1. Questions? Call OGS Customer Services at (518) 474-6717 Basic Purchasing Governor David A. Paterson Commissioner John C. Egan

2. Questions? Call OGS Customer Services at (518) 474-6717 Definitions Procurement: Acquisition of goods or services Contract: written agreement formalizing obligation of parties involved Commodity - Goods, supplies, products Service - Performance of a task Technology – good or service that results in a technical method of achieving a practical purpose

3. Questions? Call OGS Customer Services at (518) 474-6717 State’s Procurement Process Article 11 State Finance Law Promote Competition while keeping the process “Fair and Open” Ensure fair and open competition – optimal solution at a reasonable price Guard against favoritism, improvidence, extravagance, fraud and corruption; Ensure that the results meet agency needs; Provide for checks and balances to regulate and oversee agency procurement activities; and Protect the interests of the state and its taxpayers.

4. Questions? Call OGS Customer Services at (518) 474-6717 Order of Purchasing Priority First: Preferred Source offerings Second:OGS centralized commodity contracts Third: Agency or multi-agency established contracts Fourth: “Open Market” procurement that can either be discretionary or result from a formal, competitive bidding process based on the total value of the procurement

5. Questions? Call OGS Customer Services at (518) 474-6717 Select Procurement Method

6. Questions? Call OGS Customer Services at (518) 474-6717 #1 Preferred Sources Department of Correctional Services (CORCRAFT) Approved non-profit agencies for the blind (Industries for the Blind) Approved non-profit agencies for severely disabled (NYSID), qualified special employment programs for the mentally ill and qualified veteran’s programs Applies to both Services and Commodities A1 Preferred Sources

7. Questions? Call OGS Customer Services at (518) 474-6717 Some of the Items Offered by Preferred Sources FurnitureJanitorial Toner CartridgesWindow Cleaning Janitorial SuppliesTemp Office Work Office SuppliesCD Rom Replicating School SuppliesWarehousing FlagsCall Center Personal Care Items Food and Beverages

8. Questions? Call OGS Customer Services at (518) 474-6717 #1 Preferred Sources Preferred Source pricing may be up to 15% more than market price (approved by OGS) If a commodity or service is offered by one of these organizations, you must purchase provided that the commodity or service meets your form, function and utility.

9. Questions? Call OGS Customer Services at (518) 474-6717 #1 Preferred Sources The minimum essential requirements that will meet the agency’s needs as defined by the agency. Requirements may include quality, quantity, delivery terms, packaging, performance standards and compatibility among others. Form Function and Utility Defined

10. Questions? Call OGS Customer Services at (518) 474-6717 #1 Preferred Sources Must provide written notification to the preferred source Preferred source has 10 days Preferred source may agree, disagree, not respond Document your decision in your procurement record Exemption

11. Questions? Call OGS Customer Services at (518) 474-6717 #2 OGS Centralized Commodity Contracts Commodity contracts are mandatory, service and technology contracts are not. 2,500+ active procurement contracts $5 billion in contract value 1 to thousands of items on a single contract Centralized Contracts- Contracts let by OGS for use by State agencies or other authorized users for the purchase of commodities or services

12. Questions? Call OGS Customer Services at (518) 474-6717 OGS contracts meet competitive bid requirements – issue a Purchase Order Reduce or eliminate the time required to research specifications Significant savings over market prices –statewide volume = better prices OGS OR LESS Best & Final #2 OGS Centralized Commodity Contracts Benefits of Using OGS Contracts

13. Questions? Call OGS Customer Services at (518) 474-6717 OGS Website A6 Navigating the OGS Website www.ogs.state.ny.us

14. Questions? Call OGS Customer Services at (518) 474-6717 Web-based (e-mail) Contract award notifications Contract updates Important Commodity Information Unlimited, free registration Select only those classifications of interest to you. OGS Purchaser Notification Service

15. Questions? Call OGS Customer Services at (518) 474-6717 OGS Purchaser Notification Service http://www.ogs.state.ny.us/PNS/default.asp Register as New or Update Your Registration

16. Questions? Call OGS Customer Services at (518) 474-6717 Read the Contract: How to Use this Contract Read about the pricing Read the Terms and Conditions Confer with Experts: Call the contractor Call the OGS Purchasing Officer listed on the contract award notice. Call OGS Customer Services Attend the State Purchasing Forum OGS Helpful Hints for Contract Use

17. Questions? Call OGS Customer Services at (518) 474-6717 #3Agency or Multiagency Established Contracts For commodities, services or technology that may not be covered by OGS centralized contract or preferred source offerings Must receive approval from OGS to use another agency contract Depending on estimated spend and what is being purchased agency may need to establish its own contract.

18. Questions? Call OGS Customer Services at (518) 474-6717 #4 Discretionary Purchases

19. Questions? Call OGS Customer Services at (518) 474-6717 Contract Terminology IFB - RFP Single or Multiple Award Competitively Bid Backdrop Contract Sole Source Single Source Piggyback Emergency

20. Questions? Call OGS Customer Services at (518) 474-6717 Invitation for Bid Method of award is based solely on price Single or Multiple Award Competitively Bid This method is required for commodity purchases It may be used for services if lowest price = best value

21. Questions? Call OGS Customer Services at (518) 474-6717 Request for Proposal Competitively Bid Award is based on best value –price is not the only factor for determining award –Award will be based on cost and technical factors –Bidder offers solution to the need identified in the RFP. A3 -RFP Basics A4 RFP Workshop

22. Questions? Call OGS Customer Services at (518) 474-6717 Contract Types Not Competitively Bid Sole Source Contracts - only vendor that can meet the need. Single Source Contracts – more than one can provide, but agency has determined that it is in the best interest of the state to procure from one vendor.

23. Questions? Call OGS Customer Services at (518) 474-6717 Contract Types Piggyback Contracts- contract based on another government entity contract Emergency Contracts- health & safety requires at least 3 quotes

24. Questions? Call OGS Customer Services at (518) 474-6717 OGS pre-qualifies companies based on qualifications via periodic/continuous recruitment. Prices established are “not-to-exceed” pricing. When agency identifies a need a mini-bid is conducted by the agency. Award can be made by lowest price or best value. Usually OGS contract numbers starting with CMS or CMT indicate mini-bids necessary. Backdrop Contracts-Minibid

25. Questions? Call OGS Customer Services at (518) 474-6717 Mini-Bid Process Most contracts include templates that can be used to create Project Definition, to include the following. Overview—general description of project, including context within issuing agency’s mission. Project Scope—using agency’s expectations –Identify and define project requirements & deliverables. Project Methodology—how the resulting project will be conducted, including –Compliance with terms of back-drop contract & –Project payment method. Instructions for submitting bid.

26. Questions? Call OGS Customer Services at (518) 474-6717 Mini-Bid Process Review list of eligible contractors on OGS website and follow instructions for that back-drop contract regarding solicitation distribution. No advertisement required as solicitation is limited to pre-approved vendors. Using agency select winning contractor based on method of Award/Evaluation criteria outlined in Project Definition. Using agency responsible for contract administration.

27. Questions? Call OGS Customer Services at (518) 474-6717 Tasks to be done/considered when developing your own bid: Contract Reporter over $15,000 A7 Contract Reporter MWBE Goals S4 MWBE Prevailing Wages S2 Contract Components Vendor Responsibility S5 VendRep Attorney General Approval DOB B-1184 approval State Comptroller Approval S2 Contract Components Other Contract Requirements

28. Questions? Call OGS Customer Services at (518) 474-6717 #4 Discretionary Purchases S6 Discretionary Purchasing Purchases that do not require competitive bidding You must still consider Preferred Source and OGS Centralized Contracts before making an open market purchase Most agencies $50,000 threshold Purchase Card or Purchase Order S9 Procurement Card Provides opportunity for MWBE and small business participation (limits increased to $100,000) Your agency may have their own policies related to discretionary purchases

29. Questions? Call OGS Customer Services at (518) 474-6717 #4 Discretionary Purchases You must still advertise in the contract reporter for items over $15,000 A7 – Contract Reporter OSC approval is required for purchases over $50,000 DOB Approval (B1184 Process) http://www.budget.state.ny.ushttp://www.budget.state.ny.us Document your decisions in your procurement record

30. Questions? Call OGS Customer Services at (518) 474-6717 www.ogs.state.ny.us Procurement Council Guidelines State Finance Law OGS Contract Listings Preferred Source Listings Bid Opportunities Bid Results

31. Questions? Call OGS Customer Services at (518) 474-6717 New York State Office of General Services Procurement Services Group Customer Services: (518) 474-6717 customer.services@ogs.state.ny.us www.ogs.state.ny.us WWW.OGS.STATE.NY.US Contact Us