2. State Purchasing Forum 2003
Presenters:
Bill King - OGS
Eileen A. Germain - ESD
Wendell R. Ponce - ESD
Mary McDonnell - Labor
Barbara Norton - OSC
Jim Mastromarchi - OGS
State Purchasing Forum 2003

3. State Purchasing Forum 2003
Resources
Matrix of Governing Rules and Regulations
Governing NYS Laws, Rules, Regulations and Other References and Resources
Discretionary and Prior Approval Thresholds
Matrix of Procurement Requirements
Procurement Guidelines
Appendix A and B
Agency Purchasing Flowchart
Batch types-Bulletin G-194, April 3, 2002
State Purchasing Forum 2003

4. The Procurement Process -Bill King
Determining Your Need
Discretionary Purchasing Levels
IFB or RFP
State Purchasing Forum 2003

5. State Purchasing Forum 2003

6. The Agency Purchasing Flowchart
Choices and decisions at each step
Remember the Procurement Record
State Purchasing Forum 2003

7. State Purchasing Forum 2003
To process a request for a needed commodity or service first determine:
Availability from preferred source offerings
Form, function, and utility determination
Purchase from preferred source
List of OGS centralized contracts
Purchase from OGS contract
Not available as needed from either?
Use P Contract number if appropriate.
State Purchasing Forum 2003

8. State Purchasing Forum 2003
Consider anticipated annual $ dollar value of need; if under $50,000…(discretionary purchase)
If under $5,000
then
Justification of price and vendor selection
If $5,000 to $15,000
then
Justification of price and vendor selection
and
Quarterly Listing in NYS Contract Reporter
The procurement record should be complete and clear-OSC may request.
Note Printing Exception- $10,000 limit for OGS without formal competitive bidding,
$5,000 for agencies requires formal competitive bidding.
State Purchasing Forum 2003

9. Fresh eggs, fresh fruits and fresh vegetables
NYS Grower
NYS Producer
NYS Association of Growers and Producers
15 day period, no formal bidding, up to $10,000 each.
Procurement Record should show that you determined that pricing is reasonable and comparable to current market pricing.
State Purchasing Forum 2003

10. Consider anticipated annual $ value of need; if over $15,000 to $50,000…(discretionary purchase)
OSC approval precedes Purchase Order release to vendor
Purchase from small business, certified M/WBE (products or services)(see ) or purchase recycled or remanufactured products (commodities or technology)-NYS Contract Reporter notice required or
Purchase from OGS Small Business Initiative (SBI)- no NYS Contract Reporter notice required (see )
Emerging products and services are also covered under Filed Price Agreements up to $15,000 without competition
State Purchasing Forum 2003

11. State Purchasing Forum 2003

12. Over $15,000 to $50,000… (continued)
Submit Purchase Request form (Proc41) and use OGS procurement services assistance-get Purchase Instructions from OGS or
Use formal competition (IFB), place notice in NYS Contract Reporter
(OGS discretionary purchase)
State Purchasing Forum 2003

13. Consider dollar value of need; if over $50,000…
Single/sole source justification
Piggybacking
Formal competition, and advertisement in the NYS Contract Reporter required
State Purchasing Forum 2003

14. Choosing a method of bidding
Be sure you know what your agency really needs
Is a “low bid” award feasible?
If yes, then use the IFB format
Write a specification that gets to what is needed but is not unduly restrictive
Know what you are saying when you say “or equal”
IFB
RFP
State Purchasing Forum 2003

15. State Purchasing Forum 2003
IFB Essentials
Responsive and responsible offerers
Contract Reporter insertion
Fully defined method of award
Be prepared for tie bids and other glitches
State Purchasing Forum 2003

16. Some tie bid considerations
Price or Discount:
Cash Discount:
Small Business:
NYS resident business:
Principal place of business:
M/WBE:
Purchase Card Card Discount:
Delivery: distance from F.O.B. or days A/R/O
Current/Recent Term Contracts:
Electronic Access Ordering:
800 Phone service:
800 Fax service:
Some tie bid considerations
Basis for decision must be noted in procurement record.
State Purchasing Forum 2003

17. If a “low bid” award is not feasible, use the RFP process
Define the project
Be aware of what consultants may have been used
Explain general parameters that will determine “best value”
Have OSC review the draft RFP
Methodology and evaluation criteria should be documented in Procurement Record and determined at time RFP is being prepared
State Purchasing Forum 2003

18. The RFP process (continued)
Use uninvolved third parties to evaluate offers in addition to purchasing staff.
Allow time for appropriate clarifications and other glitches
Other sessions address RFP process
State Purchasing Forum 2003

19. State Purchasing Forum 2003
Whether IFB or RFP…
No prejudice
All bidders had same opportunity to understand what was asked for
Use an IFB if it is at all possible-much easier to evaluate and award, less potential for problems and delays.
State Purchasing Forum 2003

20. Contract administration
Remember that an award is not the end of the process
Monitor timely purchase order placement
Monitor contractor’s compliance with delivery needs
Monitor product or service for compliance with specifications
Be aware of prompt payment requirement
State Purchasing Forum 2003

21. Contract administration
Make sure that the contractor understands what you need and what has been agreed to
Enforce terms and conditions that were spelled-out clearly in your solicitation
Do not pay for products or services that did not meet requirements
State Purchasing Forum 2003

22. Empire State Development -Eileen A. Germain
Need for “Contract Reporter” Notification
How, When & Where To Place Advertising
CONTRACT REPORTER
State Purchasing Forum 2003

23. Division for Small Business
Procurement Assistance Program
NYS Contract Reporter
Eileen A. Germain

24. State Purchasing Forum 2003
Empire State Development Division for Small Business Procurement Assistance Program
directs business to appropriate agencies and authorities to be placed on bidders lists;
encourages business to be proactive in marketing their product;
conducts workshops statewide with reps from OGS and other state and local facilities; and
helps NYS businesses to become aware of contracting opportunities through the NYS Contract Reporter.
State Purchasing Forum 2003

25. Empire State Development Omnibus Procurement Act
The activities of the Procurement Assistance Program are mandated and guided by the Omnibus Procurement Act (OPA).
OPA levels the playing field for NYS businesses as they compete for State contracts.
State Purchasing Forum 2003

26. Empire State Development New York State Contract Reporter
The Procurement Opportunities Newsletter (New York State Contract Reporter) was created under Article 4-C of the Economic Development Law. Statute mandates:
State agencies, public authorities and public benefit corporations must advertise any bid announcements of $15,000+ in the Contract Reporter.
State agencies must advertise projected purchases between $5,000 and $15,000 by category once each quarter.
SUNY and CUNY must advertise projected purchases between $10,000 and $20,000 by category once each quarter.
State Purchasing Forum 2003

27. Empire State Development New York State Contract Reporter
Statute also mandates:
State agencies, SUNY and CUNY must submit purchasing forecasts of $200,000+ on a semiannual basis.
Also listed is information on who to contact and how to be placed on an agency’s bidders list.
State Purchasing Forum 2003

28. State Purchasing Forum 2003
Empire State Development New York State Contract Reporter
New York State Contract Reporter Publication Schedule is located at
Online submissions must be received by midnight on Monday for publication in that week’s issue. This schedule must be followed unless an exemption has been granted by the Office of the State Comptroller.
Any agency that receives an exemption must still publish a notice of either the letting or award of the contract in the NYS Contract Reporter.
State Purchasing Forum 2003

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30. State Purchasing Forum 2003
Empire State Development New York State Contract Reporter
Online Submission Process
Establish a user profile - name, title, address, phone/fax number and address.
After profile is set up a username / password will be returned by along with instructions on how to submit online.
Your online submission form will contain pre-filled key data which eliminates the need to input each time an ad is submitted.
State Purchasing Forum 2003

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44. Division for Small Business
30 South Pearl Street
Albany, NY 12245
New York State Contract Reporter fax
State Purchasing Forum 2003

45. CERTIFIED MINORITY AND WOMEN’S BUSINESS DEVELOPMENT
EMPIRE STATE DEVELOPMENT CORPORATION
DIVISION OF MINORITY AND
WOMEN’S BUSINESS DEVELOPMENT
NEW YORK STATE
DIRECTORY OF
CERTIFIED MINORITY AND WOMEN’S BUSINESS DEVELOPMENT
-Wendell R. Ponce
State Purchasing Forum 2003

46. HOW TO DO A SEARCH IN THE MWBE DIRECTORY

47. State Purchasing Forum 2003
State Purchasing Forum 2003

48. ECONOMIC DEVELOPMENT REGION (S)
State Purchasing Forum 2003

49. State Purchasing Forum 2003

50. State Purchasing Forum 2003
VARIOUS TYPES
State Purchasing Forum 2003

51. SELECT BUSINESS MARKET AREA(S
State Purchasing Forum 2003

52. SELECT PRODUCT/SIC CODES
State Purchasing Forum 2003

53. SELECT PRODUCT/SIC CODES
State Purchasing Forum 2003

54. State Purchasing Forum 2003
VENDOR SELECTION
State Purchasing Forum 2003

55. State Purchasing Forum 2003
VENDOR SELECTIONS
State Purchasing Forum 2003

56. State Purchasing Forum 2003
SELECTED VENDOR
State Purchasing Forum 2003

57. LOOK UP SEARCH (Individual listings)
State Purchasing Forum 2003

58. LOOK UP SEARCH (Individual listings)
State Purchasing Forum 2003

59. STATE AGENCY USE ONLY – Please call DMWBD at (518) 292-5250
State Purchasing Forum 2003

60. State Purchasing Forum 2003
NETSCAPE USERS
For those who use Netscape – once you’ve done your search go to File click on Page Set Up then check the boxes Black Text & Black lines, click on OK. Go to File again and click on Print.
State Purchasing Forum 2003

61. State Purchasing Forum 2003
*You do not have to select every option. You can be very selective in your search criteria. For example, if you’re only looking for a specific product/service area and in what region/county you’re trying to locate these firms, then only choose that criteria.
State Purchasing Forum 2003

62. Department of Labor Bureau of Public Work Mary McDonnell
What are Prevailing Wage Rates
When To Use Prevailing Wage Rates
Where To Find Them
State Purchasing Forum 2003

63. Prevailing Wage Rates… 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.
State Purchasing Forum 2003

64. Prevailing Wage Rates… How are they determined?
Prevailing rates are based on collectively
bargained agreements. The Department
utilizes those agreements to determine the
rate that covers the type of work activity in
question.
State Purchasing Forum 2003

65. 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)
State Purchasing Forum 2003

66. 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.
State Purchasing Forum 2003

67. 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.
State Purchasing Forum 2003

68. 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
State Purchasing Forum 2003

69. Where to find Prevailing Wage Rate Information
The annual determination is available
on the Department of Labor website (
State Purchasing Forum 2003

70. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

71. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

72. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

73. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

74. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

75. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

76. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

77. Where to find Prevailing Wage Rate Information
The annual determination is available on the Department of Labor website (
State Purchasing Forum 2003

78. Additional Information:
A copy of the current or past year’s Prevailing Wage Rates can be obtained on CD by ing your request to:
Any questions, please contact:
NYS DOL Bureau of Public Work
SOBC – Bldg. 12 – Rm. 130
Albany, NY
Phone (518) Fax (518)
State Purchasing Forum 2003

79. Contract Approval -Barbara Norton
Procurement Record Checklist
Selecting a Contract Type
Quick Contracting
State Purchasing Forum 2003

80. The Procurement Record Checklist-What is it?
An overview of the agency’s procurement record regarding purchases of goods and services under Article 11, State Finance Law:
a clearly defined statement of need
method of procurement
the number of bid responses
listing of all required documentation
appropriate signatures
signature of the person responsible for the purchase evaluation process.
State Purchasing Forum 2003

81. State Purchasing Forum 2003
When To Use It:
The checklist must be included with any transaction for the purchase of commodities or services submitted to OSC for approval.
Any agency required by law to follow the mandates of the State Finance Law would be required to provide a completed PRC for purchases of goods and services.
State Purchasing Forum 2003

82. State Purchasing Forum 2003
How to Use It:
The purchasing officer should complete all relevant entries on the PRC. One checklist should be done for each procurement opportunity regardless of the number of vendors granted an award.
A completed checklist should be part of your bid package.
State Purchasing Forum 2003

83. State Purchasing Forum 2003
Why is it necessary?
Article 11 of the State Finance Law requires that a “Procurement Record” be kept for each acquisition.
State Purchasing Forum 2003

84. How to Select a Contract Type
Purchase Orders
PA Contracts
Contract Agreements
AC-340
State Purchasing Forum 2003

85. State Purchasing Forum 2003
Purchase Orders
One time purchase
Fully encumbered
All relevant terms on the face or attached
Appendix A attached to vendor copy
Purchase Orders have no dollar limitations
Purchase Order is the contract document approved by OSC
Should be used when the transaction is for a one-time purchase. --Purchase Orders must be fully encumbered for the entire amount of the purchase.
-The purchase order forms the contract document. It is the document that OSC approves. Therefore if there are budget constraints or other prohibitions to issuing a purchase order, the agency must hold the documentation until such time as the restriction has been lifted.
-All relevant contract terms regarding delivery time, prompt payment terms, etc. should be on the face of the purchase order or attached to it.
-The vendor’s copy of the purchase order must contain Appendix
A provisions.
-Purchase orders have no dollar limitations. -
State Purchasing Forum 2003

86. Purchase Orders (continued)
OSC approval not required for OGS centralized contract purchases
Contract number must be shown in box labeled Comptroller’s Contract No.
Purchase orders against OGS contracts and containing items purchased under agency discretion do not require OSC approval unless the discretionary items exceed $15000.
-Purchase orders issued pursuant to OGS contracts or PA contracts must indicate the contract number in the “Comptrollers Contract Number” field. Failure to include the contract number when purchases exceed $15,000 may result in the rejection of either the purchase order or the related vouchers.
Added discretionary purchases up to $15,000 do not require pre-approval
State Purchasing Forum 2003

87. State Purchasing Forum 2003
PA Contracts
Used for commodity and printing purchases that exceed agency prior approval threshold
Provides agencies with a “term contract” mechanism
Saves administrative costs
No Purchase Order approval required once PA Contract is approved
State Purchasing Forum 2003

88. Advantages of PA Contracts
No prior approval for PO’s or change notices
Allows value monitoring for future contracting opportunities
No encumbrance required for contract approval
Can cover any contracting method- single/sole source, competitive bid, discretionary purchase, piggybacking agreement, etc.
State Purchasing Forum 2003

89. State Purchasing Forum 2003
Contract Agreements
A full or fiscal year encumbrance is required
An agreement between the State and a vendor must be created and executed
Signed and acknowledged by the vendor, signed by agency, AG, and OSC
Used for service, revenue, construction, etc.
State Purchasing Forum 2003

90. State Purchasing Forum 2003
The AC340
Is used when increasing the value of a contract (use an ECC batch when the purpose is solely to encumber funds)
To change an address (with additional documentation required)
The AC340 is also used to create a contract based on a CM master contract or a CMS single/sole source contract. (use your agency’s code, not that of the host agency)
State Purchasing Forum 2003

91. State Purchasing Forum 2003
Quick Contracting
A mechanism that agencies can adopt to have certain contracts processed through OSC with a two-day turnaround time
State Purchasing Forum 2003

92. Quick Contracting may apply to…
Service and equipment contracts
Commodities
Printing
Construction
State Purchasing Forum 2003

93. State Purchasing Forum 2003
Quick contracting criteria for service, equipment and construction contracts
Pre-submit boilerplate contract for OSC approval and filing
Approved boilerplate will be basis for all subsequent quick contracts
Agencies with multiple facilities must use boilerplate submitted by main office
State Purchasing Forum 2003

94. QC-construction contract requirements
Competitive bid
Minimum three bids
Less than three, canvass no bids
Low bid within 15% of engineering estimate
No dollar limit
No rejections, withdrawals or exceptions taken
State Purchasing Forum 2003

95. Quick contracting criteria for commodities and printing
PA contracts
OGS P contracts
Purchase orders
Any purchases requiring a separate agreement must adhere to boilerplate approval and filing specified for service contracts
State Purchasing Forum 2003

96. QC-commodity and printing
Contract value cannot exceed $500,000
Competitive bid IFB
Minimum ten bids solicited
Minimum two bids from responsive and responsible offerers for all items
If two bids, difference not to exceed 20%, and “no bid” canvass required
No rejections, withdrawals or exceptions
*PLEASE NOTE: all awarded items, whether by item, lot, region etc must meet the minimum requirements in order to qualify for quick contracting.
State Purchasing Forum 2003

97. QC-miscellaneous services and equipment
No maximum dollar threshold
Contract competitively bid via IFB
Three or more bids received and considered for each item
Contract awarded to low bidder
No rejections, withdrawals or exceptions
No changes to approved boilerplate
State Purchasing Forum 2003

98. QC-OSC pre-audit requirements
Procurement Record Checklist
Completed and signed certification form
Proof of Contract Reporter ad when required
Method of award and bid tabulation
Encumbrance of contract or purchase order unless P contract
Properly signed contract instrument
Refer to G-201 for QC for miscellaneous services and equipment, and G-163 for QC for commodity and printing transactions
State Purchasing Forum 2003

99. Some Keys to a Successful Approval!
Make sure that:
the transaction is correctly batched, please review the new batch types – G194),
your transaction is properly encumbered and signed by an authorized signatory,
all the required documentation is included in the bid package.
State Purchasing Forum 2003

100. Procurement in New York State
Integrity of the process
An equal playing field for the vendor
A clear audit trail
State Purchasing Forum 2003

101. Now you are ready to move on…
If you think of a question, go to
Or contact OGS-
Or call -
Barbara Norton at OSC (518)
Eileen A. Germain at ESD (518)
Wendell R. Ponce at ESD (518)
Mary McDonnell at Labor (518)
State Purchasing Forum 2003