Procurement Ethics (cont.) Guard against fraud and corruption Ensure results meet agency needs Protect the interests of the State and its taxpayers Ethics apply to all acquisitions regardless of dollar thresholds Fishbowl

Procurement Ethics (cont.) A former Oklahoma State University employee spends nearly $4,000 on a university credit card for gifts, lingerie and other clothing before getting caught and resigning. A federal audit accuses two Oklahoma City employees of mismanaging federal grant funds.

Eight Tulsa police officers and a former federal agent are implicated in a corruption investigation that's resulted in some inmates being freed. A Skiatook school superintendent is indicted on allegations he played favorites with vendors and overpaid for custodial and security supplies.

Sole Source / Sole Brand Sole Source – restricts acquisition to one supplier Sole Brand – restricts to one manufacturer or brand name Requires sole source certification, signed by the Chief Administrative Officer of the state agency Defined in Title 74 Section and Form CP-002 and CP-24 on OMES web site 85.45j and 85.45j.1of Central Purchasing Act

CP-002

OMES-FORM-CP-024

Sole Source / Sole Brand (cont.) Sole source certification is not required for acquisitions less than $5,000. Retain certification and all related documentation in the agency acquisition file or attached to requisition Three year minimum retention period Guidelines for sole source acquisitions, Central Purchasing PIM includes eight (8) directives

Procurement Information Memorandum

Agency Sole Source Report

University of Arkansas SOLE SOURCE PURCHASES (for purchases exceeding $10,000.00) Sole Source purchases can be made only after the ordering department submits a requisition with a completed on line BASIS sole source justification form, and receives approval for such purchase by the Procurement Division and the Associate Vice Chancellor for Business Affairs. Sole source purchases can be justified in one of three ways: 1. Purchase of repairs involving hidden damage. 2. Purchase requiring performance compatibility with existing commodities and/or services. 3. Purchase based on performance specifications.

Kansas State University.040 Sole Source Purchases Sole source purchases are those transactions that are available from only a single supplier. A request for a particular proprietary item does not justify a sole-source procurement if there is more than one potential bidder or offerer for that item. Emergency purchases are a special type of sole sources. Those transactions required to obtain equipment, supplies, foods, services, or materials necessary for preservation of life or property, or to avoid serious disruption of university operations may be biddable with fast response the number one criteria. Prior permission from the K-State Purchasing Office is necessary for sole source purchases at or exceeding $5,000. K-State Prior Authorization Form is available at Please contact K-State Purchasing Office at (785) for procedure.

Interagency Agreements State agency to another state agency Pursuant to Title 74 section 581 Should not be made to evade competitive bidding State agency to a political sub-division or agency of the United States Pursuant to Title 74 sections 1001 through 1008 Bona fide governmental entity

Statewide Contracts Defined in Title 74, Section An indefinite delivery contract for specific acquisitions entered into by state agencies during a specified period with a provision allowing the agencies to place orders as acquisitions are needed for delivery during a specified period Over 75 competitively bid non-information technology statewide contracts in place

Statewide Contracts (cont.) Central Purchasing primary focus Two types – mandatory and non- mandatory Large statewide contract buys Exceptions – approval prior to purchase (CP Form 109)

Evaluation Methodology Best Value Defined in Title 74, section “Evaluation criteria which include, but not limited to 10 criteria…” “may” added to increase flexibility Used in Requests for Proposals Weighted evaluation criteria prior to posting provides basis for contract award Include criteria in RFP (less weighting) What is the most comprehensive method to evaluate offers? Value Analysis!

Evaluation Methodology Lowest and Best Defined in Title 74, section “based on criteria which include but not limited to…” Lowest price that meets specifications Used in Invitations to Bid Most appropriate for very small purchases? Price Analysis!!

Non-Collusion Certification OMES-FORM-CP-004 Currently required for all competitively bid purchases Future responses will require supplier to certify compliance

CP-004

Professional Service Must comply with title 74:85.41 State agency “shall” administer, monitor, audit and evaluate professional services against work plan Deficiencies “shall” be reported to State Purchasing Director If a report is the final product, the agency “shall” file the report with the State Librarian and Archivist Shall include an audit clause

Professional Service (cont.) Contract within one (1) year after termination of employment (85.42) Supplier must sign a sworn statement certifying that was not previously involved in the development of the contract as a state employee, is provided a contract to fulfill the service Uniform rate for duration of contract Attach license to requisition when licensure is required

Professional Service (cont.) Attach Attorney General approval for attorneys Contracts must be signed by the state agency's chief administrative officer or the chief administrative officer of the requisitioning unit Exempt from competitive bid are professional services found in Title 18 O.S. 803 include professional engineers, physicians, attorneys, psychologists, registered nurses, professional counselors and veterinarians

CP-018

CP-021

CP-017

Bidding Preferences - Reciprocity State agencies shall not discriminate against bidders from other states except as provided and outlined by title 74:85.17A Reciprocity is a preference applied against a bidder whose home jurisdiction has a preference

Integrity Do what you say you were going to do. Do it when you say you were going to do it. Do it the way you say you were going to do it. Larry Winget