FORUM 2004

PROCUREMENT OPTIONS Presented by: Barbara Norton – OSC Bureau of Contracts Bruce Hallenbeck- OGS Procurement Services

PREFERRED SOURCES Correctional Services (Corcraft) – Commodities only Industries for the Blind of New York State (IBNYS) NYS Industries for the Disabled (NYSID) Buy “OMH” Qualified Veterans’ Workshop FORUM 2004

Preferred Sources If product meets form, function and utility (i.e.. quality, quantity, delivery, packaging) order should be placed with appropriate preferred source If does not meet form, function and utility, must document in Procurement Record FORUM 2004

OGS CONTRACTS Why Use OGS Contracts Expedient – generally place an order No need to bid No need for OSC or AG approval (mini-bids may need OSC approval) No need to advertise in Contract Reporter FORUM 2004

Filed Requirements Contracts Covers specific delivery points and estimated quantities Guaranteed source of supply for critical commodities Agencies “file” their requirements prior to establishment of contract Contractual obligation to purchase Examples include rock salt and fuels FORUM 2004

Multi-State Contracts Permits participation by NYS authorized users as well as other entities Contract administered by one of the participating entities Minnesota Multi-State Drug Contract FORUM 2004

Prime Vendor Contracts Comprehensive contract; source for broad range of goods and/or services within a given market May be awarded to single or multiple vendors Examples include food contract, office supplies and industrial supplies FORUM 2004

Brand Bid Contracts Issuance of multiple contracts or a single contract with multiple lots for different brands of a similar product Provides customer the widest selection of products Examples include printer contracts, copier contract, mailing machines FORUM 2004

Continuous/Periodic Recruitment Used in long term contracts Allows OGS/PSG to accept bids after the bid opening, adding vendors after the original award Included in printers, microcomputers, books and many service contracts, etc. FORUM 2004

OGS Piggyback Agreements OGS piggybacks onto existing contracts developed by other governmental agencies (federal, political subdivision or other states) creating a NYS contract Includes additional terms as they relate to NY State procurement rules FORUM 2004

OGS Negotiated Contracts Established by agreements between OGS and a vendor in lieu of issuing a bid May include continuous/periodic recruitment Printer contract is a negotiated contract FORUM 2004

Backdrop Contract Consists of a pool of pre-qualified contractors who are eligible to participate in the contract’s Mini-Bid process or other specified selection process Examples include elevator maintenance, telephone PBX, and IT services FORUM 2004

Discretionary Purchases AGENCY STRATEGIES Discretionary Purchases Not subject to State’s competitive bidding requirements $15,000 for most State agencies $15,000 to $50,000 if purchased from NYS small business, M/WBE or recycled/remanufactured products Guidelines on website at: www.ogs.state.ny.us/procurecounc/pdfdoc/Discretionarypurchasingguidelines8-17.pdf FORUM 2004

OGS or Less Allows purchase from other than State contract if lower prices or terms are more economically efficient to the State agency. Contractor must be given opportunity to match pricing. “OGS or Less” purchases must meet requirements of law. FORUM 2004

Discretionary Purchases Under $15,000: - Procurement record must support selection of vendor and reasonableness of price - Must advertise quarterly in the Contract Reporter for anticipated purchases between $5,000-$15,000 FORUM 2004

Discretionary Purchases $15,000 - $50,000: - Procurement record must support selection of vendor and reasonableness of price - Must advertise in Contract Reporter - Must submit to OSC for approval FORUM 2004

Small Business Initiative For products not available from Preferred Sources or OGS contracts For procurements from small, minority or women owned NYS businesses For purchases up to $50,000 without advertising in Contract Reporter or formal bid Purchases over $15,000 require OSC approval Agency responsible for documenting reasonableness of price in procurement record FORUM 2004

Filed Price Agreements For products not available from Preferred Sources or OGS contracts For discretionary purchases up to $15,000 Agency responsible for determining that product meets form, function and utility Agency responsible for documenting reasonableness of price in procurement record FORUM 2004

Sole Source Procurement Where only one vendor can provide the product/service required Procurement record must explain: - Unique nature of the requirement - Basis for determining only one vendor is able to meet needs - Reasonableness of price FORUM 2004

Single Source Procurement Where two or more vendors can supply product/service but selection of one is based on expertise, previous experience, etc. Procurement record must explain: - Alternatives considered - Rationale for selecting specific vendor - Reasonableness of price FORUM 2004

Backdrop Mini-Bids Benefits - Terms & Conditions already in place - Negotiating time saved - Pre-qualified list of vendors - Contract Reporter advertisement not required - AG approval not required FORUM 2004

Piggyback Contracts Contract established by NYS based on existing contracts developed by other governmental agencies (federal, political subdivision or other states) Must obtain OGS approval Guidelines available on OGS website at: - www.ogs.state.ny.us/procurecounc/ pdfdoc/pgbguidelines.pdf FORUM 2004

Piggyback Contracts Agency should address the following when submitting package to OGS: - Subject matter comparison - Procurement method - Notice to Originating Agency - Consent of Vendor & Terms of Piggyback - Absence of other Contracting Alternatives - Price Justification FORUM 2004

Continuous/Periodic Recruitment Recommend that the vendor contact OGS for addition to existing contract Allows accepting bids after the bid opening and adding vendors after the original award FORUM 2004

Emergency Purchases Agency head must approve waiver of competitive bidding requirements Must document nature of emergency; potential effect on health, safety or conservation of public resources; and detailed description of commodities, services and technology to be provided FORUM 2004

Emergency Purchases Should make reasonable attempt to get at least three oral quotes with written confirmation within a reasonable time FAILURE TO PROPERLY PLAN IN ADVANCE DOES NOT CONSTITUTE AN EMERGENCY FORUM 2004

Competitive Bids using IFB Invitation for Bids (IFB) is most typically used where requirements can be stated and award will be made to the “lowest responsive and responsible bidder(s)” Typically used for commodities Also used for many services and technologies FORUM 2004

Competitive Bids using IFB Lowest Price - Basis for Awarding Contracts for Commodities - Low Bid “Meeting Specifications” - Price May Include Other “Costs” FORUM 2004

Competitive Bids using RFP Request for Proposals (RFP) is used for procurements where factors in addition to cost are considered and weighted in awarding the contract and when the method of award is “best value” Mostly used for services and technology Used for complex procurements FORUM 2004

Competitive Bids using RFP Best Value - Basis for Awarding Contracts for Services (Including Technology) - Optimizes Quality, Cost and Efficiency FORUM 2004

SELECTING THE CORRECT CONTRACT VEHICLE Purchase Order PA Contract Contract Agreement AC-340 FORUM 2004

PURCHASE ORDER REQUIRING OSC APPROVAL One time purchase Fully encumbered Must include all copies (vendor, OSC, agency) All relevant terms on the face or attached Appendix A referenced on vendor copy Purchase Orders have no dollar limitations A 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. - FORUM 2004

PURCHASE ORDER (continued) OSC approval not required for OGS centralized contract purchases unless otherwise specified by contract Contract number must be shown in box labeled Comptroller’s Contract No Contract number must be shown on the voucher 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 FORUM 2004

PURCHASE ORDER CHANGE NOTICE If the original purchase order was approved by OSC, change notice should be accompanied by a copy of the original approved purchase order Explanation for change Encumbrance, if applicable FORUM 2004

PA CONTRACT A PA Contract can be used by an agency to establish a pricing agreement for commodity and printing procurements (See OSC Bulletin G-191) FORUM 2004

PA CONTRACT (continued) 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 Procurement must follow the normal procurement rules (IFB, single/sole source, discretionary purchase). FORUM 2004

CRITERIA FOR PA CONTRACTS Estimated Quantities Term Contract Guaranteed Orders require a fully encumbered purchase order for the value of the guaranteed quantity FORUM 2004

CREATING A PA CONTRACT Required Documents One Completed PA Data Sheet for each awarded vendor Three Contract Award Letters (This is the contract document for authorized agency and OSC signatures.) Three Notices of Contract Award Must reflect the terms and conditions of procurement Must include pricing and refer to Appendices FORUM 2004

OSC’s ROLE IN PROCESSING PA CONTRACTS Assigns the contract a unique number Enters the contract on the Central Accounting System (CAS) under agency code 01055 Processes the transaction and enters the assigned contract number on each copy of the Contract Award Letter Retains one original Contract Letter and Award and returns remaining copies to the agency FORUM 2004

USING YOUR NEW PA CONTRACT Issue Contract Award Letter and Notice of Contract Award to the vendor and any other agencies authorized to use it Issue a Purchase Order referencing the contract number in the Comptroller’s contract number box and also on the voucher FORUM 2004

PA CONTRACT AMENDMENTS Required Documents One completed PA Data Sheet for each awarded vendor Three Contract Amendments This is the contract document for authorized agency and OSC signatures Must have written concurrence from the vendor Must reflect the terms and conditions of procurement Documentation supporting any changes must be included with the procurement package FORUM 2004

PA CONTRACT ADVANTAGES Functions as an agency specific P-Contract Purchase Orders issued against PA Contracts do not require separate OSC approval Standard format for “Contract Letter” and “Notice of Contract Award” May be for a term up to five years FORUM 2004

ADVANTAGES (Continued) 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. FORUM 2004

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. FORUM 2004

AMENDMENTS TO CONTRACT AGREEMENTS Must be accompanied by a completed and encumbered AC340. Action code on an amendment is c. If the change is the result of a Contract extension, the new end date and the date of renewal must also be changed. If the contract is being amended or extended, an executed contract amendment reflecting the change must also be included. FORUM 2004

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) FORUM 2004

Questions? FORUM 2004

FORUM 2004