State Purchasing Forum 2003 Presenters: Bill King - OGS Eileen A. Germain - ESD Wendell R. Ponce - ESD Mary McDonnell - Labor Barbara Norton - OSC Jim Mastromarchi - OGS State Purchasing Forum 2003

State Purchasing Forum 2003 Resources Matrix of Governing Rules and Regulations Governing NYS Laws, Rules, Regulations and Other References and Resources Discretionary and Prior Approval Thresholds Matrix of Procurement Requirements Procurement Guidelines Appendix A and B Agency Purchasing Flowchart Batch types-Bulletin G-194, April 3, 2002 State Purchasing Forum 2003

The Procurement Process -Bill King Determining Your Need Discretionary Purchasing Levels IFB or RFP State Purchasing Forum 2003

State Purchasing Forum 2003

The Agency Purchasing Flowchart Choices and decisions at each step Remember the Procurement Record State Purchasing Forum 2003

State Purchasing Forum 2003 To process a request for a needed commodity or service first determine: Availability from preferred source offerings Form, function, and utility determination Purchase from preferred source List of OGS centralized contracts Purchase from OGS contract Not available as needed from either? Use P Contract number if appropriate. State Purchasing Forum 2003

State Purchasing Forum 2003 Consider anticipated annual $ dollar value of need; if under $50,000…(discretionary purchase) If under $5,000 then Justification of price and vendor selection If $5,000 to $15,000 then Justification of price and vendor selection and Quarterly Listing in NYS Contract Reporter The procurement record should be complete and clear-OSC may request. Note Printing Exception- $10,000 limit for OGS without formal competitive bidding, $5,000 for agencies requires formal competitive bidding. State Purchasing Forum 2003

Fresh eggs, fresh fruits and fresh vegetables NYS Grower NYS Producer NYS Association of Growers and Producers 15 day period, no formal bidding, up to $10,000 each. Procurement Record should show that you determined that pricing is reasonable and comparable to current market pricing. State Purchasing Forum 2003

Consider anticipated annual $ value of need; if over $15,000 to $50,000…(discretionary purchase) OSC approval precedes Purchase Order release to vendor Purchase from small business, certified M/WBE (products or services)(see www.empire.state.ny.us ) or purchase recycled or remanufactured products (commodities or technology)-NYS Contract Reporter notice required or Purchase from OGS Small Business Initiative (SBI)- no NYS Contract Reporter notice required (see www.empire.state.ny.us ) Emerging products and services are also covered under Filed Price Agreements up to $15,000 without competition State Purchasing Forum 2003

State Purchasing Forum 2003

Over $15,000 to $50,000… (continued) Submit Purchase Request form (Proc41) and use OGS procurement services assistance-get Purchase Instructions from OGS or Use formal competition (IFB), place notice in NYS Contract Reporter (OGS discretionary purchase) State Purchasing Forum 2003

Consider dollar value of need; if over $50,000… Single/sole source justification Piggybacking Formal competition, and advertisement in the NYS Contract Reporter required State Purchasing Forum 2003

Choosing a method of bidding Be sure you know what your agency really needs Is a “low bid” award feasible? If yes, then use the IFB format Write a specification that gets to what is needed but is not unduly restrictive Know what you are saying when you say “or equal” IFB RFP State Purchasing Forum 2003

State Purchasing Forum 2003 IFB Essentials Responsive and responsible offerers Contract Reporter insertion Fully defined method of award Be prepared for tie bids and other glitches State Purchasing Forum 2003

Some tie bid considerations Price or Discount: Cash Discount: Small Business: NYS resident business: Principal place of business: M/WBE: Purchase Card Card Discount: Delivery: distance from F.O.B. or days A/R/O Current/Recent Term Contracts: Electronic Access Ordering: 800 Phone service: 800 Fax service: Some tie bid considerations Basis for decision must be noted in procurement record. State Purchasing Forum 2003

If a “low bid” award is not feasible, use the RFP process Define the project Be aware of what consultants may have been used Explain general parameters that will determine “best value” Have OSC review the draft RFP Methodology and evaluation criteria should be documented in Procurement Record and determined at time RFP is being prepared State Purchasing Forum 2003

The RFP process (continued) Use uninvolved third parties to evaluate offers in addition to purchasing staff. Allow time for appropriate clarifications and other glitches Other sessions address RFP process State Purchasing Forum 2003

State Purchasing Forum 2003 Whether IFB or RFP… No prejudice All bidders had same opportunity to understand what was asked for Use an IFB if it is at all possible-much easier to evaluate and award, less potential for problems and delays. State Purchasing Forum 2003

Contract administration Remember that an award is not the end of the process Monitor timely purchase order placement Monitor contractor’s compliance with delivery needs Monitor product or service for compliance with specifications Be aware of prompt payment requirement State Purchasing Forum 2003

Contract administration Make sure that the contractor understands what you need and what has been agreed to Enforce terms and conditions that were spelled-out clearly in your solicitation Do not pay for products or services that did not meet requirements State Purchasing Forum 2003

Empire State Development -Eileen A. Germain Need for “Contract Reporter” Notification How, When & Where To Place Advertising CONTRACT REPORTER State Purchasing Forum 2003

Division for Small Business Procurement Assistance Program NYS Contract Reporter Eileen A. Germain

State Purchasing Forum 2003 Empire State Development Division for Small Business Procurement Assistance Program directs business to appropriate agencies and authorities to be placed on bidders lists; encourages business to be proactive in marketing their product; conducts workshops statewide with reps from OGS and other state and local facilities; and helps NYS businesses to become aware of contracting opportunities through the NYS Contract Reporter. State Purchasing Forum 2003

Empire State Development Omnibus Procurement Act The activities of the Procurement Assistance Program are mandated and guided by the Omnibus Procurement Act (OPA). OPA levels the playing field for NYS businesses as they compete for State contracts. State Purchasing Forum 2003

Empire State Development New York State Contract Reporter The Procurement Opportunities Newsletter (New York State Contract Reporter) was created under Article 4-C of the Economic Development Law. Statute mandates: State agencies, public authorities and public benefit corporations must advertise any bid announcements of $15,000+ in the Contract Reporter. State agencies must advertise projected purchases between $5,000 and $15,000 by category once each quarter. SUNY and CUNY must advertise projected purchases between $10,000 and $20,000 by category once each quarter. State Purchasing Forum 2003

Empire State Development New York State Contract Reporter Statute also mandates: State agencies, SUNY and CUNY must submit purchasing forecasts of $200,000+ on a semiannual basis. Also listed is information on who to contact and how to be placed on an agency’s bidders list. State Purchasing Forum 2003

State Purchasing Forum 2003 Empire State Development New York State Contract Reporter www.nyscr.com New York State Contract Reporter Publication Schedule is located at www.nyscr.com. Online submissions must be received by midnight on Monday for publication in that week’s issue. This schedule must be followed unless an exemption has been granted by the Office of the State Comptroller. Any agency that receives an exemption must still publish a notice of either the letting or award of the contract in the NYS Contract Reporter. State Purchasing Forum 2003

State Purchasing Forum 2003

State Purchasing Forum 2003 Empire State Development New York State Contract Reporter www.nyscr.com Online Submission Process Establish a user profile - name, title, address, phone/fax number and email address. After profile is set up a username / password will be returned by email along with instructions on how to submit online. Your online submission form will contain pre-filled key data which eliminates the need to input each time an ad is submitted. State Purchasing Forum 2003

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Division for Small Business 30 South Pearl Street Albany, NY 12245 518-292-5220 New York State Contract Reporter webmaster@nyscr.com 1-888-697-7787 1-315-234-0087 fax State Purchasing Forum 2003

CERTIFIED MINORITY AND WOMEN’S BUSINESS DEVELOPMENT EMPIRE STATE DEVELOPMENT CORPORATION DIVISION OF MINORITY AND WOMEN’S BUSINESS DEVELOPMENT NEW YORK STATE DIRECTORY OF CERTIFIED MINORITY AND WOMEN’S BUSINESS DEVELOPMENT -Wendell R. Ponce State Purchasing Forum 2003

HOW TO DO A SEARCH IN THE MWBE DIRECTORY

State Purchasing Forum 2003 http://www.empire.state.ny.us State Purchasing Forum 2003

ECONOMIC DEVELOPMENT REGION (S) State Purchasing Forum 2003

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State Purchasing Forum 2003 VARIOUS TYPES State Purchasing Forum 2003

SELECT BUSINESS MARKET AREA(S State Purchasing Forum 2003

SELECT PRODUCT/SIC CODES State Purchasing Forum 2003

SELECT PRODUCT/SIC CODES State Purchasing Forum 2003

State Purchasing Forum 2003 VENDOR SELECTION State Purchasing Forum 2003

State Purchasing Forum 2003 VENDOR SELECTIONS State Purchasing Forum 2003

State Purchasing Forum 2003 SELECTED VENDOR State Purchasing Forum 2003

LOOK UP SEARCH (Individual listings) State Purchasing Forum 2003

LOOK UP SEARCH (Individual listings) State Purchasing Forum 2003

STATE AGENCY USE ONLY – Please call DMWBD at (518) 292-5250 State Purchasing Forum 2003

State Purchasing Forum 2003 NETSCAPE USERS For those who use Netscape – once you’ve done your search go to File click on Page Set Up then check the boxes Black Text & Black lines, click on OK. Go to File again and click on Print. State Purchasing Forum 2003

State Purchasing Forum 2003 *You do not have to select every option. You can be very selective in your search criteria. For example, if you’re only looking for a specific product/service area and in what region/county you’re trying to locate these firms, then only choose that criteria. State Purchasing Forum 2003

Department of Labor Bureau of Public Work Mary McDonnell What are Prevailing Wage Rates When To Use Prevailing Wage Rates Where To Find Them State Purchasing Forum 2003

Prevailing Wage Rates… What are they? Prevailing Wage Rates are the wages and supplements to be paid and/or provided to laborers, workers and mechanics employed on a public work project. State Purchasing Forum 2003

Prevailing Wage Rates… How are they determined? Prevailing rates are based on collectively bargained agreements. The Department utilizes those agreements to determine the rate that covers the type of work activity in question. State Purchasing Forum 2003

Prevailing Wage Rates… When are they determined? The prevailing rate of wages and supplements are determined annually on July 1 of each year and are effective through June 30, i.e. July 1, 2002 – June 30, 2003. (Article 8, Section 220, subd. 5a) State Purchasing Forum 2003

Prevailing Wage Rates … When should they be used? Prevailing Wage Rates must be used on any public work project.* *Generally, projects for construction, reconstruction or maintenance done on behalf of a public agency (entity) are public work. State Purchasing Forum 2003

Prevailing Wage Rates … Which rates apply? Work involving the employment of laborers, workers or mechanics is subject to Article 8. Building service workers, i.e., janitorial services, are covered under Article 9 of the New York State Labor Law. State Purchasing Forum 2003

Prevailing Wage Rates … Which work classification applies? The Bureau of Public Work looks at all factors to determine classification, including: * Nature of the work * Collective bargaining agreements * Jurisdictional agreements * Jurisdictional decisions * Historical practice * Past DOL recognition * Case law precedents State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Where to find Prevailing Wage Rate Information The annual determination is available on the Department of Labor website (www.labor.state.ny.us). State Purchasing Forum 2003

Additional Information: A copy of the current or past year’s Prevailing Wage Rates can be obtained on CD by e-mailing your request to: NYSDOL@labor.state.ny.us Any questions, please contact: NYS DOL Bureau of Public Work SOBC – Bldg. 12 – Rm. 130 Albany, NY 12240 Phone (518) 457-5589 - Fax (518) 485-1870 State Purchasing Forum 2003

Contract Approval -Barbara Norton Procurement Record Checklist Selecting a Contract Type Quick Contracting State Purchasing Forum 2003

The Procurement Record Checklist-What is it? An overview of the agency’s procurement record regarding purchases of goods and services under Article 11, State Finance Law: a clearly defined statement of need method of procurement the number of bid responses listing of all required documentation appropriate signatures signature of the person responsible for the purchase evaluation process. State Purchasing Forum 2003

State Purchasing Forum 2003 When To Use It: The checklist must be included with any transaction for the purchase of commodities or services submitted to OSC for approval. Any agency required by law to follow the mandates of the State Finance Law would be required to provide a completed PRC for purchases of goods and services. State Purchasing Forum 2003

State Purchasing Forum 2003 How to Use It: The purchasing officer should complete all relevant entries on the PRC. One checklist should be done for each procurement opportunity regardless of the number of vendors granted an award. A completed checklist should be part of your bid package. State Purchasing Forum 2003

State Purchasing Forum 2003 Why is it necessary? Article 11 of the State Finance Law requires that a “Procurement Record” be kept for each acquisition. State Purchasing Forum 2003

How to Select a Contract Type Purchase Orders PA Contracts Contract Agreements AC-340 State Purchasing Forum 2003

State Purchasing Forum 2003 Purchase Orders One time purchase Fully encumbered All relevant terms on the face or attached Appendix A attached to vendor copy Purchase Orders have no dollar limitations Purchase Order is the contract document approved by OSC Should be used when the transaction is for a one-time purchase. --Purchase Orders must be fully encumbered for the entire amount of the purchase. -The purchase order forms the contract document. It is the document that OSC approves. Therefore if there are budget constraints or other prohibitions to issuing a purchase order, the agency must hold the documentation until such time as the restriction has been lifted. -All relevant contract terms regarding delivery time, prompt payment terms, etc. should be on the face of the purchase order or attached to it. -The vendor’s copy of the purchase order must contain Appendix A provisions. -Purchase orders have no dollar limitations. - State Purchasing Forum 2003

Purchase Orders (continued) OSC approval not required for OGS centralized contract purchases Contract number must be shown in box labeled Comptroller’s Contract No. Purchase orders against OGS contracts and containing items purchased under agency discretion do not require OSC approval unless the discretionary items exceed $15000. -Purchase orders issued pursuant to OGS contracts or PA contracts must indicate the contract number in the “Comptrollers Contract Number” field. Failure to include the contract number when purchases exceed $15,000 may result in the rejection of either the purchase order or the related vouchers. Added discretionary purchases up to $15,000 do not require pre-approval State Purchasing Forum 2003

State Purchasing Forum 2003 PA Contracts Used for commodity and printing purchases that exceed agency prior approval threshold Provides agencies with a “term contract” mechanism Saves administrative costs No Purchase Order approval required once PA Contract is approved State Purchasing Forum 2003

Advantages of PA Contracts No prior approval for PO’s or change notices Allows value monitoring for future contracting opportunities No encumbrance required for contract approval Can cover any contracting method- single/sole source, competitive bid, discretionary purchase, piggybacking agreement, etc. State Purchasing Forum 2003

State Purchasing Forum 2003 Contract Agreements A full or fiscal year encumbrance is required An agreement between the State and a vendor must be created and executed Signed and acknowledged by the vendor, signed by agency, AG, and OSC Used for service, revenue, construction, etc. State Purchasing Forum 2003

State Purchasing Forum 2003 The AC340 Is used when increasing the value of a contract (use an ECC batch when the purpose is solely to encumber funds) To change an address (with additional documentation required) The AC340 is also used to create a contract based on a CM master contract or a CMS single/sole source contract. (use your agency’s code, not that of the host agency) State Purchasing Forum 2003

State Purchasing Forum 2003 Quick Contracting A mechanism that agencies can adopt to have certain contracts processed through OSC with a two-day turnaround time State Purchasing Forum 2003

Quick Contracting may apply to… Service and equipment contracts Commodities Printing Construction State Purchasing Forum 2003

State Purchasing Forum 2003 Quick contracting criteria for service, equipment and construction contracts Pre-submit boilerplate contract for OSC approval and filing Approved boilerplate will be basis for all subsequent quick contracts Agencies with multiple facilities must use boilerplate submitted by main office State Purchasing Forum 2003

QC-construction contract requirements Competitive bid Minimum three bids Less than three, canvass no bids Low bid within 15% of engineering estimate No dollar limit No rejections, withdrawals or exceptions taken State Purchasing Forum 2003

Quick contracting criteria for commodities and printing PA contracts OGS P contracts Purchase orders Any purchases requiring a separate agreement must adhere to boilerplate approval and filing specified for service contracts State Purchasing Forum 2003

QC-commodity and printing Contract value cannot exceed $500,000 Competitive bid IFB Minimum ten bids solicited Minimum two bids from responsive and responsible offerers for all items If two bids, difference not to exceed 20%, and “no bid” canvass required No rejections, withdrawals or exceptions *PLEASE NOTE: all awarded items, whether by item, lot, region etc must meet the minimum requirements in order to qualify for quick contracting. State Purchasing Forum 2003

QC-miscellaneous services and equipment No maximum dollar threshold Contract competitively bid via IFB Three or more bids received and considered for each item Contract awarded to low bidder No rejections, withdrawals or exceptions No changes to approved boilerplate State Purchasing Forum 2003

QC-OSC pre-audit requirements Procurement Record Checklist Completed and signed certification form Proof of Contract Reporter ad when required Method of award and bid tabulation Encumbrance of contract or purchase order unless P contract Properly signed contract instrument Refer to G-201 for QC for miscellaneous services and equipment, and G-163 for QC for commodity and printing transactions State Purchasing Forum 2003

Some Keys to a Successful Approval! Make sure that: the transaction is correctly batched, please review the new batch types – G194), your transaction is properly encumbered and signed by an authorized signatory, all the required documentation is included in the bid package. State Purchasing Forum 2003

Procurement in New York State Integrity of the process An equal playing field for the vendor A clear audit trail State Purchasing Forum 2003

Now you are ready to move on… If you think of a question, go to www.ogs.state.ny.us Or contact OGS- customer.services@ogs.state.ny.us Or call - Barbara Norton at OSC (518) 473-6763 Eileen A. Germain at ESD (518) 292-5224 Wendell R. Ponce at ESD (518) 292-5257 Mary McDonnell at Labor (518) 457-9496 State Purchasing Forum 2003