12 th ANNUAL PURCHASING FORUM Searching For Savings May 18 & 19, 2011 PREFERRED SOURCE PANEL DISCUSSION

Panelists Michael Elmendorf, NYS DOCS (Corcraft) Deputy Director, Sales and Marketing Richard Healey, IBNYS President and CEO Joe Messina, NYSID Vice President of Sales Panel Discussion Q&A- Presenters/Audience Presenter Don Greene, NYS OGS Acting Director, Procurement Services Group

NYS Finance Law (SFL § 162) Purpose To advance special social and economic goals, certain providers have “preferred source” status under the law. The acquisition of commodities and/or services from preferred sources are exempted from statutory competitive procurement requirements (of SFL § 163). What is the Preferred Source Program?

NYS Finance Law (§ a & 4.a) requires purchasing priority be given to the preferred sources for commodities and services, respectively. The purchase of [commodities|services]… shall be conducted in a manner which accords first priority topreferred sources in accordance with the provisions of this article… What About Competitive Procurement Requirements?

Applicability and Scope All state agencies, political subdivisions and public benefit corporations (including most public authorities) are required to purchase approved products and services from preferred sources. Purchases from preferred sources take precedence over all other sources of supply and competitive procurement methods. Who Is Required to Purchase From Preferred Sources?

Preferred Source status is accorded to: Corcraft Commodities produced by the NYS DOCS, Correctional Industries Program. IBNYS Commodities and Services produced by qualified, charitable, non-profit- making agency for the blind, approved by the Commissioner of Social Services. NYSID Commodities and Services produced by qualified, charitable, non-profit- making agency for the severely disabled persons, approved by the Commissioner of Education. Buy OMH Commodities and Services produced by any special employment program serving mentally ill persons, operated by facilities within the Office of Mental Health and approved by the Commissioner of Mental Health. Who Are The Preferred Sources?

List of Preferred Source Offerings established and maintained by OGS Contains offerings and the specific preferred source(s) approved for the offering New or substantially different commodities or services are added to the list pending action by the Procurement Council and approval of Commissioner of OGS How Do I Know Who Offers What?

Priority Among Preferred Sources Commodities and Services available in the form, function and utility required by a State agency, political subdivision or public benefit corporation must be purchased from preferred sources in the following prioritized order: Commodities 1 st – Corcraft 2 nd – IBNYS 3 rd – NYSID or Buy OMH Services Equal Priority – if more than 1 preferred source meets the requirements, cost shall be the determining factor. Which Preferred Source Do I Purchase From?

What is the Preferred Source Procurement Process? Determine/define agency need for a commodity or service Determine/define agency need for a commodity or service Review the current List of Preferred Source Offerings Review the current List of Preferred Source Offerings If offering on List, determine whether it meets agency form, function and utility required. If offering on List, determine whether it meets agency form, function and utility required. If offering meets agency needs/requirements, proceed with purchase from preferred source If offering meets agency needs/requirements, proceed with purchase from preferred source If offering not on List, proceed with purchase from centralized contract or appropriate competitive procurement If offering not on List, proceed with purchase from centralized contract or appropriate competitive procurement If offering does not meet agency needs/requirements, the 10 day notification requirement applies If offering does not meet agency needs/requirements, the 10 day notification requirement applies Complete Needs Assessment Preferred Sources Are needs met by Preferred Sources? Are needs met by Centralized Contract ? Centralized Contract Are needs met by Competitive Bid? SINGLE SOURCE SOLE SOURCE STRATEGIC PARTNERSHIP BUILD IT YOURSELF Competitive Bid IFBRFP Yes No Yes Or

Broadly interpret the generic List of Preferred Source Offerings Make reasonable efforts to notify preferred source of agency needs and initiate discussion of needs To apply the form, function and utility standard, define the commodity/service in terms of the minimal essential requirements Consult directly with the preferred source to gain additional information and/or discuss potential accommodations to meet agency needs How Do I Determine Whether They Meet My Needs?

Does the preferred source offering meet either agency specifications or industry standards which may be applicable? Are deviations from specifications minor? Will the product suffice, or could the service be made to suffice, or will the offering substantially meet agency requirements for function and performance? Are delivery schedules, installation requirements, start-up lead times and performance standards reasonable, necessary and within accepted commercial practices? Has the preferred source been consulted? Can they make necessary accommodations to meet agency needs? Form, Function, and Utility Considerations

NYS Finance Law, Article XI, State Purchasing Preferred Source Guidelines List of Preferred Source Offerings Procurement Council and Procurement Guidelines Procurement Guidelines How or Where Do I Get Additional Information?

CORCRAFT Division of Industries New York State Department of Correctional Services

WHY BUY FROM CORCRAFT? Quality products, priced right, backed by a wide array of services and competitive warranties Quality products, priced right, backed by a wide array of services and competitive warranties Dedicated to customer service Dedicated to customer service Provides a social benefit by training offenders in skilled jobs to help them reenter society Provides a social benefit by training offenders in skilled jobs to help them reenter society New York State’s #1 Preferred Source as designated by NYS Finance Law New York State’s #1 Preferred Source as designated by NYS Finance Law Overrides state contracts and local purchasing regulations Overrides state contracts and local purchasing regulations Eliminates need for time consuming and protracted competitive bidding Eliminates need for time consuming and protracted competitive bidding

And many thanks for your business through the years….

Michael J. Elmendorf Deputy Director – Sales & Marketing Corcraft Ext 2605

YOUR CUSTOMER SOLUTIONS BUSINESS PARTNER Think outside of our catalog….and let IBNYS serve your needs

Benefits of Preferred Source Competitive Bidding Requirements Waived Saving Considerable Time and Money Goods are Already Approved by NYS OGS Compliance with New York State Finance Law Supersedes all Contracts and all Local Regulations Benefits the People and Economy of New York State Provides Employment to Hundreds of New Yorkers Who Spend their Wages and Pay Taxes in NY State Decreases Dependency on Public Assistance Programs Your Purchases Support Fellow New Yorkers Retaining Jobs

Industries for the Blind of New York State, Inc. Exists to Work in Cooperation with Affiliated Agencies to Serve New Yorkers Who are Blind and Visually- Impaired by Facilitating and Creating Employment Opportunities MISSION

Your orders provide meaningful employment opportunities for New Yorkers who are blind or visually impaired. THANK YOU!!

Richard Healey President and CEO Industries for the Blind of New York State (800)

NYSID Warehousing and Distribution Consolidated product shipping 75% of orders shipped within 2 days More than 63,000 units shipped each month

NYSID Preferred Source Services Data Imaging & Micrographics Electronics Recycling Food Services Furniture Refurbishment Industrial Laundry (See for complete selection)

NYSID Preferred Source Services Janitorial & Grounds Keeping Mail Fulfillment Messenger & Delivery Secure Document Destruction Temporary Staff Support (See for complete selection)

Preferred Source Solutions for State & Local Government A single source for hundreds of products and services that support agency goals Procurement choices, including customized goods and services, at prices approved by the NYS Office of General Services Relief from the costly, time- consuming bidding process Consistent quality and delivery performance

NYSID Preferred Source Products Custodial Items including Environmentally Safe Cleaners Foods & Beverages Health & Patient Care Office & School Uniforms, General & Custom- Printed Apparel (See for complete selection)

Preferred Source procurement satisfies government purchasers’ obligation to comply with the New York State Finance Law’s [Article 11, Section 162] mandatory requirement to purchase approved goods and services provided by New Yorkers with disabilities through NYSID. Legislatively Mandated, Economically Sound

What’s more, Preferred Source jobs contribute to reduced public assistance costs thru economically independent workers, and increased government tax revenues from employed vs. dependent individuals. Everyone benefits from Preferred Source purchasing -- workers on the job, supportive customers, and the entire New York State community!

New York State Department of Correctional Industries (Corcraft) phone: fax: ext Industries for the Blind of New York State (IBNYS) phone: fax: New York State Industries for the Disabled (NYSID) phone: fax: New York State OGS Procurement Services Group (PSG) phone: fax: Who Can I Contact Regarding Preferred Sources?

Don Greene - NYS OGS Michael Elmendorf - NYS DOCS (Corcraft) Richard Healey - IBNYS Joe Messina - NYSID Panel Discussion Q&A- Presenters/Audience