1. OGS Procurement Services Group 2006 State Purchasing Forum Learning the Purchasing Basics - A

2. 2006 Purchasing Forum – Learning the Purchasing Basics - A Larry Klein Procurement Services Group Office of General Services larry.klein@ogs.state.ny.us (518) 474-1350 OGS Website: www.ogs.state.ny.us Presenter’s Contact Information

3. 2006 Purchasing Forum – Learning the Purchasing Basics - A Welcome and Introductions Course Overview – Learning the Purchasing Basics – Session A General Information Session Time Hush Sounds Ask Questions Listen, Learn, and Enjoy Agenda

4. 2006 Purchasing Forum – Learning the Purchasing Basics - A Glossary of Terms Governing NYS Laws, Rules, Regulations and Other References and Resources Discretionary and Prior Approval Thresholds Procurement Requirements Procurement Guidelines Appendix A and B Agency Purchasing Flowchart Resources

5. 2006 Purchasing Forum – Learning the Purchasing Basics - A Determining your need Discretionary Purchasing Levels IFB or RFP The Procurement Process

6. 2006 Purchasing Forum – Learning the Purchasing Basics - A Choices and decisions at each step Remember the Procurement Record The Agency Purchasing Flowchart

7. 2006 Purchasing Forum – Learning the Purchasing Basics - A Complete Needs Assessment Commodities, Services and Technologies Selecting a Procurement Method Are needs met by Preferred Sources? Preferred Sources Yes Centralized Contract Are needs met by Centralized Contract? Are needs met by Competitive Bid? Competitive Bid While more than one contractor could meet needs, could agency provide substantial basis for selecting a single contractor? SINGLE SOURCE Build It Yourself STRATEGIC PARTNERSHIP SOLE SOURCE IFB RFP Would only one contractor meet needs? Is price the sole criterion for selection, provided contractors satisfy minimum specifications? No Best Value Acquisition Sharing Existing Contract Resources Or Developing new P/S w/existing Contractor

8. 2006 Purchasing Forum – Learning the Purchasing Basics - A Determine Form, function, and utility determination Availability from preferred source offerings/Purchase from preferred source Check list of OGS Centralized Contracts/Purchase from OGS Centralized Contract Not available as needed from either? Process a Request for a Needed Commodity or Service

9. 2006 Purchasing Forum – Learning the Purchasing Basics - A Not subject to State’s competitive bidding requirements $15,000 $50,000 for most State agencies $15,000 to $50,000 $50,000 to $100,000 if purchased from NYS small business, M/WBE or recycled/remanufactured products Guidelines on website at: www.ogs.state.ny.us/procurecounc/pdfdoc/ Discretionarypurchasingguidelines8-17.pdf Discretionary Purchases

10. 2006 Purchasing Forum – Learning the Purchasing Basics - A Under $15,000 $50,000: Procurement record must support selection of vendor and reasonableness of price Must advertise quarterly in the Contract Reporter for anticipated purchases between $5,000-$15,000 Discretionary Purchases

11. 2006 Purchasing Forum – Learning the Purchasing Basics - A $15,000 - $50,000: Procurement record must support selection of vendor and reasonableness of price Must advertise in Contract Reporter Discretionary Purchases

12. 2006 Purchasing Forum – Learning the Purchasing Basics - A Choosing a Method of Bidding IFB or RFP? Be sure you know what your agency really needs Write a specification that gets to what is needed but is not unduly restrictive Formal Competition

13. 2006 Purchasing Forum – Learning the Purchasing Basics - A Responsive and responsible offerors Contract Reporter insertion Fully defined method of award Be prepared for tie bids and other glitches IFB Essentials

14. 2006 Purchasing Forum – Learning the Purchasing Basics - A Use the RFP Process Define the project Explain general parameters that will determine “best value” Have OSC review the draft RFP If a “Low Bid” Award is Not Feasible

15. 2006 Purchasing Forum – Learning the Purchasing Basics - A Level Playing Field Whether IFB or RFP

16. 2006 Purchasing Forum – Learning the Purchasing Basics - A Online listing of bid opportunities worth $15,000 or more; Maintains a level playing field; Official source of New York State government bid solicitations; and Procurement resource for the business community. What is the Contract Reporter?

17. 2006 Purchasing Forum – Learning the Purchasing Basics - A NYS agencies, public authorities, and public benefit corporations are required to publish: Bid solicitations of $15,000 or more; Quarterly anticipated procurements of $5,000 - $15,000 (Agencies) and $10,000 - $20,000 (SUNY/CUNY); Instructions of how to be placed on bid lists (with quarterly report); and Knowing and following applicable statute – Article 4-C. What Am I Responsible For?

18. 2006 Purchasing Forum – Learning the Purchasing Basics - A Visit www.nyscr.org and click on NYS Finance Laws -- See Article 4-C Procurement Opportunities Newsletter. Contact Information

19. 2006 Purchasing Forum – Learning the Purchasing Basics - A Contact your agency administrator to establish a user profile for you. Go to www.nyscr.org.www.nyscr.org View the tutorials, user guide, FAQs. Become familiar with the site and submit a “test ad” (just delete it after successful submission). How Do I Submit a Bid Solicitation Online?

20. 2006 Purchasing Forum – Learning the Purchasing Basics - A Guidelines may be found at the NYS Contract Reporter website: NYS Finance Laws, Article 4-C OSC Bulletin No. G-107B Procurement Opportunities Newsletter OSC approves/denies exemption and notifies the Contract Reporter. Bid info must still appear in the Contract Reporter (w/o proposal due date). What if I Have an Exemption?

21. 2006 Purchasing Forum – Learning the Purchasing Basics - A Website Address: www.empire.state.ny.us How to Do a Search in the MWBE Directory

22. 2006 Purchasing Forum – Learning the Purchasing Basics - A To access the webpage – Click NY Loves Biz Doing Business in New York. Once in the New Attitudes New Opportunities New York page click on Small & Growing Businesses on the left and select minority and women-owned business in the drop down list. Go to the second bullet (Minority and Women- Owned Business Certification) and select “Search the Directory” and you will be taken directly into the MWBE Automated Directory. How to Do a Search in the MWBE Directory

23. 2006 Purchasing Forum – Learning the Purchasing Basics - A Please call DMWBD (Division of Minority and Women Owned Business Development) at (518) 292-5250 to get your password State Agency Use Only

24. 2006 Purchasing Forum – Learning the Purchasing Basics - A What are they? Prevailing Wage Rates are the wages and supplements to be paid and/or provided to laborers, workers and mechanics employed on a public work project. Prevailing Wage Rates

25. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates How are they determined? Prevailing rates are based on collectively bargained agreements. The Department of Labor utilizes those agreements to determine the ratethat covers the type of work activity in question.

26. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates When are they determined? The prevailing rate of wages and supplements are determined annually on July 1 of each year and are effective through June 30, i.e. July 1, 2002 – June 30, 2003. (Article 8, Section 220, subd. 5a)

27. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates When should they be used? Prevailing Wage Rates must be used on any public work project. Generally, projects for construction, reconstruction or maintenance done on behalf of a public agency (entity) are public work.

28. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates When should they be used? The Contracting Agency must provide the prime contractor with a copy of the appropriate prevailing wage schedule. Be sure to list PRC# in solicitation.

29. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates When should they be used? State law requires that these schedules be made part of all contracts between a government entity and a contractor. (Article 8, Section 220, Subdivision 3)

30. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates Which Rates Apply? Work involving the employment of laborers, workers or mechanics is subject to Article 8. Building service workers, i.e., janitorial services, are covered under Article 9 of the New York State Labor Law.

31. 2006 Purchasing Forum – Learning the Purchasing Basics - A Prevailing Wage Rates Which Work Classification Applies? The Bureau of Public Work looks at all factors to determine classification, including: Nature of the work Collective bargaining agreements Jurisdictional agreements Jurisdictional decisions Historical practice Past DOL recognition Case law precedents

32. 2006 Purchasing Forum – Learning the Purchasing Basics - A The annual determination is available on the Department of Labor website: www.labor.state.ny.us Where to Find Prevailing Wage Rate Information

33. 2006 Purchasing Forum – Learning the Purchasing Basics - A A copy of the current or past year’s Prevailing Wage Rates can be obtained on CD by e-mailing your request to: nysdol@labor.state.ny.us Any questions, please contact: NYSDOL Bureau of Public Work SOBC – Building 12, Room 130 Albany, NY 12210 Phone: (518) 457-5589 Fax: (518) 485-1870 Additional Information

34. 2006 Purchasing Forum – Learning the Purchasing Basics - A Questions and Answers ?

35. 2006 Purchasing Forum – Learning the Purchasing Basics - A Larry Klein Procurement Services Group Office of General Services larry.klein@ogs.state.ny.us (518) 474-1350 OGS Website: www.ogs.state.ny.us Presenter’s Contact Information