Basics of Specification Writing

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Basics of Specification Writing

• NIGP-Utah Procurement Workshop
• January 16, 2007
• By Rick Ashby, C.P.M., A.P.P.
• rashby_at_dsdmail.net

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Specification Development

• The Purchase Description
• Forms the Heart of the Procurement

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Specification Development

• Purchase Descriptions
• Basic Physical Descriptors
• - color, shape, texture, weight
• Basic Design Descriptors
• - dimensions, tolerances, composition
• Basic Functional Criteria
• - purpose, intended use
• Basic Performance Criteria
• - effectiveness, efficiency

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Specification Development

• Objectives
• Understand Purpose Objectives of Specifications
• Learn Components of Successful Specification
  Development
• How to Avoid Pitfalls Find Solutions

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Specification Development

• The Purchase Description
• Four (4) essential points to ensure your
  specifications have a heart beat and are not
  dead on arrival before the solicitation is
  born

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The Purchase Description

• 1 - Clarity and Precision
• Whether or not a contractor performs to the
  satisfaction of the using organization frequently
  is determined at the time that the purchase
  description specifying the quality requirements
  is selected or written. In no other form of
  communication is there a need for greater clarity
  and precision of expression

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The Purchase Description

• 2 - Well Communicated, Unambiguous
• Value Oriented
• We must recognize and remember that purchase
  descriptions directly affect the quality and
  performance of the material purchased and the
  price paid. Thus the need for well written, well
  communicated, unambiguous, value orientated
  specifications

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The Purchase Description

• 3 - Internal Cooperation Coordination
• Specifications are the most detailed method of
  describing requirements...They are descriptions
  that tell the seller exactly what the buyer wants
  to purchase. Because they impinge extensively on
  the discipline of engineering, operations,
  purchasing and quality control. Optimum
  specifications consider the contribution made by
  all these departments. Developing proper
  specifications is an important management task.
  The task is difficult because it involves many
  variables...This is why specification writing is
  an extremely fruitful area for management to
  develop cooperation and coordination between
  various departments

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The Purchase Description

• 4 - Specification Stands Alone
• The specification should define the
  characteristics of the product in such a way that
  possession of the specification alone should be
  sufficient to convey to the manufacturer the
  design engineers concept of what is wanted
• Source Specification Development An
  Overview, Pregler, Jim, NIGP

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Specification Development

• Definition of Specification
• means any description of the physical or
  functional characteristics, or of the nature of
  a(n) item. It may include a description of any
  requirement for inspecting, testing, or preparing
  a(n) item for delivery.
• Utah Procurement Code 63-56-105(28)

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Specification Development

• Utah Procurement Code
• 63-56-303
• Purpose of Specifications

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Specification Development

• Purpose of Specifications
• All specifications shall seek to promote overall
  economy and best use for the purposes intended
  and encourage competition in satisfying the
  districts needs, and shall not be unduly
  restrictive.

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Specification Development

• Purpose of Specifications (cont.)
• The requirements of this part regarding the
  purposes and non-restrictiveness of
  specifications shall apply to all specifications,
  but not limited to, those prepared by architects,
  engineers, designers, and draftsmen for public
  contracts.

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Specification Development

• Utah Admin Rules R33-4-1. Specifications
• General Provisions

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Specification Development

• Purpose
• Specifications shall be drafted with the
  objective of clearly describing requirements
  and of encouraging competition.

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Specification Development

• Purpose (cont.)
• The purpose of a specification is to serve as a
  basis for obtaining a(n) item adequate and
  suitable for the agencys needs in a cost
  effective manner

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Specification Development

• Purpose (cont.)
• taking into account, to the extent
  practicable, the costs of ownership and
  operations as well as initial acquisition costs.
  
• Utah State Procurement Administrative Rule
  R33-4-101(1)

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Specification Development

• Therefore, the Objective is
• To obtain product or service that is
• Adequate
• Suitable
• Cost Effective
• Through the Use of

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Specification Development

• Clear Descriptive Requirements
• And
• Competition

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Specification Development

• Three Common Categories of Descriptive
  Specifications
• Functional or Performance
• Brand Name or Equal
• Brand Name

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Specification Development

• Functional or Performance Descriptions
• Specifications shall emphasize functional or
  performance criteria while limiting design or
  other detailed physical descriptions to those
  necessary to meet the need

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Specification Development

• Functional or Performance Descriptions (cont.)
• To facilitate the use of the criteria,
  agencies shall include the principal
  functional or performance needs to be met
• Utah State Procurement Administrative Rule
  R33-4-101(2)

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Specification Development

• Therefore, the Practice is
• To obtain products by means of a written
  specification
• Emphasizing Function or Performance
• Limiting Design and Physical Descriptions
• And Using

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Specification Development

• standard commercially available products
  whenever practicable.
• Utah State Procurement Administrative Rule
  R33-4-101(3)

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Specification Development

• Three (3) considerations why you should emphasize
  use of functional or performance specifications

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Specification Development

• 1 - Defines Expectation
• A performance specification, in theory, is the
  perfect method of describing a requirement.
  Instead of describing an item in terms of its
  design characteristics performance
  specifications describe, quantitatively where
  possible, what the item is required to do.

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Specification Development

• 2 - Shifts Risk
• Potential suppliers are told only the
  performance that is required. Though performance
  is specified in precise detail, suppliers are not
  told how the product should be manufactured or
  what material should be used. Manufacturers are
  free to make these choices as they see fit. They
  must, however, guarantee that the end result will
  meet or exceed the stated requirements. If it
  does not, the responsibility for failure rests
  solely on the contractor, not the buyer

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Specification Development

• 3 - Easy to Write and Maintain
• The performance specification...is the easiest
  type of specification to write. It assures
  performance and, if the supplier is competent, it
  assures inclusion of all applicable new
  developments
• Source Specification Development An
  Overview, Pregler, Jim, NIGP

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Specification Development

• Simple Example 1
• Functional or Performance Spec
• Transportation Services

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Specification Development

• Need
• Transport return band students to Christmas
  concert in St. George
• Requirements
• 60 student capacity
• Arrive in 6 hours from departure
• Comfortable seating
• Budget - 1,000

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Specification Development

• Bid Responses
• Vendor A - 9-passenger mini-van fleet
• .35/mile 210 x 7 vans
  1,470
• Vendor B - Large horse-drawn hay wagon
• donated service 50 for
  horse feed
• Vendor C - 75 passenger motor coach
• 1.50/mile 910
• Vendor D - Commercial air flight
• 150/ticket x 60 students
  9,000

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Specification Development

• Analysis

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Specification Development

• Simple Example 2
• Functional or Performance Spec
• CD-R Duplicator

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Specification Development

• Need Requirements

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Specification Development

• Noticeable Characteristics
• No mention of
• Manufacturer
• Brand
• Model number
• Physical description

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Specification Development

• Special Additional Procedures
• R33-4-104(2)
• (a) Specs for Common or
• General Use
• (b) Brand Name or Equal Specs
• (c) Brand Name Specs
• (d) Qualified Products List

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Specification Development

• Brand Name or Equal Spec
• may be used when the procurement officer
  determines that a specification is in the
  agencys best interest.
• Brand Name Spec
• may be used when the procurement officer
  makes a written determination acceptable to the
  chief procurement officer, as a purchase
  evaluation, or a statement of single source
  justification. The written statement must state
  specific reasons for use of the brand name
  specification.

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Specification Development

• Brand Name or Equal Spec
• Brand name or equal specs shall seek to
  designate as many different brands as are
  practicable as or equal references and shall
  state that products substantially equivalent to
  those designated will be considered
• Brand Name Spec
• Since the use of a brand name spec is
  restrictive, the procurement officer shall seek
  to identify sources from which the designated
  brand name item can be obtained and shall solicit
  sources to achieve whatever degree of competition
  is practicable

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Specification Development

• Brand Name or Equal Spec
• Where a brand name or equal spec is used the
  solicitation shall contain explanatory language
  that the use of a brand name is for the purpose
  of designating the standard of quality,
  performance, and characteristics desired and is
  not intended to limit or restrict competition.
• Brand Name Spec
• If only one source can supply the requirement,
  the procurement shall be made under Section
  63-56-410 of the UPC. (i.e. Circumstances
  justifying award of a contract without
  competition)

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Specification Development

• Brand Name or Equal Spec
• Used appropriately, meets the UPCs purpose for
  specifications and is not restrictive.
• Brand Name Spec
• Although restrictive, may be used under specific
  and approved conditions

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Specification Development

• Usage of Brand Name or Equal Spec
• Sample solicitation clause
• Wherever in this document an item is defined by
  using a trade name of a manufacturer and/or model
  number, it is intended that the words, or
  approved equal apply. Or approved equal means
  any other brand that is equal in use, quality,
  economy and performance to the brand listed. If
  the bidder lists a trade name and/or catalog
  number in the bid, the DISTRICT will assume the
  item meets the specifications unless the bid
  clearly states it is an alternate, and describes
  specifically how it differs from the item
  specified.
• Davis School District Instructions and General
  Provisions

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Specification Development

• Simple Examples
• Brand Name or Equal Spec
• CD-R Duplicator

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Specification Development
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Specification Development
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Specification Development

• A good question to ask is, can the equal
  perform the functions for which the specified
  brand is desired?
• If it cannot, it certainly is not equal if it
  can, it is equal
• Source Specification Development An
  Overview, Pregler, Jim, NIGP

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Specification Development

• Brand Names Public Procurement
• Pitfalls and Solutions
• Source Sweet n Low or Equal, Lallatin, Carla
  S. , NAPM Insights, April 1994, pp. 54-55

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Excerpts from Pitfalls and Solutions

• Brand-name loyalty on the part of individual
  consumers is perfectly acceptable. When it comes
  to spending taxpayers dollars, however, public
  purchasers find brand-name loyalty has unique
  pitfalls. Corporations spend billions of dollars
  on advertising to increase their market share
  through brand name loyalty. If the advertisements
  are effective in exploiting the minor differences
  among brands, individual consumers become
  reluctant to accept a substitute...

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Excerpts from Pitfalls and Solutions

• Entire industries exist to aid consumers in
  making informed choices...comparisons, based on
  quality and value not the advertised sex appeal
  or status, illustrate that among the different
  brands of an item, like or similar quality is
  obtainable from a multitude of manufacturers and
  the difference among brands is minor

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Excerpts from Pitfalls and Solutions

• ...there are two disadvantages to
  brand-name-or-equal specifications one is a lack
  of definition of equal and the other is a lack
  of credibility with potential bidders

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Excerpts from Pitfalls and Solutions

• Behind every brand name item is a shop drawing
  and detailed specification, which when compared
  reflect very few, if any, differences from brand
  to brand. There may be a minor variation in size,
  weight, speed, or capacity. These differences may
  justify advertising the product as unique or the
  better brand however, they are insufficient to
  make a difference to the professional public
  purchaser who recognizes quality for what it is.
  Yet, after a bid opening when contract award is
  pending, these minor variations can take on
  stupendous proportions

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Excerpts from Pitfalls and Solutions

• The supplier community often views brand-name-or
  equal specifications as brand name only. In its
  eyes, the phrase or equal is there because of
  regulatory requirements but has no real meaning.
  The message is that the purchaser is brand name
  conscious, not quality or cost conscious, and
  will pay a premium to get the brand name. This is
  a threat to suppliers of equal brands and often
  leads to a decision not to bid

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Excerpts from Pitfalls and Solutions

• The lack of definition of or equal in the
  brand name or equal specification sometimes
  places the purchaser in an untenable
  situation...Users argue that one millimeter
  difference in size between the low bidder and
  another (coincidentally, the contractor the user
  has always done business with) will render them
  virtually incapable of carrying out their
  mission...Another bidder argues that the low
  bidder is not responsive since the low bidders
  product is ½ inch larger in overall dimensions
  than the product named in the solicitation
  (coincidentally, the arguing bidder offers the
  named product)... Regardless of the outcome...the
  purchaser may spend substantial time defending
  the proposed award decision. At best, wasted time
  and damaged working relationships result. At
  worst, the purchaser is overruled and the award
  is made to other than the lowest responsive and
  responsible bidder

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Excerpts from Pitfalls and Solutions

• ... Many state and local governments and the
  federal government have discovered that spending
  time early in the process to remedy the
  deficiencies eliminates the need to spend
  substantial time later on to resolve arguments

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Excerpts from Pitfalls and Solutions

• Brand-name-or-equal specifications are easy, but
  only if the disadvantages or weaknesses are
  eliminated...The purchaser or user can identify
  the mandatory requirements for the product to
  satisfy the intended end use from the
  manufacturers specification sheets. For example,
  if the user has a legitimate restriction on the
  overall dimension of a product, the specification
  can include mandatory characteristics that the
  overall dimension not exceed a specified maximum
  size or list a specific size with a tolerance. On
  the other hand, if the overall dimension is not a
  particular concern, it would not be included in
  the specification as a salient characteristic.
  This approach solves both the definition and
  credibility problems because the specifications
  are now definite and certain

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Basics of Specification Writing

• NIGP-Utah Procurement Workshop
• January 16, 2007
• By Rick Ashby, C.P.M., A.P.P.
• rashby_at_dsdmail.net