OGS Announces New Methods in “IT” Procurement Presented by OGS Procurement Services Group New York State Purchasing Forum May 14-15, 2002 George E. Pataki Governor Kenneth J. Ringler Commissioner

Forum New “IT” Guidelines Walter Bikowitz Assistant Director OGS Procurement Services Group

Forum Overview Guidelines for OGS “IT” contracts are diverse Each guideline was developed over time It is time to take a step back Announcing new, more uniform guidelines for OGS contracts

Forum “IT” & Telecommunications Contract Areas PCs/Servers* Printers* Software* Computer Consulting Training & Systems Integration (CCTSI)* Networking Hardware & Software* Systems and Peripherals Interactive Voice Response (IVR) Video Conferencing Electronic Key Systems Digital Centrex PBX Installations Cabling (purchase & install) *Note: “IT” requires OFT approval. Purchases > $20,000 for software. Purchases > $50,000 hardware & services

Forum PCs/ Servers – No change Today:  Purchases < $50,000 buy direct off OGS contract of choice  Purchases > $50,000: Aggregate agency purchases when possible Obtain pricing from 3 contractors or, Follow pre-approved policy on file with OSC No OSC pre-approval required Tomorrow:  Purchases < $50,000 buy direct off OGS contract of choice  Purchases > $50,000: Aggregate agency purchases when possible Obtain pricing from 3 contractors or, Follow pre-approved policy on file with OSC No OSC pre-approval required

Forum Printers Today:  Aggregate  Purchases > $50,000: Obtain pricing from 3 contractors or, Follow pre-approved policy on file with OSC Older contracts require OSC pre-approval > $150,000 New contracts - no OSC pre-approval required Tomorrow:  Aggregate  Purchases > $50,000: Obtain pricing from 3 contractors or, Follow pre-approved policy on file with OSC New contracts - no OSC pre-approval required

Forum Systems and Peripherals Today:  Purchases > $50,000: Recommended pricing from 3 contractors Procurement record  Purchases > $150,000 Competition from at least 3 required Procurement record OSC pre-approval Tomorrow:  Purchases > $50,000: Competition from at least 3 required Procurement record No OSC pre-approval

Forum Software Today:  Software Catalog Contract - ASAP  Unlimited purchase of product  Negotiated Contracts  20% Rule > 20% of product and maintenance cost, services bid Tomorrow:  Software Catalog Contract - multiple  Unlimited purchase of product  Negotiated Contracts  20% Rule No change – under discussion

Forum Computer Consulting (CCTSI) Today:  Mini-bid required > $15,000 Tomorrow:  Mini-bid required > $15,000  New processes under discussion

Forum Networking Hardware & Software Today:  Unlimited purchase of product  OSC pre-approval required > $500,000  20% Rule > 20% of product cost, services bid only Tomorrow:  Unlimited purchase of product  No OSC pre-approval required  20% Rule No change – under discussion

Forum Interactive Voice Response & Video Conferencing Today:  Purchases > $50,000 Obtain pricing from 3 contractors or, Single/Sole source justification OSC pre-approval > $150,000 Tomorrow:  Purchases > $50,000: Obtain pricing from 3 contractors or, Single/Sole source justification No OSC pre-approval required

Forum Electronic Key Systems & Digital Centrex Today:  Purchases > $1 Obtain BAFO from the 3 available contractors Best Value choice (usually lowest price in this case) No OSC pre-approval Tomorrow:  Purchases > $50,000: Obtain BAFO from the 3 available contractors Best Value choice (usually lowest price in this case) No OSC pre-approval

Forum PBX Installations Today:  Mini-bid required > $15,000 (agency discretionary limit)  OSC pre-approval required > $15,000 Tomorrow:  Mini-bid required > $15,000 (agency discretionary limit)  OSC pre-approval required > $15,000

Forum Cabling – Purchase & Installation Today:  Obtain OGS approval for buys over $75,000,  Obtain OGS approval for any buys in OGS owned or operated building  No OSC pre-audit Tomorrow:  Notify OGS of any buys in OGS owned or operated building  No OSC pre-audit

Forum Summary PCs, Servers, Printers, Systems and Peripherals, Networking Hardware and Software, IVR, Video Conferencing: < $50,000 - Buy direct > $50,000 - Obtain pricing from 3 contractors No OSC pre-approval Note: If you paid attention, you noticed that 12 “IT” contract guidelines have been compacted into 6

Forum Summary Key Systems and Digital Centrex:  >$50,000 – Compete the 3 vendors on contract  Best value award  No OSC pre-approval PBX and CCTSI:  >Changes forthcoming Cabling – notify OGS in OGS owned and operated facilities

Forum Summary When is tomorrow? June, 2002! Except multiple award for software

Forum STANDBY CONTRACTS: A New Technology Services Option In Development Presented by: Suzanne Nelson Assistant Director

Forum Current Procurement Options under the Computer Services Backdrop Contracts Formal mini-bid process Fast Track Discretionary Purchases

Forum Formal Mini-Bid Required for most consulting and all training and systems integration requirements > $50,000 Must solicit all applicable pre-qualified contractors

Forum Fast Track Streamlined process for consulting (staff augmentation) only based on hourly rates Must solicit all applicable pre-qualified contractors for requirements > $50,0000

Forum Discretionary Purchases For service requirements < $50,000 Purchase direct from small or MWBE contractors Otherwise, solicit a minimum of 3 contractors

Forum Another Procurement Option - Why? Over 477 active contracts as of mid-April 2002 As many as 312 contractors pre-qualified for a specific service and category of expertise Customers may receive over 100 responses to a mini-bid or Fast Track solicitation

Forum Goals and Objectives Create a new procurement option to streamline the use of the backdrop contracts Reduce the number of contractors that customers must solicit for specific tasks Reduce the time to conduct the procurement process Provide customers a more manageable and controlled process to acquire IT services

Forum An Overview What are standby contracts? When are standby contracts the right option? How are they established? How do I use them?

Forum What Are Standby Contracts? Unique subset of the backdrop contracts Tailored to a specific customer’s needs Streamlined and efficient Up to three-year period

Forum When Should I Use Standby Contracts? Consulting services based on hourly rates Staff augmentation Instructor led training

Forum Getting Started Analyze your anticipated needs Notify Office for Technology if requirements are expected to exceed $50,000

Forum Guide to Creating The Project Definition (PD) Overview of environment and platforms List of specific titles mapped to 12 general backdrop titles Evaluation criteria, technical and cost How many contracts? How will the tasks be assigned?

Forum Guide to Creating A Request For Training Services (RTS) A broad description of anticipated training needs Backdrop not-to-exceed pricing governs Evaluation criteria, technical and cost How many contracts? How will the tasks be assigned?

Forum A Closer Look……… The Evaluation Criteria – What Represents Best Value? Overall capabilities of the company Do consultants have access to company’s resources? Company’s pool of consultants Company’s process for selecting sub-contractors

Forum How Many Awards? Enough to meet your needs Not so many that administration is difficult One or many types of requirements

Forum Issues Under Discussion Role of OSC: pre-audit, AC 340 issues Scope of applicable services Define evaluation guidelines or criteria How work tasks will be assigned What happens if new backdrop contractors become available? Contractor performance and business transition issues

Forum In Summary……… Standby Contracts will: Be a unique subset of backdrop contracts tailored for a user’s specific needs Be a great option for consulting services and staff augmentation based on hourly rates and instructor led training based on per student rates Require a full mini-bid process to establish Permit efficient award of tasks for up to a three-year period

Forum When Will Standby Contracts Be An Available Option? Summer 2002!

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