of the chapters was successful in getting their local college to create an Associate s degree in Purchasing. Many of the chapters were getting into social media and had created Facebook pages. One chapter s Membership Chair visited colleges and presented on Purchasing careers. Their chapter selected three college students to mentor and allowed the students to attend their conference for free and shadow different employees in different branches of government. After graduating, of those three students, one got a job in public purchasing, one in private purchasing and one went into a completely different field. 8 M issouri Association of Public Purchasing

9 Calendar & Events Happy Belated Purchasing Month!! By Cale Turnder, CPPB MAPP Past President (2013) In accordance with the below proclamation, the Governor of the State of Missouri has hereby proclaimed March 2014 as Purchasing Month in Missouri. MAPP would like to recognize all of our members and let them know that their service to doesn t go unnoticed. As stated in the proclamation, the purchasing and materials management profession has tremendous influence on the economic conditions in the United States, with a cumulative purchasing power running into the billions of dollars. Thank you for your continued service to the purchasing profession! More information in regards to purchasing month festivities can be found on the NIGP website: Missouri Association of Public Purchasing 9

10 Calendar & Events Early Bird Registration Ends April 30! More information available at: px?site=nigp&webcode=evt_ae 10 M issouri Association of Public Purchasing

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12 News MO Proposed Procurement Legislation By Gary J. Stoll, CPPB MAPP Public Affairs Chair The following is a list of proposed legislation in the current session that could have an impact on public procurement or be could be of interest to MAPP members. The list shows bill number and the bill summary if available (HB2051 and HB2052 did not have a summary available as of March 5.) The status of each bill can be viewed at the MO House of Representatives website: For several bills a text of the proposed change to the statute language is also shown. If any member knows of any other proposed legislation that impacts public procurement, either at the state or local level, please contact MAPP Public Affairs Committee Chair, Gary Stoll, CPPB at gary.stoll@doc.mo.gov. The MAPP board will continue to monitor the progress of these bills. HB1071 This bill allows the State Highways and Transportation Commission within the Department of Transportation to purchase large quantities of commodities that are highly standardized, readily available, and selected solely on price from a reasonable number of qualified competitors at a reverse auction. HB1080 This bill prohibits the Commissioner of the Office of Administration from awarding points to a bidder for a contract license office that proposes a return-to-the-state provision offer. The bill also requires the Director of the Department of Revenue to follow the bidding procedures provided by law and establish the rules necessary to implement those procedures. HB1163 This bill establishes the Intrastate Commerce Act, which specifies that goods produced or manufactured in Missouri and kept within this state will not be deemed to have traveled in interstate commerce and will not be subject to federal law, regulation, or the constitutional authority of Congress to regulate commerce. These provisions will not apply to goods manufactured in this state unless the goods are clearly marked "Made in Missouri"; goods produced in this state unless the goods are clearly marked "Product of Missouri"; or goods ordered, procured, or purchased by the United States government or by any contractor under an agreement with the federal government. HB1202 This bill expands the procedure for advertising the letting of contracts by counties or townships in counties with a township form of government to include electronic means. The electronic means must be reasonably calculated to reach the general public and likely to reach prospective bidders or offerors, including online bidding services. HB1212 This bill authorizes political subdivisions to enter into design-build contracts for construction projects exceeding $1 million. In its main provisions, the bill: 12 M issouri Association of Public Purchasing

13 (1) Establishes design-build contract procedures; (2) Requires the political subdivision to adopt procedures for requesting proposals and evaluating and awarding contracts from up to five pre-qualified contractors; (3) Establishes advertising requirements and procedures for submitting and opening proposals and for re-advertising when necessary; (4) Specifies that payment bonds are required, but the performance bond does not need to cover design services if the contractor or subcontractor providing design services carries professional liability insurance in the amount established in the request for proposal; (5) Requires architects, engineers, and land surveyors performing services for the contractor to be licensed or authorized under statute, unless the subcontractors performing the services are properly licensed; (6) Requires the political subdivision to retain an architect or engineer unless it already retains one; and (7) Prohibits the architect or engineer from acting as the design-build contractor, subcontractor, joint venturer, or partner for the project. HB1249 (similar to SB719) Currently, school district employees who do not serve in an administrative or executive capacity are precluded from providing services or property to the school district. This bill allows such services and sales when they fall below specified amounts unless the transactions are made by contract that has been through a notice or bid process. The bill also revises a penalty provision for purchasing violations that applies to school districts in second, third, and fourth class counties to school districts in first class counties as well. SB719 (similar to HB1249) Current law provides that any school board member, officer, or employee of a sevendirector school district that is located in a first class county who sells or provides certain commodities to the district is guilty of a class A misdemeanor and must forfeit his or her position with the district. This act removes this prohibition and aligns seven-director districts located in a first class county with the current law regarding seven-director districts located in second, third, and fourth class counties so that any school board member, officer, or employee may sell or provide certain commodities to the district provided he or she complies with certain ethical provisions. HB1251 This bill specifies that counties of the first classification are not required to obtain bids on any purchase of $6,000 or less from any one person, firm, or corporation during any 90-day period. Currently, this exemption only applies to Boone and Greene counties. The bill specifies that counties of the first classification are required to advertise and post notice only on a proposed single feasible source purchase of $6,000 or more. Currently, this requirement only applies to Boone and Greene counties. HB1306 This bill revises the definition of construction as it relates to prevailing wages on public works projects by removing improvements, alterations, or major repairs and specifies that it does not include maintenance work. Currently, it includes construction, reconstruction, improvement, enlargement, alteration, painting and decorating, or major repair. The bill also revises the definition of maintenance work to include repairs that restore existing facilities to a previous state or condition or improve the utility or enhance the appearance of an existing facility provided that the size, type, or extent of the existing facility is not changed. Maintenance work cannot include "major repairs" that is defined as any Missouri Association of Public Purchasing 13

14 work that exceeds the replacement cost of existing facilities. The bill also changes the way the Department of Labor and Industrial Relations determines the prevailing hourly rate of wages on public work projects. For the City of St. Louis and the counties of Cass, Clay, Franklin, Jackson, Jefferson, Lincoln, St. Charles, and St. Louis, the prevailing hourly rate of wages will continue to be determined by consideration of the applicable wage rates established by collective bargaining agreements, if any, and the rates paid generally within those counties and city. The applicable wage rates paid by members of a tax-exempt trade organization as defined in the bill also can be considered. For all other counties, the prevailing hourly rate of wages will be the state average weekly wage as determined annually by the department for each separate occupational title within the locality. HB1354 Current law contains certain criteria for the selection of construction managers for state projects. This bill expands the criteria to include "whether the construction manager is a local business." The bill further modifies the term "lowest and best bidder" to include the consideration of the locality of the prospective supplier The contract shall be let to the lowest and best bidder. As used in this subsection, the term lowest and best bidder may include as a consideration the locality of the prospective supplier. HB1406 This bill requires the Office of Administration, in consultation with each state department, to establish and implement a plan to increase and maintain the participation of certified socially and economically disadvantaged small business concerns or minority business enterprises in contracts for supplies, services, and construction with the state after it completes a study of the availability of these businesses. The study will be undertaken by a committee of nine members, appointed by the Commissioner of the Office of Administration, and must be completed by December 31, The Minority Business Enterprise and Women's Business Enterprise Oversight Review Committee is established to conduct a new study to ensure participation from socially and economically disadvantaged minority or women's business enterprises, to be completed by December 31, The committee will include one member of the House of Representatives appointed by the Speaker, one member of the Senate appointed by the President Pro Tem, and four members appointed by the Governor. The Office of Administration will staff the committee and aid in the performance of the committee's duties, which are specified in the bill, including the identification of contractors who may need subcontractors and the notification to potential women and minority subcontractors. The provisions of the bill regarding the review committee will expire six years after the effective date. HB1484 This bill adds professional engineers, architects, landscape architects, and land surveyors to those persons or entities to whom prompt payment must be made under a public works project; The bill specifies that retainage withheld on a construction contract or subcontract for a public works project cannot exceed 5% of the value of the contract or subcontract. The threshold dollar amount of a public works project that requires a contractor to purchase a security bond is increased from $25,000 to $50,000. If the contractor is not required to obtain a bond the public owner may withhold retainage on the project in an amount up to 10% of the value of the contract or subcontract. 14 M issouri Association of Public Purchasing

15 The bill changes from 200% to 150% of the value of an item a public owner can withhold from a subcontractor once retainage is released for each minor item the subcontractor needs to complete. The value of each item is determined by the public owner's authorized representatives. The public owner must pay at least 98% of the retainage, less any offsets or deductions authorized by contract or by law, to the contractor, subcontractor, or supplier after substantial completion of the contract work and acceptance by the public owner. If the public owner determines the work is not substantially completed and accepted, the owner must provide a written explanation of why within 14 days. If this explanation is not given, the public body must pay at least 98% of the retainage within 30 days. If at that time there are any remaining minor items to be completed, an amount equal to 150% of the value of each item must be withheld until the item is completed. The bill specifies that when a contractor receives any payment, he or she must pay each subcontractor and material supplier in proportion to the work each completed less any retention up to 5%. If the public owner rejects specific areas of work and does not release the full payment due, the subcontractors and suppliers involved will not be paid for the rejected work as long as the public owner gives a written explanation to the contractor, subcontractor, and supplier involved of why the work was rejected. Public owners are required to pay any professional engineer, architect, landscape architect, or land surveyor the amount due within 30 days following receipt of an invoice prepared and submitted in accordance with the contract. The contracting public owner also is required to pay interest at the rate of one and one half percent per month calculated from the expiration of the 30 day period until fully paid. HB1633 This bill authorizes the Commissioner of the Office of Administration to hold reverse auctions for the purchase of specific commodities. These auctions are limited to purchases of large quantities of highly standardized, readily available commodities The commissioner of administration shall be authorized to hold reverse auctions for the purchase of specific commodities. 2. Prior to the commencement of bidding, all criteria of a bid must be established and any vendor participating must meet all the requirements at the time of bidding. 3. Participating vendors shall be able to see the best price offered at all times during the reverse auction. 4. The use of reverse auctions shall be limited to purchases of large quantities of highly standardized, readily available commodities whose selection depends solely on price and obtainability from a reasonable number of qualified competitors. HB1674 This bill requires every party engaged in public or private construction work to bear the burden of his or her own negligent, reckless, or otherwise wrongful conduct. Contracts attempting to shift liability by means of insurance, hold harmless clauses, indemnification, or promises to pay legal defenses, to another party are against public policy and void. Parties are allowed to insure themselves against payment of an entire judgment and pay only the amount they are responsible for under comparative fault in cases involving joint and several liability under Section or general common law. A party may cause another party to be named as an additional insured for certain negligent acts. HB1715 (similar to SB981) For any contract between a private company and the State of Missouri, this bill requires the Office of Administration to post on the Missouri Accountability Portal a copy of each contract Missouri Association of Public Purchasing 15

16 and request for proposal for goods and services purchased by the state unless otherwise prohibited by law. If the state issues a request for proposal for a service currently provided by the state, the Office of Administration must give notice to the state employees currently providing the service 45 days before the request for proposal is due. The state employees affected may submit their own bid to continue to provide the service. The state or any of its agencies may enter into a service contract only if the cost of the proposed contract is less than the current costs or any proposal submitted by state employees currently providing the service. When calculating cost, the state must include salaries and fringe benefits as well as the cost of rent, equipment, utilities, materials, and any transitional costs. If a private company's request for proposal is approved, the Office of Administration must provide notice to affected state employees and post a copy of the contract and all requests for proposals on the portal 45 days prior to the effective date of the contract. SB981 (Similar to HB1715) This act requires the Office of Administration to post a copy of each request for proposal for goods and services and private contract entered into by the state on the Missouri accountability portal. If the state issues a request for proposal for a service currently provided by state employees, the Office of Administration shall give notice to the employees of such issuance 45 days before the proposal is due. The employees may submit bids to continue to provide the service. Contracts may only be entered into if the costs are less than the current costs or less than the costs of proposals submitted by such employees. HB1910 This bill authorizes any agency of the state or political subdivision of the state that is authorized to contract for architectural, engineering, and land surveying services that has been unable to negotiate a satisfactory contract with the best qualified firm and has terminated negotiations with that firm and has also been unable to negotiate a satisfactory contract and has terminated negotiations with the second and the third best qualified firms to return to negotiations with the first or second highly qualified firm to negotiate a satisfactory contract. HB2051 Modifies provisions relating to competitive bidding for state purchases HB2052 Requires, during the bidding process, to consider bids or bidders with the best value rather than the lowest and best SB834 This act requires public bodies to specify in the call for bids and require that each bidder on a public works project be a responsible bidder. A responsible bidder is defined as one that: Maintains an office in Missouri on a continuous basis for at least one year prior to the awarding of the contract. In the case of a joint venture, local contractors have fifty percent or more ownership; Has a ten-hour Occupational Safety and Health Administration course or the equivalent and a written safety program with emphasis on one's experience modification rating; Has documented ongoing upgrade training; Strictly enforces the prevailing wage requirements and complies with such requirements; Has a satisfactory record of prior project performance, including the absence of liens and debarment; and Satisfies all local licensing requirements if the locality requires any licensing. SB854 Under current law, Boone and Greene counties are not required to obtain bids on purchases of $6,000 or less. This act provides that Christian County is also not required to obtain bids on such purchases. Current law also provides that Boone and Greene counties are only required to advertise and post notice on proposed purchases that exceed $6,000 when the county commission determines that there is only one feasible source for the supply. Other counties must 16 M issouri Association of Public Purchasing

17 post notice for such proposed purchases of at least $3,000 and also advertise in the newspaper for such purchases of at least $5,000. This act provides that Christian County is also only required to advertise and post notice of such proposed purchases that exceed $6,000. SB946 This act allows certain non-profit organizations to be included as minority business enterprises (MBE) and women's business enterprises (WBE) for public contract bidding preferences. The following organizations shall be considered an MBE: A 501(c)(3) not-for-profit organization based in Missouri that can show the following: The organization's entire staff is comprised of at least twenty-five percent minorities or such staff is comprised of more than five percent greater than the average minority population of the geographic area that is served by the organization; and The organization's staff that is classified as management or the twenty percent of the staff with the highest salaries is comprised of at least twenty percent minorities or such staff is comprised of a percentage that is greater than the average minority population of the geographic area that is served by the organization. The following organizations shall be considered a WBE: A 501(c)(3) not-for-profit organization based in Missouri that can show the following: The organization's entire staff is comprised of at least fifty-five percent women; and The organization's staff that is classified as management or the twenty percent of the staff with the highest salaries is comprised of at least forty-five percent women. MBE and WBE bidders shall not be awarded more than 5 points in the bidding process. Missouri Association of Public Purchasing 17

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19 Where Are They Now? Where Are They Now - Really, where are they??? If anyone knows of how to contact the following past MAPP Presidents, please let Liz Palazzolo know: Herbert C. Damron Oscar Bargen JoAnn Anthony Robert G. Schackelford Charles M. Johnson Jack Sapp Edward F. Doczy J. Ferrel Hodge Kathy Garske PUZZLE ANSWERS Across 2. Warranty 3. Standard 5. Acquisition 6. Goods 8. Invoice 9. Price 11. Destination 13. Solicitation 15. Vendor Down 1. Market 4. Response 5. Appropriation 7. Requisition 10. Lessor 12. Commodity 14. Addendum Missouri Association of Public Purchasing 19

20 Purchasing Puzzle Down 1. The aggregate forces (including economics) at work in trade and commerce in a specific service or commodity. To sell, analyze, advertise, package, etc. 4. The offer received from a vendor in response to a solicitation. A response includes submissions commonly referred to as "offers," "bids," "quotes," or "proposals." 5. Sum of money from public funds set aside for a specific purpose. 7. An internal document that a functional department (stores, maintenance, production, etc.) sends to the purchasing department containing details of materials to meet its needs, replenish stocks or obtain materials for specific jobs or contracts. 10. One who grants a lease. 12. A transportable article of trade or commerce that can be bartered or sold. 14. An addition or supplement to a document; e.g., items or information added to a procurement document. Across 2. The representation, either expressed or implied, that a certain fact regarding the subject matter of a contract is presently true or will be true. Not to be confused with "guarantee," which means a contract or promise by one person to answer for the performance of another person. 3. An item's characteristic or set of characteristics generally accepted by the manufacturers and users of the item as a required characteristic for all such items. 5. The act of acquiring goods and services (including construction) for the use of a governmental activity through purchase, rent, or lease. Includes the establishment of needs, description of requirements, selection of procurement method, selection of sources, solicitation of procurement, solicitation for offers, award of contract, financing, contraction administration, and related functions. 6. All types of personal property including commodities, materials, supplies, and equipment. 8. A list of goods or services sent to a purchaser showing information including prices, quantities and shipping charges for payment. 9. The amount of money that will purchase a definite weight or other measure of a commodity. 11. The place to which a shipment is consigned. 13. The process used to communicate procurement requirements and to request responses from interested vendors. A solicitation may be, but is not limited to a request for bid and request for proposal. 15. Someone who sells something; a "seller." 20 M issouri Association of Public Purchasing