Airport Software Solutions and Services Sourcing (2022) / Chapter Skim
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Pages 30-39
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30 C H A P T E R 6 Six airports were selected as case examples for this synthesis. Justifications and airport characteristics are provided for each case example.
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Case Examples 31 Leveraging digitized workflows, the IT department is poised to make purchases that make use of timing and volume. Buying in bulk and in aggregate at a supplier's fiscal year end allows for negotiations, which optimize the procurement outcome and create the best value for the airport.
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32 Airport Software Solutions and Services Sourcing allows for higher-ticket approvals authorized by the CIO without the need for board approval. Procurement processes are often timed and coordinated to maximize buyers' leverage, including combining volume and timing negotiations with suppliers.
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Case Examples 33 over $25,000 went out to public bid unless the purchase could be made through a cooperative purchasing program or state contract. In 2021, the procurement department recognized the increased costs of goods and services and requested to increase these thresholds -- to $5,000 to require more than one quote, and to $50,000 to require three quotes or (if over $50,000)
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34 Airport Software Solutions and Services Sourcing Compliance with all procurement requirements is a challenge for potential vendors. The airport has rejected submissions because the applicant vendors failed to include everything that was requested, did not meet application deadlines, or otherwise failed to meet requirements.
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Case Examples 35 or financial thresholds are presented to the airport's IT Governance Committee as part of the process in order to gain other business units' approval to move forward. Government cooperative purchasing contracts, PoCs, and ITNs are the most common procurement processes used for technology purchases.
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36 Airport Software Solutions and Services Sourcing procurement departments have regular meetings to review the upcoming purchases needed for departments and work to find suppliers and contracts to make sure those solutions can be procured in the timeline needed. The IT department can help this process by sharing strategic plans and product roadmaps with the procurement department, which will allow for the creation of strategies for the best way to procure solutions outlined in the plans.
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Case Examples 37 Advice to Improve Procurement Process "In lieu of standardized reporting to create increased funding through existing sources, enhance internal operating procures to maximize the budget and drive innovation" (Neil Doran, personal communication, December 10, 2020)
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38 Airport Software Solutions and Services Sourcing understand how the idea blends into the master plan, ensuring the airport stakeholders understand its implication. IT must gather the airport director and executive management team approval.
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Case Examples 39 Challenges and Barriers to Procurement Process Friction occurs when the best-suited item to meet the need is not offered at the lowest cost submitted. Justification for supplier selection must be submitted when the lowest-cost option is not selected.
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