Office of the Chief Financial Officer Office of Management & Administration Office of Contracts Small Purchasing October 2010 4/10/2019

CHANGES TO PASS o Requisitioners may no longer enter a vendor but can put in recommended vendor as a comment o ALL procurements under $100K must be awarded to a small business enterprise, unless…Waiver is authorized by Contracting Officer 4/10/2019

Workshop Goals o Know the statutory and regulatory requirements governing small purchases o Understand the documentation and procedures necessary to execute a successful RQ/PO o Understand the roles and responsibilities of the Office of Contracts and Program Office Staff Provide your feedback on the OCFO small purchasing process 4/10/2019

Agenda o Overview of Small Purchases o Documentation Requirements o LSDBE/CBE Requirements o Sole Source/Single Available Source o PASS process changes o YOUR CONCERNS/QUESTIONS 4/10/2019

The Rules Procurement Practices Act—PPA DC Municipal Regulations---DCMR CFO Order 08-008 - December 4, 2008 DSLBD statutory requirements 4/10/2019

Cardinal Rule No. 1 Unauthorized Procurements Goods and/or Services shall not be delivered and/or performed without first having a valid purchase order in place. Consequences – Anti-deficient Procurements Employee Discipline Repayment to Government Garnishment of Wages Court Costs for Vendor Lawsuits 4/10/2019

Cardinal Rule No. 2 Three (3) written quotes are required for ALL purchases greater than $10,000 Requisitioners are required to submit at least one (1) written quote for purchases under $10K All quotes must be attached to the requisition or they shall be denied 4/10/2019

Submitting Requests Submitted at least 10 to 15 business days prior to need-by-date (30 days for those requesting LSDBE waiver) ATTACH: Documentation: Quotes, 3 for purchases over $10K, 1 for purchases under $10K, sole source/single available source justification When in doubt—ATTACH to the RQ Incomplete requisitions will be denied – Must identify Agency and Fiscal Year in RQ Title 4/10/2019

Where to find LSDBE quotes Website is located at www.olbd.dc.gov Office of Local Business Development DC Supply Schedule - See handout Where to Find Office of Contracts https://sites.google.com/a/dc.gov/ocfo-procurements/ Performance Evaluations are important for these purchases Provides tracking mechanisms for future purchases 4/10/2019

Attachments Estimated pricing / Independent Government Estimate (IGE) Recommended Vendors Maintenance Agreements Registration Forms Statement of Work (SOW) 4/10/2019

Mandatory Supply Sources Determined by Office of Contracts LSDBE/CBE Statute requires ALL purchases under $100K shall go to LSDBE/CBE UNLESS Waiver is authorized by Contracting Officer 4/10/2019

Approvals and Comments The block “Include comment and attachment on purchase order” should only be checked by the procurement office Read comment box for any purchase order returned or denied before re-approving When in doubt—CALL Contracts after reading comment box 4/10/2019

Purchase Order The Contracting Officer and/or Purchasing Agent makes final decisions in selecting appropriate vendor Factors include: Mandatory sources of supply (LSDBE, DCSS), lowest price or best value Purchasing Agent will ensure that the vendor receives the Purchase order 4/10/2019

Statement of Work (SOW) Defined A statement of work tells who is making the purchase, what is being bought, what the procurement will achieve, the population to be served and the range of services to be provided. 4/10/2019

Creating a Statement of Work Why is a SOW Important? This is the only method of contractually guaranteeing a level of service for the District when creating a Purchase Order. PO = payment to vendor A PO without a SOW attached = payment regardless of type of service received Especially important for LSDBE vendors! 4/10/2019

Elements of a Statement of Work The Elements of a SOW are: Who What Why When Where How 4/10/2019

SCOPE = WHAT KIS – “Keep It Simple” - Clearly define your need Define ALL technical terms & Govt. Acronyms Describe CLEARLY any & all directions to the contractor to perform tasks, specifications of reporting requirements or a description of deliverable products 4/10/2019

DELIVERABLES – WHEN & WHERE If the SOW orders data/reports, have all descriptions of that data (e.g., format and content) been provided? Does the SOW establish a delivery schedule? 4/10/2019

TECHNICAL REQUIREMENTS - HOW Are the tasks outlined in some logical order? Is it CLEARLY DEFINED – how can the vendor price this out? Are contractor responsibilities CLEARLY DEFINED? How do we monitor? How will the RECEIVER know if the contractor has done its job? 4/10/2019

BACKGROUND - WHY Why does your office/agency need this? For example: OCFO/OMA/Office of Contracts needs temporary scanning support to create an electronic database of FY 07 – FY 09 files to comply with new policies based on internal control directives. 4/10/2019

SOW – Example What we normally see: OCFO/OMA/Office of Contracts needs temporary help to scan documents into an electronic database. What we should see: The Office of the Chief Financial Officer (OCFO), Office of Management and Administration (OMA), Office of Contracts (OC) needs temporary help to scan documents into an electronic database. OC needs temporary scanning support to create an electronic database of FY 07 – FY 09 files to comply with new policies based on internal control directives. The OC needs 2 full-time Temporary staffers for three weeks beginning 10/1/2008 -10/22/2008. The staffers are expected to work eight-hour shifts from 9 a.m. – 5: 30 p.m. They will report to the Director of the OC, Joe Giddis. They will maintain a daily log of each contract file which has been scanned and confirm with Mr. Giddis prior to signing out every day. 4/10/2019

Key Points Is it clear? Check for proper grammar? Spell check? 4/10/2019

LSDBE/CBE--NEW DC Statute 2-218.44 and 2-218.45 requires that each agency shall set aside every contract (PO) of $100K for SBE Exceptions: Office of Contracts… determines in writing that there are not at least 2 responsible certified SBE OR cost to District will be more than 12% of reasonable cost to District. 4/10/2019

SOLE SOURCE CHECKLIST – SMALL PURCHASES How to write a Justification 4/10/2019

MAIN THING YOU NEED TO KNOW ABOUT PPA/DCMR!!!! Does the justification clearly explain why this vendor is the ONLY source to provide the need? Out of time, used vendor last year, historical knowledge DO NOT qualify as a justification! 4/10/2019

Acceptable justifications for sole source under the PPA/DCMR: Only one available source The contract is for the purchase of real property The contract is with a vendor on the GSA or DC Supply schedule Emergency procurement where only one proposal was received (Only the mayor can declare an emergency) 4/10/2019

WHEN PROPRIETARY SOFTWARE The justification must demonstrate one of the following: The requirements cannot be modified to allow for a competitive procurement It is in the best interest of the District to use the sole source procurement The proposed contractor is the only source 4/10/2019

Last Step before It can be Approved! Determination & Finding (D&F) been created by Office of Contracts & given to program office to be signed off on by the Agency Head Agency Head = Deputy CFO, e.g. Lasana Mack, Robert Ebel, Paul Lundquist, Steve Cordi E-mail confirmation is Ok. 4/10/2019

Receiving Report Requisitioner should go into receiving tab within one week of receiving good or service Only receive what has been delivered Invoices must be attached to the receiving report if the vendor is going to get paid Call Financial Operations and give notice that Invoice has been attached to receiving report NO MORE “MAY” INVOICES IN “SEPT”! We should not have to discuss receiving of a May invoice on 9/30! 4/10/2019

SUMMARY LSDBE/CBE requirements Goods and/or Services shall not be delivered and/or performed without having a valid purchase order in place Three (3) written quotes are required for ALL purchases greater than $10,000 Attachments are mandatory or RQ shall be denied 4/10/2019