1. PURCHASING 101 SECTION 1 - How to Begin

2. Is the purchase available from your agency or from other state agencies? ⋆ State Surplus Property ⋆ State Fleet Operations ⋆ Utah Correctional Industries ⋆ State Mail and Distribution ⋆ Department of Technology Services ⋆ State Print Services Note: These agencies may have mandatory use requirements. Any questions, please contact State Purchasing or agency directly. Does your agency have a current agency contract? If so, purchase directly from the contract. If not, determine if another state agency can supply the item/service and meet the minimum requirements:

3. Is the Purchase on a State Cooperative Contract? Agencies are required to use State Cooperative Contracts (regardless of dollar amount) when the contract offers products/services that meet agency requirements. You can access a list of the State Cooperative Contracts on the purchasing website at: www.purchasing.utah.gov. Click on the “State Contracts” link. www.purchasing.utah.gov

4. Is the Total Purchase Less than $1,000 ? The item/service is not available by another state agency and a State Cooperative Contract does not exist: Agency may select the best source without seeking competitive quotes, however, since this is public funds, Purchasing encourages you to get quotes.

5. Is the Total Purchase Greater than $1,000 and Less than $5,000? Item/service is not available from another state agency and a State Cooperative Contract does not exist: Agency shall obtain competitive quotes and purchase item/service from supplier offering the lowest quote meeting specifications. Two quotes required but three quotes preferred. Quotes must be attached to the purchase documentation and maintained as part of agency records (for auditing purposes).

6. Is the Total Purchase Greater than $5,000? Follow all your Department/Agency Internal Rules. In Finet, enter a RQS (results in a purchase order), or a RQM (results in an agency contract), for the Division of Purchasing to complete a competitive solicitation. Make sure the Finet entry includes a description of the item/service to be purchased as well as an approximate dollar amount. E-mail detailed specifications to State Purchasing Agent. Please include quantity required, date required (if applicable), delivery location, including any other pertinent information required in the procurement. E-mail a suggested list of recommended suppliers (if known) including contact information, e-mail address and phone number.

7. Section ll Common Procurement Methods Request for Information (RFI) Request for Quotation (RFQ) Invitation for Bid (IFB) Multi-Step Bid (MSB) Request for Proposal (RFP) Sole Source Work with the State Purchasing Agent to determine which method is best for your requirements. Templates for Multi-Step Bid, Request for Proposal and Sole Source are available at: http://purchasing.utah.gov/forms/index.html

8. Request for Information (RFI): Use: Surveying the Marketplace to Assist with Future Specification Development No Pricing is to be Requested No Award Agencies are not required to send RFI’s through State Purchasing.

9. Request for Quotation (RFQ) Use: Low Dollar/Risk; May be Written or Verbal (Telephone or E-mail Quotes) A mandatory public posting is not required (determined by Purchasing Agent) Method of Award: Low cost quote meeting minimum bid specifications

10. Invitation for Bid (IFB): Use: Solicitations where requirements are well defined and detailed for goods and/or services. - Formal Process at Division of Purchasing - Written Documents - Public Openings Bid must be posted for a minimum of 10 calendar days. Method of Award: Determine which bidder can provide the goods/services in accordance with the minimum specifications, in the time required at the lowest price.

11. Multi-Step Bid Process (MSB) Use: Obtain benefits of the Competitive Sealed Proposal procedure through the solicitation of technical offers and Invitation for Bid procedure through pricing offered. Combination of the RFP and IFB process Step one – Technical evaluation process Step two – Award Process based on price Method of Award: Two phase/step process Step one – Technical Proposal (any vendor meeting the technical requirements moves to step two). Step two – Bid Process (low bid receives award)

12. Request for Proposal (RFP) Uses: Specifications can’t be clearly defined. Several possible solutions May meet agency needs. Cost is only one factor in determining award. Method of Award: Best Offer (Best Value) Point Based Evaluation (determined before RFP is posted). Evaluation Team Evaluation: Technical Evaluation (per criteria and points posted in the RFP specifications) Cost Proposal Evaluation Opportunity for Best and Final Offers (BAFO) Award to Offeror receiving the Highest Total Points

13. Sole Source Procurement A Product or Service Unique and Easily Established as One of a Kind R33-3-401 Conditions for use of sole source procurement. Sole source procurement shall be used only if a requirement is reasonably available from a single supplier. A requirement for a particular proprietary item does not justify a sole source procurement if there is more than one potential bidder or offeror for that item. Examples of a Sole Source: Manufactured and marketed by a person or firm having exclusive right to manufacture and sell the product (it is not a sole source if multiple distributors exist). Purchase requires written justification from the using agency. Purchases greater than $1,000 must be pre-approved by the division of purchasing using the Sole Source Request Form located at: http://purchasing.utah.gov/contract/documents/solesourcerequestform.doc

14. Sole Source Determination All sole source requests estimated to be $50,000 and above must be posted for public comment, by State Purchasing, through an electronic bidding system. Questions to ask regarding sole source: Can program requirements be modified so that competitive products or services may be used? Is product available from only one source and not merchandised through wholesalers, jobbers or retailers? Must items be interchangeable or compatible with in-place items? Item/Service is unique and possesses specific characteristics that can be filled by only one source.

15. Competition and Ethics Section lll Your Responsibility : Make sure specifications are written to obtain adequate competition (vendors should not write specifications). Planning a Procurement – Allow sufficient time to follow internal procedures and State Purchasing requirements and procedures. (Lack of planning on your part does not justify an emergency on our part) If You Don’t Know – Please Ask State Purchasing Keep Good Documentation on your Purchases

16. Be Independent Act Only in the Public Interest You are a Trustee of the Public’s Money Follow the Law Strive for Efficiency Do Not Accept Gifts from Vendors Do Not Socialize with Vendors Maintain Confidentiality Do Not Play Favorites

17. State Purchasing Agents/Commodities For assistance or additional information, click on the link below for a list of the State Purchasing Agents (including specific assigned commodities). http://purchasing.utah.gov/directories/documents/agentlist.pdf

18. PURCHASING FLOW CHART