Presented by Rennette Apodaca MPA, CPPO New Mexico State University Procurement 101 Presented by Rennette Apodaca MPA, CPPO New Mexico State University

Agenda History of Procurement Legal Framework Ethics Methods of Source Selections Other Info Questions

History of Procurement Uniform Commercial Code - UCC ABA Model Procurement Code Objective Function Goal

Legal Framework Federal laws/Acts/Regulations State laws Local laws Administrative Common laws Policies Procedures

Ethics What are Ethics? What are Ethical Principles? Why are Ethics crucial?

Government Ethics The main purpose of ethics laws lies not in punishing wrongdoing, but in preventing it, not in catching people, but in teaching them. In ethics, education is the name of the game. Mark Davies

Ethics Program Code of Ethics Ethics Commission Ombudsman Ethics Education Hotlines

What can we do? Recognize and reward ethical behavior Set the ethical example Accountability mechanisms should encourage ethical behavior by making unethical behavior hard to commit and easy to detect. Ethics in Procurement New Mexico Anti-Donation Clause Kickbacks, Gratuities Freedom of Information

Discussion One local agency had a motor pool with a dedicated fleet of vehicles. The motor pool occasionally reordered new vehicles from the state contract to replace older vehicles in the fleet. Upon seeing the state contract price in one requisition for 10 vehicles to replenish the fleet, the Director informed the Buyer to change the quantity on the order from 10 to 11. The extra car would be for the Director’s personal use. The Director said he would write a personal check, when the vehicle is delivered.

Source Selection Small purchase Sole Source Emergency Non-Competitive Formal/Competitive Small purchase Sole Source Emergency Invitation to Bid Request for Proposals

Small Purchase Best obtainable price Purchase card/Blanket Orders Represent 80% of procurement volume

Discussion A Fire Department with multiple fire stations has a manager at one of the stations that is responsible for maintenance and up keep for all the stations. Over a two year period, the manager awarded 27 contracts worth more than $85,000 to a company owned by his son. Many of the contracts were just under $5,000 requiring competition. Investigations identified a pattern of routine contracts falling under that threshold to his son’s company.

Discussion Ethical Dilemma: “splitting” purchases so that they can be made though less competitive processes

Sole Source Occurs when only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation. Other factors: 30 day pre-award notification

Discussion Ethical Dilemma: Requesting or making a sole source purchase when competition is available

Emergency An emergency situation exists which creates: The functioning of government The preservation or protection of property; or The health or safety of any persons Ethical Dilemma: requesting or making emergency purchase when no true emergency exists Other factors: Sunshine Laws

Utilizing Existing Contracts “Piggy back” – State of New Mexico Pricing Agreements NMSA 13-1-129-A-2-B Cooperative Agreements – CES; US Communities; WSCA;TCPN NMSA 13-1-135 GSA NMSA 13-1-129-A-1

Small Purchase – Professional Services "Professional services" means the services of architects, archeologists, engineers, surveyors, landscape architects, medical arts practitioners, scientists, management and systems analysts, certified public accountants, registered public accountants, lawyers, psychologists, planners, researchers, construction managers and other persons or businesses providing similar professional services, which may be designated as such by a determination issued by the state purchasing agent or a central purchasing office.

Other Information Procurement of Used items-NMSA 13-1-155 Payment for purchases-NMSA 13-1-158 Specification Writing – NMSA 10-16-13 Protests – NMSA 13-1-173 to NMSA 13-1-176

Procurement 101 Questions????????????