Procurement and Contracts Overview of the Procurement Process

Chief Purchasing Officer: Opal L. Walls Speaker: Charles E. Mayfield Department of Procurement and Contracts 2

Topics 1. What does the Office of Procurement and Contracts do? 2. What Causes Problems… 3. Procurement Flow Chart 4. Does a Contract Currently Exist? 5. Terms:  Biddable Items  Non-Biddable Items 6. Procedure for Purchasing Biddable Items 3

7. Procedure for Purchasing Non-Biddable Items  Up to $75K  Up to $250K  Over $250K (Formal Solicitation) 8. Procedure for a Request for Proposal (RFP) 9. Procedure for a Request for Qualifications (RFQ) 10. Non-Competitive Procurement (Sole Sourcing) 11. Key Considerations 12. Questions Topics 4

What Does the Office of Procurement and Contracts do?  Procurement Process  Method by which CPS obtains the goods and services needed to efficiently operate CPS  Process is designed to obtain goods and services at the best price in a fair, open, and non-discriminatory manner  Office of Procurement and Contracts  We guide you through the process of purchasing your goods and services while following Illinois Laws and CPS Board Policies  We help in protecting you and CPS from vendor disputes  We assist in trying to prevent future legal problems for you and CPS 5

What Causes Problems…  Avoiding the Procurement Process  Bypassing Board Rules  Stringing  Splitting payments among FYs  Providing inaccurate information  Acting Without Proper Authority  Approve Pay/Ratifications 6

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Does a contract already exist? 7

Does a contract currently exist?  Does Procurement currently have a strategically sourced contract?  Below is a list of commodities that are strategically sourced:  Does another CPS Department currently have a contract?  Audio/Visual Equipment  Computers (Desktops/Notebooks/Servers)  Computer Peripherals  Inkjet & Toner Cartridges  Library Books  Office Supplies  Printing & Reprographic Services  General Educational Supplies  Special Education Supplies  Janitorial Products  School Uniforms  Furniture  Rental Equipment/Supplies  Educational Software 8

Board Report Web Resources Internal Website: Procurement and Contracts Website: 9

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Is it Biddable or Non-Biddable? 10

Terms: Biddable Items  In general, Biddable Items are tangible commodities/ supplies  Examples Include:  Some Services are Biddable:  Appliances  Caps & Gowns  Equipment  Furniture  Janitorial Products  Office Supplies  Sports/Band/Specialty Uniforms  Student/Teacher Planners  Portable X-ray Machines  Busing  Landscaping  Repairs & Maintenance 11

Terms: Non-Biddable Items  In general, Non-Biddable items are professional services or unique commodities  Examples Include:  Copiers  Computer/Telecom Equipment  Court Reporters  Educational Services  Professional Skill  Insurance Policies  Other Gov’t Agencies  Printing of Reports  Textbooks  Utilities 12

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Biddable – What is the Cost? 13 $10K and Under - Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract

Procedure for Purchasing Biddable Items  Purchases under $10K require a Purchase Order prior to goods being received  Purchases over $10K must be advertised for award and require a contract  The procedure below must be followed: User prepares “Solicitation Request Form” from the internal Procurement website Formal Bid Solicitation is managed by Procurement Award is based on the lowest, responsive, responsible bidder; emphasizing lowest price User generates/routes Board Report for Board approval Law Department drafts contract Unit prepares requisition/PO approved 14

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Non-Biddable – What is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract 15

Procedure for Purchasing Non- Biddable Items Up to $75K  Purchases under $25K require a purchase order prior to services being rendered  Purchases ranging from $25,001 to $75K must follow the CPOR procedure below: User prepares a “Request for Quotation Form” from the internal Procurement website Obtains three (3) quotes from three (3) different vendors including signatures using Request for Quotation Form User submits information in the CPO Request on the internal Procurement website Submittal is reviewed by CPO and approved Department of Procurement and Contracts drafts contract Unit prepares requisition/ PO Approved 16

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Non-Biddable – What is the Cost? $75,001 - $250,000 Requires CPOR, Board Report, and Contract 17

Procedure for Purchasing Non- Biddable Items Up to $250K  Purchases ranging from $75,001 to $250K must follow the CPOR procedure below: User prepares a “Request for Quotation Form” from the internal Procurement website Obtain three (3) quotes from three (3) different vendors including signatures using Request for Quotation Form User submits information in CPO Request on the internal Procurement website Submittal is reviewed by CPO and approved User generates/routes Board Report for Board approval Law Department drafts contract User prepares requisition/PO Approval 18

How to Complete a CPOR 19

How to Complete a CPOR 20

How to Complete a CPOR 21

Does a contract already exist? If Yes – contact the Contract Administrator If No – Is it Biddable or Non-Biddable? BiddableWhat is the Cost? $10K and under – Requires Purchase Order $10,001+ Requires Formal Solicitation, Board Report, and Contract Non-BiddableWhat is the Cost? $25K and under – Requires Purchase Order $25,001 - $75,000 Requires CPOR and Contract $75,001 - $250,000 Requires CPOR, Board Report, and Contract $250,001 + Requires Formal Solicitation, Board Report, and Contract Procurement Flow Chart Non-Biddable – What is the Cost? $250,001 + Requires Formal Solicitation, Board Report, and Contract 22

Procedure for Non-Biddable Items Over $250K (Formal Solicitation)  Request for Proposal (RFP): In general, RFPs are used to solicit proposals for specific projects requiring professional services  Request for Qualifications (RFQ): In general, RFQs are used to solicit companies with specific qualifications who possess a high degree of technical expertise to create a pool of vendors for multiple future projects 23

Procedure for a Request for Proposal (RFP) User prepares “Solicitation Request Form” from the internal Procurement website Formal RFP Solicitation is managed by Procurement Review Committee recommends vendor(s) and CPO awards vendor(s) User generates/routes Board Report for Board approval Law Department drafts contract User prepares requisition/PO Approved 24

Procedure for a Request for Qualifications (RFQ) User prepares “Solicitation Request Form” from the internal Procurement website Formal RFQ Solicitation is managed by Procurement Review Committee recommends a pool of vendor(s) and CPO qualifies a pool of vendor(s) User generates/routes Board Report for Board approval Law Department drafts contract Individual project awarded in mini solicitation process Unit prepares requisition/PO Approved 25

How to Request a Formal Solicitation 26

How to Request a Formal Solicitation 27

Non-Competitive Procurement (Sole Sourcing)  On rare occasions, projects may be awarded without using a competitive process (sole sourcing)  Examples:  Patent restrictions apply  Goods/services are available only from a single source 28

Non-Competitive Procurement (Sole Sourcing)  All sole sourcing must be reviewed by the Non- Competitive Procurement Review Committee (NPRC) and must be approved by the Chief Purchasing Officer and the Board  All sole sourcing requests over $25K must complete this process  “Sole Source CPORs” are not permitted  Forms and instructions at: 29

How to Apply for Sole Sourcing 30

How to Apply for Sole Sourcing 31

How to Apply for Sole Sourcing 32

Key Considerations  What would I like to purchase?  Does a contract exist?  Is the purchase biddable or non-biddable?  What is the cost of my purchase?  Should I use the CPOR process (3 quotes) or a formal solicitation (Bid, RFP, RFQ) for my purchase?  Does the purchase require a Board Report?  Is my purchase a sole source item? 33

Purchasing Contacts Opal L. WallsChief Purchasing Officer Brad E. KesslerDeputy Purchasing Officer Craig A. Holloway Charles E. Mayfield Formal Solicitations: Bids, RFPs, RFQs Felicia D. CarwellVendor Relations Matthew B. Steffens Sole Source requests (NPRC), CPORs

Questions 35