Department of Finance

eProcurement is Here!

Metro Procurement and Contract Management announces the implementation of Ariba software as our eProcurement solution. Smart and Associates began this change over in March of 2006 and the planed first phase will be completed by the end of July 2006. The second phase will take place by October 2006.

One of the changes our vendors will experience is a required vendor re-registration. The advantage for you is that most of our supplier contact information is old and ineffective. It is our desire to send solicitation notices to you as soon as they are posted to the web so that you won’t have to check the BOB report everyday.

How to do Business with Metro

Day after day, Metro Government’s central purchasing office sees and hears what works for vendors and what doesn’t. They hear success stories from suppliers and contractors, and in almost every one, the winners follow these steps.

SMARTrac Registration - Module 1 Training

Planning to Do Business with Metro?

Understand the Metro Market

Metro government is made up of many different segments. The Department of Finance, Division of Purchases procures goods and services on behalf of what is commonly referred to as the "general government." The general government consists of approximately sixty different departments and offices, including big ones like Metro Water Services and smaller ones like the office of the Tax Assessor. Those departments require a wide variety of goods, services, and construction. You must understand what those departments require in the way of goods, services, and construction, and how and on what cycles they fulfill their needs for those items.

You also must understand the critical differences between how Metro and other government entities purchase, and how private sector businesses purchase. Purchasing for the Metro general government starts from the point of stewardship and heads for the final objective of effective programs and services. Items that are needed on a repetitive basis are usually purchased under a term contract established by the Division of Purchases, and are ordered directly by most departments.

Items that are required on a one time or as-needed basis are generally purchased by the Division of Purchases on behalf of departments, except when the dollar value of the required item is low and the Purchasing Agent has delegated to the department the authority to make small purchases. Five Metro agencies have purchasing authority independent of the central purchasing office. These agencies include:

  • Metropolitan Board of Education (construction only)
  • Metropolitan Development and Housing Authority
  • Nashville Electric Service
  • Metropolitan Transit Authority
  • Metropolitan Nashville Airport Authority

Information on how these agencies do businesses is available from their purchasing offices.

To begin your educational process on how to sell to the general government, contact Roxianne Bethune, the Minority and Small Business Coordinator by phone at (615) 880-2814. She will be happy to answer any questions you may have about how to do business with Metro.

Find Your Niche

Chances are, you don’t want to sell to every department in Metro. You need to do your homework, and identify which departments need what you sell. The Minority and Small Business Coordinator can assist you in targeting prospects. She can also refer you to the specific individuals who specify, buy, or are otherwise involved in the purchase of what you sell. If you are interested in seeing existing or past Metro contracts for what you sell, she can either provide that information or guide you to where you can obtain it.

Position Your Product

Be sure that your promotional and technical literature answers the questions that end-users and purchasing staff have, and that you answer those questions in a format that those officials can use most effectively. Those questions vary, depending on what you sell.

Competing in the Procurement Process

If you require assistance in completing a bidder application, contact the Division of Purchases at purchasing@metro.nashville.org While being on the bidders list is an effective way to find out about sales opportunities with Metro, it is still possible that you may not receive a quote, bid, or proposal notice for a particular item – even a commodity that you told us you want to sell to Metro. You can check the Metro Government Bidding Opportunity Bulletin to be sure that you don’t miss out on any opportunities to bid, quote, or propose. Bid and proposal opportunities are also posted on Nashville cable TV channel 3.

Developing a Responsive Quote, Bid, or Proposal
Read Solicitation Documents Carefully

"Solicitation documents" include the Requests for Quotations (RFQs), the Invitations to Bid (ITBs) and the Requests for Proposals (RFPs) that Metro sends to businesses to ask for offers to sell goods, services, or construction to the government. When you receive a solicitation document, examine the specifications for the item to be sure that you can meet all requirements, and that it’s profitable for you to do so.

RFQs, ITBs, and RFPs include standard forms and special provisions, along with contract clauses. These clauses are important because they define the way of doing business and all that is expected of the supplier. Read them carefully! Pay particular attention to conditions of purchase, delivery and payment. Be sure to sign your quote, bid, or proposal; submit the required number of copies; and get your quote, bid, or proposal to Division of Purchases before the deadline for the receipt of offers. Late quotes, bids, or proposals will not be accepted.

If you decide that you should not submit an offer, submit a written "no quote", "no bid", or "no proposal" as a response to the solicitation. That lets Metro know that you are interested in continuing to see future solicitations for that particular item.

Assess the Task, Risk, Costs, and Potential Profit.

No matter how attractive a solicitation appears, you shouldn’t make a move before you study all of the requirements and evaluate all of the costs you will incur in providing the required goods, services, or construction to Metro. The cost elements you should consider include:

  • Subcontractor and vendor costs
  • Overhead and overhead trend
  • Learning curves for labor and salaried personnel
  • Person-hours involved
  • Availability of furnished material and equipment
  • Material cost trend
  • Labor and salary rates and predictable changes
  • Profit

Do not expect to get rich by selling to Metro. Although there are exceptions, profit margins on Metro and other government entities’ contracts tend to be relatively small in comparison to margins for private sector work.

Don’t "Guesstimate"

Working on the assumption that prior contractors made acceptable profits, some businesses prepare a cost-estimate based on previous award prices. That can be a big mistake. You don’t want to win a contract and lose money. That’s why it is important to determine your actual and current costs. When determining the amount of a quote, bid, or proposal, be especially careful to include all costs of material, labor, overhead, packaging, and transportation.

If you need assistance in preparing a quote, bid, or proposal, contact the Minority and Small Business Coordinator. She cannot (for ethical reasons) assist you herself, but she can guide you to individuals and organizations that can.

Don’t Over-promise

If you can’t do it, don’t submit a quote, bid, or proposal! Don’t let your eagerness to receive a contract award lead you to accept an impossible time frame, delivery schedule, or task that exceeds your capabilities. You risk the reputation of your company and serious financial loss. Make sure you can deliver supplies or perform services within the time frame specified in the contract and that continued progress can be made so performance won’t be endangered.

Allow Adequate Time to Prepare the Quote, Bid, or Proposal

To avoid committing yourself to contractual requirements that cannot be me profitably or in a timely manner, it’s critical to have solicitation documents as early as possible. Your should take time to assemble cost-accounting records so that information on costs of time and material are readily available when you are preparing quotes, bids, or proposals. If a short lead-time solicitation arrives, don’t resort to a hasty guesstimate. Bid on factual performance records! Remember, multiplied by production quantities, even a relatively insignificant error can make the difference between profit and loss.

Following Up
Monitor Results of Procurements

Even if you didn’t win a quote, bid, or proposal, it’s important to know who did. You’ll be able to zero in on your competitors. And, by knowing the prices and specifications that won the award, you’ll have valuable information for writing your next offer.

Pay Attention to Good Service

Often, a reputation for good service is as important to government and institutional purchasers as low prices. It’s vitally important to maintain a good working relationship with purchasers and end-users.

Track Your Market

Good statistics are important. They teach you over time where you stand the best chance of winning, and which wins are most profitable.

Let the Purchasing Office Know if You Don’t Get Paid on a Timely Basis

Metro is committed to paying suppliers and contractors on a timely basis. If you believe that you are not being paid on a timely basis, please contact the buyer who is responsible for the contract and/or the Minority and Small Business Coordinator.

Metro's policy is to pay small businesses within 15 days of date of invoice for purchases made through purchase order or voucher process. To find out whether your business qualifies as a small business, contact the Minority and Small Business Coordinator.

Planning for the Future

Be Able to Accept Procurement Cards

If your company cannot accept procurement cards, gain that ability. It will enable you to receive payments immediately via procurement cards issued to authorized Metro cardholders. Metro’s procurement cards are VISA cards issued by Sun Trust Bank.

Get Ready for E-Procurement

Metro is planning to make the fullest possible use of the Internet for purchases of goods, services, and construction. If you are not ready at present to participate in an electronic procurement environment, you should give some thought to what you need to do to get prepared. Metro will be happy to help you in that thought process. For additional information, contact the Minority and Small Business Coordinator.

Finance > OMB > Purchasing > How To Do Business With Metro