Procurement Policy Overview

Required Reading: EW Procurement Policy

Objectives By the end of this lesson, you will be able to: Describe the five common procurement methods Explain the different procurement steps that staff must follow for acquisitions Explain the procurement authority and approval process threshold Describe Experience Works Code of Ethical Conduct and Conflict of Interest relevant to the procurement process

Economical Practices All staff are expected to exercise the same economical practices for the use of all Experience Works funds that a prudent person would under the circumstances. Purchases must be necessary, reasonable, benefit the grant’s purpose, be documented accordingly, and be an economical purchase.

Confidential Information Employees shall not disclose or provide access to confidential information obtained or developed in the course of conducting business to anyone other than authorized individuals that have a legitimate business reason to know.

Confidential Information Before disclosing, ask: Is the person authorized to have the information? Does the person have a legitimate business or need to know the confidential information? Is the person bound by confidentiality?

Code of Ethical Conduct and Conflict of Interest Contractors and other business partners are expected to comply with this code as applicable and violations can result in a termination of the business relationship.

Code of Ethical Conduct and Conflict of Interest Free from Conflicts of Interest: No employee, officer, or agent of Experience Works may participate in negotiation or performance of any work or contract if he or she has a real or apparent conflict of interest Gifts, Meals and Entertainment: Experience Works employees, Board members, volunteers, and agents of Experience Works may neither solicit nor accept gratuities, favors or anything of monetary value from contractors or parties to subcontracts

Code of Ethical Conduct and Conflict of Interest Travel: payment for and travel by private aircraft, boat or luxury vehicle are considered a valuable privilege that is not acceptable. Incentives: Employees must not give or accept anything of value if it is offered (or could be perceived to be offered) to gain a business advantage or in exchange for providing business opportunities or other favors.

Use of Competitive Procedures Why use competitive procedures? Experience Works gets best value for its investment Ensure government funds are not used for personal gain Ensure grant funds are spent prudently Comply with Government procurement requirements

Procurement Methods Micro-Purchases Small Purchases Sealed Bids (not preferred) Competitive Proposals Non Competitive Proposals

Micro-Purchases May be awarded without soliciting competitive quotations Price to be reasonable Staff must submit a purchase requisition form to the Procurement Manager justifying the purpose for the purchase and justifying the price (why the price is reasonable) and needed. Under $3000 accumulative amount and $2500 for services

Small Purchases Use this method when: Choice Comparison is easy Prices and specifications are easily compared Small contracts up to $5,000 Services, supplies, or other property that do not cost more than the Simplified Acquisition Threshold (between $3,000 and $150,000)

Small Purchase Acquisitions A purchase requisition form must include: The justifications for the purchase Justification of the procurement method Documentation of price/rate comparisons from at least 3 bids/price comparisons This purchase requisition form must be sent to the Procurement Manager.

DOL Approval Equipment purchases of $5,000 or more must be approved by DOL, in advance. Services with daily cost of $ 585 or more must be approved by DOL, in advance. This request will be sent to the DOL Federal Project Officer/grant officer by the president and CEO who has signatory authority for the federal grant.

Sealed bids Publicly solicited Award should go to the lowest bidder who meets terms and conditions Award as fixed price or fixed unit price contract For contracts exceeding $5,000 or more This is NOT a preferred method of procurement for Experience Works. Must be approved by the procurement manager.

Competitive Proposals Formal solicitation process for procurements greater than $150,000 There is more than one prospective bidder The most advantageous proposal must be selected based on the bidder’s qualifications, price and other factors.

Noncompetitive Proposals Solicitation of a proposal from only one source. May be used only when one or more of the following circumstances apply: The good is available only from a single source Good is strictly interpreted to be a good and does not include consulting services or other service contracts except for services for the good. Emergency situation arises Requires DOL permission Competition is determined to be inadequate

Procurement Steps: Planning Phase Release and Evaluation Phase Negotiation and Selection Phase Implementation Phase Close out

Authority and Approvals All purchases must be duly planned, approved, and justified. State Directors/managers may approve purchases up to $300, and must fill the purchase order form, with an invoice, justifying the price and purpose for the purchase; no quotes are needed at this threshold. The Assistant Director of Operations must approve field purchases of $301 - $999; The Procurement Manager must approve for national and CSC purchases $301 - $999.

Authority and Approvals The Director of Operations must approve purchases in the field for all transactions $500 - $4,999 - must be supported by a pre-approved Purchase Requisition Form and an invoice must be obtained from the seller. The procurement manager approves purchases for CSC and national office from $500 to $4,999. All transactions at $5,o00 and above must be preapproved by the president & CEO and those $100,000 and above must be pre-approved by the Board.

Supportive Services All purchases made in support of participants must be supported by: Invoice/receipts Name of the individual the services were purchased for Purpose for the purchase, and justification for the service provider selection Where applicable, staff must identify service providers using the procurement methods and standards in this policy, including code of conduct, and confidentiality.

Prepaid Cards Prepaid cards such as gas cards and Walmart or Target gift cards can be purchased for support services. Cards must be used within 5 days. A tracking inventory must be kept by the field staff for each card purchased to document pertinent information outlined in the policy. State directors/managers much review the inventory and receipts on a quarterly basis to ensure grant funds are being used in a permissible way.

Computer Equipment, Software, and Related Supplies The Manager of IT must review all computer equipment and software purchase requests prior to purchase. Staff are not permitted to use personal computing devices or donated equipment unless authorized by IT. Staff may not load personal software or freeware on Experience Works equipment or use personal devices without IT authorization.

Offsite Meetings and Conferences Conference costs must be appropriate, necessary and managed in a manner that minimizes costs to the grant. Lodging expenses, meals and incidental expenses must not exceed the per diem rates All meetings must be pre-approved by DOL. The request will be submitted by the president and CEO

Additional specifications included in this policy: Cell Phones/Smart Phones/ Internet Connectivity/Air Cards/Blackberries Maintenance Agreements Recruitment Items & Graphic Standards Consulting Contracts Lease Requirements Contract Provisions

Summary You learned: The five common procurement methods The different procurement steps that staff must follow for acquisitions The procurement authority and approval process threshold What is Experience Works Code of Ethical Conduct and Conflict of Interest relevant to the procurement process

Acknowledgement Form Following the training session you must: Read and sign the Acknowledgement Form Print – Sign – Scan – and email to your State Program Director/Manager State Program Director/Manager will email all staff acknowledgement forms in one email to: human_resources@experienceworks.org

Questions?