PAP.2.4.010 Procurement Planning

(a) General. Planning is essential to managing the procurement function properly; however the type and extent of planning will depend on, among other factors, the method and size of the procurement, with larger and more complex procurements requiring more planning.

(1) Careful advance planning provides the Tribe with adequate time to accomplish its procurement actions. Advance planning helps to: maximize competitive pricing among contracts and decrease the Tribe's procurement costs; without any need for re-procurement, e.g., resolving bid protest; and minimize errors that occur when there is inadequate lead-time. Contractors that develop or draft specifications, requirements, statements of work, and invitations for bids or requests for proposals must be excluded from competing for such procurements.

(2) The Tribe should periodically review their record of prior purchases, as well as future needs to find patterns of procurement actions that could be performed more efficiently or economically. Items purchased repetitively might be obtained more economically through various master contracts. However, consideration should be given to storage, security, and handling requirements when planning these types of purchasing actions. For example, it may not be economical or prudent to buy truckloads of a product at deep discounts if there is no appropriate storage space for the product or if the cost of handling the product would exceed the savings price.

(b) Individual Procurement Plans (IPPs). For larger, more complex procurements, such as major computer purchases or construction projects, the CPO should establish IPPs. IPPs establish deadlines or milestones for completion of the steps necessary to assure timely delivery or performance by the CPO.

(c) Equipment Lease or Purchase. Based on a case-by-case evaluation of costs and other factors, the Tribe should consider the leasing of equipment. Those factors would include length of period the equipment is to be used and the extent of use within that period; financial and operating advantages of alternative types and makes of equipment; cumulative rental payments for the estimated period of use; net purchase price; transportation and installation; maintenance and other service costs; potential obsolescence of the equipment because of imminent technological improvements; availability of the purchase items; trade-in or salvage value; imputed interest; and availability of servicing capability (for example, whether the equipment can be serviced by Tribal staff).