1. Presented by Rennette Apodaca MPA, CPPO New Mexico State University
Procurement 101
Presented by
Rennette Apodaca MPA, CPPO
New Mexico State University

2. Agenda History of Procurement Legal Framework Ethics
Methods of Source Selections
Other Info
Questions

3. History of Procurement
Uniform Commercial Code - UCC
ABA Model Procurement Code
Objective
Function
Goal

4. Legal Framework Federal laws/Acts/Regulations State laws Local laws
Administrative
Common laws
Policies
Procedures

5. Ethics What are Ethics? What are Ethical Principles?
Why are Ethics crucial?

6. Government Ethics
The main purpose of ethics laws lies not in punishing wrongdoing, but in preventing it, not in catching people, but in teaching them. In ethics, education is the name of the game.
Mark Davies

7. Ethics Program Code of Ethics Ethics Commission Ombudsman
Ethics Education
Hotlines

8. What can we do? Recognize and reward ethical behavior
Set the ethical example
Accountability mechanisms should encourage ethical behavior by making unethical behavior hard to commit and easy to detect.
Ethics in Procurement
New Mexico Anti-Donation Clause
Kickbacks, Gratuities
Freedom of Information

9. Discussion
One local agency had a motor pool with a dedicated fleet of vehicles. The motor pool occasionally reordered new vehicles from the state contract to replace older vehicles in the fleet. Upon seeing the state contract price in one requisition for 10 vehicles to replenish the fleet, the Director informed the Buyer to change the quantity on the order from 10 to 11. The extra car would be for the Director’s personal use. The Director said he would write a personal check, when the vehicle is delivered.

10. Source Selection Small purchase Sole Source Emergency
Non-Competitive
Formal/Competitive
Small purchase
Sole Source
Emergency
Invitation to Bid
Request for Proposals

11. Small Purchase Best obtainable price Purchase card/Blanket Orders
Represent 80% of procurement volume

12. Discussion
A Fire Department with multiple fire stations has a manager at one of the stations that is responsible for maintenance and up keep for all the stations. Over a two year period, the manager awarded 27 contracts worth more than $85,000 to a company owned by his son. Many of the contracts were just under $5,000 requiring competition. Investigations identified a pattern of routine contracts falling under that threshold to his son’s company.

13. Discussion
Ethical Dilemma: “splitting” purchases so that they can be made though less competitive processes

14. Sole Source
Occurs when only one vendor or supplier possesses the unique ability or capability to meet the particular requirements of the solicitation.
Other factors: 30 day pre-award notification

15. Discussion
Ethical Dilemma: Requesting or making a sole source purchase when competition is available

16. Emergency An emergency situation exists which creates:
The functioning of government
The preservation or protection of property; or
The health or safety of any persons
Ethical Dilemma: requesting or making emergency purchase when no true emergency exists
Other factors: Sunshine Laws

17. Utilizing Existing Contracts
“Piggy back” – State of New Mexico Pricing Agreements
NMSA A-2-B
Cooperative Agreements – CES; US Communities; WSCA;TCPN
NMSA
GSA
NMSA A-1

18. Small Purchase – Professional Services
"Professional services" means the services of architects, archeologists, engineers, surveyors, landscape architects, medical arts practitioners, scientists, management and systems analysts, certified public accountants, registered public accountants, lawyers, psychologists, planners, researchers, construction managers and other persons or businesses providing similar professional services, which may be designated as such by a determination issued by the state purchasing agent or a central purchasing office.

19. Other Information Procurement of Used items-NMSA 13-1-155
Payment for purchases-NMSA
Specification Writing – NMSA
Protests – NMSA to NMSA

20. Procurement 101
Questions????????????