Presenter’s Contact Information Larry Klein Procurement Services Group Office of General Services larry.klein@ogs.state.ny.us (518) 474-1350 OGS Website www.ogs.state.ny.us

Agenda Welcome and Introductions Course Overview – Purchasing 101 General Information Session Time Hush Sounds Ask Questions Listen, Learn, and Enjoy

Discretionary Purchases Not subject to State’s competitive bidding requirements $50,000 for most State agencies $50,000 to $100,000 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

Discretionary Purchases Under $50,000: Procurement record must support selection of vendor and reasonableness of price Must advertise in Contract Reporter $15,000 - $50,000

Types of Contracting Vehicles Purchase Orders Purchase Authorization (PA) Contracts Refer to Bulletin G 191 Contract Agreements AC340

A mechanism that agencies can adopt Quick Contracting A mechanism that agencies can adopt to have certain contracts processed through OSC with a two-day turnaround time Refer to Bulletins G192 for commodities Refer to Bulletins G201 For Services and Equipment

Some Tips for 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

Agency Procurement Options Purchase from NYS Certified M/WBE Select from Preferred Sources Purchase from OGS Contracts Utilize Alternate Methods Available Through OGS Develop Own Purchasing Strategy

Preferred Sources Class Description Thursday May 17, 2007 9:00am – 10:00am Meeting Room 1 Class Description This class will give you an overview of preferred source guidelines as well as help you identify and procure preferred source offerings. Representatives from the Preferred Sources will describe many examples of their offerings.

Correctional Services (Corcraft) – Commodities only Preferred Sources Commodities 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

Equal Priority Accorded to: Industries for the Blind of New York Preferred Sources Services Equal Priority Accorded to: Industries for the Blind of New York State (IBNYS) NYS Industries for the Disabled (NYSID)

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

Expedient – generally place an order No need to bid 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

OGS Contracts Statewide Terms Filed Requirements Multi-State Brand Bids Continuous Recruitment Piggyback Negotiated Back Drop

Filed Requirement 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

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 HIRE

Issuance of multiple contracts or a single 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

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.

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

OGS Negotiated Contracts Established by agreements between OGS and a vendor in lieu of issuing a bid May include continuous/periodic recruitment Software and printer contracts are negotiated contracts

Consists of a pool of pre-qualified 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

Discretionary Purchases MWBE Small Business Initiatives OGS or Less Agency Strategies Discretionary Purchases MWBE Small Business Initiatives OGS or Less Sole/Single Source

Continuous/Periodic Recruitment Emergency Purchases Agency Strategies Backdrop Mini-Bids Piggybacks Continuous/Periodic Recruitment Emergency Purchases Competitive Bids using IFB/RFP

“OGS or Less” language 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 *Contract must have “OGS or Less” language

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

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

Terms & Conditions already in place Negotiating time saved 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

Contract established by NYS based on 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/procure counc/pdfdoc/pgbguidelines.pdf

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

Agency head must approve waiver of competitive bidding requirements 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

Should make reasonable attempt to get at 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!

Competitive Bids Using IFB Invitation for Bid (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

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

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

Competitive Bids Using RFP Best Value Basis for Awarding Contracts for Services (Including Technology) Optimizes Quality, Cost and Efficiency A weighted analysis is used to assess price, technical submission, and vendor qualifications

Questions and Answers ?

Presenter’s Contact Information Larry Klein Procurement Services Group Office of General Services larry.klein@ogs.state.ny.us (518) 474-1350 OGS Website www.ogs.state.ny.us