- SUBCONTRACTING AND PURCHASING REQUIREMENTS
10.1 AMCs shall adopt procedures to ensure that due diligence is exercised when purchasing products or services for clients and that they meet all service requirements.
Degnon Associates has a commitment to solicit and provide quality goods and services for clients from approved vendors and subcontractors. A list of approved vendors is maintained and utilized by each management team. The process by which we secure goods and services is as follows:
- Identify potential vendors, subcontractors or independent contractors that could provide the types and level of service needed. The process of identifying vendors consists of using the approved vendor list, in addition to soliciting references from various sources for specific needs (e.g., from hotel and/or the CVB for AV need or destination activities). Typically, two or three different vendors are identified, unless a supplier from the approval list is used.
- Distribute a request for proposal to these vendors, subcontractors or independent contractors that includes:
- Comprehensive information about Degnon’s or client’s current or desired business processes
- Detailed specifications (or requirements)
- Request for submission of fee/price quotes in writing or verbally, along with any pertinent terms and conditions to meet the conditions of satisfaction, including references if Degnon is not familiar with their work/products
- Analyze proposal responses based upon their meeting time and deadline constraints, quality, and price and value
- Negotiate final contract with provider selected
- Evaluate vendor/subcontractor at the completion of the project/contract, usually discussed with the Executive Director, Account Manager and Executive Assistant, with evaluation results utilized to make decisions for future contracts and to add vendors to approved list.
Degnon’s Approved Vendor/Service Provider List is Attachment 10A, from which bids may be solicited and/or contracts awarded. This list is stored on the server accessible to all employees. This list was developed based upon the following:
- Vendor’s/Service Provider’s current and past experience providing the services being sought
- Vendor’s/Service Provider’s history with Degnon and/or its clients and its responsiveness to project specifications and the manner in which challenging situations are addressed.
- Vendor’s/Service Provider’s pricing and price structures
- Vendor’s/Service Provider’s references
- Vendor list may be modified with additions or deletions by corporate officers with recommendations from team members
10.2 AMCs shall adopt procedures to ensure that due diligence is exercised when preparing purchase or service orders and bid/quote documents for clients.
When preparing purchase or service orders, Degnon requests competitive quotes, orally or in writing, from at least two and possibly three different sources, following the outline above in 10.1. A file is kept to document each invitation made, offer(s) received and criteria utilized for selection.
10.3 AMCs shall adopt procedures that permit the AMC or clients to verify acceptability of products or services purchased
The executive director of each client must approve the acceptability of the service or product prior to payment (or final payment in situations where partial payment or a deposit is due in advance). In addition, the Associate Director, or person closest to the project reviews the final bill, initially, to ensure pricing and output are consistent with the original contract.
- AMCs shall adopt procedures for evaluating the hiring of subcontractors, including the following:
- Subcontractor’s service procedures and facilities
Contractors are evaluated prior to initial engagements for their suitability and compatibility with client needs. Where their facilities are critical to the quality of services, Degnon personnel will inspect the facilities in person (where possible) or evaluate them through reliable references
10.4.2 Samples of subcontractor’s products or services
Work samples are an integral part of any evaluation, especially when the work or services involve writing, print, web interface, or product samples.
10.4.3 Customer reference, if available.
It is our practice to secure references for subcontract work from reliable sources such as other AMCs and previously approved vendors used by colleagues.
10.5 AMCs shall adopt procedures to track and record the use of products and services provided by subcontractors and used by the AMC to service clients.
Degnon tracks and stores each client’s products (e.g. promotional materials, publications, conference supplies/signage/giveaways) separately, either at the Degnon office or at a secure off-site storage facility. Client property is marked and identified as belonging to the client and inventory lists are maintained. Care is taken to replenish and maintain products and to purge outdated and unnecessary products on a regular basis.
- AMCs shall disclose conflicts of interests when contracting or making a purchase for the benefit of the client from related entities (e.g. partnerships, subsidiaries, family members, etc.).
Degnon Associates will inform clients of any conflicts of interest.