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54 The Authority | October 2025 1. Analyze: Begin by identifying all the potential things that can go wrong and estimate the probability of each happening. The key is to identify the risks associated with any purchase or procurement contract. Developing and using checklists to measure whether your procurement process aligns with legal and ethical standards, along with contract deliverables, is a great way to start. 2. Assess: Evaluate the likely impact of each risk to the authority and identify those that require action. Keep in mind that common threats may have a low impact or consequence and may not be worth taking action to control or avoid. Conversely, some lower- probability consequences can have significant impacts and preventive actions may be appropriate. 3. Mitigate: Once all the risks and required actions have been identified, the next steps are to develop mitigation plans and assign responsibilities. Remember that risks and consequences change over time so assessments should be conducted periodically. Key procurement components Now that the importance of risk management is understood, let’s break down the major components of the procurement process to consider: • Internal processes: Evaluate your purchasing process and the employees who oversee it. These operations should be well- organized with detailed protocols that follow applicable laws and regulations. Monitoring, reporting, and internal controls are important tools to promote adherence and consistency. Since public inquiries and Right-to-Know Law requests are increasingly common, it’s essential to be transparent and document all procurement steps. • Procurement documents: Preparing bidding and contract documents is often the most critical phase because they define the authority’s procurement needs to potential vendors. Documents should be comprehensive, transparent, and free from restrictions or conditions that would unduly discriminate against any bidders. The description of the goods or services being purchased, contractual needs, and legal requirements), must be clearly stated so vendors understand deliverables and how they will be evaluated. Remember, indefining what constitutes a “Responsive” or “Responsible” bidder, authorities should identify their requisite qualifications, experience, and performance standards, not just focusing on lowest cost. Failing to do so can increase risks, particularly if an authority attempts to disqualify a bidder based on unclear criteria. This can result in added legal costs, delays, and substandard deliverables. Documents should also outline any unique requirements triggered by funding sources and other agencies involved. • Utilizing Artificial Intelligence (AI). With technology advancing at an ever-increasing pace, many authorities are tapping Large Language Model (LLM) resources such as ChatGPT, Gemini, Claude, and others to facilitate creating bidding documents. While this can dramatically shorten the time needed to develop documents, extra time must be dedicated to reviewing the content for accuracy, since AI models may not fully understand context, nuances, or other technical considerations. An increasing number of municipalities and authorities are implementing AI policies that outline accepted practices and/or limitations on how these tools are utilized. Before incorporating AI in your procurement process, be mindful of the accuracy and appropriateness of its use. • Procurement Method. With an increased number of available Cooperative Procurement solutions, public agencies are often attracted to the ease with which they can “piggyback” on existing contracts secured by other organizations. While cooperative purchasing has benefits and intended applications, it should not be considered a universal solution. It is one of many tools in your authority's procedural toolbox. If carefully planned, it can even be coupled with traditional methods in a way that taps some benefits of cooperative agreements without Procurement article continued from page 31.